Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 21, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 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, par value $0.001 per share | ||
Trading Symbol | FFWM | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.2 | ||
Entity Common Stock, Shares Outstanding | 56,350,719 | ||
Documents Incorporated by Reference [Text Block] | DOCUMENTS INCORPORATED BY REFERENCE Except as otherwise stated herein, Part III of the Form 10-K is incorporated by reference from the Registrant’s Definitive Proxy Statement for its 2023 Annual Meeting of Stockholders, which is expected to be filed with the Commission on or before April 30, 2023. | ||
Amendment Flag | false | ||
Auditor Name | Eide Bailly, LLP | ||
Auditor Firm ID | 286 | ||
Auditor Location | San Ramon, CA | ||
Document Fiscal Year Focus | 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001413837 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 656,494 | $ 1,121,757 |
Securities available-for-sale ("AFS") | 237,597 | 1,201,777 |
Securities held-to-maturity ("HTM") | 862,544 | |
Allowance for credit losses - investments | (11,439) | (10,399) |
Net securities | 1,088,702 | 1,191,378 |
Loans held for sale | 501,436 | |
Loans held for investment | 10,726,193 | 6,906,728 |
Allowance for credit losses - loans | (33,731) | (33,776) |
Net loans | 10,692,462 | 6,872,952 |
Investment in FHLB stock | 25,358 | 18,249 |
Deferred taxes | 24,198 | 20,835 |
Premises and equipment, net | 36,140 | 37,920 |
Real estate owned ("REO") | 6,210 | 6,210 |
Goodwill and intangibles | 221,835 | 222,125 |
Other assets | 262,780 | 203,342 |
Total Assets | 13,014,179 | 10,196,204 |
Liabilities: | ||
Deposits | 10,362,612 | 8,811,960 |
Borrowings | 1,369,936 | 210,127 |
Accounts payable and other liabilities | 147,253 | 110,066 |
Total Liabilities | 11,879,801 | 9,132,153 |
Shareholders' Equity | ||
Common Stock | 56 | 56 |
Additional paid-in-capital | 719,606 | 720,744 |
Retained earnings | 426,659 | 340,976 |
Accumulated other comprehensive (loss) income | (11,943) | 2,275 |
Total Shareholders' Equity | 1,134,378 | 1,064,051 |
Total Liabilities and Shareholders' Equity | $ 13,014,179 | $ 10,196,204 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest income: | |||
Loans | $ 370,078 | $ 224,823 | $ 216,798 |
Securities | 26,411 | 20,435 | 25,688 |
FHLB Stock, fed funds sold and interest-bearing deposits | 7,389 | 1,960 | 1,405 |
Total interest income | 403,878 | 247,218 | 243,891 |
Interest expense: | |||
Deposits | 61,845 | 13,453 | 39,432 |
Borrowings | 23,343 | 481 | 7,815 |
Total interest expense | 85,188 | 13,934 | 47,247 |
Net interest income | 318,690 | 233,284 | 196,644 |
Provision for credit losses | 532 | 3,866 | 6,746 |
Net interest income after provision for credit losses | 318,158 | 229,418 | 189,898 |
Noninterest income: | |||
Asset management, consulting and other fees | $ 38,787 | $ 36,022 | $ 29,465 |
Type of Revenue [Extensible List] | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember |
Gain on sale of loans | $ 21,459 | $ 15,140 | |
Other income | $ 9,447 | 12,972 | 10,042 |
Total noninterest income | 48,234 | 70,453 | 54,647 |
Noninterest expense: | |||
Compensation and benefits | 110,222 | 87,908 | 73,868 |
Occupancy and depreciation | 36,236 | 24,977 | 23,892 |
Professional services and marketing costs | 13,660 | 12,224 | 8,045 |
Customer service costs | 38,178 | 8,775 | 7,445 |
Other expenses | 18,293 | 14,202 | 12,528 |
Total noninterest expense | 216,589 | 148,086 | 125,778 |
Income before taxes on income | 149,803 | 151,785 | 118,767 |
Taxes on income | 39,291 | 42,274 | 34,398 |
Net income | $ 110,512 | $ 109,511 | $ 84,369 |
Net income per share: | |||
Basic | $ 1.96 | $ 2.42 | $ 1.89 |
Diluted | $ 1.96 | $ 2.41 | $ 1.88 |
Shares used in computation: | |||
Basic | 56,422,450 | 45,272,183 | 44,639,430 |
Diluted | 56,490,060 | 45,459,540 | 44,900,805 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||
Net income | $ 17,354 | $ 29,006 | $ 33,316 | $ 30,836 | $ 23,876 | $ 37,226 | $ 26,054 | $ 22,355 | $ 22,366 | $ 30,938 | $ 17,854 | $ 13,211 | $ 110,512 | $ 109,511 | $ 84,369 |
Other comprehensive income (loss): | |||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | (18,702) | (16,696) | 13,866 | ||||||||||||
Other comprehensive income (loss) before tax | (18,702) | (16,696) | 13,866 | ||||||||||||
Income tax benefit (expense) related to items of other comprehensive income | 4,484 | 4,884 | (4,055) | ||||||||||||
Other comprehensive income (loss) | (14,218) | (11,812) | 9,811 | ||||||||||||
Total comprehensive income | $ 96,294 | $ 97,699 | $ 94,180 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in-Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Beginning balance at Dec. 31, 2019 | $ 45 | $ 433,775 | $ 175,773 | $ 4,276 | $ 613,869 |
Beginning balance (in shares) at Dec. 31, 2019 | 44,670,743 | ||||
Net income | 84,369 | 84,369 | |||
Other comprehensive income (loss) | 9,811 | 9,811 | |||
Stock based compensation | 2,075 | 2,075 | |||
Cash dividend | (12,504) | (12,504) | |||
Exercise of options | 915 | $ 915 | |||
Exercise of options (in shares) | 117,500 | 117,500 | |||
Stock grants - vesting of restricted stock units (in shares) | 103,741 | ||||
Repurchase of shares from restricted shares vesting | (2,824) | $ (2,824) | |||
Repurchase of shares from restricted shares vesting (in shares) | (224,334) | ||||
Ending balance at Dec. 31, 2020 | $ 45 | 433,941 | 247,638 | 14,087 | 695,711 |
Ending balance (in shares) at Dec. 31, 2020 | 44,667,650 | ||||
Net income | 109,511 | 109,511 | |||
Other comprehensive income (loss) | (11,812) | (11,812) | |||
Stock based compensation | 2,756 | 2,756 | |||
Cash dividend | (16,173) | (16,173) | |||
Exercise of options | 2,748 | $ 2,748 | |||
Exercise of options (in shares) | 327,000 | 327,000 | |||
Stock grants - vesting of restricted stock units | $ 11 | $ 11 | |||
Stock grants - vesting of restricted stock units (in shares) | 126,528 | ||||
Stock issued in acquisition | 283,011 | 283,011 | |||
Stock issued in acquisition (in shares) | 11,352,232 | ||||
Repurchase of shares from restricted shares vesting | (1,712) | (1,712) | |||
Repurchase of shares from restricted shares vesting (in shares) | (41,340) | ||||
Ending balance at Dec. 31, 2021 | $ 56 | 720,744 | 340,976 | 2,275 | 1,064,051 |
Ending balance (in shares) at Dec. 31, 2021 | 56,432,070 | ||||
Net income | 110,512 | 110,512 | |||
Other comprehensive income (loss) | (14,218) | (14,218) | |||
Stock based compensation | 3,467 | 3,467 | |||
Cash dividend | (24,830) | (24,830) | |||
Exercise of options | 18 | $ 18 | |||
Exercise of options (in shares) | 2,000 | 2,000 | |||
Stock grants - vesting of restricted stock units (in shares) | 148,139 | ||||
Repurchase of shares from restricted shares vesting | (1,142) | $ (1,142) | |||
Repurchase of shares from restricted shares vesting (in shares) | (44,384) | ||||
Stock repurchase | (3,481) | (3,481) | |||
Stock repurchase (in shares) | (212,583) | ||||
Other | 1 | 1 | |||
Ending balance at Dec. 31, 2022 | $ 56 | $ 719,606 | $ 426,659 | $ (11,943) | $ 1,134,378 |
Ending balance (in shares) at Dec. 31, 2022 | 56,325,242 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | |||
Net income | $ 110,512 | $ 109,511 | $ 84,369 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses - loans | (508) | 10,547 | 26 |
Provision for credit losses - securities AFS | 1,040 | 3,154 | 7,245 |
Stock-based compensation expense | 3,467 | 2,756 | 2,075 |
Depreciation and amortization | 4,036 | 3,318 | 3,205 |
Deferred tax expense (benefit) | 487 | (1,579) | (1,579) |
Amortization of premium on securities | 2,312 | 1,099 | 309 |
Amortization of core deposit intangible | 1,913 | 1,579 | 1,895 |
Amortization of mortgage servicing rights - net | 2,759 | 1,947 | 1,535 |
Amortization of premiums on purchased loans - net | 8,384 | ||
Gain on sale of loans | (21,459) | (15,140) | |
Amortization of OCI - securities transfer to HTM | (377) | ||
Valuation allowance on mortgage servicing rights - net | (1,874) | 1,899 | 1,424 |
Increase in other assets | (38,999) | (39,173) | (38,899) |
Increase in accounts payable and other liabilities | 16,286 | 23,336 | 12,593 |
Net cash provided by operating activities | 101,054 | 96,935 | 67,442 |
Cash Flows from Investing Activities: | |||
Net increase in loans | (3,318,750) | (1,623,291) | (794,305) |
Proceeds from sale of loans | 580,417 | 553,148 | |
Purchase of premises and equipment | (4,583) | (3,207) | (2,862) |
Disposals of premises and equipment | 3,388 | ||
Recovery of allowance for credit losses | 436 | 999 | 1,003 |
Purchases of securities AFS | (798) | (454,788) | (56,629) |
Purchases of securities HTM | (171,852) | ||
Proceeds from sale of securities | 3,500 | ||
Maturities of securities AFS | 27,923 | 268,146 | 270,480 |
Maturities of securities HTM | 224,737 | ||
Cash in from merger | 1,145,340 | ||
Sale (purchase) of FHLB and FRB stock, net | (7,109) | 3,511 | 4,269 |
Proceeds from BOLI policy | 326 | ||
Net cash (used in) investing activities | (3,246,282) | (79,373) | (24,896) |
Cash Flows from Financing Activities: | |||
Increase in deposits | 1,550,650 | 727,539 | 1,022,289 |
Net increase (decrease) in FHLB & other advances | 1,005,000 | (255,000) | (478,000) |
Line of credit net change - borrowings, net | 1,500 | 17,085 | 4,000 |
Net increase in subordinated debt | 147,639 | ||
Net increase in repurchase agreements | 5,672 | ||
Gain on sale leaseback | (1,061) | ||
Dividends paid | (24,830) | (16,173) | (12,504) |
Settlement of swap | (12,102) | ||
Proceeds from exercise of stock options | 18 | 2,759 | 915 |
Repurchase of stock | (4,623) | (1,722) | (2,824) |
Net cash provided by financing activities | 2,679,965 | 474,488 | 521,774 |
Increase (decrease) in cash and cash equivalents | (465,263) | 492,050 | 564,320 |
Cash and cash equivalents at beginning of year | 1,121,757 | 629,707 | 65,387 |
Cash and cash equivalents at end of period | 656,494 | 1,121,757 | 629,707 |
Supplemental disclosures of cash flow information: | |||
Income taxes | 41,014 | 39,510 | 31,310 |
Interest | 75,674 | 15,272 | 56,991 |
Noncash transactions: | |||
Transfer of loans to loans held for sale | 592,898 | 561,502 | |
Transfer of loans to loans held for investment | 485,281 | ||
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 | ||
Transfer of loans to REO | 6,210 | ||
Chargeoffs against allowance for credit losses | $ 720 | 1,824 | 1,844 |
Mortgage servicing rights from loan sales | 2,726 | $ 3,853 | |
Acquisition: | |||
Assets acquired, net of cash received | 1,489,698 | ||
Liabilities assumed | 2,357,600 | ||
Cash considerations | 10 | ||
Stock consideration | 283,011 | ||
Goodwill | $ 125,128 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business First Foundation Inc. (“FFI”) is a financial services holding company whose operations are conducted through 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 Public Finance (“FFPF”), First Foundation Insurance Services (“FFIS”) and Blue Moon Management, LLC (collectively the “Company”). FFI also has two inactive wholly owned subsidiaries, First Foundation Consulting (“FFC”) and First Foundation Advisors, LLC (“FFA LLC”). In addition, FFA has set up a limited liability company, which is not included in these consolidated financial statements, as a private investment fund to provide an investment vehicle for its clients. FFI is incorporated in the state of Delaware. The corporate headquarters for FFI is located in Dallas, Texas. The Company has offices in California, Nevada, Florida, Texas, and Hawaii. FFA, established in 1985 and incorporated in the state of California, began operating in 1990 as a fee-based registered investment advisor. FFA provides (i) investment management and financial planning services for high net-worth individuals, retirement plans, charitable institutions and private foundations; (ii) financial, investment and economic advisory and related services to high net-worth individuals and their families, family-owned businesses, and other related organizations; and (iii) support services involving the processing and transmission of financial and economic data for charitable organizations. At the end of 2022, these services were provided to approximately 1,700 clients, primarily located in Southern California, with an aggregate of $5.0 billion of assets under management. The Bank commenced operations in 2007, is incorporated in the state of California and currently operates in California, Nevada, Florida, Texas, and Hawaii. The Bank offers a wide range of deposit instruments including personal and business checking and savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit (“CD”) accounts. As a lender, the Bank originates, and retains for its portfolio, loans secured by real estate and commercial loans. Approximately 72% of the Bank’s loan portfolio is concentrated in California. The Bank also offers a wide range of specialized services including trust services, on-line banking, remote deposit capture, merchant credit card services, ATM cards, Visa debit cards, business sweep accounts, and through FFIS, insurance brokerage services. The Bank has a state non-member bank charter and is subject to continued examination by the California Department of Financial Protection and Innovation, the Federal Deposit Insurance Corporation (“FDIC”), and the Consumer Financial Protection Bureau (“CFPB”). At December 31, 2022, the Company employed 713 employees. Basis of Presentation The consolidated financial statements have been prepared in conformity with U.S. GAAP 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 during the reporting periods and related disclosures. Actual results could differ significantly from those estimates. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. Variable Interest Entities The Company may have variable interests in Variable Interest Entities (“VIEs”) arising from debt, equity or other monetary interests in an entity, which change with fluctuations in the fair value of the entity’s assets. VIEs are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The primary beneficiary of a VIE (i.e., the party that has a controlling financial interest) is required to consolidate the assets and liabilities of the VIE. The primary beneficiary is the party that has both (1) the power to direct the activities of an entity that most significantly impact the VIE’s economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company has sold loans, in 2021, 2020, 2019, 2018, 2016 and 2015, through securitizations sponsored by a government sponsored entity, Freddie Mac, who also provided credit enhancement of the loans through certain guarantee provisions. The Company retained the right to provide servicing for the loans except for special servicing for which an unrelated third party was engaged by the VIE. For the 2016 and 2015 securitizations, the Company acquired the “B” piece of the securitizations, which is structured to absorb any losses from the securitizations, as well as interest only strips from the securitization. For the 2021, 2020, 2019, and 2018 securitizations, the Company provides collateral to support its obligation to reimburse for credit losses incurred on loans in the securitization. Because the Company does not act as the special servicer for the VIE and because of the power of Freddie Mac over the VIE that holds the assets from the mortgage loan securitizations, the Company is not the primary beneficiary of the VIE and therefore the VIE is not consolidated. Reclassifications Certain amounts in the 2020 consolidated financial statements have been reclassified to conform to the 2021 presentation. