Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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 | 56,387,671 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
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, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 317,818 | $ 1,121,757 |
Securities available-for-sale ("AFS") | 238,982 | 1,201,777 |
Securities held-to-maturity ("HTM") | 884,061 | |
Allowance for credit losses - investments | (11,519) | (10,399) |
Net securities | 1,111,524 | 1,191,378 |
Loans held for sale | 501,436 | |
Loans held for investment | 10,355,420 | 6,906,728 |
Allowance for credit losses - loans | (32,900) | (33,776) |
Net loans | 10,322,520 | 6,872,952 |
Investment in FHLB stock | 31,203 | 18,249 |
Deferred taxes | 24,210 | 20,835 |
Premises and equipment, net | 36,607 | 37,920 |
Real estate owned ("REO") | 6,210 | 6,210 |
Goodwill and intangibles | 222,290 | 222,125 |
Other assets | 256,481 | 203,342 |
Total Assets | 12,328,863 | 10,196,204 |
Liabilities: | ||
Deposits | 9,549,856 | 8,811,960 |
Borrowings | 1,496,456 | 210,127 |
Accounts payable and other liabilities | 160,586 | 110,066 |
Total Liabilities | 11,206,898 | 9,132,153 |
Shareholders' Equity | ||
Common Stock | 56 | 56 |
Additional paid-in-capital | 719,955 | 720,744 |
Retained earnings | 415,507 | 340,976 |
Accumulated other comprehensive (loss) income | (13,553) | 2,275 |
Total Shareholders' Equity | 1,121,965 | 1,064,051 |
Total Liabilities and Shareholders' Equity | $ 12,328,863 | $ 10,196,204 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest income: | ||||
Loans | $ 100,978 | $ 56,781 | $ 255,037 | $ 166,291 |
Securities | 6,752 | 4,606 | 19,733 | 14,739 |
FHLB Stock, fed funds sold and interest-bearing deposits | 1,016 | 602 | 3,091 | 1,500 |
Total interest income | 108,746 | 61,989 | 277,861 | 182,530 |
Interest expense: | ||||
Deposits | 15,595 | 2,753 | 25,293 | 10,763 |
Borrowings | 5,479 | 49 | 8,597 | 441 |
Total interest expense | 21,074 | 2,802 | 33,890 | 11,204 |
Net interest income | 87,672 | 59,187 | 243,971 | 171,326 |
Provision for credit losses | (22) | (417) | (641) | (13) |
Net interest income after provision for credit losses | 87,694 | 59,604 | 244,612 | 171,339 |
Noninterest income: | ||||
Asset management, consulting and other fees | $ 8,975 | $ 9,313 | $ 29,065 | $ 26,410 |
Type of Revenue [Extensible List] | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember |
Gain on sale of loans | $ 18,135 | $ 21,459 | ||
Other income | $ 3,209 | 3,232 | $ 11,946 | 8,754 |
Total noninterest income | 12,184 | 30,680 | 41,011 | 56,623 |
Noninterest expense: | ||||
Compensation and benefits | 29,531 | 23,241 | 86,986 | 64,970 |
Occupancy and depreciation | 9,594 | 6,427 | 26,975 | 18,297 |
Professional services and marketing costs | 3,039 | 2,700 | 9,486 | 8,729 |
Customer service costs | 13,560 | 2,512 | 19,959 | 6,635 |
Other expenses | 4,618 | 3,514 | 13,359 | 9,891 |
Total noninterest expense | 60,342 | 38,394 | 156,765 | 108,522 |
Income before taxes on income | 39,536 | 51,890 | 128,858 | 119,440 |
Taxes on income | 10,530 | 14,664 | 35,700 | 33,805 |
Net income | $ 29,006 | $ 37,226 | $ 93,158 | $ 85,635 |
Net income per share: | ||||
Basic | $ 0.51 | $ 0.83 | $ 1.65 | $ 1.91 |
Diluted | $ 0.51 | $ 0.83 | $ 1.65 | $ 1.90 |
Shares used in computation: | ||||
Basic | 56,387,451 | 44,819,743 | 56,441,305 | 44,773,683 |
Diluted | 56,447,901 | 45,002,937 | 56,510,883 | 44,977,863 |
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, 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 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 loss | (2,008) | (2,008) | |||
Stock based compensation | 573 | 573 | |||
Cash dividend | (4,039) | (4,039) | |||
Exercise of options | 1,061 | 1,061 | |||
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 | ||||
Beginning balance at Dec. 31, 2021 | $ 56 | 720,744 | 340,976 | 2,275 | 1,064,051 |
Beginning balance (in shares) at Dec. 31, 2021 | 56,432,070 | ||||
Net income | 93,158 | 93,158 | |||
Other comprehensive loss | (15,828) | (15,828) | |||
Stock based compensation | 2,770 | 2,770 | |||
Cash dividend | (18,627) | (18,627) | |||
Exercise of options | 18 | 18 | |||
Exercise of options (in shares) | 2,000 | ||||
Stock grants - vesting of restricted stock units (in shares) | 134,374 | ||||
Repurchase of shares from restricted shares vesting | (1,120) | (1,120) | |||
Repurchase of shares from restricted shares vesting (in shares) | (43,190) | ||||
Stock repurchases | (2,457) | (2,457) | |||
Stock repurchases (Shares) | (137,583) | ||||
Ending balance at Sep. 30, 2022 | $ 56 | 719,955 | 415,507 | (13,553) | 1,121,965 |
Ending balance (in shares) at Sep. 30, 2022 | 56,387,671 | ||||
Beginning balance at Jun. 30, 2022 | $ 56 | 719,222 | 392,704 | (9,073) | 1,102,909 |
Beginning balance (in shares) at Jun. 30, 2022 | 56,386,914 | ||||
Net income | 29,006 | 29,006 | |||
Other comprehensive loss | (4,480) | (4,480) | |||
Stock based compensation | 733 | 733 | |||
Cash dividend | (6,203) | (6,203) | |||
Stock grants - vesting of restricted stock units (in shares) | 1,000 | ||||
Repurchase of shares from restricted shares vesting (in shares) | (243) | ||||
Ending balance at Sep. 30, 2022 | $ 56 | $ 719,955 | $ 415,507 | $ (13,553) | $ 1,121,965 |
Ending balance (in shares) at Sep. 30, 2022 | 56,387,671 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED | ||||
Net income | $ 29,006 | $ 37,226 | $ 93,158 | $ 85,635 |
Other comprehensive income (loss): | ||||
Unrealized holding gains (losses) on securities arising during the period | (12,576) | (2,837) | (20,307) | (7,519) |
Other comprehensive income (loss) before tax | (12,576) | (2,837) | (20,307) | (7,519) |
Income tax benefit (expense) related to items of other comprehensive income | 8,096 | 829 | 4,479 | 2,199 |
Other comprehensive income (loss) | (4,480) | (2,008) | (15,828) | (5,320) |
Total comprehensive income | $ 24,526 | $ 35,218 | $ 77,330 | $ 80,315 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Cash Flows from Operating Activities: | |||||
Net income | $ 93,158 | $ 85,635 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Provision for credit losses - loans | (1,761) | (2,865) | |||
Provision for credit losses - securities AFS | $ 293 | $ 1,000 | 1,120 | 2,853 | $ 3,154 |
Stock-based compensation expense | 2,770 | 2,202 | |||
Depreciation and amortization | 3,056 | 2,477 | |||
Deferred tax expense (benefit) | 944 | (445) | |||
Amortization of premium on securities | 2,392 | 750 | |||
Amortization of core deposit intangible | 1,458 | 1,213 | |||
Amortization of mortgage servicing rights - net | 1,566 | 1,370 | |||
Gain on sale of loans | (18,135) | (21,459) | |||
Amortization of OCI - securities transfer to HTM | (851) | ||||
Valuation allowance on mortgage servicing rights - net | (747) | 2,134 | |||
Increase in other assets | (32,636) | (34,876) | |||
Increase in accounts payable and other liabilities | 29,772 | 31,151 | |||
Net cash provided by operating activities | 100,241 | 70,140 | |||
Cash Flows from Investing Activities: | |||||
Net increase in loans | (2,947,628) | (1,063,500) | |||
Proceeds from sale of loans | 580,417 | ||||
Purchase of premises and equipment | (4,007) | (2,556) | |||
Disposals of premises and equipment | 3,388 | ||||
Recovery of allowance for credit losses | 355 | 864 | |||
Purchases of securities AFS | (398) | (306,267) | |||
Purchases of securities HTM | (171,852) | ||||
Proceeds from sale of securities | 3,500 | ||||
Maturities of securities AFS | 24,775 | 207,423 | |||
Maturities of securities HTM | 202,899 | ||||
Net increase in FHLB stock | (12,954) | ||||
Proceeds from BOLI policy | 326 | ||||
Net cash used in investing activities | (2,905,096) | (580,119) | |||
Cash Flows from Financing Activities: | |||||
Increase in deposits | 737,896 | 931,545 | |||
Net increase (decrease) in FHLB advances | 1,144,000 | (255,000) | |||
Line of credit net change - borrowings, net | (18,500) | (1,500) | |||
Net increase in subordinated debt | 147,623 | ||||
Net increase in repurchase agreements | 13,206 | ||||
Gain on sale leaseback | (1,123) | ||||
Dividends paid | (18,627) | (12,089) | |||
Proceeds from exercise of stock options | 18 | 1,880 | |||
Repurchase of stock | (3,577) | (1,188) | |||
Net cash provided by financing activities | 2,000,916 | 663,648 | |||
Increase (decrease) in cash and cash equivalents | (803,939) | 153,669 | |||
Cash and cash equivalents at beginning of year | 1,121,757 | 629,707 | 629,707 | ||
Cash and cash equivalents at end of period | $ 317,818 | $ 783,376 | 317,818 | 783,376 | $ 1,121,757 |
Supplemental disclosures of cash flow information: | |||||
Income taxes | 31,016 | 27,683 | |||
Interest | 32,078 | 12,873 | |||
Noncash transactions: | |||||
Transfer of loans to loans held for sale | 555,085 | ||||
Transfer of securities from available-for-sale to held-to-maturity | 916,777 | ||||
Goodwill acquisition adjustment | 1,623 | ||||
Right of use lease assets and liabilities recognized | $ 21,649 | ||||
Mortgage servicing rights from loan sales | $ 2,726 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2022 | |
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 2022 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, 2021. Certain reclassifications have been made to the prior year consolidated financial statements to conform to the 2022 presentation. New Accounting Pronouncements In March 2022, the Financial Accounting Standards Board (“FASB”) issued ASU 2022-02, “ Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures” Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors Financial Instruments – Credit Losses on Financial Instruments 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” |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2022 | |
ACQUISITIONS | |
ACQUISITIONS | NOTE 2: ACQUISITIONS On December 17, 2021, the Company completed the acquisition of TGR Financial, Inc. (“TGRF”) and its wholly owned subsidiary, First Florida Integrity Bank, through a merger of TGRF with and into FFI followed immediately by the merger of First Florida Integrity Bank with and into FFB, in exchange for 11,352,232 shares of FFI common stock with a fair value of $24.93 per share. The acquisition was accounted for under the purchase method of accounting. The acquired assets, assumed liabilities and identifiable intangible assets are recorded at their respective acquisition date fair values. Goodwill arising from the acquisition consists largely of the synergies and economies of scale expected from combining TGRF into FFI. None of the goodwill recognized is expected to be deductible for income tax purposes. The following table represents the assets acquired and liabilities assumed of TGRF as of December 17, 2021 and the fair value adjustments and amounts recorded by the Company in 2021 under the acquisition method of accounting: TGRF Book Fair Value (dollars in thousands) Value Adjustments Fair Value Assets Acquired: Cash and cash equivalents $ 1,145,335 $ 5 $ 1,145,340 Securities AFS 147,739 109 147,848 Securities held-to-maturity 71,790 2,115 73,905 Loans, net of deferred fees 1,045,193 (5,387) 1,039,806 Investment in FHLB stock 4,510 — 4,510 Premises and equipment, net 34,199 (4,180) 30,019 Goodwill and intangibles 181 129,850 130,031 Bank owned life insurance 46,163 — 46,163 Deferred taxes 3,414 738 4,152 Other assets 13,562 (298) 13,264 Total assets acquired $ 2,512,086 $ 122,952 $ 2,635,038 Liabilities Assumed: Deposits $ 2,170,676 $ 313 $ 2,170,989 Borrowings 177,114 1,929 179,043 Accounts payable and other liabilities 7,386 182 7,568 Total liabilities assumed 2,355,176 2,424 2,357,600 Excess of assets acquired over liabilities assumed 156,910 120,528 277,438 Total $ 2,512,086 $ 122,952 $ 2,635,038 Consideration: Stock issued $ 283,011 Cash paid 10 Total consideration (1) $ 283,021 (1) The difference between total consideration and the excess of assets acquired over liabilities assumed relates to the recognition of a credit loss reserve for non-PCD loans of $5.6 million, which is recognized as an expense in the consolidated income statement on the acquisition date. In many cases, the fair values of assets acquired and liabilities assumed were determined by estimating the cash flows expected to result from those assets and liabilities and discounting them at appropriate market rates. The most significant category of assets for which this procedure was used was that of acquired loans. The excess of expected cash flows above the fair value (Level 3 inputs) of the majority of loans will be accreted to interest income over the remaining lives of the loans in accordance with Accounting Standards Codification (“ASC”) 310-20. The fair values are estimates and are subject to adjustment for up to one year after the merger date. Certain loans, for which specific credit-related deterioration since origination was identified, are recorded at fair value reflecting the present value of the amounts expected to be collected. Income recognition on these purchased credit deteriorated (“PCD”) loans is based on a reasonable expectation about the timing and amount of cash flows to be collected. Acquired loans deemed impaired and considered collateral dependent, with the timing of the sale of loan collateral indeterminate, remain on nonaccrual status and have no accretable yield. All PCD loans were classified as accruing loans as of and subsequent to the acquisition date. In accordance with generally accepted accounting principles there was no carryover of the allowance for credit losses that had been previously recorded by TGRF. The Company recorded a deferred income tax asset of $4.2 million related to the acquisition of TGRF, including operating loss carry-forwards of $0.1 million that are subject to limitation under Section 382 of the Internal Revenue Code. The fair value of savings and transaction deposit accounts acquired from TGRF were assumed to approximate their carrying value as these accounts have no stated maturity and are payable on demand. Certificates of deposit accounts were valued by comparing the contractual cost of the portfolio to an identical portfolio bearing current market rates (Level 2 inputs). The portfolio was segregated into pools based on remaining maturity. For each pool, the projected cash flows from maturing certificates were then calculated based on contractual rates and prevailing market rates. The valuation adjustment for each pool is equal to the present value of the difference of these two cash flows, discounted at the assumed market rate for a certificate with a corresponding maturity. This valuation adjustment will be accreted to reduce interest expense over the remaining maturities of the respective pools. The