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash, due from banks, certificates of deposits with original maturities of less than ninety days, investment securities with original maturities of less than ninety days, money market mutual funds and federal funds sold. At times, the Company maintains cash at major financial institutions in excess of FDIC insured limits. However, as the Company places these deposits with major well-capitalized financial institutions and monitors the financial condition of these institutions, management believes the risk of loss to be minimal. The Company maintains most of its excess cash at the Federal Reserve Bank, with well-capitalized correspondent banks or with other depository institutions at amounts less than the FDIC insured limits. At December 31, 2022, included in cash and cash equivalents were $540 million in funds held at the Federal Reserve Bank. Banking regulations require that banks maintain a percentage of their deposits as reserves in cash or on deposit with the Federal Reserve Bank. The Company was in compliance with its reserve requirements as of December 31, 2022. Certificates of Deposit From time to time, the Company may invest funds with other financial institutions through certificates of deposit. Certificates of deposit are included as cash and cash equivalents. Certificates of deposit are carried at cost. Investment Securities Investment securities for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. Investments not classified as trading securities nor as held-to-maturity securities are classified as available-for-sale securities and recorded at fair value. Unrealized gains or losses on available-for-sale securities are excluded from net income and reported as an amount net of taxes as a separate component of other comprehensive income included in shareholders’ equity. Premiums or discounts on held-to-maturity and available-for-sale securities are amortized or accreted into income using the interest method. Loan Origination Fees and Costs Loan origination fees and direct costs associated with lending are deferred and amortized to interest income as an adjustment to yield over the respective lives of the loans using the interest method. The amortization of deferred fees and costs is discontinued on loans that are placed on nonaccrual status. When a loan is paid off, any unamortized deferred fees and costs are recognized in interest income. Loans Held for Investment Loans held for investment are reported at the principal amount outstanding, net of cumulative chargeoffs, interest applied to principal (for loans accounted for using the cost recovery method), unamortized net deferred loan origination fees and costs and unamortized premiums or discounts on purchased loans. Interest on loans is accrued and recognized as interest income at the contractual rate of interest. When a loan is designated as held for investment, the intent is to hold these loans for the foreseeable future or until maturity or payoff. If subsequent changes occur, the Company may change its intent to hold these loans. Once a determination has been made to sell such loans, they are immediately transferred to loans held for sale and carried at the lower of cost or fair value. Loans Held for Sale Loans designated for sale through securitization or in the secondary market are classified as loans held for sale. Loans held for sale are accounted for at the lower of amortized cost or fair value. The fair value of loans held for sale is generally based on observable market prices from other loans in the secondary market that have similar collateral, credit, and interest rate characteristics. If quoted market prices are not readily available, the Company may consider other observable market data such as dealer quotes for similar loans or forward sale commitments. In certain cases, the fair value may be based on a discounted cash flow model. Related gains and losses are recognized in net gain on mortgage loan origination and sale activities. Nonaccrual Loans Loans are placed on nonaccrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal or interest payment. All payments received on nonaccrual loans are accounted for using the cost recovery method. Under the cost recovery method, all cash collected is applied to first reduce the principal balance. A loan may be returned to accrual status if all delinquent principal and interest payments are brought current and the collectability of the remaining principal and interest payments in accordance with the loan agreement is reasonably assured. Loans that are well secured and in the collection process may be maintained on accrual status, even if they are 90 days or more past due. Purchased Credit Deteriorated Loans The Company may purchase individual loans and groups of loans which have shown evidence of credit deterioration and are considered credit impaired. Purchased credit deteriorated (“PCD”) loans are recorded at the amount paid and there is no carryover of the seller’s allowance for credit losses. PCD loans are recorded at fair value reflecting the present value of the amounts expected to be collected. Income recognition on these 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. Under ASC 326, the Company’s allowance for credit losses includes a purchased assets with credit deterioration PCD element. The fair value mark related to PCD loans held for investment will only accrete the interest mark to interest expense over the remaining life of the PCD loans, while the non-PCD loans will accrete both the interest and credit marks over the remaining life of the non-PCD loans. Allowance for Credit Losses Effective January 1, 2020, upon the adoption of ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, Under the CECL methodology, expected credit losses reflect losses over the remaining contractual life of an asset, considering the effect of various major factors. The major factors considered in evaluating losses are historical chargeoff experience, delinquency rates, local and national economic conditions, the borrower’s ability to repay the loan and timing of repayments, and the value of any related collateral. Management’s estimate of fair value of the collateral considers current and anticipated future real estate market conditions, thereby causing these estimates to be particularly susceptible to changes that could result in a material adjustment to results of operations in the future. Provisions for credit losses are charged to operations based on management’s evaluation of the estimated losses in its loan portfolio. Recovery of the carrying value of such loans and related real estate is dependent, to a great extent, on economic, operating and other conditions that may be beyond the Company’s control. The Company’s primary regulatory agencies periodically review the allowance for credit losses and such agencies may require the Company to recognize additions to the allowance based on information and factors available to them at the time of their examinations. Accordingly, no assurance can be given that the Company will not recognize additional provisions for credit losses with respect to its loan portfolio. The allowance consists of specific and general reserves. Specific reserves relate to loans that are individually classified as impaired. Credit losses are charged against the allowance when management believes a loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The Company considers a loan to be impaired when, based upon current information and events, it believes it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The Company bases the measurement of loan impairment using either the present value of the expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the loan’s collateral properties. Impairment losses are included in the allowance for credit losses through a charge to provision for credit losses. Adjustments to impairment losses due to changes in the fair value of impaired loans’ collateral properties are included in the provision for credit losses. The Company’s impaired loans include nonaccrual loans (excluding those collectively reviewed for impairment), certain restructured loans and certain performing loans less than ninety days delinquent that the Company believes will likely not be collected in accordance with contractual terms of the loans. Loans, for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are generally considered troubled debt restructurings and classified as impaired. Commercial loans and loans secured by multifamily and commercial real estate are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for credit losses. General reserves cover non-impaired loans and are based on historical loss rates for each portfolio segment, adjusted for the effects of qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the portfolio segment’s historical loss experience. Because the Company has not experienced any meaningful amount of losses in any of its current portfolio segments, the Company calculates the historical loss rates on industry data, specifically, loss rates published by the FDIC. Qualitative factors include consideration of the following: changes in lending policies and procedures; changes in economic conditions, changes in the nature and volume of the portfolio; changes in the experience, ability and depth of lending management and other relevant staff; changes in the volume and severity of past due, nonaccrual and other adversely graded loans; changes in the loan review system; changes in the value of the underlying collateral for collateral-dependent loans; concentrations of credit and the effect of other external factors such as competition and legal and regulatory requirements. The Company continues to leverage economic projections and applies a two-year time horizon prior to reverting to the Company’s historical loss experience, which continues to be deemed reasonable and supportable. Portfolio segments identified by the Company include loans secured by residential real estate, including multifamily and single family properties, loans secured by commercial real estate, loans secured by vacant land and construction loans, commercial and industrial loans and consumer loans. Relevant risk characteristics for these portfolio segments generally include debt service coverage, loan-to-value ratios and financial performance on non-consumer loans and debt-to income, collateral type and loan-to-value ratios for consumer loans. Allowance for credit losses on investment securities: On January 1, 2020, the Company adopted the amendments within ASU 2016-13, which replaces the legacy US GAAP Other Than Temporary Impairment (“OTTI”) model with a credit loss model. The credit loss model under Accounting Standards Codification (“ASC”) 326-30, applicable to debt securities available for sale (“Securities AFS”), requires recognition of credit losses through an allowance account, but retains the concept from the OTTI model that credit losses are recognized once securities become impaired. For Securities AFS, a decline in fair value due to credit loss results in recognition of an allowance for credit losses. Impairment may result from credit deterioration of the issuer or collateral underlying the security. The assessment of determining if a decline in fair value resulted from a credit loss is performed at the individual security level. Among other factors, the Company considers: 1) the extent to which the fair value is less than the amortized cost basis; 2) the financial condition and near term prospects of the issuer, including consideration of relevant financial metrics or ratios of the issuer; 3) any adverse conditions related to an industry or geographic area of an issuer; 4) any changes to the rating of the security by a rating agency; and 5) any past due principal or interest payments from the issuer. If an assessment of the above factors indicates that a credit loss exists, the Company records an allowance for credit losses for the excess of the amortized cost basis over the present value of cash flows expected to be collected, limited to the amount that the security’s fair value is less than its amortized cost basis. Subsequent changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense. Interest accruals and amortization and accretion of premiums and discounts are suspended when the credit loss is recognized in earnings. Any interest received after the security has been placed on nonaccrual status is recognized on a cash basis. Accrued interest receivable on Securities AFS is excluded from the estimate of expected credit losses. The provision for credit losses on the consolidated income statement includes the provision for credit losses for loans and securities AFS. The provision for credit losses was $0.5 million, $3.9 million, and $6.7 million respectively for the years ended December 31, 2022, 2021, and 2020. Financial Instruments In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are incurred or received. The Company also has bank owned life insurance (“BOLI”) acquired through the TGRF acquisition. BOLI is recorded at the amount that can be realized under the insurance contract, which is the cash surrender value. The increase in the cash surrender value each period and the receipt of death benefits in excess of the cash surrender value would be recorded to “Other Income” in the income statement. As of December 31, 2022 and 2021, BOLI totaled $47.4 million and $46.6 million, respectively and is classified as a component of other assets in the accompanying consolidated balance sheets. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Real Estate Owned Real estate owned (“REO”) represents the collateral acquired through foreclosure in full or partial satisfaction of the related loan. REO is recorded at the fair value less estimated selling costs at the date of foreclosure. Any write-down at the date of transfer is charged to the allowance for credit losses related to loans. The recognition of gains or losses on sales of REO is dependent upon various factors relating to the nature of the property being sold and the terms of sale. REO values are reviewed on an ongoing basis and any decline in value is recognized as foreclosed asset expense in the current period, as are the net operating results from these assets. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization, which is charged to expense on a straight-line basis over the estimated useful lives of 3 Investment in Federal Home Loan Bank Stock As a member of the Federal Home Loan Bank (“FHLB”), the Bank is required to purchase FHLB stock in accordance with its advances, securities and deposit agreement. This stock, which is carried at cost, may be redeemed at par value. However, there are substantial restrictions regarding redemption and the Company can only receive a full redemption in connection with the Company surrendering its FHLB membership. At December 31, 2022 and 2021, the Company held $25 million and $18 million of FHLB stock, respectively. The Company does not believe that this stock is currently impaired and no adjustments to its carrying value have been recorded. Mortgage Servicing Rights When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. As of December 31, 2022 and 2021, mortgage servicing rights net of the valuation allowance totaled $5.9 million and $6.8 million, respectively and is classified as a component of other assets in the accompanying consolidated balance sheets. Servicing fee income, which is reported on the income statement as other income , Goodwill Goodwill is recorded upon completion of a business combination as the difference between the purchase price and the fair value of net identifiable assets acquired. Subsequent to initial recognition, the Company will test goodwill for impairment on an annual basis by comparing the fair value of the reporting unit to its carrying amount. The goodwill recorded by the Company was recognized from prior acquisitions and was not considered impaired at December 31, 2022. Other Intangible Assets Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Other intangible assets consist of core deposit intangible assets arising from whole bank acquisitions and are amortized on an accelerated method over their estimated useful lives, which range from 7 to 10 years. At December 31, 2022 and 2021, core deposit intangible assets totaled $6.6 million and $8.5 million, respectively, and we recognized $1.9 million, $1.6 million and $1.9 million in core deposit intangible amortization expense in 2022, 2021 and 2020, respectively. Revenue Recognition On January 1, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” Contracts with Customers Contracts with customers are open-ended, and we provide services on an ongoing basis for an unspecified contract term. For these ongoing services, the fees are variable, since they are dependent on factors such as the value of underlying assets under management or volume of transactions. Contract liabilities, or deferred revenue, are recorded when payments from customers are received in advance of providing services to customers. We generally receive payments for our services during the period or at the time services are provided, therefore, we do not have deferred revenue balances at period-end. Employees receive incentive compensation in the form of commissions, which are considered incremental and recoverable costs to obtain the contract. We utilize the practical expedient not to capitalize such costs as the amortization period of the asset is less than 12 months, and therefore we expense the commissions as incurred. Descriptions of our primary revenue-generating activities that are presented in our income statements are as follows: Interest on Loans Interest income is accrued daily on the Company’s outstanding loan balances. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Accrual of interest on loans is discontinued when reasonable doubt exists as to the full, timely collection of interest or principal and, generally, when a loan becomes contractually past due for ninety days or more with respect to principal or interest. The accrual of interest may be continued on a well-secured loan contractually past due ninety days or more with respect to principal or interest if the loan is in the process of collection or collection of the principal and interest is deemed probable. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period income. Interest on such loans is then recognized only to the extent that cash is received and where the future collection of principal is probable. Accrual of interest is resumed on loans only when, in the judgment of management, the loan is estimated to be fully collectible. The Bank continues to accrue interest on restructured loans since full payment of principal and interest is expected and such loans are performing or are less than ninety days delinquent and, therefore, do not meet the criteria for nonaccrual status. Restructured loans that have been placed on nonaccrual status are returned to accrual status when the remaining loan balance, net of any chargeoffs related to the restructure, is estimated to be fully collectible by management and performing in accordance with the applicable loan terms. Wealth management and trust fee income Asset management fees are billed on a monthly or quarterly basis based on the amount of assets under management and the applicable contractual fee percentage. Asset management fees are recognized as revenue in the period in which they are billed and earned. Financial planning fees are due and billed at the completion of the planning project and are recognized as revenue at that time. Service charges on deposit accounts Service charges on deposit accounts represent general service fees for monthly account maintenance and activity or transaction-based fees. Revenue is recognized when our performance obligation is completed which are generally monthly for account maintenance services or when a transaction has been completed. Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Gains and Losses on Sales of REO To record a sale of REO, the Bank evaluates if: (a) a commitment on the buyer’s part exists, (b) collection is probable in circumstances where the initial investment is minimal and (c) the buyer has obtained control of the asset, including the significant risks and rewards of the ownership. If there is no commitment on the buyer’s part, collection is not probable or the buyer has not obtained control of the asset, then a gain cannot be recognized. Other non-interest income includes revenue related to mortgage servicing activities and gains on sales of loans, which are not subject to the requirements of ASU 2014-09. Stock-Based Compensation The Company recognizes the cost of employee services received in exchange for awards of stock options, or other equity instruments, based on the grant-date fair value of those awards. This cost is recognized over the period in which an employee is required to provide services in exchange for the award, generally the vesting period. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for stock awards, including restricted stock units. Marketing Costs The Company expenses marketing costs, including advertising, in the period incurred. Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is established if it is “more likely than not” that all or a portion of the deferred tax assets will not be realized. The tax effects from an uncertain tax position can be recognized in the financial statements only if, based on its merits, the position is more likely than not to be sustained on audit by the taxing authorities. Interest and penalties related to uncertain tax positions are recorded as part of income tax expense. Comprehensive Income Comprehen |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 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 the 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 primary reason for acquiring TGRF was to grow our operations in markets with attractive demographic and economic trends. 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 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 181 128,227 128,408 Bank owned life insurance 46,163 — 46,163 Deferred taxes 3,414 2,361 5,775 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 $ 283,021 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 ASC 310-20. The fair values are estimates and are subject to adjustment for up to one year after the merger date. In March 2022, the Company recorded a fair value adjustment to goodwill resulting in an increase to goodwill in the amount of $1.6 million. Management reclassified all acquired held-to-maturity securities to securities AFS. 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 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 $5.8 million related to the acquisition of TGR, 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. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE. | |
FAIR VALUE | NOTE 3: FAIR VALUE 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. Securities available for sale, investments in equity securities, and interest rate swaps are measured at fair value on a recurring basis depending upon whether the inputs are Level 1, 2 or 3 as described above. The following tables show the recorded amounts of assets measured at fair value on a recurring basis as of: Fair Value Measurement Level (dollars in thousands) Total Level 1 Level 2 Level 3 December 31, 2022: Investment securities available for sale: Collateralized mortgage obligations $ 8,615 $ — $ 8,615 $ — Agency mortgage-backed securities 7,576 — 7,576 — Municipal bonds 46,790 — 46,790 — SBA securities 18,955 — 18,955 — Beneficial interests in FHLMC securitization 7,981 — — 7,981 Corporate bonds 135,013 — 135,013 — U.S. Treasury 1,228 1,228 — — Investment in equity securities 9,767 — — 9,767 Total assets at fair value on a recurring basis $ 235,925 $ 1,228 $ 216,949 $ 17,748 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 decrease in Level 2 assets from December 31, 2021 was primarily due to the transfer of $917 million in securities AFS to securities HTM during 2022. The Company’s investment in NYDIG, recorded as investment in equity securities, was transferred from Level 1 to Level 3 during 2022 due to recent volatility in the marketplace in which NYDIG operates. The Company used an independent third-party valuation firm to value its investment in NYDIG as of December 31, 2022. The valuation was based upon a market approach, specifically the guideline public company (“GPC”) method which assessed projected operations of NYDIG to the operations of a comparable set of GPC companies and other benchmarking data. As a result, the Company recorded a $6.3 million valuation loss on its investment in NYDIG which was recorded as a component of noninterest income. There were no other changes in the investment in equity securities balance from December 31, 2021 to December 31, 2022. Assets Measured at Fair Value on a Nonrecurring Basis From time to time, we may be required to measure at fair value other assets 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 of these loans, which considers internally-developed, unobservable inputs such as discount rates, default rates, and loss severity. When the fair value of the collateral is based on an observable market price or a current appraised value, we measure the impaired loan at nonrecurring Level 2. When an appraised value is not available, or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price or a discounted cash flow has been used to determine the fair value, we measure the impaired loan at nonrecurring Level 3. The total collateral dependent impaired Level 3 loans were $47.2 million and $61.6 million at December 31, 2022 and December 31, 2021, respectively. There were no specific reserves related to these loans at December 31, 2022 and December 31, 2021. Real Estate Owned Mortgage Servicing Rights. Fair Value of Financial Instruments FASB ASC 825, “Disclosures about Fair Value of Financial Instruments” requires disclosure of the fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate such value. The methodologies for estimating the fair value of financial assets and financial liabilities measured at fair value on a recurring and non-recurring basis are discussed above. The estimated fair value amounts have been determined by management using available market information and appropriate valuation methodologies, and are based on the exit price notion set forth by ASU 2016-1. In cases where quoted market prices are not available, fair values are based on estimates using present value or other market value techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. The aggregate fair value amounts presented below do not represent the underlying value of the Company. 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 our metrics and require us to make changes to our previous estimates of fair value. In addition, the fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of existing and anticipated future customer relationships and the value of assets and liabilities that are not considered financial instruments, such as premises and equipment and other real estate owned. The following methods and assumptions were used to estimate the fair value of financial instruments: Cash and Cash Equivalents Interest-Bearing Deposits with Financial Institutions Investment Securities Available for Sale: Investment in Federal Home Loan Bank Stock. Loans Held For Sale. Loans Held for Investment Deposits Borrowings The following table sets forth the estimated fair values and related carrying amounts of our financial instruments as of: Carrying Fair Value Measurement Level (dollars in thousands) Value 1 2 3 Total December 31, 2022: Assets: Cash and cash equivalents $ 656,494 $ 656,494 $ — $ — $ 656,494 Securities AFS, net 226,158 1,228 216,949 7,981 226,158 Securities HTM 862,544 — 773,061 — 773,061 Loans, net 10,692,462 — — 10,354,052 10,354,052 Investment in FHLB stock 25,358 — 25,358 — 25,358 Investment in equity securities 9,767 — — 9,767 9,767 Liabilities: Deposits $ 10,362,612 $ 8,483,770 $ 1,865,502 $ — $ 10,349,272 Borrowings 1,369,936 1,176,601 — 153,121 1,329,722 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 | 12 Months Ended |
Dec. 31, 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 December 31, 2022: Collateralized mortgage obligations $ 9,865 $ — $ (1,250) $ — $ 8,615 Agency mortgage-backed securities 8,161 — (585) — 7,576 Municipal bonds 50,232 — (3,442) — 46,790 SBA securities 19,090 3 (138) — 18,955 Beneficial interests in FHLMC securitization 19,415 108 (103) (11,439) 7,981 Corporate bonds 145,024 — (10,011) — 135,013 U.S. Treasury 1,298 1 (71) — 1,228 Total $ 253,085 $ 112 $ (15,600) $ (11,439) $ 226,158 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 December 31, 2022, U.S. Treasury securities of $1.2 million included in the table above are pledged as collateral to the States of California and Florida to meet regulatory requirements related to the Bank’s trust operations, $231.7 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. A total of $186.3 million in securities consisting of SBA securities, collateralized mortgage obligations, agency mortgage-backed securities, and municipal bonds 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 December 31, 2022: Agency mortgage-backed securities $ 862,544 — (89,483) $ — $ 773,061 Total $ 862,544 $ — $ (89,483) $ — $ 773,061 The tables below indicate the gross unrealized losses and fair values of our securities AFS portfolio, 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 December 31, 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 $ 2 $ — $ 8,613 $ (1,250) $ 8,615 $ (1,250) Agency mortgage-backed securities 6,882 (525) 696 (60) 7,578 (585) Municipal bonds 44,971 (3,244) 1,819 (198) 46,790 (3,442) SBA securities 17,237 (137) 121 (1) 17,358 (138) Beneficial interests in FHLMC securitization 4,217 (103) — — 4,217 (103) Corporate bonds 108,056 (6,476) 26,957 (3,535) 135,013 (10,011) U.S. Treasury 376 (23) 451 (48) 827 (71) Total temporarily impaired securities $ 181,741 $ (10,508) $ 38,657 $ (5,092) $ 220,398 $ (15,600) 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) Corporate bonds 47,880 (92) — — 47,880 (92) U.S. Treasury 491 (9) — — 491 (9) Total temporarily impaired securities $ 496,315 $ (5,189) $ 36,136 $ (1,069) $ 532,451 $ (6,258) There were no unrealized losses on our securities AFS portfolio as of December 31, 2020. The table below indicates the gross unrecognized losses and fair value of our securities HTM portfolio, aggregated by investment category and length of time that the individual securities have been in a continuous unrecognized loss position. Securities with Unrecognized Loss at December 31, 2022 Less than 12 months 12 months or more Total Fair Unrecognized Fair Unrecognized Fair Unrecognized (dollars in thousands) Value Loss Value Loss Value Loss Agency mortgage-backed securities $ 394,619 $ (37,418) $ 378,441 $ (52,065) $ 773,060 $ (89,483) Total temporarily impaired securities $ 394,619 $ (37,418) $ 378,441 $ (52,065) $ 773,060 $ (89,483) There were no securities HTM as of December 31, 2021. 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 rollforward of the Company’s allowance for credit losses related to investments for the year ended December 31: (dollars in thousands) Total Year Ended December 31, 2022: Beginning balance $ 10,399 Provision for credit losses 1,040 Balance: December 31, 2022 $ 11,439 Year Ended December 31, 2021: Beginning balance $ 7,245 Provision for credit losses 3,154 Balance: December 31, 2021 $ 10,399 Year Ended December 31, 2020: Beginning balance $ — Provision for credit losses 7,245 Balance: December 31, 2020 $ 7,245 Provision for credit losses of $1.0 million and $3.2 million were recorded on the consolidated income statements for the years ended December 31, 2022 and 2021, respectively. 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. The ACL related to held-to-maturity investment securities was zero at December 31, 2022. 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 December 31, 2022 Amortized Cost: Collateralized mortgage obligations $ — $ — $ 686 $ 9,179 $ 9,865 Agency mortgage-backed securities — 4,384 2,107 1,670 8,161 Municipal bonds 301 8,002 34,501 7,428 50,232 SBA securities 14 1,402 1,278 16,396 19,090 Beneficial interests in FHLMC securitization — 9,860 — 9,555 19,415 Corporate bonds 6,006 28,993 104,494 5,531 145,024 U.S. Treasury — 1,298 — — 1,298 Total $ 6,321 $ 53,939 $ 143,066 $ 49,759 $ 253,085 Weighted average yield 4.36 % 3.96 % 3.38 % 1.91 % 3.24 % Estimated Fair Value: Collateralized mortgage obligations $ — $ — $ 623 $ 7,992 $ 8,615 Agency mortgage-backed securities — 4,133 1,960 1,483 7,576 Municipal bonds 299 7,565 32,690 6,236 46,790 SBA securities 14 1,395 1,272 16,274 18,955 Beneficial interests in FHLMC securitization — 9,860 — 9,560 19,420 Corporate bonds 6,001 28,022 96,734 4,256 135,013 U.S. Treasury — 1,228 — — 1,228 Total $ 6,314 $ 52,203 $ 133,279 $ 45,801 $ 237,597 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 $ 12,349 $ 13,861 Agency mortgage-backed securities — 2,151 27,407 898,990 928,548 Municipal bonds — 1,347 35,080 15,625 52,052 SBA securities 70 1,032 3,533 23,335 27,970 Beneficial interests in FHLMC securitization — 11,902 — 9,704 21,606 Corporate bonds 3,505 11,634 133,352 5,535 154,026 U.S. Treasury — 499 — — 499 Total $ 3,575 $ 29,275 $ 200,174 $ 965,538 $ 1,198,562 Weighted average yield (4.94) % 0.36 % 3.11 % 1.64 % 1.84 % Estimated Fair Value: Collateralized mortgage obligations $ — $ 710 $ 799 $ 12,316 $ 13,825 Agency mortgage-backed securities — 2,152 27,987 898,851 928,990 Municipal bonds — 1,425 35,091 15,629 52,145 SBA securities 70 1,033 3,533 23,336 27,972 Beneficial interests in FHLMC securitization — 11,902 — 10,077 21,979 Corporate bonds 3,505 11,624 135,653 5,594 156,376 U.S. Treasury — 490 — — 490 Total $ 3,575 $ 29,336 $ 203,063 $ 965,803 $ 1,201,777 The scheduled maturities of securities HTM 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 December 31, 2022 Amortized Cost: Agency mortgage-backed securities $ — $ 208 $ 17,689 $ 844,647 $ 862,544 Total $ — $ 208 $ 17,689 $ 844,647 $ 862,544 Weighted average yield — % 0.36 % 1.12 % 2.31 % 2.28 % Estimated Fair Value: Agency mortgage-backed securities $ — $ 192 $ 16,148 $ 756,721 $ 773,061 Total $ — $ 192 $ 16,148 $ 756,721 $ 773,061 |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2022 | |
LOANS | |
LOANS | NOTE 5: LOANS The following is a summary of our loans as of: December 31, December 31, (dollars in thousands) 2022 2021 Outstanding principal balance: Loans secured by real estate: Residential properties: Multifamily $ 5,341,596 $ 2,886,055 Single family 1,016,498 933,445 Total real estate loans secured by residential properties 6,358,094 3,819,500 Commercial properties 1,203,292 1,309,200 Land and construction 158,565 156,028 Total real estate loans 7,719,951 5,284,728 Commercial and industrial loans 2,984,748 1,598,422 Consumer loans 4,481 10,834 Total loans 10,709,180 6,893,984 Premiums, discounts and deferred fees and expenses 17,013 12,744 Total $ 10,726,193 $ 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 December 31, 2022: Real estate loans: Residential properties $ 511 $ 57 $ — $ 2,556 $ 3,124 $ 6,374,100 $ 6,377,224 Commercial properties 15,000 946 1,213 4,547 21,706 1,180,357 1,202,063 Land and construction — — — — — 157,630 157,630 Commercial and industrial loans 385 1,495 982 3,228 6,090 2,978,668 2,984,758 Consumer loans — 167 — — 167 4,351 4,518 Total $ 15,896 $ 2,665 $ 2,195 $ 10,331 $ 31,087 $ 10,695,106 $ 10,726,193 Percentage of total loans 0.15 % 0.02 % 0.02 % 0.10 % 0.29 % 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 December 31, 2022: Real estate loans: Residential properties $ — $ 2,556 Commercial properties — 4,547 Commercial and industrial loans 2,016 1,212 Total $ 2,016 $ 8,315 December 31, 2021: Real estate loans: Residential properties $ — $ 3,281 Commercial properties — 1,529 Commercial and industrial loans 1,733 1,788 Total $ 1,733 $ 6,598 The following table presents the loans classified as troubled debt restructurings (“TDR”) by accrual and nonaccrual status as of: December 31, 2022 December 31, 2021 (dollars in thousands) Accrual Nonaccrual Total Accrual Nonaccrual Total Residential loans $ — $ — $ — $ 1,200 $ — $ 1,200 Commercial real estate loans 929 1,066 1,995 1,021 1,174 2,195 Commercial and industrial loans 166 1,412 1,578 493 2,030 2,523 Total $ 1,095 $ 2,478 $ 3,573 $ 2,714 $ 3,204 $ 5,918 The following tables provide information on loans that were modified as TDRs during the following periods: Outstanding Recorded Investment (dollars in thousands) Number of loans Pre-Modification Post-Modification Financial Impact Year Ended December 31, 2022: Commercial and industrial loans 3 $ 672 $ 672 $ — Total 3 $ 672 $ 672 $ — 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/or 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 | 12 Months Ended |
Dec. 31, 2022 | |
ALLOWANCE FOR CREDIT LOSSES | |