Company also recorded a core deposit intangible, which represents the value of the deposit relationships acquired from TGRF, of $3.3 million. The core deposit intangible will be amortized over a period of 10 years. Pro Forma Information (unaudited) The following table presents unaudited pro forma information for the nine months ended September 30, 2021, as if the acquisition of TGRF had occurred on January 1, 2021, after giving effect to certain adjustments. The unaudited pro forma information for this period includes adjustments for interest income on loans acquired, amortization of intangibles arising from the transaction, adjustments for interest expense on deposits acquired, and the related income tax effects of all these items and the income tax costs or benefits derived from the income or loss before taxes of TGRF. The net effect of these pro forma adjustments was an increase of $0.5 million and $1.5 million in net income for the three and nine months ended September 30, 2021, respectively. The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed dates. Three Months Ended Nine Months Ended (dollars in thousands) September 30, 2021 September 30, 2021 Net interest income $ 73,154 $ 213,840 Provision for credit losses 5,170 16,742 Noninterest income 32,171 60,645 Noninterest expenses 61,263 178,582 Income before taxes 38,892 79,161 Taxes on income 10,614 21,345 Net income $ 28,278 $ 57,816 Net income per share: Basic $ 0.51 $ 1.03 Diluted $ 0.50 $ 1.03 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 3: 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, 2022: Investment securities available for sale: Collateralized mortgage obligations $ 9,275 $ — $ 9,275 $ — Agency mortgage-backed securities 8,164 — 8,164 — Municipal bonds 45,200 — 45,200 — SBA securities 20,622 — 20,622 — Beneficial interests in FHLMC securitization 8,289 — — 8,289 Corporate bonds 135,096 — 135,096 — U.S. Treasury 817 817 — — Investment in equity securities 16,029 — — 16,029 Total assets at fair value on a recurring basis $ 243,492 $ 817 $ 218,357 $ 24,318 December 31, 2021: Investment securities available for sale: Collateralized mortgage obligations $ 13,825 $ — $ 13,825 $ — Agency mortgage-backed securities 928,989 — 928,989 — Municipal bonds 52,146 — 52,146 — SBA securities 27,972 — 27,972 — Beneficial interests in FHLMC securitization 11,580 — — 11,580 Corporate bonds 156,376 — 156,376 — U.S. Treasury 490 490 — — Investment in equity securities 16,025 16,025 — — Total assets at fair value on a recurring basis $ 1,207,403 $ 16,515 $ 1,179,308 $ 11,580 The increase in Level 3 assets from December 31, 2021, was due to a reclassification of investment in equity securities, which was partially offset by securitization paydowns and $1.1 million in provisions for credit losses in the first nine months of 2022. 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 December 31, 2021, respectively. There were $0.7 million in specific reserves related to these loans at September 30, 2022 and no specific reserves at December 31, 2021. 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 Investment Securities Available for Sale classified as Level 3 and reliance is placed upon internally developed models, and management judgment and evaluation for valuation. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Securities classified as Level 3 include beneficial interests in FHLMC securitizations and investment in equity securities. Significant assumptions in the valuation of these Level 3 securities as of September 30, 2022 and December 31, 2021 included prepayment rates ranging from 35% to 45% and discount rates ranging from 8.07% to 10.00%. Investment in Equity Securities. 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, 2022: Assets: Cash and cash equivalents $ 317,818 $ 317,818 $ — $ — $ 317,818 Securities AFS, net 227,463 817 218,357 8,289 227,463 Securities HTM 884,061 — 784,807 — 784,807 Loans, net 10,322,520 — — 10,139,514 10,139,514 Investment in FHLB stock 31,203 — 31,203 — 31,203 Investment in equity securities 16,029 — — 16,029 16,029 Liabilities: Deposits $ 9,549,856 $ 8,716,345 $ 826,176 $ — $ 9,542,521 Borrowings 1,496,456 1,323,136 — 156,531 1,479,667 December 31, 2021: Assets: Cash and cash equivalents $ 1,121,757 $ 1,121,757 $ — $ — $ 1,121,757 Securities AFS, net 1,191,378 490 1,179,308 11,580 1,191,378 Loans held for sale 501,436 — 515,978 — 515,978 Loans, net 6,872,952 — — 7,072,878 7,072,878 Investment in FHLB stock 18,249 — 18,249 — 18,249 Investment in equity securities 16,025 16,025 — — 16,025 Liabilities: Deposits $ 8,811,960 $ 8,143,473 $ 668,487 $ — $ 8,811,960 Borrowings 210,127 165,930 — 44,197 210,127 |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2022 | |
SECURITIES | |
SECURITIES | NOTE 4: 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, 2022: Collateralized mortgage obligations $ 10,500 $ — $ (1,225) $ — $ 9,275 Agency mortgage-backed securities 8,798 — (634) — 8,164 Municipal bonds 50,397 — (5,197) — 45,200 SBA securities 20,725 8 (111) — 20,622 Beneficial interests in FHLMC securitization 19,677 138 (7) (11,519) 8,289 Corporate bonds 145,079 — (9,983) — 135,096 U.S. Treasury 898 — (81) — 817 Total $ 256,074 $ 146 $ (17,238) $ (11,519) $ 227,463 December 31, 2021: Collateralized mortgage obligations $ 13,862 $ — $ (37) $ — $ 13,825 Agency mortgage-backed securities 928,546 6,563 (6,120) — 928,989 Municipal bonds 52,052 94 — — 52,146 SBA securities 27,970 2 — — 27,972 Beneficial interests in FHLMC securitization 21,606 373 — (10,399) 11,580 Corporate bonds 154,027 2,441 (92) — 156,376 U.S. Treasury 499 — (9) — 490 Total $ 1,198,562 $ 9,473 $ (6,258) $ (10,399) $ 1,191,378 As of September 30, 2022, U.S. Treasury securities of $0.9 million included in the table above are pledged as collateral to the State of California to meet regulatory requirements related to the Bank’s trust operations, $222.1 million of agency mortgage-backed securities are pledged as collateral as support for the Bank’s obligations under loan sales and securitizations agreements entered into from 2018 and 2021, and $187.6 million of securities are pledged as collateral for repurchase agreements obtained from the TGRF acquisition. The following table provides a summary of the Company’s securities HTM portfolio as of: Amortized Gross Unrecognized Allowance for Estimated (dollars in thousands) Cost Gains Losses Credit Losses Fair Value September 30, 2022: Agency mortgage-backed securities $ 884,061 — (99,254) $ — $ 784,807 Total $ 884,061 $ — $ (99,254) $ — $ 784,807 There were no securities HTM as of December 31, 2021. The Company reassessed classification of certain securities AFS and effective January 1, 2022, the Company transferred $917 million in securities AFS to securities HTM. The securities were transferred at their amortized cost basis, net of any remaining unrealized gain or loss reported in accumulated other comprehensive income. The related unrealized loss of $0.6 million included in other comprehensive income remained in other comprehensive income to be amortized, with an offsetting entry to interest income as a yield adjustment through earnings over the remaining term of the securities. Subsequent to transfer, the ACL on these securities was evaluated under the accounting policy for securities HTM. We monitor the credit quality of these securities by evaluating various quantitative attributes. The credit quality indicators the Company monitors include, but are not limited to, credit ratings of individual securities and the credit rating of government sponsored enterprises that guarantee the securities. Credit ratings express opinions about the credit quality of a security. Securities rated investment grade, that is, those with ratings similar to BBB-/Baa3 or above, as defined by NRSROs, are generally considered by the rating agencies and market participants to be investment grade. As of September 30, 2022, all the Company’s securities were either investment grade or were issued by a U.S. government agency or a U.S. government sponsored enterprise with an investment grade rating. The tables below indicate, as of September 30, 2022, and December 31, 2021, the gross unrealized losses and fair values of our investments AFS, 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, 2022 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Value Loss Value Loss Value Loss Collateralized mortgage obligations $ 9,275 $ (1,225) $ — $ — $ 9,275 $ (1,225) Agency mortgage-backed securities 8,164 (634) — — 8,164 (634) Municipal bonds 45,200 (5,197) — — 45,200 (5,197) SBA securities 17,353 (111) — — 17,353 (111) Beneficial interests in FHLMC securitization 4,240 (7) — — 4,240 (7) Corporate bonds 117,180 (7,899) 17,916 (2,084) 135,096 (9,983) U.S. Treasury 373 (26) 444 (55) 817 (81) Total temporarily impaired securities $ 201,785 $ (15,099) $ 18,360 $ (2,139) $ 220,145 $ (17,238) Securities with Unrealized Loss at December 31, 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 Collateralized mortgage obligations $ 12,971 $ (37) $ — $ — $ 12,971 $ (37) Agency mortgage-backed securities 434,973 (5,051) 36,136 (1,069) 471,109 (6,120) Municipal bonds 2,025 — — — 2,025 — SBA securities 501 — — — 501 — Corporate bonds 47,880 (92) — — 47,880 (92) U.S. Treasury 491 (9) — — 491 (9) Total temporarily impaired securities $ 498,841 $ (5,189) $ 36,136 $ (1,069) $ 534,977 $ (6,258) 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 our allowance for credit losses related to securities for the following periods: (dollars in thousands) Total Three Months Ended September 30, 2022: Beginning balance $ 11,226 Provision for credit losses 293 Balance: September 30, 2022 $ 11,519 Nine Months Ended September 30, 2022: Beginning balance $ 10,399 Provision for credit losses 1,120 Balance: September 30, 2022 $ 11,519 Year Ended December 31, 2021: Beginning balance $ 7,245 Provision for credit losses 3,154 Balance: December 31, 2021 $ 10,399 Due to a change in expected cash flows of interest only strip securities, $0.3 million and $1.1 million in provisions were taken in the three and nine months ended September 30, 2022, respectively, and $1.0 million and $2.9 million in provisions were taken in the three and nine months ended September 30, 2021, respectively. The allowances were included as a charge in provision for credit losses on the consolidated income statement. The ACL on investment securities is determined for both held-to-maturity and available-for-sale classifications of the investment portfolio in accordance with ASC 326, and is evaluated on a quarterly basis. The ACL for held-to-maturity investment securities is determined on a collective basis, based on shared risk characteristics, and is determined at the individual security level when the Company deems a security to no longer possess shared risk characteristics. Under ASC 326-20, for investment securities where the Company has reason to believe the credit loss exposure is remote, such as those guaranteed by the U.S. government or government sponsored entities, a zero loss expectation is applied and a company is not required to estimate and recognize an ACL. For securities AFS in an unrealized loss position, the Company first evaluates whether it intends to sell, or whether it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of these criteria regarding intent or requirement to sell is met, the security amortized cost basis is written down to fair value through income. If neither criteria is met, the Company is required to assess whether the decline in fair value has resulted from credit losses or noncredit-related factors. In determining whether a security’s decline in fair value is credit related, the Company considers a number of factors including, but not limited to: (i) the extent to which the fair value of the investment is less than its amortized cost; (ii) the financial condition and near-term prospects of the issuer; (iii) downgrades in credit ratings; (iv) payment structure of the security, and (v) the ability of the issuer of the security to make scheduled principal and interest payments. If, after considering these factors, the present value of expected cash flows to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit loss is recorded through income as a component of provision for credit loss expense. If the assessment indicates that a credit loss does not exist, the Company records the decline in fair value through other comprehensive income, net of related income tax effects. The Company has made the election to exclude accrued interest receivable on securities from the estimate of credit losses and report accrued interest separately on the consolidated balance sheets. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of a security is confirmed or when either of the criteria regarding intent or requirement to sell is met. 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, 2022 Amortized Cost: Collateralized mortgage obligations $ — $ — $ 688 $ 9,812 $ 10,500 Agency mortgage-backed securities — 3,737 3,378 1,683 8,798 Municipal bonds 303 5,379 35,553 9,162 50,397 SBA securities 15 1,575 1,431 17,704 20,725 Beneficial interests in FHLMC securitization — 10,185 — 9,492 19,677 Corporate bonds 6,013 10,002 123,531 5,533 145,079 U.S. Treasury — 898 — — 898 Total $ 6,331 $ 31,776 $ 164,581 $ 53,386 $ 256,074 Weighted average yield 2.77 % 2.05 % 3.52 % 2.23 % 3.05 % Estimated Fair Value: Collateralized mortgage obligations $ — $ — $ 616 $ 8,659 $ 9,275 Agency mortgage-backed securities — 3,531 3,137 1,496 8,164 Municipal bonds 298 4,877 32,616 7,409 45,200 SBA securities 15 1,571 1,427 17,609 20,622 Beneficial interests in FHLMC securitization — 10,185 — 9,623 19,808 Corporate bonds 5,995 9,102 115,694 4,305 135,096 U.S. Treasury — 817 — — 817 Total $ 6,308 $ 30,083 $ 153,490 $ 49,101 $ 238,982 Less than 1 Through 5 Through After (dollars in thousands) 1 Year 5 years 10 Years 10 Years Total December 31, 2021 Amortized Cost: Collateralized mortgage obligations $ — $ 710 $ 802 $ 12,350 $ 13,862 Agency mortgage-backed securities — 4,990 24,568 898,988 928,546 Municipal bonds — 1,625 38,853 11,574 52,052 SBA securities 70 1,613 2,952 23,335 27,970 Beneficial interests in FHLMC securitization — 11,902 — 9,704 21,606 Corporate bonds 9,534 10,519 128,438 5,536 154,027 U.S. Treasury — 499 — — 499 Total $ 9,604 $ 31,858 $ 195,613 $ 961,487 $ 1,198,562 Weighted average yield (2.28) % 2.06 % 3.03 % 1.63 % 1.84 % Estimated Fair Value: Collateralized mortgage obligations $ — $ 710 $ 799 $ 12,316 $ 13,825 Agency mortgage-backed securities — 5,082 25,056 898,851 928,989 Municipal bonds — 1,704 38,865 11,577 52,146 SBA securities 70 1,613 2,953 23,336 27,972 Beneficial interests in FHLMC securitization — 11,902 — 10,077 21,979 Corporate bonds 9,529 10,499 130,754 5,594 156,376 U.S. Treasury — 490 — — 490 Total $ 9,599 $ 32,000 $ 198,427 $ 961,751 $ 1,201,777 The following is a summary of scheduled maturities of securities HTM and the related weighted average yields as of: Less than 1 Through 5 Through After (dollars in thousands) 1 Year 5 years 10 Years 10 Years Total September 30, 2022 Amortized Cost: Agency mortgage-backed securities $ — $ 119 $ 18,841 $ 865,101 $ 884,061 Total $ — $ 119 $ 18,841 $ 865,101 $ 884,061 Weighted average yield — % 0.27 % 1.03 % 2.09 % 2.07 % Estimated Fair Value: Agency mortgage-backed securities $ — $ 110 $ 16,892 $ 767,805 $ 784,807 Total $ — $ 110 $ 16,892 $ 767,805 $ 784,807 There were no securities HTM as of December 31, 2021. |