ALLOWANCE FOR CREDIT LOSSES | NOTE 6: ALLOWANCE FOR CREDIT LOSSES The following is a rollforward of the allowance for credit losses related to loans for the years ended December 31: Initial Allowance Beginning Adoption of Provision for on Acquired Ending (dollars in thousands) Balance ASC 326 Credit Losses PCD Loans Chargeoffs Recoveries Balance 2022: Real estate loans: Residential properties $ 2,637 $ — $ 5,674 $ — $ (5) $ — $ 8,306 Commercial properties 17,049 — (8,335) — — — 8,714 Land and construction 1,995 — (1,831) — — — 164 Commercial and industrial loans 11,992 — 4,804 — (711) 436 16,521 Consumer loans 103 — (73) — (4) — 26 Total $ 33,776 $ — $ 239 $ — $ (720) $ 436 $ 33,731 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 2020: Real estate loans: Residential properties $ 8,423 $ 363 $ (3,671) $ — $ — $ — $ 5,115 Commercial properties 4,166 3,760 785 — — — 8,711 Land and construction 573 92 227 — — — 892 Commercial and industrial loans 7,448 — 2,642 — (1,844) 1,003 9,249 Consumer loans 190 — 43 — — — 233 Total $ 20,800 $ 4,215 $ 26 $ — $ (1,844) $ 1,003 $ 24,200 The following table presents the balance in the allowance for credit losses and the recorded investment in loans by impairment method as of: Allowance for Credit Losses Loans Evaluated (dollars in thousands) Individually Collectively Total December 31, 2022: Allowance for credit losses: Real estate loans: Residential properties $ 87 $ 8,219 $ 8,306 Commercial properties 1,834 6,880 8,714 Land and construction — 164 164 Commercial and industrial loans 3,122 13,399 16,521 Consumer loans — 26 26 Total $ 5,043 $ 28,688 $ 33,731 Loans: Real estate loans: Residential properties $ 3,479 $ 6,373,745 $ 6,377,224 Commercial properties 34,278 1,167,785 1,202,063 Land and construction — 157,630 157,630 Commercial and industrial loans 9,397 2,975,361 2,984,758 Consumer loans — 4,518 4,518 Total $ 47,154 $ 10,679,039 $ 10,726,193 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 Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis typically includes larger, non-homogeneous loans such as loans secured by multifamily or commercial real estate and commercial and industrial loans. This analysis is performed on an ongoing basis as new information is obtained. The Company uses the following definitions for risk ratings: Pass: Special Mention: Substandard: A loan is considered impaired, when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Additionally, all loans classified as TDRs are considered impaired. Purchased credit deteriorated loans are not considered impaired loans for these purposes. Loans listed as pass include larger non-homogeneous loans not meeting the risk rating definitions above and smaller, homogeneous loans not assessed on an individual basis. 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 December 31, 2022: Loans secured by real estate: Residential Multifamily Pass $ 2,399,360 $ 1,552,311 $ 795,263 $ 301,025 $ 145,675 $ 146,622 $ — $ 5,340,256 Special mention — — — 5,666 9,767 1,545 — 16,978 Substandard — — — — — — — — Total $ 2,399,360 $ 1,552,311 $ 795,263 $ 306,691 $ 155,442 $ 148,167 $ — $ 5,357,234 Single family Pass $ 270,589 $ 276,244 $ 96,183 $ 40,010 $ 49,676 $ 215,209 $ 68,575 $ 1,016,486 Special mention — — — — — — 25 25 Substandard — — — — — 3,434 45 3,479 Total $ 270,589 $ 276,244 $ 96,183 $ 40,010 $ 49,676 $ 218,643 $ 68,645 $ 1,019,990 Commercial real estate Pass $ 223,503 $ 158,363 $ 144,105 $ 93,960 $ 171,460 $ 325,048 $ — $ 1,116,439 Special mention — 13,425 2,340 7,088 11,734 7,905 — 42,492 Substandard 5,919 14,376 742 10,661 — 11,434 — 43,132 Total $ 229,422 $ 186,164 $ 147,187 $ 111,709 $ 183,194 $ 344,387 $ — $ 1,202,063 Land and construction Pass $ 43,846 $ 58,268 $ 47,212 $ 854 $ 5,044 $ 2,406 $ — $ 157,630 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 43,846 $ 58,268 $ 47,212 $ 854 $ 5,044 $ 2,406 $ — $ 157,630 Commercial Pass $ 1,176,851 $ 369,775 $ 182,889 $ 62,767 $ 16,306 $ 17,558 $ 1,133,998 $ 2,960,144 Special mention — 542 1,212 383 — — 5,573 7,710 Substandard — 380 2,125 1,810 — 2,736 9,853 16,904 Total $ 1,176,851 $ 370,697 $ 186,226 $ 64,960 $ 16,306 $ 20,294 $ 1,149,424 $ 2,984,758 Consumer Pass $ 456 $ 1,092 $ — $ 471 $ 133 $ 69 $ 2,297 $ 4,518 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 456 $ 1,092 $ — $ 471 $ 133 $ 69 $ 2,297 $ 4,518 Total loans Pass $ 4,114,605 $ 2,416,053 $ 1,265,652 $ 499,087 $ 388,294 $ 706,912 $ 1,204,870 $ 10,595,473 Special mention — 13,967 3,552 13,137 21,501 9,450 5,598 67,205 Substandard 5,919 14,756 2,867 12,471 — 17,604 9,898 63,515 Total $ 4,120,524 $ 2,444,776 $ 1,272,071 $ 524,695 $ 409,795 $ 733,966 $ 1,220,366 $ 10,726,193 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 ACL allocated to these loans as of: Equipment/ ACL (dollars in thousands) Real Estate Cash Receivables Total Allocation December 31, 2022: Loans secured by real estate: Residential properties Single family $ 2,435 $ — $ — $ 2,435 $ — Commercial real estate loans 3,171 — — 3,171 — Commercial loans — 250 638 888 630 Total $ 5,606 $ 250 $ 638 $ 6,494 $ 630 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 $ — |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | NOTE 7: PREMISES AND EQUIPMENT A summary of premises and equipment is as follows at December 31: (dollars in thousands) 2022 2021 Leasehold improvements and artwork $ 22,210 $ 22,331 Information technology equipment 12,841 12,205 Furniture and fixtures 3,978 3,920 Land and auto 16,152 16,943 Total 55,181 55,399 Accumulated depreciation and amortization (19,041) (17,479) Net $ 36,140 $ 37,920 |
REAL ESTATE OWNED
REAL ESTATE OWNED | 12 Months Ended |
Dec. 31, 2022 | |
REAL ESTATE OWNED | |
REAL ESTATE OWNED | NOTE 8: REAL ESTATE OWNED The activity in our portfolio of REO is as follows during the periods ending December 31: (dollars in thousands) 2022 2021 Beginning balance $ 6,210 $ — Loans transferred to REO — 6,210 REO acquired in merger — — Dispositions of REO — — Ending balance $ 6,210 $ 6,210 |
LOAN SALES AND MORTGAGE SERVICI
LOAN SALES AND MORTGAGE SERVICING RIGHTS | 12 Months Ended |
Dec. 31, 2022 | |
LOAN SALES AND MORTGAGE SERVICING RIGHTS | |
LOAN SALES AND MORTGAGE SERVICING RIGHTS | NOTE 9: LOAN SALES AND MORTGAGE SERVICING RIGHTS In 2022, there were no loan sale transactions. In 2021, the Company sold $559 million of multifamily loans and recognized a gain of $21.5 million. In 2020, the Company sold $553 million of multifamily loans and recognized a gain of $15.1 million. As part of these and other loan sale transactions that occurred prior to 2020, the Company retained servicing rights for the majority of the loans sold and recognized mortgage servicing rights. As of December 31, 2022, and 2021, mortgage servicing rights were $5.9 million and $6.8 million, respectively, net of valuation allowances of $1.4 million and $3.3 million, respectively. The amount of loans serviced for others totaled $1.1 billion and $1.4 billion at December 31, 2022 and 2021, respectively. Servicing fees collected in 2022, 2021, and 2020 were $3.0 million, $3.4 million, and $3.3 million, respectively. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2022 | |
DEPOSITS | |
DEPOSITS | NOTE 10: DEPOSITS The following table summarizes the outstanding balance of deposits and average rates paid thereon as of: 2022 2021 Weighted Weighted (dollars in thousands) Amount Average Rate Amount Average Rate Demand deposits: Noninterest-bearing $ 2,736,691 — $ 3,280,455 — Interest-bearing 2,568,850 3.109 % 2,242,684 0.070 % Money market and savings 3,178,230 2.373 % 2,620,336 0.275 % Certificates of deposit 1,878,841 3.741 % 668,485 0.145 % Total $ 10,362,612 2.177 % $ 8,811,960 0.111 % At December 31, 2022, of the $436 million of certificates of deposits of $250,000 or more, $409 million mature within one year and $27 million mature after one year. Of the $1.4 billion of certificates of deposit of less than $250,000, $1.1 billion mature within one year and $345 million mature after one year. At December 31, 2021, of the $367 million of certificates of deposits of $250,000 or more, $361 million mature within one year and $6 million mature after one year. Of the $301 million of certificates of deposit of less than $250,000, $229 million mature within one year and $72 million mature after one year. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
BORROWINGS | |
BORROWINGS | NOTE 11: BORROWINGS At December 31, 2022, our borrowings consisted of $805 million in overnight FHLB advances at the Bank, $200 million in federal funds purchased at the Bank; $174 million in subordinated notes at FFI, $171 million in repurchase agreements at the Bank, and $20.0 million of borrowings under a holding company line of credit. At December 31, 2021, our borrowings consisted of $25.6 million in subordinated notes, $166 million of repurchase agreements, and $18.5 million of borrowings under a holding company line of credit. The overnight FHLB advances were paid in full in early January 2023 and bore an interest rate of 4.65%. The federal funds purchased were paid in full in early January 2023 and bore an interest rate of 4.55%. The $174 million in subordinated notes consist of $150 million of fixed-to-floating rate notes that mature in February 2032. The notes 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. The remaining $24 million in 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. During 2017, FFI entered into a loan agreement with an unaffiliated lender that provides for a revolving line of credit for up to $20.0 million maturing in February 2023. The loan agreement has subsequently been renewed to a maturity date of February 2024. The loan bears an interest rate of 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 the Bank. 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 December 31, 2022 and 2021, FFI was in compliance with the covenants contained in the loan agreement. 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 $5.6 billion as of December 31, 2022. The Bank’s total remaining borrowing capacity from the FHLB as of December 31, 2022 was $2.4 billion. The Bank had in place $315 million of letters of credit from the FHLB as of December 31, 2022, which are used to meet collateral requirements for borrowings from the State of California and local agencies. The Bank has a total of $245 million in borrowing capacity through unsecured federal funds lines, ranging in size from $20 million to $100 million, with five other financial institutions. At December 31, 2022, the Bank had outstanding borrowings with one of the five institutions under these agreements totaling $100 million. At December 31, 2022, the Bank had an additional $100 million outstanding separate from these agreements with the same financial institution. The total $200 million outstanding at December 31, 2022, are in the form of federal funds purchased. The Bank also has a $345 million secured line with the Federal Reserve Bank, secured by single family loans. At December 31, 2022, there were no outstanding borrowings on this facility. The repurchase agreements are treated as overnight borrowings with the obligations to repurchase securities sold reflected as a liability. The investment securities underlying the agreements remain in the Company’s securities AFS accounts. As of December 31, 2022, the repurchase agreements are collateralized by investment securities with a fair value of approximately $186.3 million. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | NOTE 12: SHAREHOLDERS’ EQUITY FFI is a holding company and does not have any direct operating activities. Any future cash flow needs of FFI are expected to be met by its existing cash and cash equivalents and dividends from its subsidiaries. The Bank is subject to various laws and regulations that limit the amount of dividends that a bank can pay without obtaining prior approval from bank regulators. Additionally, under the terms of the holding company line of credit agreement, FFI may only declare and pay a dividend if the total amount of dividends and stock repurchases during the current twelve months does not exceed 50% of FFI’s net income for the same twelve month period. As of December 31, 2022, FFI’s cash and cash equivalents totaled $24.1 million. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 13: EARNINGS PER SHARE The following table sets forth the Company’s earnings per share calculations for the years ended December 31: 2022 2021 2020 (dollars in thousands, except per share amounts) Basic Diluted Basic Diluted Basic Diluted Net income $ 110,512 $ 110,512 $ 109,511 $ 109,511 $ 84,369 $ 84,369 Basic common shares outstanding 56,422,450 56,422,450 45,272,183 45,272,183 44,639,430 44,639,430 Effect of options, restricted stock and contingent shares issuable 67,610 187,357 261,375 Diluted common shares outstanding 56,490,060 45,459,540 44,900,805 Earnings per share $ 1.96 $ 1.96 $ 2.42 $ 2.41 $ 1.89 $ 1.88 Basic earnings per share excludes dilution and is computed by dividing net income or loss available to common shareholders 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. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
STOCK BASED COMPENSATION | |
STOCK BASED COMPENSATION | NOTE 14: STOCK BASED COMPENSATION In 2007, the Board of Directors of FFI approved two equity incentive plans that provided for the grant of stock options, shares of restricted stock, restricted stock units (“RSUs”), stock bonus awards and performance awards (collectively, “Equity Incentive Awards”) to the Company’s executive officers, other key employees and directors up to 1,300,282 shares of the FFI’s common stock. In 2010, shareholders approved an increase of 580,000 in the number of shares available for issuance under one of these plans. In 2015, shareholders approved a new equity incentive plan whereby: the Company can no longer issue Equity Incentive Awards under the previously approved plans; 750,000 shares of common stock will be available for the grant of Equity Incentive Awards to the Company’s executive officers, other key employees and directors; Equity Incentive Awards that are outstanding under the prior plans will remain outstanding and unchanged and subject to the terms of those Plans; and upon termination, cancellation or forfeiture of any of the Equity Incentive Awards that are outstanding under the prior plans, those shares will be added to the pool of shares available for future grants of Equity Incentive Awards under the plan approved in 2015. The shares included above do not reflect the impact of the two for one stock split which occurred at the beginning of 2017. The Company recognized stock-based compensation expense of $3.5 million, $2.8 million, and $2.1 million in 2022, 2021, and 2020, respectively, related to RSUs. Stock options, when granted, have an exercise price not less than the current market value of the common stock and expire after ten years if not exercised. If applicable, vesting periods are set at the date of grant and the Plans provide for accelerated vesting should a change in control occur. The following table summarizes the activities in the Plans during 2022: Weighted Average Weighted Average (dollars in thousands except Exercise Price per Remaining Aggregate per share amounts) Options Granted Share Contractual Term Intrinsic Value Balance: December 31, 2021 47,050 $ 8.68 Options granted — — Options exercised (2,000) 9.00 Options forfeited — — Balance: December 31, 2022 45,050 8.67 0.95 Years $ 255 Options exercisable 45,050 $ 8.67 0.95 Years $ 255 The intrinsic value of stock options exercised in 2022 was $33,400 The following table summarizes the activities in the Plans during 2021: Weighted Average Weighted Average (dollars in thousands except Exercise Price per Remaining Aggregate per share amounts) Options Granted Share Contractual Term Intrinsic Value Balance: December 31, 2020 374,050 $ 7.81 Options granted — — Options exercised (327,000) 7.69 Options forfeited — — Balance: December 31, 2021 47,050 8.68 1.96 Years $ 761 Options exercisable 47,050 $ 8.68 1.96 Years $ 761 The intrinsic value of stock options exercised in 2021 was $5.8 million. The following table summarizes the activities in the Plans during 2020: Weighted Average Weighted Average (dollars in thousands except Exercise Price per Remaining Aggregate per share amounts) Options Granted Share Contractual Term Intrinsic Value Balance: December 31, 2019 548,550 $ 7.79 Options granted — — Options exercised (117,500) 7.79 Options forfeited (57,000) 8 Balance: December 31, 2020 374,050 7.81 1.08 Years $ 3,586 Options exercisable 374,050 $ 7.81 1.08 Years $ 3,586 The intrinsic value of stock options exercised in 2020 was $0.8 million. The following table provides a summary of the RSUs issued by the Company under its equity incentive plans for the periods ended December 31: 2022 2021 2020 Weighted Weighted Weighted Average Grant Average Grant Average Grant Shares Date Fair Value Shares Date Fair Value Shares Date Fair Value Balance: January 1 199,574 $ 19.34 193,190 $ 15.32 139,278 $ 15.69 New RSUs 241,020 22.87 134,973 23.33 159,186 15.26 Shares vested and issued (148,139) 20.09 (126,528) 17.45 (103,741) 15.74 RSUs forfeited (93,439) 0.44 (2,061) 20.06 (1,533) — Balance December 31 199,016 $ 31.92 199,574 $ 19.34 193,190 $ 15.32 The fair value of the shares vested and issued was $3.4 million, $2.2 million and $1.6 million in 2022 2021 2020 |
401(k) PROFIT SHARING PLAN
401(k) PROFIT SHARING PLAN | 12 Months Ended |
Dec. 31, 2022 | |
401(k) PROFIT SHARING PLAN | |
401(k) PROFIT SHARING PLAN | NOTE 15: 401(k) PROFIT SHARING PLAN The Company’s employees participate in the Company’s 401(k) profit sharing plan (the “401k Plan”) that covers all employees eighteen years of age or older who have completed three months of employment. Each employee eligible to participate in the 401k Plan may contribute up to 100% of his or her compensation, subject to certain statutory limitations. In 2022, 2021, and 2020, the Company matched 100% of a participant’s contribution up to 3% of a participant’s compensation and an additional 50% of a participant’s contribution up to the next 2% of a participant’s compensation. These employer contributions are subject to the plan’s vesting schedule. The Company contributions of $2.8 million, $2.2 million and $1.8 million were included in compensation and benefits for 2022, 2021 and 2020, respectively. The Company may also make an additional profit sharing contribution on behalf of eligible employees. No profit sharing contributions were made in 2022, 2021 or 2020. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