LOANS
LOANS | 9 Months Ended |
Sep. 30, 2022 | |
LOANS | |
LOANS | NOTE 5: LOANS The following is a summary of our loans as of: September 30, December 31, (dollars in thousands) 2022 2021 Outstanding principal balance: Loans secured by real estate: Residential properties: Multifamily $ 5,088,695 $ 2,886,055 Single family 989,258 933,445 Total real estate loans secured by residential properties 6,077,953 3,819,500 Commercial properties 1,236,577 1,309,200 Land and construction 144,787 156,028 Total real estate loans 7,459,317 5,284,728 Commercial and industrial loans 2,874,827 1,598,422 Consumer loans 5,155 10,834 Total loans 10,339,299 6,893,984 Premiums, discounts and deferred fees and expenses 16,121 12,744 Total $ 10,355,420 $ 6,906,728 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, 2022: Real estate loans: Residential properties $ 247 $ — $ 30 $ 2,586 $ 2,863 $ 6,093,610 $ 6,096,473 Commercial properties 2,182 — 1,028 4,162 7,372 1,227,962 1,235,334 Land and construction 1,478 — — — 1,478 142,293 143,771 Commercial and industrial loans 590 211 80 4,488 5,369 2,869,287 2,874,656 Consumer loans — — — 4 4 5,182 5,186 Total $ 4,497 $ 211 $ 1,138 $ 11,240 $ 17,086 $ 10,338,334 $ 10,355,420 Percentage of total loans 0.04 % 0.00 % 0.01 % 0.11 % 0.16 % December 31, 2021: Real estate loans: Residential properties $ 1,519 $ 310 $ — $ 3,281 $ 5,110 $ 3,827,385 $ 3,832,495 Commercial properties 2,934 — — 1,529 4,463 1,305,112 1,309,575 Land and construction — — — — — 155,926 155,926 Commercial and industrial loans 303 260 — 3,520 4,083 1,593,782 1,597,865 Consumer loans — — — — — 10,867 10,867 Total $ 4,756 $ 570 $ — $ 8,330 $ 13,656 $ 6,893,072 $ 6,906,728 Percentage of total loans 0.07 % 0.01 % — % 0.12 % 0.20 % 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, 2022: Real estate loans: Residential properties $ — $ 2,586 Commercial properties — 4,162 Commercial and industrial loans 2,140 2,348 Consumer loans — 4 Total $ 2,140 $ 9,100 December 31, 2021: Real estate loans: Residential properties $ — $ 3,281 Commercial properties — 1,529 Commercial and industrial loans 1,733 1,787 Total $ 1,733 $ 6,597 The following table presents the loans classified as troubled debt restructurings (“TDR”) by accrual and nonaccrual status as of: September 30, 2022 December 31, 2021 (dollars in thousands) Accrual Nonaccrual Total Accrual Nonaccrual Total Residential loans $ — $ — $ — $ 1,200 $ — $ 1,200 Commercial real estate loans 953 1,093 2,046 1,021 1,174 2,195 Commercial and industrial loans 95 1,470 1,565 493 2,030 2,523 Total $ 1,048 $ 2,563 $ 3,611 $ 2,714 $ 3,204 $ 5,918 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, 2022: Commercial and industrial loans 2 $ 606 $ 606 $ — Total 2 $ 606 $ 606 $ — Outstanding Recorded Investment (dollars in thousands) Number of loans Pre-Modification Post-Modification Financial Impact Year Ended December 31, 2021 Commercial and industrial loans 1 $ 346 $ 346 $ — Total 1 $ 346 $ 346 $ — 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, 2022 | |
ALLOWANCE FOR CREDIT LOSSES | |
ALLOWANCE FOR CREDIT LOSSES | NOTE 6: 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: Initial Allowance Beginning Provision for on Acquired Ending (dollars in thousands) Balance Credit Losses PCD Loans Charge-offs Recoveries Balance Three Months Ended September 30, 2022: Real estate loans: Residential properties $ 4,446 $ 2,598 $ — $ — $ — $ 7,044 Commercial properties 12,714 (2,223) — — — 10,491 Land and construction 1,460 (1,305) — — — 155 Commercial and industrial loans 14,481 868 — (226) 57 15,180 Consumer loans 64 (34) — — — 30 Total $ 33,165 $ (96) $ $ (226) $ 57 $ 32,900 Nine Months Ended September 30, 2022: Real estate loans: Residential properties $ 2,637 $ 4,407 $ — $ — $ — $ 7,044 Commercial properties 17,049 (6,558) — — — 10,491 Land and construction 1,995 (1,840) — — — 155 Commercial and industrial loans 11,992 3,205 — (372) 355 15,180 Consumer loans 103 (73) — — — 30 Total $ 33,776 $ (859) $ — $ (372) $ 355 $ 32,900 Year Ended December 31, 2021: Real estate loans: Residential properties $ 5,115 $ (1,453) $ 93 $ (1,118) $ — $ 2,637 Commercial properties 8,711 774 7,564 — — 17,049 Land and construction 892 1,051 52 — — 1,995 Commercial and industrial loans 9,249 614 1,836 (706) 999 11,992 Consumer loans 233 (130) — — — 103 Total $ 24,200 $ 856 $ 9,545 $ (1,824) $ 999 $ 33,776 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, 2022: Allowance for credit losses: Real estate loans: Residential properties $ 76 $ 6,968 $ 7,044 Commercial properties 2,107 8,384 10,491 Land and construction — 155 155 Commercial and industrial loans 3,365 11,815 15,180 Consumer loans — 30 30 Total $ 5,548 $ 27,352 $ 32,900 Loans: Real estate loans: Residential properties $ 3,508 $ 6,092,965 $ 6,096,473 Commercial properties 34,012 1,201,322 1,235,334 Land and construction — 143,771 143,771 Commercial and industrial loans 7,570 2,867,086 2,874,656 Consumer loans — 5,186 5,186 Total $ 45,090 $ 10,310,330 $ 10,355,420 December 31, 2021: Allowance for credit losses: Real estate loans: Residential properties $ 111 $ 2,526 $ 2,637 Commercial properties 7,967 9,082 17,049 Land and construction 52 1,943 1,995 Commercial and industrial loans 2,386 9,606 11,992 Consumer loans — 103 103 Total $ 10,516 $ 23,260 $ 33,776 Loans: Real estate loans: Residential properties $ 9,593 $ 3,822,902 $ 3,832,495 Commercial properties 41,313 1,268,262 1,309,575 Land and construction 694 155,232 155,926 Commercial and industrial loans 9,963 1,587,902 1,597,865 Consumer loans — 10,867 10,867 Total $ 61,563 $ 6,845,165 $ 6,906,728 The following tables present risk categories of loans based on year of origination, as of: Revolving (dollars in thousands) 2022 2021 2020 2019 2018 Prior Loans Total September 30, 2022: Loans secured by real estate: Residential Multifamily Pass $ 2,106,172 $ 1,563,718 $ 800,339 $ 310,696 $ 153,626 $ 152,542 $ — $ 5,087,093 Special mention — — — 5,696 9,818 1,555 — 17,069 Substandard — — — — — — — — Total $ 2,106,172 $ 1,563,718 $ 800,339 $ 316,392 $ 163,444 $ 154,097 $ — $ 5,104,162 Single family Pass $ 218,836 $ 286,916 $ 97,470 $ 40,195 $ 49,925 $ 226,159 $ 69,277 $ 988,778 Special mention — — — — — — 25 25 Substandard — — — — — 3,456 52 3,508 Total $ 218,836 $ 286,916 $ 97,470 $ 40,195 $ 49,925 $ 229,615 $ 69,354 $ 992,311 Commercial real estate Pass $ 184,037 $ 189,401 $ 142,839 $ 104,549 $ 185,067 $ 346,001 $ — $ 1,151,894 Special mention — 13,867 1 15,665 3,107 7,911 — 40,551 Substandard 5,951 13,915 786 10,696 — 11,541 — 42,889 Total $ 189,988 $ 217,183 $ 143,626 $ 130,910 $ 188,174 $ 365,453 $ — $ 1,235,334 Land and construction Pass $ 38,279 $ 57,630 $ 39,254 $ 866 $ 5,090 $ 2,652 $ — $ 143,771 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 38,279 $ 57,630 $ 39,254 $ 866 $ 5,090 $ 2,652 $ — $ 143,771 Commercial Pass $ 1,148,123 $ 402,554 $ 214,826 $ 75,737 $ 19,233 $ 20,121 $ 968,797 $ 2,849,391 Special mention — 985 1,337 372 — — 10,619 13,313 Substandard — 317 2,481 1,941 5 2,808 4,400 11,952 Total $ 1,148,123 $ 403,856 $ 218,644 $ 78,050 $ 19,238 $ 22,929 $ 983,816 $ 2,874,656 Consumer Pass $ 513 $ 1,118 $ 3 $ 479 $ 211 $ 71 $ 2,787 $ 5,182 Special mention — — — — — — — — Substandard — — — — — — 4 4 Total $ 513 $ 1,118 $ 3 $ 479 $ 211 $ 71 $ 2,791 $ 5,186 Total loans Pass $ 3,695,960 $ 2,501,337 $ 1,294,731 $ 532,522 $ 413,152 $ 747,546 $ 1,040,861 $ 10,226,109 Special mention — 14,852 1,338 21,733 12,925 9,466 10,644 70,958 Substandard 5,951 14,232 3,267 12,637 5 17,805 4,456 58,353 Total $ 3,701,911 $ 2,530,421 $ 1,299,336 $ 566,892 $ 426,082 $ 774,817 $ 1,055,961 $ 10,355,420 Revolving (dollars in thousands) 2021 2020 2019 2018 2017 Prior Loans Total December 31, 2021: Loans secured by real estate: Residential Multifamily Pass $ 1,092,903 $ 868,483 $ 418,346 $ 265,872 $ 141,433 $ 108,529 $ — $ 2,895,566 Special mention — — 1,177 — — — — 1,177 Substandard — — — — — — — — Total $ 1,092,903 $ 868,483 $ 419,523 $ 265,872 $ 141,433 $ 108,529 $ — $ 2,896,743 Single family Pass $ 278,337 $ 122,530 $ 52,995 $ 60,559 $ 57,174 $ 280,216 $ 74,934 $ 926,745 Special mention — — — — — — 26 26 Substandard — — — — 1,873 6,830 278 8,981 Total $ 278,337 $ 122,530 $ 52,995 $ 60,559 $ 59,047 $ 287,046 $ 75,238 $ 935,752 Commercial real estate Pass $ 114,678 $ 39,135 $ 59,426 $ 94,930 $ 115,614 $ 804,295 $ — $ 1,228,078 Special mention — — 23,495 — — 30,389 — 53,884 Substandard — — 2,934 — 2,217 22,462 — 27,613 Total $ 114,678 $ 39,135 $ 85,855 $ 94,930 $ 117,831 $ 857,146 $ — $ 1,309,575 Land and construction Pass $ 14,738 $ — $ 17,692 $ 31,952 $ 2,529 $ 88,321 $ — $ 155,232 Special mention — — — — — 694 — 694 Substandard — — — — — — — — Total $ 14,738 $ — $ 17,692 $ 31,952 $ 2,529 $ 89,015 $ — $ 155,926 Commercial Pass $ 471,431 $ 191,405 $ 88,050 $ 20,709 $ 5,531 $ 167,201 $ 636,507 $ 1,580,834 Special mention 883 1,101 833 — — 1,370 2,790 6,977 Substandard — 1,535 1,765 982 192 2,688 2,892 10,054 Total $ 472,314 $ 194,041 $ 90,648 $ 21,691 $ 5,723 $ 171,259 $ 642,189 $ 1,597,865 Consumer Pass $ 54 $ — $ — $ 1,174 $ — $ 2,617 $ 7,022 $ 10,867 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 54 $ — $ — $ 1,174 $ — $ 2,617 $ 7,022 $ 10,867 Total loans Pass $ 1,972,141 $ 1,221,553 $ 636,509 $ 475,196 $ 322,281 $ 1,451,179 $ 718,463 $ 6,797,322 Special mention 883 1,101 25,505 — — 32,453 2,816 62,758 Substandard — 1,535 4,699 982 4,282 31,980 3,170 46,648 Total $ 1,973,024 $ 1,224,189 $ 666,713 $ 476,178 $ 326,563 $ 1,515,612 $ 724,449 $ 6,906,728 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, 2022: Loans secured by real estate: Residential properties Single family $ 2,455 $ — $ — $ 2,455 $ — Commercial real estate loans 2,751 — — 2,751 — Commercial loans — 250 682 932 674 Total $ 5,206 $ 250 $ 682 $ 6,138 $ 674 December 31, 2021: Loans secured by real estate: Residential properties Single family $ 2,568 $ — $ — $ 2,568 $ — Commercial loans — 250 — 250 — Total $ 2,568 $ 250 $ — $ 2,818 $ — |
LOAN SALES AND MORTGAGE SERVICI
LOAN SALES AND MORTGAGE SERVICING RIGHTS | 9 Months Ended |
Sep. 30, 2022 | |
LOAN SALES AND MORTGAGE SERVICING RIGHTS | |
LOAN SALES AND MORTGAGE SERVICING RIGHTS | NOTE 7: LOAN SALES AND MORTGAGE SERVICING RIGHTS In 2021, FFB sold $559 million of multifamily loans and recognized a gain of $21.5 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, 2022, and December 31, 2021, mortgage servicing rights were $8.5 million and $6.8 million, respectively. The mortgage servicing rights as of September 30, 2022, and December 31, 2021, are net of $2.6 million and $1.9 million in valuation allowances, respectively. The amount of loans serviced for others totaled $1.1 billion and $1.7 billion as of September 30, 2022 and December 31, 2021, respectively. Servicing fees were $1.5 million for the nine months ended September 30, 2022, and $2.3 million for the nine months ended September 30, 2021. |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2022 | |
DEPOSITS | |
DEPOSITS | NOTE 8: DEPOSITS The following table summarizes the outstanding balance of deposits and average rates paid thereon as of: September 30, 2022 December 31, 2021 Weighted Weighted (dollars in thousands) Amount Average Rate Amount Average Rate Demand deposits: Noninterest-bearing $ 3,550,637 — $ 3,280,455 — Interest-bearing 2,253,799 1.771 % 2,242,684 0.070 % Money market and savings 2,911,909 1.239 % 2,620,336 0.275 % Certificates of deposits 833,511 1.724 % 668,485 0.145 % Total $ 9,549,856 0.946 % $ 8,811,960 0.111 % At September 30, 2022, of the $394 million of certificates of deposits over $250,000, $369 million mature within one year and $25 million mature after one year. Of the $440 million of certificates of deposit of $250,000 or less, $375 million mature within one year and $65 million mature after one year. At December 31, 2021, of the $367 million of certificates of deposits over $250,000, $361 million mature within one year and $6 million mature after one year. Of the $301 million of certificates of deposit of $250,000 or less, $229 million mature within one year and $72 million mature after one year. |
BORROWINGS
BORROWINGS | 9 Months Ended |
Sep. 30, 2022 | |
BORROWINGS | |