INCOME TAXES | NOTE 16: INCOME TAXES The Company is subject to federal income tax and California franchise tax. Income tax expense (benefit) was as follows for the years ended December 31: (dollars in thousands) 2022 2021 2020 Current expense: Federal $ 25,708 $ 28,550 $ 23,316 State 13,096 15,303 12,661 Deferred expense (benefit): Federal 803 (867) (1,315) State (316) (712) (264) Total $ 39,291 $ 42,274 $ 34,398 The following is a comparison of the federal statutory income tax rates to the Company’s effective income tax rate for the years ended December 31: 2022 2021 2020 (dollars in thousands) Amount Rate Amount Rate Amount Rate Income before taxes $ 149,803 $ 151,785 $ 118,767 Federal tax statutory rate $ 31,459 21.00 % $ 31,875 21.00 % $ 24,941 21.00 % State tax, net of Federal benefit 12,085 8.07 % 12,262 8.08 % 9,612 8.09 % Windfall benefit – exercise of stock options (205) (0.14) % (1,708) (1.13) % (118) (0.10) % Transaction costs — - % 551 0.36 % — — % Low income housing, net benefit (998) (0.67) % (732) (0.48) % (638) (0.54) % Tax exempt interest income (2,965) (1.98) % (1,014) (0.67) % (150) (0.12) % Other items, net (85) (0.05) % 1,040 0.69 % 751 0.63 % Effective tax rate $ 39,291 26.23 % $ 42,274 27.85 % $ 34,398 28.96 % Deferred taxes are a result of differences between income tax accounting and generally accepted accounting principles with respect to income tax recognition. The following is a summary of the components of the net deferred tax assets recognized in the accompanying consolidated balance sheets at December 31: (dollars in thousands) 2022 2021 Deferred tax assets (liabilities) Allowance for credit and REO losses $ 12,560 $ 14,062 Operating loss carryforwards 1,528 1,775 State taxes 2,930 3,157 Stock-based compensation 683 538 Market valuation: merger 3,174 3,252 Capital activities – mark to market 828 3,927 Compensation related 1,407 1,343 Core deposit intangible (1,914) (2,471) Prepaid expenses (2,772) (1,853) Depreciation (945) (1,065) Accumulated other comprehensive income 4,530 (945) Other 2,189 (885) Net deferred tax assets $ 24,198 $ 20,835 As part of a merger in 2012, the Company acquired operating loss carryforwards of $13.4 million. These operating loss carryforwards are subject to limitation under Section 382 of the Internal Revenue Code and expire in 2032. As a result, the Company will only be able to utilize operating loss carryforwards of $7.6 million, ratably over a period of 20 years. As part of a merger in 2015, the Company acquired operating loss carryforwards of $3.6 million. These operating loss carryforwards are subject to limitation under Section 382 of the Internal Revenue Code and expire in 2035. As part of the mergers in 2017 and 2018, the Company acquired operating loss carryforwards of $0.7 and $3.2 million, respectively. These operating loss carryforwards are subject to limitation under Section 382 of the Internal Revenue Code and have been fully utilized as of the end of 2020. As part of a merger in 2021, the Company acquired operating loss carryforwards of $0.1 million. These operating loss carryforwards are subject to limitation under Section 382 of the Internal Revenue Code and expire in 2033. As of December 31, 2022, the remaining operating loss carryforwards from acquisitions available to be utilized by the Company were $5.2 million. The Company has no other operating loss carryforwards. The Company’s federal income tax returns for the periods 2019 through 2021 are open to audit. The Company’s California and other state income tax returns for the periods ranging between 2018 through 2021 are open to audit. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | NOTE 17: COMMITMENTS AND CONTINGENCIES Leases The Company adopted ASU 2016-02, Leases (Topic 842), The Company leases certain facilities for its corporate offices and branch operations under non-cancelable operating leases that expire through 2035. All leases were classified as operating leases and therefore, were previously not recognized on the Company’s consolidated balance sheet. With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated balance sheet as a right-of-use (“ROU”) asset and a corresponding lease liability. Certain leases include options to renew, with renewal terms that can extend the lease term. The depreciable life of leased assets are limited by the expected lease term. The following table presents supplemental lease information at or for the twelve months ended December: (dollars in thousands) 2022 2021 Balance Sheet: Operating lease asset classified as other assets $ 31,210 $ 19,384 Operating lease liability classified as other liabilities 32,416 20,575 2022 2021 2020 Income Statement: Operating lease cost classified as occupancy and equipment expense $ 7,638 $ 6,559 $ 6,082 Weighted average lease term, in years 5.92 4.57 5.03 Weighted average discount rate 5.62 % 4.85 % 5.39 % Operating cash flows $ 7,611 $ 6,794 $ 6,278 The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. Lease expense for 2022, 2021, and 2020 was $7.7 million, $6.5 million, and $6.1 million, respectively. Future minimum lease commitments under all non-cancelable operating leases at December 31, 2022 are as follows: (dollars in thousands) 2023 $ 6,794 2024 6,656 2025 6,544 2026 5,469 2027 and after 13,373 Total future minimum lease payments $ 38,836 Discount on cash flows (6,420) Total lease liability $ 32,416 During 2022, the Company completed sale-leaseback transactions for two of its branch locations. The Company sold the branches for million. The Company also entered into new 13-year assets Financial Instruments with Off-Balance Sheet Risk In the normal course of business, the Bank is a party to financial instruments with off-balance sheet risk to meet the financing needs of customers and to reduce exposure to fluctuations in interest rates. These financial instruments may include commitments to extend credit and standby and commercial letters of credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Standby and commercial letters of credit and financial guarantees are conditional commitments issued by the Bank to guaranty the performance of a customer to a third party. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The following table provides the off-balance sheet arrangements of the Bank as of December 31: (dollars in thousands) 2022 2021 Commitments to fund new loans $ — $ 29,545 Commitments to fund under existing loans, lines of credit 1,292,332 881,605 Commitments under standby letters of credit 19,486 14,576 Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include deposits, marketable securities, accounts receivable, inventory, property, plant and equipment, motor vehicles and real estate. Litigation From time to time, the Company may become party to various lawsuits, which have arisen in the course of business. While it is not possible to predict with certainty the outcome of such litigation, it is the opinion of management, based in part upon opinions of counsel, that the liability, if any, arising from such lawsuits would not have a material adverse effect on the Company’s financial position or results of operations. |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2022 | |
DERIVATIVES AND HEDGING ACTIVITIES | |
DERIVATIVES AND HEDGING ACTIVITIES | NOTE 18: DERIVATIVES AND HEDGING ACTIVITIES Derivatives, specifically interest rate swaps, have been used by the Company to reduce the risk that significant increases in interest rates may have on the value of loans held for sale. Derivative transactions are measured in terms of notional amount, which is not recorded in the consolidated statements of financial condition. The notional amount is generally not exchanged and is used as the basis for interest and other contractual payments. Derivatives are reported at their respective fair values in other assets or other liabilities on the consolidated balance sheet, with changes in fair value recognized currently in earnings. There were no derivative instruments outstanding at December 31, 2022, 2021, and 2020 respectively. In September 2020, the Company terminated all interest rate swap agreements that were outstanding at that time. The Company received $12.1 million in settlement proceeds and recorded a net gain of $0.6 million to earnings from the transaction. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 19: RELATED-PARTY TRANSACTIONS The Bank held $3.5 million and $6.2 million of deposits from related parties, including directors and executive officers of the Company and their affiliates, as of December 31, 2022 and December 31, 2021, respectively. Interest paid on deposit accounts held by related parties was $8,000 in 2022, $37,000 in 2021 and $22,000 in 2020. As of December 31, 2022, related parties, including directors and executive officers of the Company and their affiliates, held $4.4 million in assets under management with FFA and FFB. In 2022, 2021, and 2020 the Company received $26,000, $19,000, and $0.1 million, respectively, in fees related to these assets under management. As of December 31, 2022, a director owns a $70,000 portion of subordinated notes held at FFI. The CEO of the Company is a director of another financial services company, and its financial institution subsidiary, that has deposits with the Bank and, in 2018 and 2017, purchased $52.1 million and $121.9 million of loans, respectively, from the Bank for which the Bank will continue to provide servicing. The balance of deposits held at the Bank was $15.4 million and $0.2 million at December 31, 2022 and December 31, 2021, respectively, and the interest paid by the Bank was $147,000 in 2022, $33,100 in 2021, and $0.2 million in 2020, respectively. The amount of loans serviced for this financial institution was $27.3 million at December 31, 2022. In 2017, the Bank participated in a subordinated note offering from the financial services company for $15 million. The Bank earned $0.9 million from this investment in 2022, and $0.8 million in 2021 and 2020, respectively. |
QUALIFIED AFFORDABLE HOUSING PR
QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS | |
QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS | NOTE 20: QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS The Company began investing in qualified affordable housing projects in the last quarter of 2019. These investments may qualify for Community Reinvestment Act (CRA) credit and generate low income housing tax credits (LIHTC) and other tax benefits over an approximate 10 year period. The Company records these investments using the proportional amortization method and amortizes the initial cost of the investment in proportion to the tax benefits, and the net benefit is recognized in the income statement as a component of income tax expense. At December 31, 2022 and December 31, 2021, the balance of the investment for qualified affordable housing projects was $88.5 million and $59.1 million, respectively. Total unfunded commitments related to the investments in qualified affordable housing projects was $60.9 million and $45.2 million at December 31, 2022 and December 31, 2021, respectively. The Company expects to fulfill these commitments between 2022 and 2038. During 2022, 2021, and 2020, the Company recognized amortization expense of $5.6 million, $3.6 million, and $2.6 million respectively, and recognized tax credits from its investment in affordable housing tax credits of $4.1 million, $3.2 million, and $1.5 million respectively. These amounts were included within income tax expense. The Company had no impairment losses during 2022, 2021 and 2020. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2022 | |
REGULATORY MATTERS | |
REGULATORY MATTERS | NOTE 21: REGULATORY MATTERS FFI and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possible additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on FFI and the Bank’s financial condition. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of FFI and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Under a new comprehensive capital framework for U.S. banking organizations, which became effective on January 1, 2015, with certain of their provisions phased-in over a several years through January 1, 2019, the Company (on a consolidated basis) and FFB (on a stand-alone basis) are required to meet specific capital adequacy requirements that, for the most part, involve quantitative measures, primarily in terms of the ratios of their capital to their assets, liabilities, and certain off-balance sheet items, calculated under regulatory accounting practices. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. FFI’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by the regulators to ensure capital adequacy require FFI and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to assets (as defined). Management believes, as of December 31, 2022 and December 31, 2021 that FFI and the Bank met all capital adequacy requirements. The following table sets forth the capital and capital ratios of FFI (on a consolidated basis) and FFB (on a stand-alone basis) as of the respective dates and as compared to the respective regulatory requirements applicable to them: To Be Well-Capitalized For Capital Under Prompt Corrective Actual Adequacy Purposes Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio FFI December 31, 2022 CET1 capital ratio $ 931,125 9.18 % $ 456,603 4.50 % Tier 1 leverage ratio 931,125 7.44 % 500,327 4.00 % Tier 1 risk-based capital ratio 931,125 9.18 % 608,804 6.00 % Total risk-based capital ratio 1,145,765 11.29 % 811,739 8.00 % December 31, 2021 CET1 capital ratio $ 846,515 11.34 % $ 335,801 4.50 % Tier 1 leverage ratio 846,515 8.43 % 401,645 4.00 % Tier 1 risk-based capital ratio 846,515 11.34 % 447,735 6.00 % Total risk-based capital ratio 887,821 11.90 % 596,980 8.00 % FFB December 31, 2022 CET1 capital ratio $ 1,070,648 10.60 % $ 454,655 4.50 % $ 656,724 6.50 % Tier 1 leverage ratio 1,070,648 8.59 % 498,725 4.00 % 623,406 5.00 % Tier 1 risk-based capital ratio 1,070,648 10.60 % 606,207 6.00 % 808,276 8.00 % Total risk-based capital ratio 1,111,952 11.01 % 808,276 8.00 % 1,010,345 10.00 % December 31, 2021 CET1 capital ratio $ 854,075 11.49 % $ 334,608 4.50 % $ 483,323 6.50 % Tier 1 leverage ratio 854,075 8.53 % 400,616 4.00 % 500,770 5.00 % Tier 1 risk-based capital ratio 854,075 11.49 % 446,144 6.00 % 594,859 8.00 % Total risk-based capital ratio 895,381 12.04 % 594,859 8.00 % 743,574 10.00 % As of each of the dates set forth in the above table, the Company exceeded the minimum required capital ratios applicable to it and FFB’s capital ratios exceeded the minimums necessary to qualify as a well-capitalized depository institution under the prompt corrective action regulations. The required ratios for capital adequacy set forth in the above table do not include the additional capital conservation buffer, though each of the Company and FFB maintained capital ratios necessary to satisfy the capital conservation buffer requirements as of the dates indicated. As of December 31, 2022, the amount of capital at FFB in excess of amounts required to be well capitalized was $414 million for the CET-1 capital ratio, $447 million for the Tier 1 leverage ratio, $262 million for the Tier 1 risk-based capital ratio and $102 million for the Total risk-based capital ratio. No conditions or events have occurred since December 31, 2022 that we believe have changed FFI’s or FFB’s capital adequacy classifications from those set forth in the above table. If a banking organization does not hold a capital conservation buffer composed of common equity tier 1 capital above its minimum risk-based capital requirements, it will face constraints on dividends, equity repurchases and executive compensation based on the amount of the shortfall. The capital buffer, which is 2.5%, is measured against risk weighted assets and is therefore not applicable to the tier 1 leverage ratio. The following table sets forth the minimum capital ratios plus the applicable increment of the capital conservation buffer that took effect on January 1, 2019: CET-1 to risk-weighted assets 7.00 % Tier 1 capital (i.e., CET-1 plus Additional Tier 1) to risk-weighted assets 8.50 % Total capital (i.e., Tier 1 plus Tier 2) to risk-weighted assets 10.50 % |
NONINTEREST INCOME
NONINTEREST INCOME | 12 Months Ended |
Dec. 31, 2022 | |
NONINTEREST INCOME | |
NONINTEREST INCOME | NOTE 22: NONINTEREST INCOME The following table represents revenue from contracts with customers as well as other noninterest income for the years ended December 31: (dollars in thousands) 2022 2021 2020 Asset management, consulting and other fees: Wealth management $ 28,997 $ 28,447 $ 23,413 Trust fees 9,394 7,161 5,645 Consulting fees 396 414 407 Total $ 38,787 $ 36,022 $ 29,465 Other income (loss): Deposit fees $ 2,507 $ 1,714 $ 1,236 Loan related fees 9,228 9,208 8,334 Valuation loss on equity investment (6,258) — — Other 3,970 2,050 472 Total $ 9,447 $ 12,972 $ 10,042 Receivables from contracts with customers, which consist primarily of asset management fees, were $3.9 million, $6.0 million and $8.7 million at December 31, 2022, 2021 and 2020, respectively, and are included in other assets on the consolidated balance sheets. Valuation loss on equity investment relates to the Company’s NYDIG investment which is recorded as a component of other assets in the consolidated balance sheets. |
OTHER EXPENSES
OTHER EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
OTHER EXPENSES | |