BORROWINGS | NOTE 9: BORROWINGS At September 30, 2022, our borrowings consisted of $1.1 billion in overnight FHLB advances at the Bank, $174 million in subordinated notes at the holding company, and $179 million of repurchase agreements at the Bank. At December 31, 2021, our borrowings consisted of $26 million in subordinated notes at FFI, $166 million of repurchase agreements at the Bank, and $18.5 million of borrowings under a holding company line of credit. The FHLB overnight advances were paid in full in the early part of October 2022 and bore an interest rate of 3.22%. As of September 30, 2022, $150 million of the subordinated notes are fixed-to-floating rate notes that mature in February 2032. The notes will initially bear a rate of 3.50% per annum, payable semi-annually in arrears on February 1 and August 1 of each year, commencing on August 1, 2022, until February 1, 2027. From and including February 1, 2027 to, but excluding February 1, 2032, or the date of earlier redemption, the notes will bear interest at a floating rate per annum equal to the Benchmark rate (which is expected to be Three-Month Term Secured Overnight Financing Rate, or “SOFR”), each as defined in and subject to the provisions of the indenture under which the notes were issued, plus 204 basis points (2.04%), payable quarterly in arrears on February 1, May 1, August 1, and November 1 of each year, commencing on May 1, 2027. $24 million of the subordinated notes mature in June 2030 and bear a fixed interest rate of 6.0%, until June 30, 2025, at which time they will convert to a floating rate based on three month SOFR, plus 590 basis points (5.90%), until maturity. As a matter of practice, the Bank provides substantially all of its qualifying loans as collateral to the FHLB or the Federal Reserve Bank. FHLB advances are collateralized primarily by loans secured by single family, multifamily, and commercial real estate properties with a carrying value of $5.0 billion as of September 30, 2022. The Bank’s total remaining borrowing capacity from the FHLB at September 30, 2022 was $1.8 billion. The Bank had in place $315 million of letters of credit from the FHLB, as of September 30, 2022 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 $20 million. The loan agreement matures in February 2023, with an option to extend the maturity date subject to certain conditions, and bears interest at Prime rate, plus 50 basis points (0.50%). 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, 2022 and December 31, 2021, FFI was in compliance with the covenants on this loan agreement. The Bank also has $245 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 $345 million secured line with the Federal Reserve Bank, secured by single family loans. None of these lines had outstanding borrowings as September 30, 2022. Combined, the Bank’s unused lines of credit as of September 30, 2022, and December 31, 2021, were $2.4 billion and $3.1 billion, respectively. The average balance of overnight borrowings during the first nine months of 2022 was $165.1 million, as compared to $1.0 million during all of 2021. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2022 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 10: 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, 2022 and 2021: Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 (dollars in thousands, except per share amounts) Basic Diluted Basic Diluted Net income $ 29,006 $ 29,006 $ 37,226 $ 37,226 Basic common shares outstanding 56,387,451 56,387,451 44,819,743 44,819,743 Effect of options, restricted stock and contingent shares issuable 60,450 183,194 Diluted common shares outstanding 56,447,901 45,002,937 Earnings per share $ 0.51 $ 0.51 $ 0.83 $ 0.83 Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 (dollars in thousands, except share and per share amounts) Basic Diluted Basic Diluted Net income $ 93,158 $ 93,158 $ 85,635 $ 85,635 Basic common shares outstanding 56,441,305 56,441,305 44,773,683 44,773,683 Effect of options, restricted stock and contingent shares issuable 69,578 204,180 Diluted common shares outstanding 56,510,883 44,977,863 Earnings per share $ 1.65 $ 1.65 $ 1.91 $ 1.90 Based on a weighted average basis, options to purchase 102,433 shares of common stock were excluded for the three months ended September 30, 2022 because their effect would have been anti-dilutive. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2022 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 11: SEGMENT REPORTING For the three and nine months ended September 30, 2022 and 2021, the Company had two reportable business segments: Banking (FFB and FFIS, Blue Moon, and FFPF) 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, 2022: Interest income $ 108,746 $ — $ — $ 108,746 Interest expense 19,281 — 1,793 21,074 Net interest income 89,465 — (1,793) 87,672 Provision for credit losses (22) — — (22) Noninterest income 5,730 6,865 (411) 12,184 Noninterest expense 53,571 6,380 391 60,342 Income (loss) before taxes on income $ 41,646 $ 485 $ (2,595) $ 39,536 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 Wealth (dollars in thousands) Banking Management Other Total Nine Months Ended September 30, 2022: Interest income $ 277,861 $ — $ — $ 277,861 Interest expense 29,170 — 4,720 33,890 Net interest income 248,691 — (4,720) 243,971 Provision for credit losses (641) — — (641) Noninterest income 19,118 23,190 (1,297) 41,011 Noninterest expense 135,704 19,213 1,848 156,765 Income (loss) before taxes on income $ 132,746 $ 3,977 $ (7,865) $ 128,858 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 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 12: SUBSEQUENT EVENTS Cash Dividend On October 25, 2022, the Board of Directors of the Company declared a quarterly cash dividend of $0.11 per common share to be paid on November 17, 2022 to stockholders of record as of the close of business on November 7, 2022. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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 2022 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, 2021. Certain reclassifications have been made to the prior year consolidated financial statements to conform to the 2022 presentation. |
New Accounting Pronouncements | New Accounting Pronouncements In March 2022, the Financial Accounting Standards Board (“FASB”) issued ASU 2022-02, “ Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures” Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors Financial Instruments – Credit Losses on Financial Instruments 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” |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
ACQUISITIONS | |
Schedule of Assets Acquired and Liabilities Assumed | TGRF Book Fair Value (dollars in thousands) Value Adjustments Fair Value Assets Acquired: Cash and cash equivalents $ 1,145,335 $ 5 $ 1,145,340 Securities AFS 147,739 109 147,848 Securities held-to-maturity 71,790 2,115 73,905 Loans, net of deferred fees 1,045,193 (5,387) 1,039,806 Investment in FHLB stock 4,510 — 4,510 Premises and equipment, net 34,199 (4,180) 30,019 Goodwill and intangibles 181 129,850 130,031 Bank owned life insurance 46,163 — 46,163 Deferred taxes 3,414 738 4,152 Other assets 13,562 (298) 13,264 Total assets acquired $ 2,512,086 $ 122,952 $ 2,635,038 Liabilities Assumed: Deposits $ 2,170,676 $ 313 $ 2,170,989 Borrowings 177,114 1,929 179,043 Accounts payable and other liabilities 7,386 182 7,568 Total liabilities assumed 2,355,176 2,424 2,357,600 Excess of assets acquired over liabilities assumed 156,910 120,528 277,438 Total $ 2,512,086 $ 122,952 $ 2,635,038 Consideration: Stock issued $ 283,011 Cash paid 10 Total consideration (1) $ 283,021 (1) The difference between total consideration and the excess of assets acquired over liabilities assumed relates to the recognition of a credit loss reserve for non-PCD loans of $5.6 million, which is recognized as an expense in the consolidated income statement on the acquisition date. |
Pro Forma Summarized Income Statement Data | Three Months Ended Nine Months Ended (dollars in thousands) September 30, 2021 September 30, 2021 Net interest income $ 73,154 $ 213,840 Provision for credit losses 5,170 16,742 Noninterest income 32,171 60,645 Noninterest expenses 61,263 178,582 Income before taxes 38,892 79,161 Taxes on income 10,614 21,345 Net income $ 28,278 $ 57,816 Net income per share: Basic $ 0.51 $ 1.03 Diluted $ 0.50 $ 1.03 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022: Investment securities available for sale: Collateralized mortgage obligations $ 9,275 $ — $ 9,275 $ — Agency mortgage-backed securities 8,164 — 8,164 — Municipal bonds 45,200 — 45,200 — SBA securities 20,622 — 20,622 — Beneficial interests in FHLMC securitization 8,289 — — 8,289 Corporate bonds 135,096 — 135,096 — U.S. Treasury 817 817 — — Investment in equity securities 16,029 — — 16,029 Total assets at fair value on a recurring basis $ 243,492 $ 817 $ 218,357 $ 24,318 December 31, 2021: Investment securities available for sale: Collateralized mortgage obligations $ 13,825 $ — $ 13,825 $ — Agency mortgage-backed securities 928,989 — 928,989 — Municipal bonds 52,146 — 52,146 — SBA securities 27,972 — 27,972 — Beneficial interests in FHLMC securitization 11,580 — — 11,580 Corporate bonds 156,376 — 156,376 — U.S. Treasury 490 490 — — Investment in equity securities 16,025 16,025 — — Total assets at fair value on a recurring basis $ 1,207,403 $ 16,515 $ 1,179,308 $ 11,580 |
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, 2022: Assets: Cash and cash equivalents $ 317,818 $ 317,818 $ — $ — $ 317,818 Securities AFS, net 227,463 817 218,357 8,289 227,463 Securities HTM 884,061 — 784,807 — 784,807 Loans, net 10,322,520 — — 10,139,514 10,139,514 Investment in FHLB stock 31,203 — 31,203 — 31,203 Investment in equity securities 16,029 — — 16,029 16,029 Liabilities: Deposits $ 9,549,856 $ 8,716,345 $ 826,176 $ — $ 9,542,521 Borrowings 1,496,456 1,323,136 — 156,531 1,479,667 December 31, 2021: Assets: Cash and cash equivalents $ 1,121,757 $ 1,121,757 $ — $ — $ 1,121,757 Securities AFS, net 1,191,378 490 1,179,308 11,580 1,191,378 Loans held for sale 501,436 — 515,978 — 515,978 Loans, net 6,872,952 — — 7,072,878 7,072,878 Investment in FHLB stock 18,249 — 18,249 — 18,249 Investment in equity securities 16,025 16,025 — — 16,025 Liabilities: Deposits $ 8,811,960 $ 8,143,473 $ 668,487 $ — $ 8,811,960 Borrowings 210,127 165,930 — 44,197 210,127 |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022: Collateralized mortgage obligations $ 10,500 $ — $ (1,225) $ — $ 9,275 Agency mortgage-backed securities 8,798 — (634) — 8,164 Municipal bonds 50,397 — (5,197) — 45,200 SBA securities 20,725 8 (111) — 20,622 Beneficial interests in FHLMC securitization 19,677 138 (7) (11,519) 8,289 Corporate bonds 145,079 — (9,983) — 135,096 U.S. Treasury 898 — (81) — 817 Total $ 256,074 $ 146 $ (17,238) $ (11,519) $ 227,463 December 31, 2021: Collateralized mortgage obligations $ 13,862 $ — $ (37) $ — $ 13,825 Agency mortgage-backed securities 928,546 6,563 (6,120) — 928,989 Municipal bonds 52,052 94 — — 52,146 SBA securities 27,970 2 — — 27,972 Beneficial interests in FHLMC securitization 21,606 373 — (10,399) 11,580 Corporate bonds 154,027 2,441 (92) — 156,376 U.S. Treasury 499 — (9) — 490 Total $ 1,198,562 $ 9,473 $ (6,258) $ (10,399) $ 1,191,378 |
Summary of HTM Securities Portfolio | Amortized Gross Unrecognized Allowance for Estimated (dollars in thousands) Cost Gains Losses Credit Losses Fair Value September 30, 2022: Agency mortgage-backed securities $ 884,061 — (99,254) $ — $ 784,807 Total $ 884,061 $ — $ (99,254) $ — $ 784,807 |
Schedule of Securities in a Continuous Unrealized Loss Position Aggregated by Investment Category and Length of Time | The tables below indicate, as of September 30, 2022, and December 31, 2021, the gross unrealized losses and fair values of our investments AFS, 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, 2022 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Value Loss Value Loss Value Loss Collateralized mortgage obligations $ 9,275 $ (1,225) $ — $ — $ 9,275 $ (1,225) Agency mortgage-backed securities 8,164 (634) — — 8,164 (634) Municipal bonds 45,200 (5,197) — — 45,200 (5,197) SBA securities 17,353 (111) — — 17,353 (111) Beneficial interests in FHLMC securitization 4,240 (7) — — 4,240 (7) Corporate bonds 117,180 (7,899) 17,916 (2,084) 135,096 (9,983) U.S. Treasury 373 (26) 444 (55) 817 (81) Total temporarily impaired securities $ 201,785 $ (15,099) $ 18,360 $ (2,139) $ 220,145 $ (17,238) Securities with Unrealized Loss at December 31, 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 Collateralized mortgage obligations $ 12,971 $ (37) $ — $ — $ 12,971 $ (37) Agency mortgage-backed securities 434,973 (5,051) 36,136 (1,069) 471,109 (6,120) Municipal bonds 2,025 — — — 2,025 — SBA securities 501 — — — 501 — Corporate bonds 47,880 (92) — — 47,880 (92) U.S. Treasury 491 (9) — — 491 (9) Total temporarily impaired securities $ 498,841 $ (5,189) $ 36,136 $ (1,069) $ 534,977 $ (6,258) |
Summary of Allowance For Credit Losses - Securities AFS | (dollars in thousands) Total Three Months Ended September 30, 2022: Beginning balance $ 11,226 Provision for credit losses 293 Balance: September 30, 2022 $ 11,519 Nine Months Ended September 30, 2022: Beginning balance $ 10,399 Provision for credit losses 1,120 Balance: September 30, 2022 $ 11,519 Year Ended December 31, 2021: Beginning balance $ 7,245 Provision for credit losses 3,154 Balance: December 31, 2021 $ 10,399 |
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, 2022 Amortized Cost: Collateralized mortgage obligations $ — $ — $ 688 $ 9,812 $ 10,500 Agency mortgage-backed securities — 3,737 3,378 1,683 8,798 Municipal bonds 303 5,379 35,553 9,162 50,397 SBA securities 15 1,575 1,431 17,704 20,725 Beneficial interests in FHLMC securitization — 10,185 — 9,492 19,677 Corporate bonds 6,013 10,002 123,531 5,533 145,079 U.S. Treasury — 898 — — 898 Total $ 6,331 $ 31,776 $ 164,581 $ 53,386 $ 256,074 Weighted average yield 2.77 % 2.05 % 3.52 % 2.23 % 3.05 % Estimated Fair Value: Collateralized mortgage obligations $ — $ — $ 616 $ 8,659 $ 9,275 Agency mortgage-backed securities — 3,531 3,137 1,496 8,164 Municipal bonds 298 4,877 32,616 7,409 45,200 SBA securities 15 1,571 1,427 17,609 20,622 Beneficial interests in FHLMC securitization — 10,185 — 9,623 19,808 Corporate bonds 5,995 9,102 115,694 4,305 135,096 U.S. Treasury — 817 — — 817 Total $ 6,308 $ 30,083 $ 153,490 $ 49,101 $ 238,982 Less than 1 Through 5 Through After (dollars in thousands) 1 Year 5 years 10 Years 10 Years Total December 31, 2021 Amortized Cost: Collateralized mortgage obligations $ — $ 710 $ 802 $ 12,350 $ 13,862 Agency mortgage-backed securities — 4,990 24,568 898,988 928,546 Municipal bonds — 1,625 38,853 11,574 52,052 SBA securities 70 1,613 2,952 23,335 27,970 Beneficial interests in FHLMC securitization — 11,902 — 9,704 21,606 Corporate bonds 9,534 10,519 128,438 5,536 154,027 U.S. Treasury — 499 — — 499 Total $ 9,604 $ 31,858 $ 195,613 $ 961,487 $ 1,198,562 Weighted average yield (2.28) % 2.06 % 3.03 % 1.63 % 1.84 % Estimated Fair Value: Collateralized mortgage obligations $ — $ 710 $ 799 $ 12,316 $ 13,825 Agency mortgage-backed securities — 5,082 25,056 898,851 928,989 Municipal bonds — 1,704 38,865 11,577 52,146 SBA securities 70 1,613 2,953 23,336 27,972 Beneficial interests in FHLMC securitization — 11,902 — 10,077 21,979 Corporate bonds 9,529 10,499 130,754 5,594 156,376 U.S. Treasury — 490 — — 490 Total $ 9,599 $ 32,000 $ 198,427 $ 961,751 $ 1,201,777 |
Schedule of maturities of securities HTM and the related weighted average yields | Less than 1 Through 5 Through After (dollars in thousands) 1 Year 5 years 10 Years 10 Years Total September 30, 2022 Amortized Cost: Agency mortgage-backed securities $ — $ 119 $ 18,841 $ 865,101 $ 884,061 Total $ — $ 119 $ 18,841 $ 865,101 $ 884,061 Weighted average yield — % 0.27 % 1.03 % 2.09 % 2.07 % Estimated Fair Value: Agency mortgage-backed securities $ — $ 110 $ 16,892 $ 767,805 $ 784,807 Total $ — $ 110 $ 16,892 $ 767,805 $ 784,807 |
LOANS (Tables)
LOANS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
LOANS | |
Summary of Loans | September 30, December 31, (dollars in thousands) 2022 2021 Outstanding principal balance: Loans secured by real estate: Residential properties: Multifamily $ 5,088,695 $ 2,886,055 Single family 989,258 933,445 Total real estate loans secured by residential properties 6,077,953 3,819,500 Commercial properties 1,236,577 1,309,200 Land and construction 144,787 156,028 Total real estate loans 7,459,317 5,284,728 Commercial and industrial loans 2,874,827 1,598,422 Consumer loans 5,155 10,834 Total loans 10,339,299 6,893,984 Premiums, discounts and deferred fees and expenses 16,121 12,744 Total $ 10,355,420 $ 6,906,728 |
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, 2022: Real estate loans: Residential properties $ 247 $ — $ 30 $ 2,586 $ 2,863 $ 6,093,610 $ 6,096,473 Commercial properties 2,182 — 1,028 4,162 7,372 1,227,962 1,235,334 Land and construction 1,478 — — — 1,478 142,293 143,771 Commercial and industrial loans 590 211 80 4,488 5,369 2,869,287 2,874,656 Consumer loans — — — 4 4 5,182 5,186 Total $ 4,497 $ 211 $ 1,138 $ 11,240 $ 17,086 $ 10,338,334 $ 10,355,420 Percentage of total loans 0.04 % 0.00 % 0.01 % 0.11 % 0.16 % December 31, 2021: Real estate loans: Residential properties $ 1,519 $ 310 $ — $ 3,281 $ 5,110 $ 3,827,385 $ 3,832,495 Commercial properties 2,934 — — 1,529 4,463 1,305,112 1,309,575 Land and construction — — — — — 155,926 155,926 Commercial and industrial loans 303 260 — 3,520 4,083 1,593,782 1,597,865 Consumer loans — — — — — 10,867 10,867 Total $ 4,756 $ 570 $ — $ 8,330 $ 13,656 $ 6,893,072 $ 6,906,728 Percentage of total loans 0.07 % 0.01 % — % 0.12 % 0.20 % |
Summary of nonaccrual loans | Nonaccrual Nonaccrual with Allowance with no Allowance (dollars in thousands) for Credit Losses for Credit Losses September 30, 2022: Real estate loans: Residential properties $ — $ 2,586 Commercial properties — 4,162 Commercial and industrial loans 2,140 2,348 Consumer loans — 4 Total $ 2,140 $ 9,100 December 31, 2021: Real estate loans: Residential properties $ — $ 3,281 Commercial properties — 1,529 Commercial and industrial loans 1,733 1,787 Total $ 1,733 $ 6,597 |
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, 2022 December 31, 2021 (dollars in thousands) Accrual Nonaccrual Total Accrual Nonaccrual Total Residential loans $ — $ — $ — $ 1,200 $ — $ 1,200 Commercial real estate loans 953 1,093 2,046 1,021 1,174 2,195 Commercial and industrial loans 95 1,470 1,565 493 2,030 2,523 Total $ 1,048 $ 2,563 $ 3,611 $ 2,714 $ 3,204 $ 5,918 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, 2022: Commercial and industrial loans 2 $ 606 $ 606 $ — Total 2 $ 606 $ 606 $ — Outstanding Recorded Investment (dollars in thousands) Number of loans Pre-Modification Post-Modification Financial Impact Year Ended December 31, 2021 Commercial and industrial loans 1 $ 346 $ 346 $ — Total 1 $ 346 $ 346 $ — |
ALLOWANCE FOR CREDIT LOSSES (Ta
ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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: Initial Allowance Beginning Provision for on Acquired Ending (dollars in thousands) Balance Credit Losses PCD Loans Charge-offs Recoveries Balance Three Months Ended September 30, 2022: Real estate loans: Residential properties $ 4,446 $ 2,598 $ — $ — $ — $ 7,044 Commercial properties 12,714 (2,223) — — — 10,491 Land and construction 1,460 (1,305) — — — 155 Commercial and industrial loans 14,481 868 — (226) 57 15,180 Consumer loans 64 (34) — — — 30 Total $ 33,165 $ (96) $ $ (226) $ 57 $ 32,900 Nine Months Ended September 30, 2022: Real estate loans: Residential properties $ 2,637 $ 4,407 $ — $ — $ — $ 7,044 Commercial properties 17,049 (6,558) — — — 10,491 Land and construction 1,995 (1,840) — — — 155 Commercial and industrial loans 11,992 3,205 — (372) 355 15,180 Consumer loans 103 (73) — — — 30 Total $ 33,776 $ (859) $ — $ (372) $ 355 $ 32,900 Year Ended December 31, 2021: Real estate loans: Residential properties $ 5,115 $ (1,453) $ 93 $ (1,118) $ — $ 2,637 Commercial properties 8,711 774 7,564 — — 17,049 Land and construction 892 1,051 52 — — 1,995 Commercial and industrial loans 9,249 614 1,836 (706) 999 11,992 Consumer loans 233 (130) — — — 103 Total $ 24,200 $ 856 $ 9,545 $ (1,824) $ 999 $ 33,776 |
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, 2022: Allowance for credit losses: Real estate loans: Residential properties $ 76 $ 6,968 $ 7,044 Commercial properties 2,107 8,384 10,491 Land and construction — 155 155 Commercial and industrial loans 3,365 11,815 15,180 Consumer loans — 30 30 Total $ 5,548 $ 27,352 $ 32,900 Loans: Real estate loans: Residential properties $ 3,508 $ 6,092,965 $ 6,096,473 Commercial properties 34,012 1,201,322 1,235,334 Land and construction — 143,771 143,771 Commercial and industrial loans 7,570 2,867,086 2,874,656 Consumer loans — 5,186 5,186 Total $ 45,090 $ 10,310,330 $ 10,355,420 December 31, 2021: Allowance for credit losses: Real estate loans: Residential properties $ 111 $ 2,526 $ 2,637 Commercial properties 7,967 9,082 17,049 Land and construction 52 1,943 1,995 Commercial and industrial loans 2,386 9,606 11,992 Consumer loans — 103 103 Total $ 10,516 $ 23,260 $ 33,776 Loans: Real estate loans: Residential properties $ 9,593 $ 3,822,902 $ 3,832,495 Commercial properties 41,313 1,268,262 1,309,575 Land and construction 694 155,232 155,926 Commercial and industrial loans 9,963 1,587,902 1,597,865 Consumer loans — 10,867 10,867 Total $ 61,563 $ 6,845,165 $ 6,906,728 |
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) 2022 2021 2020 2019 2018 Prior Loans Total September 30, 2022: Loans secured by real estate: Residential Multifamily Pass $ 2,106,172 $ 1,563,718 $ 800,339 $ 310,696 $ 153,626 $ 152,542 $ — $ 5,087,093 Special mention — — — 5,696 9,818 1,555 — 17,069 Substandard — — — — — — — — Total $ 2,106,172 $ 1,563,718 $ 800,339 $ 316,392 $ 163,444 $ 154,097 $ — $ 5,104,162 Single family Pass $ 218,836 $ 286,916 $ 97,470 $ 40,195 $ 49,925 $ 226,159 $ 69,277 $ 988,778 Special mention — — — — — — 25 25 Substandard — — — — — 3,456 52 3,508 Total $ 218,836 $ 286,916 $ 97,470 $ 40,195 $ 49,925 $ 229,615 $ 69,354 $ 992,311 Commercial real estate Pass $ 184,037 $ 189,401 $ 142,839 $ 104,549 $ 185,067 $ 346,001 $ — $ 1,151,894 Special mention — 13,867 1 15,665 3,107 7,911 — 40,551 Substandard 5,951 13,915 786 10,696 — 11,541 — 42,889 Total $ 189,988 $ 217,183 $ 143,626 $ 130,910 $ 188,174 $ 365,453 $ — $ 1,235,334 Land and construction Pass $ 38,279 $ 57,630 $ 39,254 $ 866 $ 5,090 $ 2,652 $ — $ 143,771 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 38,279 $ 57,630 $ 39,254 $ 866 $ 5,090 $ 2,652 $ — $ 143,771 Commercial Pass $ 1,148,123 $ 402,554 $ 214,826 $ 75,737 $ 19,233 $ 20,121 $ 968,797 $ 2,849,391 Special mention — 985 1,337 372 — — 10,619 13,313 Substandard — 317 2,481 1,941 5 2,808 4,400 11,952 Total $ 1,148,123 $ 403,856 $ 218,644 $ 78,050 $ 19,238 $ 22,929 $ 983,816 $ 2,874,656 Consumer Pass $ 513 $ 1,118 $ 3 $ 479 $ 211 $ 71 $ 2,787 $ 5,182 Special mention — — — — — — — — Substandard — — — — — — 4 4 Total $ 513 $ 1,118 $ 3 $ 479 $ 211 $ 71 $ 2,791 $ 5,186 Total loans Pass $ 3,695,960 $ 2,501,337 $ 1,294,731 $ 532,522 $ 413,152 $ 747,546 $ 1,040,861 $ 10,226,109 Special mention — 14,852 1,338 21,733 12,925 9,466 10,644 70,958 Substandard 5,951 14,232 3,267 12,637 5 17,805 4,456 58,353 Total $ 3,701,911 $ 2,530,421 $ 1,299,336 $ 566,892 $ 426,082 $ 774,817 $ 1,055,961 $ 10,355,420 Revolving (dollars in thousands) 2021 2020 2019 2018 2017 Prior Loans Total December 31, 2021: Loans secured by real estate: Residential Multifamily Pass $ 1,092,903 $ 868,483 $ 418,346 $ 265,872 $ 141,433 $ 108,529 $ — $ 2,895,566 Special mention — — 1,177 — — — — 1,177 Substandard — — — — — — — — Total $ 1,092,903 $ 868,483 $ 419,523 $ 265,872 $ 141,433 $ 108,529 $ — $ 2,896,743 Single family Pass $ 278,337 $ 122,530 $ 52,995 $ 60,559 $ 57,174 $ 280,216 $ 74,934 $ 926,745 Special mention — — — — — — 26 26 Substandard — — — — 1,873 6,830 278 8,981 Total $ 278,337 $ 122,530 $ 52,995 $ 60,559 $ 59,047 $ 287,046 $ 75,238 $ 935,752 Commercial real estate Pass $ 114,678 $ 39,135 $ 59,426 $ 94,930 $ 115,614 $ 804,295 $ — $ 1,228,078 Special mention — — 23,495 — — 30,389 — 53,884 Substandard — — 2,934 — 2,217 22,462 — 27,613 Total $ 114,678 $ 39,135 $ 85,855 $ 94,930 $ 117,831 $ 857,146 $ — $ 1,309,575 Land and construction Pass $ 14,738 $ — $ 17,692 $ 31,952 $ 2,529 $ 88,321 $ — $ 155,232 Special mention — — — — — 694 — 694 Substandard — — — — — — — — Total $ 14,738 $ — $ 17,692 $ 31,952 $ 2,529 $ 89,015 $ — $ 155,926 Commercial Pass $ 471,431 $ 191,405 $ 88,050 $ 20,709 $ 5,531 $ 167,201 $ 636,507 $ 1,580,834 Special mention 883 1,101 833 — — 1,370 2,790 6,977 Substandard — 1,535 1,765 982 192 2,688 2,892 10,054 Total $ 472,314 $ 194,041 $ 90,648 $ 21,691 $ 5,723 $ 171,259 $ 642,189 $ 1,597,865 Consumer Pass $ 54 $ — $ — $ 1,174 $ — $ 2,617 $ 7,022 $ 10,867 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 54 $ — $ — $ 1,174 $ — $ 2,617 $ 7,022 $ 10,867 Total loans Pass $ 1,972,141 $ 1,221,553 $ 636,509 $ 475,196 $ 322,281 $ 1,451,179 $ 718,463 $ 6,797,322 Special mention 883 1,101 25,505 — — 32,453 2,816 62,758 Substandard — 1,535 4,699 982 4,282 31,980 3,170 46,648 Total $ 1,973,024 $ 1,224,189 $ 666,713 $ 476,178 $ 326,563 $ 1,515,612 $ 724,449 $ 6,906,728 |
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, 2022: Loans secured by real estate: Residential properties Single family $ 2,455 $ — $ — $ 2,455 $ — Commercial real estate loans 2,751 — — 2,751 — Commercial loans — 250 682 932 674 Total $ 5,206 $ 250 $ 682 $ 6,138 $ 674 December 31, 2021: Loans secured by real estate: Residential properties Single family $ 2,568 $ — $ — $ 2,568 $ — Commercial loans — 250 — 250 — Total $ 2,568 $ 250 $ — $ 2,818 $ — |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 December 31, 2021 Weighted Weighted (dollars in thousands) Amount Average Rate Amount Average Rate Demand deposits: Noninterest-bearing $ 3,550,637 — $ 3,280,455 — Interest-bearing 2,253,799 1.771 % 2,242,684 0.070 % Money market and savings 2,911,909 1.239 % 2,620,336 0.275 % Certificates of deposits 833,511 1.724 % 668,485 0.145 % Total $ 9,549,856 0.946 % $ 8,811,960 0.111 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
EARNINGS PER SHARE | |
Computation of Basic and Diluted Earnings Per Share | Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 (dollars in thousands, except per share amounts) Basic Diluted Basic Diluted Net income $ 29,006 $ 29,006 $ 37,226 $ 37,226 Basic common shares outstanding 56,387,451 56,387,451 44,819,743 44,819,743 Effect of options, restricted stock and contingent shares issuable 60,450 183,194 Diluted common shares outstanding 56,447,901 45,002,937 Earnings per share $ 0.51 $ 0.51 $ 0.83 $ 0.83 Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 (dollars in thousands, except share and per share amounts) Basic Diluted Basic Diluted Net income $ 93,158 $ 93,158 $ 85,635 $ 85,635 Basic common shares outstanding 56,441,305 56,441,305 44,773,683 44,773,683 Effect of options, restricted stock and contingent shares issuable 69,578 204,180 Diluted common shares outstanding 56,510,883 44,977,863 Earnings per share $ 1.65 $ 1.65 $ 1.91 $ 1.90 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
SEGMENT REPORTING | |
Key Operating Results of Business Segments | Wealth (dollars in thousands) Banking Management Other Total Three Months Ended September 30, 2022: Interest income $ 108,746 $ — $ — $ 108,746 Interest expense 19,281 — 1,793 21,074 Net interest income 89,465 — (1,793) 87,672 Provision for credit losses (22) — — (22) Noninterest income 5,730 6,865 (411) 12,184 Noninterest expense 53,571 6,380 391 60,342 Income (loss) before taxes on income $ 41,646 $ 485 $ (2,595) $ 39,536 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 Wealth (dollars in thousands) Banking Management Other Total Nine Months Ended September 30, 2022: Interest income $ 277,861 $ — $ — $ 277,861 Interest expense 29,170 — 4,720 33,890 Net interest income 248,691 — (4,720) 243,971 Provision for credit losses (641) — — (641) Noninterest income 19,118 23,190 (1,297) 41,011 Noninterest expense 135,704 19,213 1,848 156,765 Income (loss) before taxes on income $ 132,746 $ 3,977 $ (7,865) $ 128,858 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 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | 9 Months Ended |
Sep. 30, 2022 subsidiary | |
BASIS OF PRESENTATION | |
Number of inactive wholly owned subsidiaries | 2 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Dec. 17, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | |
Business Acquisition [Line Items] | |||
Increase in net income, pro forma adjustment | $ 500,000 | $ 1,500,000 | |
TGR Financial | |||
Business Acquisition [Line Items] | |||
Common stock issued in exchange for acquisition, shares | 11,352,232 | ||
Stock value per share, acquisition date | $ 24.93 | ||
Goodwill expected to be deductible for tax purposes | $ 0 | ||
Business combination, value of deposit | $ 3,300,000 | ||
Finite-lived intangible asset, amortized period | 10 years |
ACQUISITIONS - Schedule of Asse
ACQUISITIONS - Schedule of Assets Acquired and Liabilities Assumed (Details) - TGR Financial $ in Thousands | Dec. 17, 2021 USD ($) |
Non-PCD loans | |
Consideration: | |
Credit loss reserve | $ 5,600 |
TGRF Book Value | |
Assets Acquired: | |
Cash and cash equivalents | 1,145,335 |
Securities AFS | 147,739 |
Securities held-to-maturity | 71,790 |
Loans, net of deferred fees | 1,045,193 |
Investment in FHLB stock | 4,510 |
Premises and equipment, net | 34,199 |
Goodwill and intangibles | 181 |
Bank owned life insurance | 46,163 |
Deferred taxes | 3,414 |
Other assets | 13,562 |
Total assets acquired | 2,512,086 |
Liabilities Assumed: | |
Deposits | 2,170,676 |
Borrowings | 177,114 |
Accounts payable and other liabilities | 7,386 |
Total liabilities assumed | 2,355,176 |
Excess of assets acquired over liabilities assumed | 156,910 |
Total | 2,512,086 |
Fair Value Adjustments | |
Assets Acquired: | |
Cash and cash equivalents | 5 |
Securities AFS | 109 |
Securities held-to-maturity | 2,115 |
Loans, net of deferred fees | (5,387) |
Premises and equipment, net | (4,180) |
Goodwill and intangibles | 129,850 |
Deferred taxes | 738 |
Other assets | (298) |
Total assets acquired | 122,952 |
Liabilities Assumed: | |
Deposits | 313 |
Borrowings | 1,929 |
Accounts payable and other liabilities | 182 |
Total liabilities assumed | 2,424 |
Excess of assets acquired over liabilities assumed | 120,528 |
Total | 122,952 |
Fair Value | |
Assets Acquired: | |
Cash and cash equivalents | 1,145,340 |
Securities AFS | 147,848 |
Securities held-to-maturity | 73,905 |
Loans, net of deferred fees | 1,039,806 |
Investment in FHLB stock | 4,510 |
Premises and equipment, net | 30,019 |
Goodwill and intangibles | 130,031 |
Bank owned life insurance | 46,163 |
Deferred taxes | 4,152 |
Other assets | 13,264 |
Total assets acquired | 2,635,038 |
Liabilities Assumed: | |
Deposits | 2,170,989 |
Borrowings | 179,043 |
Accounts payable and other liabilities | 7,568 |
Total liabilities assumed | 2,357,600 |