OTHER EXPENSES | NOTE 23: OTHER EXPENSES The following items are included in the consolidated income statements as other expenses for the years ended December 31: (dollars in thousands) 2022 2021 2020 Regulatory assessments $ 6,089 $ 4,200 $ 3,817 Directors’ compensation expenses 1,020 820 639 Acquisition expenses — 2,606 — |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 24: SEGMENT REPORTING In 2022, 2021, and 2020 the Company had two reportable business segments: Banking (FFB) and Wealth Management (FFA). The results of FFI and any elimination entries are included in the column labeled Other. The reportable segments are determined by products and services offered and the corporate structure. Business segment earnings before taxes are the primary measure of the segment’s performance as evaluated by management. Business segment earnings before taxes include direct revenue and expenses of the segment as well as corporate and inter-company cost allocations. Allocations of corporate expenses, such as finance and accounting, data processing and human resources, are calculated based on estimated activity or usage levels. The management accounting process measures the performance of the operating segments based on the Company’s management structure and is not necessarily comparable with similar information for other financial services companies. If the management structures and/or the allocation process changes, allocations, transfers and assignments may change. The following tables show key operating results for each of our business segments used to arrive at our consolidated totals for the years ended December 31: Wealth (dollars in thousands) Banking Management Other Total 2022: Interest income $ 403,878 $ — $ — $ 403,878 Interest expense 78,766 — 6,422 85,188 Net interest income 325,112 — (6,422) 318,690 Provision for credit losses 532 — — 532 Noninterest income 26,148 30,027 (7,941) 48,234 Noninterest expense 188,619 24,371 3,599 216,589 Income (loss) before taxes on income $ 162,109 $ 5,656 $ (17,962) $ 149,803 2021: Interest income $ 247,218 $ — $ — $ 247,218 Interest expense 13,688 — 246 13,934 Net interest income 233,530 — (246) 233,284 Provision for credit losses 3,866 — — 3,866 Noninterest income 41,068 29,917 (532) 70,453 Noninterest expense 121,375 23,349 3,362 148,086 Income (loss) before taxes on income $ 149,357 $ 6,568 $ (4,140) $ 151,785 2020: Interest income $ 243,891 $ — $ — $ 243,891 Interest expense 47,078 — 169 47,247 Net interest income 196,813 — (169) 196,644 Provision for credit losses 6,746 — — 6,746 Noninterest income 31,567 24,510 (1,430) 54,647 Noninterest expense 102,019 21,778 1,981 125,778 Income (loss) before taxes on income $ 119,615 $ 2,732 $ (3,580) $ 118,767 The following tables show the financial position for each of our business segments, and of FFI which is included in the column labeled Other, and the eliminating entries used to arrive at our consolidated totals at December 31: Wealth (dollars in thousands) Banking Management Other Eliminations Total 2022: Cash and cash equivalents $ 656,247 $ 16,757 $ 24,083 $ (40,593) $ 656,494 Securities AFS, net 226,158 — — — 226,158 Securities HTM, net 862,544 — — — 862,544 Loans, net 10,692,462 — — — 10,692,462 Premises and equipment 35,788 216 136 — 36,140 FHLB Stock 25,358 — — — 25,358 Deferred taxes 19,671 78 4,449 — 24,198 REO 6,210 — — — 6,210 Goodwill and Intangibles 221,835 — — — 221,835 Other assets 233,621 428 1,314,681 (1,285,950) 262,780 Total assets $ 12,979,894 $ 17,479 $ 1,343,349 $ (1,326,543) $ 13,014,179 Deposits $ 10,403,205 $ — $ — $ (40,593) $ 10,362,612 Borrowings 1,176,601 — 193,335 — 1,369,936 Intercompany balances 1,001 971 (1,972) — — Other liabilities 125,254 4,392 17,608 (1) 147,253 Shareholders’ equity 1,273,833 12,116 1,134,378 (1,285,949) 1,134,378 Total liabilities and equity $ 12,979,894 $ 17,479 $ 1,343,349 $ (1,326,543) $ 13,014,179 2021: Cash and cash equivalents $ 1,121,089 $ 3,195 $ 21,763 $ (24,290) $ 1,121,757 Securities AFS, net 1,191,378 — — — 1,191,378 Loans held for sale 501,436 — — — 501,436 Loans, net 6,872,952 — — — 6,872,952 Premises and equipment 37,373 411 136 — 37,920 FHLB Stock 18,249 — — — 18,249 Deferred taxes 20,745 138 (48) — 20,835 REO 6,210 — — — 6,210 Goodwill and Intangibles 222,125 — — — 222,125 Other assets 179,385 365 1,103,181 (1,079,589) 203,342 Total assets $ 10,170,942 $ 4,109 $ 1,125,032 $ (1,103,879) $ 10,196,204 Deposits $ 8,836,250 $ — $ — $ (24,290) $ 8,811,960 Borrowings 165,930 — 44,197 — 210,127 Intercompany balances 4,605 (8,204) 3,599 — — Other liabilities 92,500 4,381 13,185 — 110,066 Shareholders’ equity 1,071,657 7,932 1,064,051 (1,079,589) 1,064,051 Total liabilities and equity $ 10,170,942 $ 4,109 $ 1,125,032 $ (1,103,879) $ 10,196,204 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2022 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | NOTE 25: QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (dollars in thousands, First Second Third Fourth except per share amounts) Quarter Quarter Quarter Quarter Full Year Year Ended December 31, 2022: Interest income $ 79,144 $ 89,971 $ 108,746 $ 126,017 $ 403,878 Interest expense 4,650 8,166 21,074 51,298 85,188 Net interest income 74,494 81,805 87,672 74,719 318,690 Provision for credit losses (792) 173 (22) 1,173 532 Noninterest income 15,427 13,400 12,184 7,223 48,234 Noninterest expense 47,618 48,805 60,342 59,824 216,589 Income before taxes on income 43,095 46,227 39,536 20,945 149,803 Taxes on income 12,259 12,911 10,530 3,591 39,291 Net income $ 30,836 $ 33,316 $ 29,006 $ 17,354 $ 110,512 Income per share Basic $ 0.55 $ 0.59 $ 0.51 $ 0.31 $ 1.96 Diluted $ 0.55 $ 0.59 $ 0.51 $ 0.31 $ 1.96 Year Ended December 31, 2021: Interest income $ 59,138 $ 61,403 $ 61,989 $ 64,688 $ 247,218 Interest expense 4,909 3,493 2,802 2,730 13,934 Net interest income 54,229 57,910 59,187 61,958 233,284 Provision for credit losses 360 44 (417) 3,879 3,866 Noninterest income 11,908 14,035 30,680 13,830 70,453 Noninterest expense 34,511 35,617 38,394 39,564 148,086 Income before taxes on income 31,266 36,284 51,890 32,345 151,785 Taxes on income 8,911 10,230 14,664 8,469 42,274 Net income $ 22,355 $ 26,054 $ 37,226 $ 23,876 $ 109,511 Income per share Basic $ 0.50 $ 0.58 $ 0.83 $ 0.51 $ 2.42 Diluted $ 0.50 $ 0.58 $ 0.83 $ 0.51 $ 2.41 Year Ended December 31, 2020: Interest income $ 62,338 $ 61,932 $ 61,691 $ 57,930 $ 243,891 Interest expense 17,470 13,485 10,074 6,218 47,247 Net interest income 44,868 48,447 51,617 51,712 196,644 Provision for credit losses 4,064 1,367 1,548 (233) 6,746 Noninterest income 10,675 8,969 23,641 11,362 54,647 Noninterest expense 32,872 30,937 30,595 31,374 125,778 Income before taxes on income 18,607 25,112 43,115 31,933 118,767 Taxes on income 5,396 7,258 12,177 9,567 34,398 Net income $ 13,211 $ 17,854 $ 30,938 $ 22,366 $ 84,369 Income per share Basic $ 0.30 $ 0.40 $ 0.69 $ 0.50 $ 1.89 Diluted $ 0.29 $ 0.40 $ 0.69 $ 0.50 $ 1.88 |
PARENT ONLY FINANCIAL STATEMENT
PARENT ONLY FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
CONSOLIDATED BALANCE SHEETS | |
PARENT ONLY FINANCIAL STATEMENTS | NOTE 26: PARENT ONLY FINANCIAL STATEMENTS BALANCE SHEETS December 31, (dollars in thousands) 2022 2021 ASSETS Cash and cash equivalents $ 24,083 $ 21,763 Premises and equipment, net 136 136 Deferred taxes 4,449 (48) Investment in subsidiaries 1,285,949 1,079,589 Intercompany receivable 1,972 — Other assets 28,732 23,592 Total Assets $ 1,345,321 $ 1,125,032 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Borrowings $ 193,335 $ 44,197 Intercompany payable — 3,599 Accounts payable and other liabilities 17,608 13,185 Total Liabilities 210,943 60,981 Shareholders’ Equity Common Stock 56 56 Additional paid-in-capital 719,606 720,744 Retained earnings 426,659 340,976 Accumulated other comprehensive income (loss), net of tax (11,943) 2,275 Total Shareholders’ Equity 1,134,378 1,064,051 Total Liabilities and Shareholders’ Equity $ 1,345,321 $ 1,125,032 INCOME STATEMENTS For the Year Ended December 31, (dollars in thousands) 2022 2021 2020 Interest expense—borrowings $ 6,422 $ 246 $ 169 Noninterest income: Earnings from investment in subsidiaries 123,407 112,550 86,909 Other income (loss) (6,251) 1,271 (97) Total noninterest income 117,156 113,821 86,812 Noninterest expense: Compensation and benefits 1,331 972 1,343 Occupancy and depreciation 12 1 112 Professional services and marketing costs 2,946 3,329 848 Other expenses 1,000 863 1,011 Total noninterest expense 5,289 5,165 3,314 Income before taxes on income 105,445 108,410 83,329 Taxes on income (5,067) (1,101) (1,040) Net income $ 110,512 $ 109,511 $ 84,369 STATEMENTS OF COMPREHENSIVE INCOME For the Year Ended December 31, (dollars in thousands) 2022 2021 2020 Net income $ 110,512 $ 109,511 $ 84,369 Other comprehensive income: Unrealized holding (losses) gains on securities arising during the period (18,702) (16,696) 13,866 Other comprehensive income (loss) before tax (18,702) (16,696) 13,866 Income tax benefit (expense) related to items of other comprehensive income 4,484 4,884 (4,055) Other comprehensive (loss) income (14,218) (11,812) 9,811 Total comprehensive income $ 96,294 $ 97,699 $ 94,180 STATEMENTS OF CASH FLOWS For the Year Ended December 31, (dollars in thousands) 2022 2021 2020 Cash Flows from Operating Activities: Net income $ 110,512 $ 109,511 $ 84,369 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Earnings from investment in subsidiaries (123,407) (112,550) (86,909) Stock–based compensation expense 153 115 98 Deferred tax liability (benefit) (4,497) (198) 414 Decrease (increase) in other assets (5,140) (26,308) 549 Increase (decrease) in accounts payable and other liabilities 4,425 3,400 (5,079) Net cash used in operating activities (17,954) (26,030) (6,558) Cash Flows from Investing Activities: Investment in subsidiaries (95,000) (10) — Dividend from subsidiary — 22,000 12,000 Net cash provided by (used in) investing activities (95,000) 21,990 12,000 Cash Flows from Financing Activities: Increase in borrowings, net 149,139 30,197 4,000 Proceeds from the sale of stock, net 18 2,514 908 Repurchase of stock (3,482) — (2,824) Intercompany accounts, net decrease (increase) (5,571) 4,573 2,606 Dividends paid (24,830) (16,173) (12,504) Net cash (used in) provided by financing activities 115,274 21,111 (7,814) Increase (decrease) in cash and cash equivalents 2,320 17,071 (2,372) Cash and cash equivalents at beginning of year 21,763 4,692 7,064 Cash and cash equivalents at end of year $ 24,083 $ 21,763 $ 4,692 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 27: SUBSEQUENT EVENTS Cash Dividend On January 26, 2023, the Board of Directors of the Company declared a quarterly cash dividend of $0.11 per common share to be paid on February 16, 2023, to stockholders of record as of the close of business on February 6, 2023. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Business | Business First Foundation Inc. (“FFI”) is a financial services holding company whose operations are conducted through 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 Public Finance (“FFPF”), First Foundation Insurance Services (“FFIS”) and Blue Moon Management, LLC (collectively the “Company”). FFI also has two inactive wholly owned subsidiaries, First Foundation Consulting (“FFC”) and First Foundation Advisors, LLC (“FFA LLC”). In addition, FFA has set up a limited liability company, which is not included in these consolidated financial statements, as a private investment fund to provide an investment vehicle for its clients. FFI is incorporated in the state of Delaware. The corporate headquarters for FFI is located in Dallas, Texas. The Company has offices in California, Nevada, Florida, Texas, and Hawaii. FFA, established in 1985 and incorporated in the state of California, began operating in 1990 as a fee-based registered investment advisor. FFA provides (i) investment management and financial planning services for high net-worth individuals, retirement plans, charitable institutions and private foundations; (ii) financial, investment and economic advisory and related services to high net-worth individuals and their families, family-owned businesses, and other related organizations; and (iii) support services involving the processing and transmission of financial and economic data for charitable organizations. At the end of 2022, these services were provided to approximately 1,700 clients, primarily located in Southern California, with an aggregate of $5.0 billion of assets under management. The Bank commenced operations in 2007, is incorporated in the state of California and currently operates in California, Nevada, Florida, Texas, and Hawaii. The Bank offers a wide range of deposit instruments including personal and business checking and savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit (“CD”) accounts. As a lender, the Bank originates, and retains for its portfolio, loans secured by real estate and commercial loans. Approximately 72% of the Bank’s loan portfolio is concentrated in California. The Bank also offers a wide range of specialized services including trust services, on-line banking, remote deposit capture, merchant credit card services, ATM cards, Visa debit cards, business sweep accounts, and through FFIS, insurance brokerage services. The Bank has a state non-member bank charter and is subject to continued examination by the California Department of Financial Protection and Innovation, the Federal Deposit Insurance Corporation (“FDIC”), and the Consumer Financial Protection Bureau (“CFPB”). At December 31, 2022, the Company employed 713 employees. |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in conformity with U.S. GAAP 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 during the reporting periods and related disclosures. Actual results could differ significantly from those estimates. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. |
Variable Interest Entities | Variable Interest Entities The Company may have variable interests in Variable Interest Entities (“VIEs”) arising from debt, equity or other monetary interests in an entity, which change with fluctuations in the fair value of the entity’s assets. VIEs are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The primary beneficiary of a VIE (i.e., the party that has a controlling financial interest) is required to consolidate the assets and liabilities of the VIE. The primary beneficiary is the party that has both (1) the power to direct the activities of an entity that most significantly impact the VIE’s economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company has sold loans, in 2021, 2020, 2019, 2018, 2016 and 2015, through securitizations sponsored by a government sponsored entity, Freddie Mac, who also provided credit enhancement of the loans through certain guarantee provisions. The Company retained the right to provide servicing for the loans except for special servicing for which an unrelated third party was engaged by the VIE. For the 2016 and 2015 securitizations, the Company acquired the “B” piece of the securitizations, which is structured to absorb any losses from the securitizations, as well as interest only strips from the securitization. For the 2021, 2020, 2019, and 2018 securitizations, the Company provides collateral to support its obligation to reimburse for credit losses incurred on loans in the securitization. Because the Company does not act as the special servicer for the VIE and because of the power of Freddie Mac over the VIE that holds the assets from the mortgage loan securitizations, the Company is not the primary beneficiary of the VIE and therefore the VIE is not consolidated. |
Reclassifications | Reclassifications Certain amounts in the 2020 consolidated financial statements have been reclassified to conform to the 2021 presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash, due from banks, certificates of deposits with original maturities of less than ninety days, investment securities with original maturities of less than ninety days, money market mutual funds and federal funds sold. At times, the Company maintains cash at major financial institutions in excess of FDIC insured limits. However, as the Company places these deposits with major well-capitalized financial institutions and monitors the financial condition of these institutions, management believes the risk of loss to be minimal. The Company maintains most of its excess cash at the Federal Reserve Bank, with well-capitalized correspondent banks or with other depository institutions at amounts less than the FDIC insured limits. At December 31, 2022, included in cash and cash equivalents were $540 million in funds held at the Federal Reserve Bank. Banking regulations require that banks maintain a percentage of their deposits as reserves in cash or on deposit with the Federal Reserve Bank. The Company was in compliance with its reserve requirements as of December 31, 2022. |
Certificates of Deposit | Certificates of Deposit From time to time, the Company may invest funds with other financial institutions through certificates of deposit. Certificates of deposit are included as cash and cash equivalents. Certificates of deposit are carried at cost. |
Investment Securities | Investment Securities Investment securities for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. Investments not classified as trading securities nor as held-to-maturity securities are classified as available-for-sale securities and recorded at fair value. Unrealized gains or losses on available-for-sale securities are excluded from net income and reported as an amount net of taxes as a separate component of other comprehensive income included in shareholders’ equity. Premiums or discounts on held-to-maturity and available-for-sale securities are amortized or accreted into income using the interest method. |