Excess of assets acquired over liabilities assumed | 277,438 |
Total | 2,635,038 |
Operating loss carryforwards | 100 |
Consideration: | |
Stock issued | 283,011 |
Cash paid | 10 |
Total consideration | $ 283,021 |
ACQUISITIONS - Pro Forma Summar
ACQUISITIONS - Pro Forma Summarized Income Statement Data (Details) - TGR Financial - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Business Acquisition [Line Items] | ||
Net interest income | $ 73,154 | $ 213,840 |
Provision for credit losses | 5,170 | 16,742 |
Noninterest income | 32,171 | 60,645 |
Noninterest expenses | 61,263 | 178,582 |
Income before taxes | 38,892 | 79,161 |
Taxes on income | 10,614 | 21,345 |
Net income | $ 28,278 | $ 57,816 |
Net income per share: | ||
Basic | $ 0.51 | $ 1.03 |
Diluted | $ 0.50 | $ 1.03 |
FAIR VALUE MEASUREMENTS - Recor
FAIR VALUE MEASUREMENTS - Recorded Amounts of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 227,463 | $ 1,191,378 |
Investment in equity securities | 16,029 | 16,025 |
Agency Mortgage-backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 8,164 | 928,989 |
Municipal bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 45,200 | 52,146 |
SBA securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 20,622 | 27,972 |
Beneficial interest - FHLMC securitizations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 8,289 | 11,580 |
Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 135,096 | 156,376 |
U.S. Treasury | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 817 | 490 |
Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment in equity securities | 16,029 | 16,025 |
Total assets at fair value on a recurring basis | 243,492 | 1,207,403 |
Fair Value on Recurring Basis | Collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 9,275 | 13,825 |
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 | 8,164 | 928,989 |
Fair Value on Recurring Basis | Municipal bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 45,200 | 52,146 |
Fair Value on Recurring Basis | SBA securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 20,622 | 27,972 |
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 | 8,289 | 11,580 |
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 | 135,096 | 156,376 |
Fair Value on Recurring Basis | U.S. Treasury | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 817 | 490 |
Fair Value Measurement Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment in equity securities | 16,025 | |
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 | 16,025 | |
Total assets at fair value on a recurring basis | 817 | 16,515 |
Fair Value Measurement Level 1 | Fair Value on Recurring Basis | U.S. Treasury | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 817 | 490 |
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 | 218,357 | 1,179,308 |
Fair Value Measurement Level 2 | Fair Value on Recurring Basis | Collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 9,275 | 13,825 |
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 | 8,164 | 928,989 |
Fair Value Measurement Level 2 | Fair Value on Recurring Basis | Municipal bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 45,200 | 52,146 |
Fair Value Measurement Level 2 | Fair Value on Recurring Basis | SBA securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 20,622 | 27,972 |
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 | 135,096 | 156,376 |
Fair Value Measurement Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment in equity securities | 16,029 | |
Fair Value Measurement Level 3 | Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment in equity securities | 16,029 | |
Total assets at fair value on a recurring basis | 24,318 | 11,580 |
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 | $ 8,289 | $ 11,580 |
FAIR VALUE MEASUREMENTS - Valua
FAIR VALUE MEASUREMENTS - Valuation assumptions (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Provision for loan losses | $ (22) | $ (417) | $ (641) | $ (13) | |
Fair Value Measurement Level 3 | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Provision for loan losses | 1,100 | ||||
Impaired loans | 6,100 | 6,100 | $ 2,800 | ||
Reserves related to impaired loans | $ 700 | $ 700 | $ 0 | ||
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 | 0.35 | 0.35 | 0.35 | ||
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 | 0.45 | 0.45 | 0.45 | ||
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 | 0.0807 | 0.0807 | 0.0807 | ||
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 | 0.0344 | 0.0344 | |||
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 | 0.1000 | 0.1000 | 0.1000 | ||
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, 2022 | Dec. 31, 2021 |
Assets: | ||
Cash and cash equivalents | $ 317,818 | $ 1,121,757 |
Securities AFS, net | 227,463 | 1,191,378 |
Securities HTM | 884,061 | 0 |
Loans held for sale | 501,436 | |
Loans, net | 10,322,520 | 6,872,952 |
Investment in FHLB stock | 31,203 | 18,249 |
Investment in equity securities | 16,029 | 16,025 |
Liabilities: | ||
Deposits | 9,549,856 | 8,811,960 |
Borrowings | 1,496,456 | 210,127 |
Assets Fair Value: | ||
Cash and cash equivalents | 317,818 | 1,121,757 |
Securities AFS, net | 227,463 | 1,191,378 |
Securities HTM | 784,807 | |
Loans held for sale | 515,978 | |
Loans, net | 10,139,514 | 7,072,878 |
Investment in FHLB stock | 31,203 | 18,249 |
Investment in equity securities | 16,029 | 16,025 |
Liabilities Fair Value: | ||
Deposits | 9,542,521 | 8,811,960 |
Borrowings | 1,479,667 | 210,127 |
Fair Value Measurement Level 1 | ||
Assets: | ||
Investment in equity securities | 16,025 | |
Assets Fair Value: | ||
Cash and cash equivalents | 317,818 | 1,121,757 |
Securities AFS, net | 817 | 490 |
Investment in equity securities | 16,025 | |
Liabilities Fair Value: | ||
Deposits | 8,716,345 | 8,143,473 |
Borrowings | 1,323,136 | 165,930 |
Fair Value Measurement Level 2 | ||
Assets: | ||
Investment in FHLB stock | 31,203 | 18,249 |
Assets Fair Value: | ||
Securities AFS, net | 218,357 | 1,179,308 |
Securities HTM | 784,807 | |
Loans held for sale | 515,978 | |
Investment in FHLB stock | 31,203 | 18,249 |
Liabilities Fair Value: | ||
Deposits | 826,176 | 668,487 |
Fair Value Measurement Level 3 | ||
Assets: | ||
Investment in equity securities | 16,029 | |
Assets Fair Value: | ||
Securities AFS, net | 8,289 | 11,580 |
Loans, net | 10,139,514 | 7,072,878 |
Investment in equity securities | 16,029 | |
Liabilities Fair Value: | ||
Borrowings | $ 156,531 | $ 44,197 |
SECURITIES - Summary of AFS Sec
SECURITIES - Summary of AFS Securities Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||||
Amortized Cost | $ 256,074 | $ 1,198,562 | ||
Gross Unrealized gains | 146 | 9,473 | ||
Gross Unrealized losses | (17,238) | (6,258) | ||
Allowance for credit losses - investments | (11,519) | $ (11,226) | (10,399) | $ (7,245) |
Estimated Fair Value | 227,463 | 1,191,378 | ||
Collateralized mortgage obligations | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Amortized Cost | 10,500 | 13,862 | ||
Gross Unrealized losses | (1,225) | (37) | ||
Estimated Fair Value | 9,275 | 13,825 | ||
Agency Mortgage-backed Securities | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Amortized Cost | 8,798 | 928,546 | ||
Gross Unrealized gains | 6,563 | |||
Gross Unrealized losses | (634) | (6,120) | ||
Estimated Fair Value | 8,164 | 928,989 | ||
Beneficial interest - FHLMC securitizations | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Amortized Cost | 19,677 | 21,606 | ||
Gross Unrealized gains | 138 | 373 | ||
Gross Unrealized losses | (7) | |||
Allowance for credit losses - investments | (11,519) | (10,399) | ||
Estimated Fair Value | 8,289 | 11,580 | ||
Municipal bonds | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Amortized Cost | 50,397 | 52,052 | ||
Gross Unrealized gains | 94 | |||
Gross Unrealized losses | (5,197) | |||
Estimated Fair Value | 45,200 | 52,146 | ||
Corporate Bonds | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Amortized Cost | 145,079 | 154,027 | ||
Gross Unrealized gains | 2,441 | |||
Gross Unrealized losses | (9,983) | (92) | ||
Estimated Fair Value | 135,096 | 156,376 | ||
U.S. Treasury | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Amortized Cost | 898 | 499 | ||
Gross Unrealized losses | (81) | (9) | ||
Estimated Fair Value | 817 | 490 | ||
SBA securities | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Amortized Cost | 20,725 | 27,970 | ||
Gross Unrealized gains | 8 | 2 | ||
Gross Unrealized losses | (111) | |||
Estimated Fair Value | $ 20,622 | $ 27,972 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Details) $ in Millions | Sep. 30, 2022 USD ($) |
U.S. Treasury | |
Schedule Of Available For Sale Securities [Line Items] | |
Securities pledged as collateral | $ 0.9 |
Agency Mortgage-backed Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Securities pledged as collateral | 222.1 |
SBA securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Securities pledged as collateral | $ 187.6 |
SECURITIES - Summary of HTM Sec
SECURITIES - Summary of HTM Securities Portfolio (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | $ 884,061 | $ 0 | |
Gross Unrealized Loss | (99,254) | ||
Estimated Fair Value | 784,807 | ||
Amount of debt securities available for sale reclassified to held to maturity | $ 917,000 | ||
Unrealized gain (loss) on transfer of available for sale securities to held to maturity | $ 600 | ||
Agency Mortgage-backed Securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 884,061 | ||
Gross Unrealized Loss | (99,254) | ||
Estimated Fair Value | $ 784,807 |
SECURITIES - Schedule of AFS se
SECURITIES - Schedule of AFS securities in a Continuous Unrealized Loss Position Aggregated by Investment Category and Length of Time (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 201,785 | $ 498,841 |
Less than 12 months, Unrealized Loss | (15,099) | (5,189) |
12 months or more, Fair Value | 18,360 | 36,136 |
12 months or more, Unrealized Loss | (2,139) | (1,069) |
Total, Fair Value | 220,145 | 534,977 |
Total, Unrealized Loss | (17,238) | (6,258) |
Collateralized mortgage obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 9,275 | 12,971 |
Less than 12 months, Unrealized Loss | (1,225) | (37) |
Total, Fair Value | 9,275 | 12,971 |
Total, Unrealized Loss | (1,225) | (37) |
Agency Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 8,164 | 434,973 |
Less than 12 months, Unrealized Loss | (634) | (5,051) |
12 months or more, Fair Value | 36,136 | |
12 months or more, Unrealized Loss | (1,069) | |
Total, Fair Value | 8,164 | 471,109 |
Total, Unrealized Loss | (634) | (6,120) |
Beneficial interest - FHLMC securitizations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 4,240 | |
Less than 12 months, Unrealized Loss | (7) | |
Total, Fair Value | 4,240 | |
Total, Unrealized Loss | (7) | |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 45,200 | 2,025 |
Less than 12 months, Unrealized Loss | (5,197) | |
Total, Fair Value | 45,200 | 2,025 |
Total, Unrealized Loss | (5,197) | |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 117,180 | 47,880 |
Less than 12 months, Unrealized Loss | (7,899) | (92) |
12 months or more, Fair Value | 17,916 | |
12 months or more, Unrealized Loss | (2,084) | |
Total, Fair Value | 135,096 | 47,880 |
Total, Unrealized Loss | (9,983) | (92) |
U.S. Treasury | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 373 | 491 |
Less than 12 months, Unrealized Loss | (26) | (9) |
12 months or more, Fair Value | 444 | |
12 months or more, Unrealized Loss | (55) | |
Total, Fair Value | 817 | 491 |
Total, Unrealized Loss | (81) | (9) |
SBA securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 17,353 | 501 |
Less than 12 months, Unrealized Loss | (111) | |
Total, Fair Value | 17,353 | $ 501 |
Total, Unrealized Loss | $ (111) |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
SECURITIES | |||||
Beginning Balance for period | $ 11,226 | $ 10,399 | $ 7,245 | $ 7,245 | |
Provision for credit losses | 293 | $ 1,000 | 1,120 | $ 2,853 | 3,154 |
Ending Balance for period | $ 11,519 | $ 11,519 | $ 10,399 |
SECURITIES - Scheduled Maturiti
SECURITIES - Scheduled Maturities of Securities AFS and the Related Weighted Average Yields (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, less than one year | $ 6,331 | $ 9,604 |
Amortized cost, one through five years | 31,776 | 31,858 |
Amortized cost, five through ten years | 164,581 | 195,613 |
Amortized cost, after ten years | 53,386 | 961,487 |
Amortized cost, total | $ 256,074 | $ 1,198,562 |
Weighted average yield, less than one year | 2.77% | (2.28%) |
Weighted average yield, one through five years | 2.05% | 2.06% |
Weighted average yield, five through ten years | 3.52% | 3.03% |
Weighted average yield, after ten years | 2.23% | 1.63% |
Weighted average yield, total | 3.05% | 1.84% |
Estimated fair value, less than one year | $ 6,308 | $ 9,599 |
Estimated fair value, one through five years | 30,083 | 32,000 |
Estimated fair value, five through ten years | 153,490 | 198,427 |
Estimated fair value, after ten years | 49,101 | 961,751 |
Estimated fair value, total | 238,982 | 1,201,777 |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, less than one year | 6,013 | 9,534 |
Amortized cost, one through five years | 10,002 | 10,519 |
Amortized cost, five through ten years | 123,531 | 128,438 |
Amortized cost, after ten years | 5,533 | 5,536 |
Amortized cost, total | 145,079 | 154,027 |
Estimated fair value, less than one year | 5,995 | 9,529 |
Estimated fair value, one through five years | 9,102 | 10,499 |
Estimated fair value, five through ten years | 115,694 | 130,754 |
Estimated fair value, after ten years | 4,305 | 5,594 |
Estimated fair value, total | 135,096 | 156,376 |
U.S. Treasury | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, one through five years | 898 | 499 |
Amortized cost, total | 898 | 499 |
Estimated fair value, one through five years | 817 | 490 |
Estimated fair value, total | 817 | 490 |
Agency Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, one through five years | 3,737 | 4,990 |
Amortized cost, five through ten years | 3,378 | 24,568 |
Amortized cost, after ten years | 1,683 | 898,988 |
Amortized cost, total | 8,798 | 928,546 |
Estimated fair value, one through five years | 3,531 | 5,082 |
Estimated fair value, five through ten years | 3,137 | 25,056 |
Estimated fair value, after ten years | 1,496 | 898,851 |
Estimated fair value, total | 8,164 | 928,989 |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, less than one year | 303 | |
Amortized cost, one through five years | 5,379 | 1,625 |
Amortized cost, five through ten years | 35,553 | 38,853 |
Amortized cost, after ten years | 9,162 | 11,574 |
Amortized cost, total | 50,397 | 52,052 |
Estimated fair value, less than one year | 298 | |
Estimated fair value, one through five years | 4,877 | 1,704 |
Estimated fair value, five through ten years | 32,616 | 38,865 |
Estimated fair value, after ten years | 7,409 | 11,577 |
Estimated fair value, total | 45,200 | 52,146 |
Beneficial interest - FHLMC securitizations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, one through five years | 10,185 | 11,902 |
Amortized cost, after ten years | 9,492 | 9,704 |
Amortized cost, total | 19,677 | 21,606 |
Estimated fair value, one through five years | 10,185 | 11,902 |
Estimated fair value, after ten years | 9,623 | 10,077 |
Estimated fair value, total | 19,808 | 21,979 |
SBA securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, less than one year | 15 | 70 |
Amortized cost, one through five years | 1,575 | 1,613 |
Amortized cost, five through ten years | 1,431 | 2,952 |
Amortized cost, after ten years | 17,704 | 23,335 |
Amortized cost, total | 20,725 | 27,970 |
Estimated fair value, less than one year | 15 | 70 |
Estimated fair value, one through five years | 1,571 | 1,613 |
Estimated fair value, five through ten years | 1,427 | 2,953 |
Estimated fair value, after ten years | 17,609 | 23,336 |
Estimated fair value, total | 20,622 | 27,972 |
Collateralized mortgage obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, one through five years | 710 | |
Amortized cost, five through ten years | 688 | 802 |
Amortized cost, after ten years | 9,812 | 12,350 |
Amortized cost, total | 10,500 | 13,862 |
Estimated fair value, one through five years | 710 | |
Estimated fair value, five through ten years | 616 | 799 |
Estimated fair value, after ten years | 8,659 | 12,316 |
Estimated fair value, total | $ 9,275 | $ 13,825 |
SECURITIES - Scheduled Maturi_2
SECURITIES - Scheduled Maturities of Securities HTM and the Related Weighted Average Yields (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
HTM - Amortized Cost | |
Amortized cost, one through five years | $ 119 |
Amortized cost, five through ten years | 18,841 |
Amortized cost, after ten years | 865,101 |
Amortized cost, total | $ 884,061 |
HTM - Weighted average yield | |
Weighted average yield, one through five years | 0.27% |
Weighted average yield, five through ten years | 1.03% |
Weighted average yield, after ten years | 2.09% |
Weighted average yield, total | 2.07% |
HTM - Estimated Fair Value | |
Estimated fair value, one through five years | $ 110 |
Estimated fair value, five through ten years | 16,892 |
Estimated fair value, after ten years | 767,805 |
Estimated fair value, total | 784,807 |
Agency Mortgage-backed Securities | |
HTM - Amortized Cost | |
Amortized cost, one through five years | 119 |
Amortized cost, five through ten years | 18,841 |
Amortized cost, after ten years | 865,101 |
Amortized cost, total | 884,061 |
HTM - Estimated Fair Value | |
Estimated fair value, one through five years | 110 |
Estimated fair value, five through ten years | 16,892 |
Estimated fair value, after ten years | 767,805 |
Estimated fair value, total | $ 784,807 |
LOANS - Summary of Loans (Detai
LOANS - Summary of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 10,339,299 | $ 6,893,984 |
Premiums, discounts and deferred fees and expenses | 16,121 | 12,744 |
Total | 10,355,420 | 6,906,728 |
Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 6,096,473 | 3,832,495 |
Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 1,235,334 | 1,309,575 |
Land and Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 143,771 | 155,926 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,874,827 | 1,598,422 |
Total | 2,874,656 | 1,597,865 |
Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 5,155 | 10,834 |
Total | 5,186 | 10,867 |
Real Estate Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 7,459,317 | 5,284,728 |
Real Estate Loans | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 6,077,953 | 3,819,500 |
Total | 6,096,473 | 3,832,495 |
Real Estate Loans | Multifamily | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 5,088,695 | 2,886,055 |
Real Estate Loans | Single family | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 989,258 | 933,445 |
Real Estate Loans | Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,236,577 | 1,309,200 |
Total | 1,235,334 | 1,309,575 |
Real Estate Loans | Land and Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 144,787 | 156,028 |
Total | $ 143,771 | $ 155,926 |
LOANS - Summary of Delinquent a
LOANS - Summary of Delinquent and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual Past Due and Still Accruing | $ 11,240 | $ 8,330 |
Total loans | 10,355,420 | 6,906,728 |
Total | $ 10,355,420 | $ 6,906,728 |
Percentage of Total Loans Due Nonaccrual | 0.11% | 0.12% |
Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 17,086 | $ 13,656 |
Percentage of Total Loans | 0.16% | 0.20% |
30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 4,497 | $ 4,756 |
Percentage of Total Loans Due 30-59 Days | 0.04% | 0.07% |
60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 211 | $ 570 |
Percentage of Total Loans Due 60-89 Days | 0% | 0.01% |
90 Days or More | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 1,138 | |
Percentage of Total Loans Due 90 Days or More | 0.01% | |
Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 10,338,334 | $ 6,893,072 |
Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,896,743 | |
Total | 6,096,473 | 3,832,495 |
Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,235,334 | 1,309,575 |
Total | 1,235,334 | 1,309,575 |
Land and Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 143,771 | 155,926 |
Total | 143,771 | 155,926 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual Past Due and Still Accruing | 4,488 | 3,520 |
Total loans | 2,874,656 | 1,597,865 |
Total | 2,874,656 | 1,597,865 |
Commercial and Industrial Loans | Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 5,369 | 4,083 |
Commercial and Industrial Loans | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 590 | 303 |
Commercial and Industrial Loans | 60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 211 | 260 |
Commercial and Industrial Loans | 90 Days or More | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 80 | |
Commercial and Industrial Loans | Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,869,287 | 1,593,782 |
Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual Past Due and Still Accruing | 4 | |
Total loans | 5,186 | 10,867 |
Total | 5,186 | 10,867 |
Consumer Loans | Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 4 | |
Consumer Loans | Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 5,182 | 10,867 |
Real Estate Loans | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual Past Due and Still Accruing | 2,586 | 3,281 |
Total | 6,096,473 | 3,832,495 |
Real Estate Loans | Residential Properties | Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,863 | 5,110 |
Real Estate Loans | Residential Properties | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 247 | 1,519 |
Real Estate Loans | Residential Properties | 60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 310 | |
Real Estate Loans | Residential Properties | 90 Days or More | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 30 | |
Real Estate Loans | Residential Properties | Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 6,093,610 | 3,827,385 |
Real Estate Loans | Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual Past Due and Still Accruing | 4,162 | 1,529 |
Total | 1,235,334 | 1,309,575 |
Real Estate Loans | Commercial real estate | Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 7,372 | 4,463 |
Real Estate Loans | Commercial real estate | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,182 | 2,934 |
Real Estate Loans | Commercial real estate | 90 Days or More | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,028 | |
Real Estate Loans | Commercial real estate | Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,227,962 | 1,305,112 |
Real Estate Loans | Land and Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 143,771 | 155,926 |
Real Estate Loans | Land and Construction | Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,478 | |
Real Estate Loans | Land and Construction | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,478 | |
Real Estate Loans | Land and Construction | Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 142,293 | $ 155,926 |
LOANS - Summary of Nonaccrual L
LOANS - Summary of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with Allowance for Credit Losses | $ 2,140 | $ 1,733 |
Nonaccrual with No Allowance for Credit Losses | 9,100 | 6,597 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with Allowance for Credit Losses | 2,140 | 1,733 |
Nonaccrual with No Allowance for Credit Losses | 2,348 | 1,787 |
Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with No Allowance for Credit Losses | 4 | |
Real Estate Loans | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with No Allowance for Credit Losses | 2,586 | 3,281 |
Real Estate Loans | Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with No Allowance for Credit Losses | $ 4,162 | $ 1,529 |
LOANS - Composition of TDRs by
LOANS - Composition of TDRs by Accrual and Nonaccrual Status (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Nonaccrual | $ 11,240 | $ 8,330 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Nonaccrual | 4,488 | 3,520 |
Principal Reduction And Extended Maturity | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Accrual | 1,048 | 2,714 |
Troubled Debt Restructurings, Nonaccrual | 2,563 | 3,204 |
Troubled Debt Restructurings, Total | 3,611 | 5,918 |
Principal Reduction And Extended Maturity | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Accrual | 1,200 | |
Troubled Debt Restructurings, Total | 1,200 | |
Principal Reduction And Extended Maturity | Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Accrual | 953 | 1,021 |
Troubled Debt Restructurings, Nonaccrual | 1,093 | 1,174 |
Troubled Debt Restructurings, Total | 2,046 | 2,195 |
Principal Reduction And Extended Maturity | Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Accrual | 95 | 493 |
Troubled Debt Restructurings, Nonaccrual | 1,470 | 2,030 |
Troubled Debt Restructurings, Total | $ 1,565 | $ 2,523 |
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, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Financing Receivable Modifications [Line Items] | ||
Number of loans | loan | 2 | 1 |
Outstanding recorded investment, pre-modification | $ 606 | $ 346 |
Outstanding recorded investment, post-modification | $ 606 | $ 346 |
Commercial and Industrial Loans | ||
Financing Receivable Modifications [Line Items] | ||
Number of loans | loan | 2 | 1 |
Outstanding recorded investment, pre-modification | $ 606 | $ 346 |
Outstanding recorded investment, post-modification | $ 606 | $ 346 |
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, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | $ 33,165 | $ 33,776 | $ 24,200 |
Provision for Credit Losses | (96) | (859) | 856 |
Initial Allowance on Acquired PCD Loans | 9,545 | ||
Charge-offs | (226) | (372) | (1,824) |
Recoveries | 57 | 355 | 999 |
Ending Balance | 32,900 | 32,900 | 33,776 |
Residential Properties | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 4,446 | 2,637 | 5,115 |
Provision for Credit Losses | 2,598 | 4,407 | (1,453) |
Initial Allowance on Acquired PCD Loans | 93 | ||
Charge-offs | (1,118) | ||
Ending Balance | 7,044 | 7,044 | 2,637 |
Commercial real estate | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 12,714 | 17,049 | 8,711 |
Provision for Credit Losses | (2,223) | (6,558) | 774 |
Initial Allowance on Acquired PCD Loans | 7,564 | ||
Ending Balance | 10,491 | 10,491 | 17,049 |
Land and Construction | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 1,460 | 1,995 | 892 |
Provision for Credit Losses | (1,305) | (1,840) | 1,051 |
Initial Allowance on Acquired PCD Loans | 52 | ||
Ending Balance | 155 | 155 | 1,995 |
Commercial and Industrial Loans | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 14,481 | 11,992 | 9,249 |
Provision for Credit Losses | 868 | 3,205 | 614 |
Initial Allowance on Acquired PCD Loans | 1,836 | ||
Charge-offs | (226) | (372) | (706) |
Recoveries | 57 | 355 | 999 |
Ending Balance | 15,180 | 15,180 | 11,992 |
Consumer Loans | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 64 | 103 | 233 |
Provision for Credit Losses | (34) | (73) | (130) |
Ending Balance | $ 30 | $ 30 | $ 103 |
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, 2022 | Dec. 31, 2021 |
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | $ 5,548 | $ 10,516 |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 27,352 | 23,260 |
Total Allowance for Credit Losses | 32,900 | 33,776 |
Loans, Individually Evaluated for Impairment | 45,090 | 61,563 |
Loans, Collectively Evaluated for Impairment | 10,310,330 | 6,845,165 |
Total | 10,355,420 | 6,906,728 |
Residential Properties | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | 76 | 111 |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 6,968 | 2,526 |
Total Allowance for Credit Losses | 7,044 | 2,637 |
Loans, Individually Evaluated for Impairment | 3,508 | 9,593 |
Loans, Collectively Evaluated for Impairment | 6,092,965 | 3,822,902 |
Total | 6,096,473 | 3,832,495 |
Commercial real estate | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | 2,107 | 7,967 |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 8,384 | 9,082 |
Total Allowance for Credit Losses | 10,491 | 17,049 |
Loans, Individually Evaluated for Impairment | 34,012 | 41,313 |
Loans, Collectively Evaluated for Impairment | 1,201,322 | 1,268,262 |
Total | 1,235,334 | 1,309,575 |
Land and Construction | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | 52 | |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 155 | 1,943 |
Total Allowance for Credit Losses | 155 | 1,995 |
Loans, Individually Evaluated for Impairment | 694 | |
Loans, Collectively Evaluated for Impairment | 143,771 | 155,232 |
Total | 143,771 | 155,926 |
Commercial and Industrial Loans | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | 3,365 | 2,386 |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 11,815 | 9,606 |
Total Allowance for Credit Losses | 15,180 | 11,992 |
Loans, Individually Evaluated for Impairment | 7,570 | 9,963 |
Loans, Collectively Evaluated for Impairment | 2,867,086 | 1,587,902 |
Total | 2,874,656 | 1,597,865 |
Consumer Loans | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Collectively Evaluated for Impairment | 30 | 103 |
Total Allowance for Credit Losses | 30 | 103 |
Loans, Collectively Evaluated for Impairment | 5,186 | 10,867 |
Total | $ 5,186 | $ 10,867 |