Loan Origination Fees and Costs | Loan Origination Fees and Costs Loan origination fees and direct costs associated with lending are deferred and amortized to interest income as an adjustment to yield over the respective lives of the loans using the interest method. The amortization of deferred fees and costs is discontinued on loans that are placed on nonaccrual status. When a loan is paid off, any unamortized deferred fees and costs are recognized in interest income. |
Loans Held for Investment | Loans Held for Investment Loans held for investment are reported at the principal amount outstanding, net of cumulative chargeoffs, interest applied to principal (for loans accounted for using the cost recovery method), unamortized net deferred loan origination fees and costs and unamortized premiums or discounts on purchased loans. Interest on loans is accrued and recognized as interest income at the contractual rate of interest. When a loan is designated as held for investment, the intent is to hold these loans for the foreseeable future or until maturity or payoff. If subsequent changes occur, the Company may change its intent to hold these loans. Once a determination has been made to sell such loans, they are immediately transferred to loans held for sale and carried at the lower of cost or fair value. |
Loans Held for Sale | Loans Held for Sale Loans designated for sale through securitization or in the secondary market are classified as loans held for sale. Loans held for sale are accounted for at the lower of amortized cost or fair value. The fair value of loans held for sale is generally based on observable market prices from other loans in the secondary market that have similar collateral, credit, and interest rate characteristics. If quoted market prices are not readily available, the Company may consider other observable market data such as dealer quotes for similar loans or forward sale commitments. In certain cases, the fair value may be based on a discounted cash flow model. Related gains and losses are recognized in net gain on mortgage loan origination and sale activities. |
Nonaccrual Loans | Nonaccrual Loans Loans are placed on nonaccrual status when the full and timely collection of principal and interest is doubtful, generally when the loan becomes 90 days or more past due for principal or interest payment. All payments received on nonaccrual loans are accounted for using the cost recovery method. Under the cost recovery method, all cash collected is applied to first reduce the principal balance. A loan may be returned to accrual status if all delinquent principal and interest payments are brought current and the collectability of the remaining principal and interest payments in accordance with the loan agreement is reasonably assured. Loans that are well secured and in the collection process may be maintained on accrual status, even if they are 90 days or more past due. |
Purchased Credit Deteriorated Loans | Purchased Credit Deteriorated Loans The Company may purchase individual loans and groups of loans which have shown evidence of credit deterioration and are considered credit impaired. Purchased credit deteriorated (“PCD”) loans are recorded at the amount paid and there is no carryover of the seller’s allowance for credit losses. PCD loans are recorded at fair value reflecting the present value of the amounts expected to be collected. Income recognition on these 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. Under ASC 326, the Company’s allowance for credit losses includes a purchased assets with credit deterioration PCD element. The fair value mark related to PCD loans held for investment will only accrete the interest mark to interest expense over the remaining life of the PCD loans, while the non-PCD loans will accrete both the interest and credit marks over the remaining life of the non-PCD loans. |
Allowance for Credit Losses | Allowance for Credit Losses Effective January 1, 2020, upon the adoption of ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, Under the CECL methodology, expected credit losses reflect losses over the remaining contractual life of an asset, considering the effect of various major factors. The major factors considered in evaluating losses are historical chargeoff experience, delinquency rates, local and national economic conditions, the borrower’s ability to repay the loan and timing of repayments, and the value of any related collateral. Management’s estimate of fair value of the collateral considers current and anticipated future real estate market conditions, thereby causing these estimates to be particularly susceptible to changes that could result in a material adjustment to results of operations in the future. Provisions for credit losses are charged to operations based on management’s evaluation of the estimated losses in its loan portfolio. Recovery of the carrying value of such loans and related real estate is dependent, to a great extent, on economic, operating and other conditions that may be beyond the Company’s control. The Company’s primary regulatory agencies periodically review the allowance for credit losses and such agencies may require the Company to recognize additions to the allowance based on information and factors available to them at the time of their examinations. Accordingly, no assurance can be given that the Company will not recognize additional provisions for credit losses with respect to its loan portfolio. The allowance consists of specific and general reserves. Specific reserves relate to loans that are individually classified as impaired. Credit losses are charged against the allowance when management believes a loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The Company considers a loan to be impaired when, based upon current information and events, it believes it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The Company bases the measurement of loan impairment using either the present value of the expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the loan’s collateral properties. Impairment losses are included in the allowance for credit losses through a charge to provision for credit losses. Adjustments to impairment losses due to changes in the fair value of impaired loans’ collateral properties are included in the provision for credit losses. The Company’s impaired loans include nonaccrual loans (excluding those collectively reviewed for impairment), certain restructured loans and certain performing loans less than ninety days delinquent that the Company believes will likely not be collected in accordance with contractual terms of the loans. Loans, for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are generally considered troubled debt restructurings and classified as impaired. Commercial loans and loans secured by multifamily and commercial real estate are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for credit losses. General reserves cover non-impaired loans and are based on historical loss rates for each portfolio segment, adjusted for the effects of qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the portfolio segment’s historical loss experience. Because the Company has not experienced any meaningful amount of losses in any of its current portfolio segments, the Company calculates the historical loss rates on industry data, specifically, loss rates published by the FDIC. Qualitative factors include consideration of the following: changes in lending policies and procedures; changes in economic conditions, changes in the nature and volume of the portfolio; changes in the experience, ability and depth of lending management and other relevant staff; changes in the volume and severity of past due, nonaccrual and other adversely graded loans; changes in the loan review system; changes in the value of the underlying collateral for collateral-dependent loans; concentrations of credit and the effect of other external factors such as competition and legal and regulatory requirements. The Company continues to leverage economic projections and applies a two-year time horizon prior to reverting to the Company’s historical loss experience, which continues to be deemed reasonable and supportable. Portfolio segments identified by the Company include loans secured by residential real estate, including multifamily and single family properties, loans secured by commercial real estate, loans secured by vacant land and construction loans, commercial and industrial loans and consumer loans. Relevant risk characteristics for these portfolio segments generally include debt service coverage, loan-to-value ratios and financial performance on non-consumer loans and debt-to income, collateral type and loan-to-value ratios for consumer loans. Allowance for credit losses on investment securities: On January 1, 2020, the Company adopted the amendments within ASU 2016-13, which replaces the legacy US GAAP Other Than Temporary Impairment (“OTTI”) model with a credit loss model. The credit loss model under Accounting Standards Codification (“ASC”) 326-30, applicable to debt securities available for sale (“Securities AFS”), requires recognition of credit losses through an allowance account, but retains the concept from the OTTI model that credit losses are recognized once securities become impaired. For Securities AFS, a decline in fair value due to credit loss results in recognition of an allowance for credit losses. Impairment may result from credit deterioration of the issuer or collateral underlying the security. The assessment of determining if a decline in fair value resulted from a credit loss is performed at the individual security level. Among other factors, the Company considers: 1) the extent to which the fair value is less than the amortized cost basis; 2) the financial condition and near term prospects of the issuer, including consideration of relevant financial metrics or ratios of the issuer; 3) any adverse conditions related to an industry or geographic area of an issuer; 4) any changes to the rating of the security by a rating agency; and 5) any past due principal or interest payments from the issuer. If an assessment of the above factors indicates that a credit loss exists, the Company records an allowance for credit losses for the excess of the amortized cost basis over the present value of cash flows expected to be collected, limited to the amount that the security’s fair value is less than its amortized cost basis. Subsequent changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense. Interest accruals and amortization and accretion of premiums and discounts are suspended when the credit loss is recognized in earnings. Any interest received after the security has been placed on nonaccrual status is recognized on a cash basis. Accrued interest receivable on Securities AFS is excluded from the estimate of expected credit losses. The provision for credit losses on the consolidated income statement includes the provision for credit losses for loans and securities AFS. The provision for credit losses was $0.5 million, $3.9 million, and $6.7 million respectively for the years ended December 31, 2022, 2021, and 2020. |
Financial Instruments | Financial Instruments In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are incurred or received. The Company also has bank owned life insurance (“BOLI”) acquired through the TGRF acquisition. BOLI is recorded at the amount that can be realized under the insurance contract, which is the cash surrender value. The increase in the cash surrender value each period and the receipt of death benefits in excess of the cash surrender value would be recorded to “Other Income” in the income statement. As of December 31, 2022 and 2021, BOLI totaled $47.4 million and $46.6 million, respectively and is classified as a component of other assets in the accompanying consolidated balance sheets. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Real Estate Owned | Real Estate Owned Real estate owned (“REO”) represents the collateral acquired through foreclosure in full or partial satisfaction of the related loan. REO is recorded at the fair value less estimated selling costs at the date of foreclosure. Any write-down at the date of transfer is charged to the allowance for credit losses related to loans. The recognition of gains or losses on sales of REO is dependent upon various factors relating to the nature of the property being sold and the terms of sale. REO values are reviewed on an ongoing basis and any decline in value is recognized as foreclosed asset expense in the current period, as are the net operating results from these assets. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization, which is charged to expense on a straight-line basis over the estimated useful lives of 3 |
Investment in Federal Home Loan Bank Stock | Investment in Federal Home Loan Bank Stock As a member of the Federal Home Loan Bank (“FHLB”), the Bank is required to purchase FHLB stock in accordance with its advances, securities and deposit agreement. This stock, which is carried at cost, may be redeemed at par value. However, there are substantial restrictions regarding redemption and the Company can only receive a full redemption in connection with the Company surrendering its FHLB membership. At December 31, 2022 and 2021, the Company held $25 million and $18 million of FHLB stock, respectively. The Company does not believe that this stock is currently impaired and no adjustments to its carrying value have been recorded. |
Mortgage Servicing Rights | Mortgage Servicing Rights When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. As of December 31, 2022 and 2021, mortgage servicing rights net of the valuation allowance totaled $5.9 million and $6.8 million, respectively and is classified as a component of other assets in the accompanying consolidated balance sheets. Servicing fee income, which is reported on the income statement as other income , |
Goodwill | Goodwill Goodwill is recorded upon completion of a business combination as the difference between the purchase price and the fair value of net identifiable assets acquired. Subsequent to initial recognition, the Company will test goodwill for impairment on an annual basis by comparing the fair value of the reporting unit to its carrying amount. The goodwill recorded by the Company was recognized from prior acquisitions and was not considered impaired at December 31, 2022. |
Other Intangible Assets | Other Intangible Assets Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Other intangible assets consist of core deposit intangible assets arising from whole bank acquisitions and are amortized on an accelerated method over their estimated useful lives, which range from 7 to 10 years. At December 31, 2022 and 2021, core deposit intangible assets totaled $6.6 million and $8.5 million, respectively, and we recognized $1.9 million, $1.6 million and $1.9 million in core deposit intangible amortization expense in 2022, 2021 and 2020, respectively. |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” Contracts with Customers Contracts with customers are open-ended, and we provide services on an ongoing basis for an unspecified contract term. For these ongoing services, the fees are variable, since they are dependent on factors such as the value of underlying assets under management or volume of transactions. Contract liabilities, or deferred revenue, are recorded when payments from customers are received in advance of providing services to customers. We generally receive payments for our services during the period or at the time services are provided, therefore, we do not have deferred revenue balances at period-end. Employees receive incentive compensation in the form of commissions, which are considered incremental and recoverable costs to obtain the contract. We utilize the practical expedient not to capitalize such costs as the amortization period of the asset is less than 12 months, and therefore we expense the commissions as incurred. Descriptions of our primary revenue-generating activities that are presented in our income statements are as follows: Interest on Loans Interest income is accrued daily on the Company’s outstanding loan balances. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Accrual of interest on loans is discontinued when reasonable doubt exists as to the full, timely collection of interest or principal and, generally, when a loan becomes contractually past due for ninety days or more with respect to principal or interest. The accrual of interest may be continued on a well-secured loan contractually past due ninety days or more with respect to principal or interest if the loan is in the process of collection or collection of the principal and interest is deemed probable. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period income. Interest on such loans is then recognized only to the extent that cash is received and where the future collection of principal is probable. Accrual of interest is resumed on loans only when, in the judgment of management, the loan is estimated to be fully collectible. The Bank continues to accrue interest on restructured loans since full payment of principal and interest is expected and such loans are performing or are less than ninety days delinquent and, therefore, do not meet the criteria for nonaccrual status. Restructured loans that have been placed on nonaccrual status are returned to accrual status when the remaining loan balance, net of any chargeoffs related to the restructure, is estimated to be fully collectible by management and performing in accordance with the applicable loan terms. Wealth management and trust fee income Asset management fees are billed on a monthly or quarterly basis based on the amount of assets under management and the applicable contractual fee percentage. Asset management fees are recognized as revenue in the period in which they are billed and earned. Financial planning fees are due and billed at the completion of the planning project and are recognized as revenue at that time. Service charges on deposit accounts Service charges on deposit accounts represent general service fees for monthly account maintenance and activity or transaction-based fees. Revenue is recognized when our performance obligation is completed which are generally monthly for account maintenance services or when a transaction has been completed. Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Gains and Losses on Sales of REO To record a sale of REO, the Bank evaluates if: (a) a commitment on the buyer’s part exists, (b) collection is probable in circumstances where the initial investment is minimal and (c) the buyer has obtained control of the asset, including the significant risks and rewards of the ownership. If there is no commitment on the buyer’s part, collection is not probable or the buyer has not obtained control of the asset, then a gain cannot be recognized. Other non-interest income includes revenue related to mortgage servicing activities and gains on sales of loans, which are not subject to the requirements of ASU 2014-09. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes the cost of employee services received in exchange for awards of stock options, or other equity instruments, based on the grant-date fair value of those awards. This cost is recognized over the period in which an employee is required to provide services in exchange for the award, generally the vesting period. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for stock awards, including restricted stock units. |