ALLOWANCE FOR CREDIT LOSSES - R
ALLOWANCE FOR CREDIT LOSSES - Risk Category of Loans Based on Year of Origination (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | $ 3,701,911 | $ 1,973,024 |
2021/2020 | 2,530,421 | 1,224,189 |
2020/2019 | 1,299,336 | 666,713 |
2019/2018 | 566,892 | 476,178 |
2018/2017 | 426,082 | 326,563 |
Prior | 774,817 | 1,515,612 |
Revolving Loans | 1,055,961 | 724,449 |
Total loans | 10,355,420 | 6,906,728 |
Total | 10,355,420 | 6,906,728 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 3,695,960 | 1,972,141 |
2021/2020 | 2,501,337 | 1,221,553 |
2020/2019 | 1,294,731 | 636,509 |
2019/2018 | 532,522 | 475,196 |
2018/2017 | 413,152 | 322,281 |
Prior | 747,546 | 1,451,179 |
Revolving Loans | 1,040,861 | 718,463 |
Total loans | 10,226,109 | 6,797,322 |
Special mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 883 | |
2021/2020 | 14,852 | 1,101 |
2020/2019 | 1,338 | 25,505 |
2019/2018 | 21,733 | |
2018/2017 | 12,925 | |
Prior | 9,466 | 32,453 |
Revolving Loans | 10,644 | 2,816 |
Total loans | 70,958 | 62,758 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 5,951 | |
2021/2020 | 14,232 | 1,535 |
2020/2019 | 3,267 | 4,699 |
2019/2018 | 12,637 | 982 |
2018/2017 | 5 | 4,282 |
Prior | 17,805 | 31,980 |
Revolving Loans | 4,456 | 3,170 |
Total loans | 58,353 | 46,648 |
Residential Properties | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 1,092,903 | |
2021/2020 | 868,483 | |
2020/2019 | 419,523 | |
2019/2018 | 265,872 | |
2018/2017 | 141,433 | |
Prior | 108,529 | |
Total loans | 2,896,743 | |
Total | 6,096,473 | 3,832,495 |
Residential Properties | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 1,092,903 | |
2021/2020 | 868,483 | |
2020/2019 | 418,346 | |
2019/2018 | 265,872 | |
2018/2017 | 141,433 | |
Prior | 108,529 | |
Total loans | 2,895,566 | |
Residential Properties | Special mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2020/2019 | 1,177 | |
Total loans | 1,177 | |
Multifamily | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 2,106,172 | |
2021/2020 | 1,563,718 | |
2020/2019 | 800,339 | |
2019/2018 | 316,392 | |
2018/2017 | 163,444 | |
Prior | 154,097 | |
Total loans | 5,104,162 | |
Multifamily | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 2,106,172 | |
2021/2020 | 1,563,718 | |
2020/2019 | 800,339 | |
2019/2018 | 310,696 | |
2018/2017 | 153,626 | |
Prior | 152,542 | |
Total loans | 5,087,093 | |
Multifamily | Special mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2019/2018 | 5,696 | |
2018/2017 | 9,818 | |
Prior | 1,555 | |
Total loans | 17,069 | |
Single family | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 218,836 | 278,337 |
2021/2020 | 286,916 | 122,530 |
2020/2019 | 97,470 | 52,995 |
2019/2018 | 40,195 | 60,559 |
2018/2017 | 49,925 | 59,047 |
Prior | 229,615 | 287,046 |
Revolving Loans | 69,354 | 75,238 |
Total loans | 992,311 | 935,752 |
Single family | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 218,836 | 278,337 |
2021/2020 | 286,916 | 122,530 |
2020/2019 | 97,470 | 52,995 |
2019/2018 | 40,195 | 60,559 |
2018/2017 | 49,925 | 57,174 |
Prior | 226,159 | 280,216 |
Revolving Loans | 69,277 | 74,934 |
Total loans | 988,778 | 926,745 |
Single family | Special mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Revolving Loans | 25 | 26 |
Total loans | 25 | 26 |
Single family | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2018/2017 | 1,873 | |
Prior | 3,456 | 6,830 |
Revolving Loans | 52 | 278 |
Total loans | 3,508 | 8,981 |
Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 189,988 | 114,678 |
2021/2020 | 217,183 | 39,135 |
2020/2019 | 143,626 | 85,855 |
2019/2018 | 130,910 | 94,930 |
2018/2017 | 188,174 | 117,831 |
Prior | 365,453 | 857,146 |
Total loans | 1,235,334 | 1,309,575 |
Total | 1,235,334 | 1,309,575 |
Commercial real estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 184,037 | 114,678 |
2021/2020 | 189,401 | 39,135 |
2020/2019 | 142,839 | 59,426 |
2019/2018 | 104,549 | 94,930 |
2018/2017 | 185,067 | 115,614 |
Prior | 346,001 | 804,295 |
Total loans | 1,151,894 | 1,228,078 |
Commercial real estate | Special mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021/2020 | 13,867 | |
2020/2019 | 1 | 23,495 |
2019/2018 | 15,665 | |
2018/2017 | 3,107 | |
Prior | 7,911 | 30,389 |
Total loans | 40,551 | 53,884 |
Commercial real estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 5,951 | |
2021/2020 | 13,915 | |
2020/2019 | 786 | 2,934 |
2019/2018 | 10,696 | |
2018/2017 | 2,217 | |
Prior | 11,541 | 22,462 |
Total loans | 42,889 | 27,613 |
Land and Construction | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 38,279 | 14,738 |
2021/2020 | 57,630 | |
2020/2019 | 39,254 | 17,692 |
2019/2018 | 866 | 31,952 |
2018/2017 | 5,090 | 2,529 |
Prior | 2,652 | 89,015 |
Total loans | 143,771 | 155,926 |
Total | 143,771 | 155,926 |
Land and Construction | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 38,279 | 14,738 |
2021/2020 | 57,630 | |
2020/2019 | 39,254 | 17,692 |
2019/2018 | 866 | 31,952 |
2018/2017 | 5,090 | 2,529 |
Prior | 2,652 | 88,321 |
Total loans | 143,771 | 155,232 |
Land and Construction | Special mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Prior | 694 | |
Total loans | 694 | |
Commercial and Industrial Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 1,148,123 | 472,314 |
2021/2020 | 403,856 | 194,041 |
2020/2019 | 218,644 | 90,648 |
2019/2018 | 78,050 | 21,691 |
2018/2017 | 19,238 | 5,723 |
Prior | 22,929 | 171,259 |
Revolving Loans | 983,816 | 642,189 |
Total loans | 2,874,656 | 1,597,865 |
Total | 2,874,656 | 1,597,865 |
Commercial and Industrial Loans | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 1,148,123 | 471,431 |
2021/2020 | 402,554 | 191,405 |
2020/2019 | 214,826 | 88,050 |
2019/2018 | 75,737 | 20,709 |
2018/2017 | 19,233 | 5,531 |
Prior | 20,121 | 167,201 |
Revolving Loans | 968,797 | 636,507 |
Total loans | 2,849,391 | 1,580,834 |
Commercial and Industrial Loans | Special mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 883 | |
2021/2020 | 985 | 1,101 |
2020/2019 | 1,337 | 833 |
2019/2018 | 372 | |
Prior | 1,370 | |
Revolving Loans | 10,619 | 2,790 |
Total loans | 13,313 | 6,977 |
Commercial and Industrial Loans | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021/2020 | 317 | 1,535 |
2020/2019 | 2,481 | 1,765 |
2019/2018 | 1,941 | 982 |
2018/2017 | 5 | 192 |
Prior | 2,808 | 2,688 |
Revolving Loans | 4,400 | 2,892 |
Total loans | 11,952 | 10,054 |
Consumer Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 513 | 54 |
2021/2020 | 1,118 | |
2020/2019 | 3 | |
2019/2018 | 479 | 1,174 |
2018/2017 | 211 | |
Prior | 71 | 2,617 |
Revolving Loans | 2,791 | 7,022 |
Total loans | 5,186 | 10,867 |
Total | 5,186 | 10,867 |
Consumer Loans | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022/2021 | 513 | 54 |
2021/2020 | 1,118 | |
2020/2019 | 3 | |
2019/2018 | 479 | 1,174 |
2018/2017 | 211 | |
Prior | 71 | 2,617 |
Revolving Loans | 2,787 | 7,022 |
Total loans | 5,182 | $ 10,867 |
Consumer Loans | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Revolving Loans | 4 | |
Total loans | $ 4 |
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, 2022 | Dec. 31, 2021 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Allowance for Credit Losses | $ 32,900 | $ 33,776 |
Collateral Dependent Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 6,138 | 2,818 |
Total Allowance for Credit Losses | 674 | |
Collateral Dependent Loans | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 5,206 | 2,568 |
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 | 682 | |
Collateral Dependent Loans | Single family | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 2,455 | 2,568 |
Collateral Dependent Loans | Single family | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 2,455 | 2,568 |
Collateral Dependent Loans | Commercial real estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 2,751 | |
Collateral Dependent Loans | Commercial real estate | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 2,751 | |
Collateral Dependent Loans | Commercial and Industrial Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 932 | 250 |
Total Allowance for Credit Losses | 674 | |
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 | $ 682 |
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, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Loan Sales And Mortgage Servicing Rights [Line Items] | ||||
Gain on sale of loans | $ 18,135 | $ 21,459 | ||
First Foundation Bank | ||||
Loan Sales And Mortgage Servicing Rights [Line Items] | ||||
Sale of multifamily loans through securitization | $ 559,000 | |||
Gain on sale of loans | 21,500 | |||
Mortgage servicing rights | $ 8,500 | 6,800 | ||
Loans serviced for others | 1,100,000 | 1,700,000 | ||
Valuation allowance of mortgage servicing rights | 2,600 | $ 1,900 | ||
Servicing fees earned on loans | $ 1,500 | $ 2,300 |
DEPOSITS - Summary of Outstandi
DEPOSITS - Summary of Outstanding Balance of Deposits and Average Rates (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
DEPOSITS | ||
Demand deposits, Noninterest-bearing | $ 3,550,637 | $ 3,280,455 |
Demand deposits, Interest-bearing | 2,253,799 | 2,242,684 |
Money market and savings | 2,911,909 | 2,620,336 |
Certificates of deposits | 833,511 | 668,485 |
Total | $ 9,549,856 | $ 8,811,960 |
Demand deposits, Interest-bearing, Weighted Average Rate | 1.771% | 0.07% |
Money market and savings, Weighted Average Rate | 1.239% | 0.275% |
Certificates of deposits, Weighted Average Rate | 1.724% | 0.145% |
Total, Weighted Average Rate | 0.946% | 0.111% |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
DEPOSITS | ||
Certificates of deposits of $250,000 or more, maturities within one year | $ 369 | $ 361 |
Certificates of deposits of $250,000 or more, maturities after one year | 25 | 6 |
Certificates of deposits of $250,000 or more, total | 394 | 367 |
Certificates of deposit of less than $ 250,000, maturities within one year | 375 | 229 |
Certificates of deposit of less than $ 250,000, maturities after one year | 65 | 72 |
Certificates of deposit of less than $250,000, total | $ 440 | $ 301 |
BORROWINGS (Details)
BORROWINGS (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 USD ($) Institution | Dec. 31, 2021 USD ($) | Dec. 31, 2017 USD ($) | |
Debt Instrument [Line Items] | |||
Overnight FHLB advances | $ 1,100,000,000 | ||
Long-term line of credit | 0 | ||
Loans pledged as collateral | 5,000,000,000 | ||
Federal Home Loan Bank, maximum borrowing capacity | 1,800,000,000 | ||
Federal Home Loan Bank, additional credit available | $ 315,000,000 | ||
Interest rate (as a percent) | 3.22% | ||
Unsecured debt | $ 245,000,000 | ||
Number of financial institutions | Institution | 5 | ||
Unused lines of credit | $ 2,400,000,000 | $ 3,100,000,000 | |
FHLB, average daily balance of borrowings outstanding | 165,100,000 | 1,000,000 | |
Secured debt | $ 166,000,000 | ||
FHLB Advances Maturing in October 2020 | |||
Debt Instrument [Line Items] | |||
Secured debt | 345,000,000 | ||
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 | $ 20,000,000 | ||
Revolving Credit Facility | 90 Day LIBOR | |||
Debt Instrument [Line Items] | |||
Debt instrument basis point rate | 0.50% | ||
U.S. Treasury | |||
Debt Instrument [Line Items] | |||
Securities pledged as collateral | 900,000 | ||
Subordinated Notes Due 2030 | |||
Debt Instrument [Line Items] | |||
Subordinated notes | $ 174,000,000 | ||
Line of credit facility, Interest rate | 6% | ||
Secured debt | $ 179,000,000 | ||
Subordinated Notes Due 2030 | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument basis point rate | 2.04% | 5.90% | |
Subordinated Notes Due 2032 | |||
Debt Instrument [Line Items] | |||
Subordinated notes | $ 150,000,000 | ||
Interest rate (as a percent) | 3.50% | ||
FFI | |||
Debt Instrument [Line Items] | |||
Long-term line of credit | $ 18,500,000 | ||
FFI | Subordinated Notes Due 2030 | |||
Debt Instrument [Line Items] | |||
Subordinated notes | $ 24,000,000 | $ 26,000,000 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
EARNINGS PER SHARE | ||||
Net income, Basic | $ 29,006 | $ 37,226 | $ 93,158 | $ 85,635 |
Basic common shares outstanding | 56,387,451 | 44,819,743 | 56,441,305 | 44,773,683 |
Earnings per share, Basic | $ 0.51 | $ 0.83 | $ 1.65 | $ 1.91 |
Net income, Diluted | $ 29,006 | $ 37,226 | $ 93,158 | $ 85,635 |
Effect of options, restricted stock and contingent shares issuable | 60,450 | 183,194 | 69,578 | 204,180 |
Diluted common shares outstanding | 56,447,901 | 45,002,937 | 56,510,883 | 44,977,863 |
Earnings per share, Diluted | $ 0.51 | $ 0.83 | $ 1.65 | $ 1.90 |
EARNINGS PER SHARE - Anti-dilut
EARNINGS PER SHARE - Anti-dilutive (Details) | 3 Months Ended |
Sep. 30, 2022 shares | |
Options | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive securities excluded from computation of earnings per share | 102,433 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - segment | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Interest income | $ 108,746 | $ 61,989 | $ 277,861 | $ 182,530 |
Interest expense | 21,074 | 2,802 | 33,890 | 11,204 |
Net interest income | 87,672 | 59,187 | 243,971 | 171,326 |
Provision for credit losses | (22) | (417) | (641) | (13) |
Noninterest income | 12,184 | 30,680 | 41,011 | 56,623 |
Noninterest expense | 60,342 | 38,394 | 156,765 | 108,522 |
Income before taxes on income | 39,536 | 51,890 | 128,858 | 119,440 |
Operating Segments | Banking | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 108,746 | 61,989 | 277,861 | 182,530 |
Interest expense | 19,281 | 2,753 | 29,170 | 10,988 |
Net interest income | 89,465 | 59,236 | 248,691 | 171,542 |
Provision for credit losses | (22) | (417) | (641) | (13) |
Noninterest income | 5,730 | 23,202 | 19,118 | 35,710 |
Noninterest expense | 53,571 | 31,488 | 135,704 | 88,935 |
Income before taxes on income | 41,646 | 51,367 | 132,746 | 118,330 |
Operating Segments | Wealth Management | ||||
Segment Reporting Information [Line Items] | ||||
Noninterest income | 6,865 | 7,857 | 23,190 | 22,020 |
Noninterest expense | 6,380 | 6,338 | 19,213 | 17,441 |
Income before taxes on income | 485 | 1,519 | 3,977 | 4,579 |
Other. | ||||
Segment Reporting Information [Line Items] | ||||
Interest expense | 1,793 | 49 | 4,720 | 216 |
Net interest income | (1,793) | (49) | (4,720) | (216) |
Noninterest income | (411) | (379) | (1,297) | (1,107) |
Noninterest expense | 391 | 568 | 1,848 | 2,146 |
Income before taxes on income | $ (2,595) | $ (996) | $ (7,865) | $ (3,469) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event | Oct. 25, 2022 $ / shares |
Subsequent Event [Line Items] | |
Dividends payable, amount per share | $ 0.11 |
Dividends payable, date to be paid | Nov. 17, 2022 |
Dividends payable, date of record | Nov. 07, 2022 |