Marketing Costs | Marketing Costs The Company expenses marketing costs, including advertising, in the period incurred. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is established if it is “more likely than not” that all or a portion of the deferred tax assets will not be realized. The tax effects from an uncertain tax position can be recognized in the financial statements only if, based on its merits, the position is more likely than not to be sustained on audit by the taxing authorities. Interest and penalties related to uncertain tax positions are recorded as part of income tax expense. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Changes in unrealized gains and losses on available-for-sale securities and the related tax costs or benefits are the only components of other comprehensive income for the Company. |
Earnings Per Share ("EPS") | Earnings Per Share (“EPS”) Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock units, which are determined using the treasury stock method. |
Fair Value Measurement | Fair Value Measurement Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Derivatives and Hedging Activities | Derivatives and Hedging Activities Derivative instruments and hedging activities are accounted for in accordance with FASB ASC Topic 815, “Derivatives and Hedging.” The fair value of derivative instruments are recognized as either assets or liabilities on the consolidated balance sheet. All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities. For derivative instruments designated as non-hedging activities, the change in fair value is recognized currently in earnings. For derivative instruments designated as hedging activities, a qualitative analysis is performed at inception to determine if the derivative instrument is highly effective in achieving offsetting changes in fair value or cash flows attributable to the hedged risk during the period that the hedge is designated. Subsequently, a qualitative assessment of a hedge’s effectiveness is performed on a quarterly basis. For a fair value hedge, the change in fair value on the hedging instrument is recognized currently in earnings and the change in fair value on the hedged item attributable to the hedged risk adjusts the carrying amount of the hedged item and is recognized currently in earnings. All amounts recognized in earnings are presented in the same income statement line item as the earnings effect of the hedged item. |
New Accounting Pronouncements | New Accounting Pronouncements In March 2020, FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting” In March 2022, 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 2022, FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method”. In June 2022, FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 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 181 128,227 128,408 Bank owned life insurance 46,163 — 46,163 Deferred taxes 3,414 2,361 5,775 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 $ 283,021 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE. | |
Recorded Amounts of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables show the recorded amounts of assets measured at fair value on a recurring basis as of: Fair Value Measurement Level (dollars in thousands) Total Level 1 Level 2 Level 3 December 31, 2022: Investment securities available for sale: Collateralized mortgage obligations $ 8,615 $ — $ 8,615 $ — Agency mortgage-backed securities 7,576 — 7,576 — Municipal bonds 46,790 — 46,790 — SBA securities 18,955 — 18,955 — Beneficial interests in FHLMC securitization 7,981 — — 7,981 Corporate bonds 135,013 — 135,013 — U.S. Treasury 1,228 1,228 — — Investment in equity securities 9,767 — — 9,767 Total assets at fair value on a recurring basis $ 235,925 $ 1,228 $ 216,949 $ 17,748 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 following table sets forth the estimated fair values and related carrying amounts of our financial instruments as of: Carrying Fair Value Measurement Level (dollars in thousands) Value 1 2 3 Total December 31, 2022: Assets: Cash and cash equivalents $ 656,494 $ 656,494 $ — $ — $ 656,494 Securities AFS, net 226,158 1,228 216,949 7,981 226,158 Securities HTM 862,544 — 773,061 — 773,061 Loans, net 10,692,462 — — 10,354,052 10,354,052 Investment in FHLB stock 25,358 — 25,358 — 25,358 Investment in equity securities 9,767 — — 9,767 9,767 Liabilities: Deposits $ 10,362,612 $ 8,483,770 $ 1,865,502 $ — $ 10,349,272 Borrowings 1,369,936 1,176,601 — 153,121 1,329,722 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) | 12 Months Ended |
Dec. 31, 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 December 31, 2022: Collateralized mortgage obligations $ 9,865 $ — $ (1,250) $ — $ 8,615 Agency mortgage-backed securities 8,161 — (585) — 7,576 Municipal bonds 50,232 — (3,442) — 46,790 SBA securities 19,090 3 (138) — 18,955 Beneficial interests in FHLMC securitization 19,415 108 (103) (11,439) 7,981 Corporate bonds 145,024 — (10,011) — 135,013 U.S. Treasury 1,298 1 (71) — 1,228 Total $ 253,085 $ 112 $ (15,600) $ (11,439) $ 226,158 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 | 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 December 31, 2022: Agency mortgage-backed securities $ 862,544 — (89,483) $ — $ 773,061 Total $ 862,544 $ — $ (89,483) $ — $ 773,061 |
Schedule of Securities in a Continuous Unrealized Loss Position Aggregated by Investment Category and Length of Time | The tables below indicate the gross unrealized losses and fair values of our securities AFS portfolio, 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 December 31, 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 $ 2 $ — $ 8,613 $ (1,250) $ 8,615 $ (1,250) Agency mortgage-backed securities 6,882 (525) 696 (60) 7,578 (585) Municipal bonds 44,971 (3,244) 1,819 (198) 46,790 (3,442) SBA securities 17,237 (137) 121 (1) 17,358 (138) Beneficial interests in FHLMC securitization 4,217 (103) — — 4,217 (103) Corporate bonds 108,056 (6,476) 26,957 (3,535) 135,013 (10,011) U.S. Treasury 376 (23) 451 (48) 827 (71) Total temporarily impaired securities $ 181,741 $ (10,508) $ 38,657 $ (5,092) $ 220,398 $ (15,600) 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) Corporate bonds 47,880 (92) — — 47,880 (92) U.S. Treasury 491 (9) — — 491 (9) Total temporarily impaired securities $ 496,315 $ (5,189) $ 36,136 $ (1,069) $ 532,451 $ (6,258) Securities with Unrecognized Loss at December 31, 2022 Less than 12 months 12 months or more Total Fair Unrecognized Fair Unrecognized Fair Unrecognized (dollars in thousands) Value Loss Value Loss Value Loss Agency mortgage-backed securities $ 394,619 $ (37,418) $ 378,441 $ (52,065) $ 773,060 $ (89,483) Total temporarily impaired securities $ 394,619 $ (37,418) $ 378,441 $ (52,065) $ 773,060 $ (89,483) |
Summary of Allowance For Credit Losses - Securities AFS | The following is a rollforward of the Company’s allowance for credit losses related to investments for the year ended December 31: (dollars in thousands) Total Year Ended December 31, 2022: Beginning balance $ 10,399 Provision for credit losses 1,040 Balance: December 31, 2022 $ 11,439 Year Ended December 31, 2021: Beginning balance $ 7,245 Provision for credit losses 3,154 Balance: December 31, 2021 $ 10,399 Year Ended December 31, 2020: Beginning balance $ — Provision for credit losses 7,245 Balance: December 31, 2020 $ 7,245 |
Scheduled Maturities of Securities AFS Other than Mortgage Backed Securities and the Related Weighted Average Yield | The scheduled maturities of securities AFS and the related weighted average yields were as follows for the periods indicated: Less than 1 Through 5 Through After (dollars in thousands) 1 Year 5 years 10 Years 10 Years Total December 31, 2022 Amortized Cost: Collateralized mortgage obligations $ — $ — $ 686 $ 9,179 $ 9,865 Agency mortgage-backed securities — 4,384 2,107 1,670 8,161 Municipal bonds 301 8,002 34,501 7,428 50,232 SBA securities 14 1,402 1,278 16,396 19,090 Beneficial interests in FHLMC securitization — 9,860 — 9,555 19,415 Corporate bonds 6,006 28,993 104,494 5,531 145,024 U.S. Treasury — 1,298 — — 1,298 Total $ 6,321 $ 53,939 $ 143,066 $ 49,759 $ 253,085 Weighted average yield 4.36 % 3.96 % 3.38 % 1.91 % 3.24 % Estimated Fair Value: Collateralized mortgage obligations $ — $ — $ 623 $ 7,992 $ 8,615 Agency mortgage-backed securities — 4,133 1,960 1,483 7,576 Municipal bonds 299 7,565 32,690 6,236 46,790 SBA securities 14 1,395 1,272 16,274 18,955 Beneficial interests in FHLMC securitization — 9,860 — 9,560 19,420 Corporate bonds 6,001 28,022 96,734 4,256 135,013 U.S. Treasury — 1,228 — — 1,228 Total $ 6,314 $ 52,203 $ 133,279 $ 45,801 $ 237,597 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 $ 12,349 $ 13,861 Agency mortgage-backed securities — 2,151 27,407 898,990 928,548 Municipal bonds — 1,347 35,080 15,625 52,052 SBA securities 70 1,032 3,533 23,335 27,970 Beneficial interests in FHLMC securitization — 11,902 — 9,704 21,606 Corporate bonds 3,505 11,634 133,352 5,535 154,026 U.S. Treasury — 499 — — 499 Total $ 3,575 $ 29,275 $ 200,174 $ 965,538 $ 1,198,562 Weighted average yield (4.94) % 0.36 % 3.11 % 1.64 % 1.84 % Estimated Fair Value: Collateralized mortgage obligations $ — $ 710 $ 799 $ 12,316 $ 13,825 Agency mortgage-backed securities — 2,152 27,987 898,851 928,990 Municipal bonds — 1,425 35,091 15,629 52,145 SBA securities 70 1,033 3,533 23,336 27,972 Beneficial interests in FHLMC securitization — 11,902 — 10,077 21,979 Corporate bonds 3,505 11,624 135,653 5,594 156,376 U.S. Treasury — 490 — — 490 Total $ 3,575 $ 29,336 $ 203,063 $ 965,803 $ 1,201,777 |
Schedule of maturities of securities HTM and the related weighted average yields | The scheduled maturities of securities HTM 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 December 31, 2022 Amortized Cost: Agency mortgage-backed securities $ — $ 208 $ 17,689 $ 844,647 $ 862,544 Total $ — $ 208 $ 17,689 $ 844,647 $ 862,544 Weighted average yield — % 0.36 % 1.12 % 2.31 % 2.28 % Estimated Fair Value: Agency mortgage-backed securities $ — $ 192 $ 16,148 $ 756,721 $ 773,061 Total $ — $ 192 $ 16,148 $ 756,721 $ 773,061 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LOANS | |
Summary of Loans | The following is a summary of our loans as of: December 31, December 31, (dollars in thousands) 2022 2021 Outstanding principal balance: Loans secured by real estate: Residential properties: Multifamily $ 5,341,596 $ 2,886,055 Single family 1,016,498 933,445 Total real estate loans secured by residential properties 6,358,094 3,819,500 Commercial properties 1,203,292 1,309,200 Land and construction 158,565 156,028 Total real estate loans 7,719,951 5,284,728 Commercial and industrial loans 2,984,748 1,598,422 Consumer loans 4,481 10,834 Total loans 10,709,180 6,893,984 Premiums, discounts and deferred fees and expenses 17,013 12,744 Total $ 10,726,193 $ 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 December 31, 2022: Real estate loans: Residential properties $ 511 $ 57 $ — $ 2,556 $ 3,124 $ 6,374,100 $ 6,377,224 Commercial properties 15,000 946 1,213 4,547 21,706 1,180,357 1,202,063 Land and construction — — — — — 157,630 157,630 Commercial and industrial loans 385 1,495 982 3,228 6,090 2,978,668 2,984,758 Consumer loans — 167 — — 167 4,351 4,518 Total $ 15,896 $ 2,665 $ 2,195 $ 10,331 $ 31,087 $ 10,695,106 $ 10,726,193 Percentage of total loans 0.15 % 0.02 % 0.02 % 0.10 % 0.29 % 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 December 31, 2022: Real estate loans: Residential properties $ — $ 2,556 Commercial properties — 4,547 Commercial and industrial loans 2,016 1,212 Total $ 2,016 $ 8,315 December 31, 2021: Real estate loans: Residential properties $ — $ 3,281 Commercial properties — 1,529 Commercial and industrial loans 1,733 1,788 Total $ 1,733 $ 6,598 |
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: December 31, 2022 December 31, 2021 (dollars in thousands) Accrual Nonaccrual Total Accrual Nonaccrual Total Residential loans $ — $ — $ — $ 1,200 $ — $ 1,200 Commercial real estate loans 929 1,066 1,995 1,021 1,174 2,195 Commercial and industrial loans 166 1,412 1,578 493 2,030 2,523 Total $ 1,095 $ 2,478 $ 3,573 $ 2,714 $ 3,204 $ 5,918 The following tables provide information on loans that were modified as TDRs during the following periods: Outstanding Recorded Investment (dollars in thousands) Number of loans Pre-Modification Post-Modification Financial Impact Year Ended December 31, 2022: Commercial and industrial loans 3 $ 672 $ 672 $ — Total 3 $ 672 $ 672 $ — 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) | 12 Months Ended |
Dec. 31, 2022 | |
ALLOWANCE FOR CREDIT LOSSES | |
Bank's Allowance for Credit Losses | The following is a rollforward of the allowance for credit losses related to loans for the years ended December 31: Initial Allowance Beginning Adoption of Provision for on Acquired Ending (dollars in thousands) Balance ASC 326 Credit Losses PCD Loans Chargeoffs Recoveries Balance 2022: Real estate loans: Residential properties $ 2,637 $ — $ 5,674 $ — $ (5) $ — $ 8,306 Commercial properties 17,049 — (8,335) — — — 8,714 Land and construction 1,995 — (1,831) — — — 164 Commercial and industrial loans 11,992 — 4,804 — (711) 436 16,521 Consumer loans 103 — (73) — (4) — 26 Total $ 33,776 $ — $ 239 $ — $ (720) $ 436 $ 33,731 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 2020: Real estate loans: Residential properties $ 8,423 $ 363 $ (3,671) $ — $ — $ — $ 5,115 Commercial properties 4,166 3,760 785 — — — 8,711 Land and construction 573 92 227 — — — 892 Commercial and industrial loans 7,448 — 2,642 — (1,844) 1,003 9,249 Consumer loans 190 — 43 — — — 233 Total $ 20,800 $ 4,215 $ 26 $ — $ (1,844) $ 1,003 $ 24,200 |
Balance in Allowance for Credit Losses and Recorded Investment in Loans by Impairment | The following table presents the balance in the allowance for credit losses and the recorded investment in loans by impairment method as of: Allowance for Credit Losses Loans Evaluated (dollars in thousands) Individually Collectively Total December 31, 2022: Allowance for credit losses: Real estate loans: Residential properties $ 87 $ 8,219 $ 8,306 Commercial properties 1,834 6,880 8,714 Land and construction — 164 164 Commercial and industrial loans 3,122 13,399 16,521 Consumer loans — 26 26 Total $ 5,043 $ 28,688 $ 33,731 Loans: Real estate loans: Residential properties $ 3,479 $ 6,373,745 $ 6,377,224 Commercial properties 34,278 1,167,785 1,202,063 Land and construction — 157,630 157,630 Commercial and industrial loans 9,397 2,975,361 2,984,758 Consumer loans — 4,518 4,518 Total $ 47,154 $ 10,679,039 $ 10,726,193 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 December 31, 2022: Loans secured by real estate: Residential Multifamily Pass $ 2,399,360 $ 1,552,311 $ 795,263 $ 301,025 $ 145,675 $ 146,622 $ — $ 5,340,256 Special mention — — — 5,666 9,767 1,545 — 16,978 Substandard — — — — — — — — Total $ 2,399,360 $ 1,552,311 $ 795,263 $ 306,691 $ 155,442 $ 148,167 $ — $ 5,357,234 Single family Pass $ 270,589 $ 276,244 $ 96,183 $ 40,010 $ 49,676 $ 215,209 $ 68,575 $ 1,016,486 Special mention — — — — — — 25 25 Substandard — — — — — 3,434 45 3,479 Total $ 270,589 $ 276,244 $ 96,183 $ 40,010 $ 49,676 $ 218,643 $ 68,645 $ 1,019,990 Commercial real estate Pass $ 223,503 $ 158,363 $ 144,105 $ 93,960 $ 171,460 $ 325,048 $ — $ 1,116,439 Special mention — 13,425 2,340 7,088 11,734 7,905 — 42,492 Substandard 5,919 14,376 742 10,661 — 11,434 — 43,132 Total $ 229,422 $ 186,164 $ 147,187 $ 111,709 $ 183,194 $ 344,387 $ — $ 1,202,063 Land and construction Pass $ 43,846 $ 58,268 $ 47,212 $ 854 $ 5,044 $ 2,406 $ — $ 157,630 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 43,846 $ 58,268 $ 47,212 $ 854 $ 5,044 $ 2,406 $ — $ 157,630 Commercial Pass $ 1,176,851 $ 369,775 $ 182,889 $ 62,767 $ 16,306 $ 17,558 $ 1,133,998 $ 2,960,144 Special mention — 542 1,212 383 — — 5,573 7,710 Substandard — 380 2,125 1,810 — 2,736 9,853 16,904 Total $ 1,176,851 $ 370,697 $ 186,226 $ 64,960 $ 16,306 $ 20,294 $ 1,149,424 $ 2,984,758 Consumer Pass $ 456 $ 1,092 $ — $ 471 $ 133 $ 69 $ 2,297 $ 4,518 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 456 $ 1,092 $ — $ 471 $ 133 $ 69 $ 2,297 $ 4,518 Total loans Pass $ 4,114,605 $ 2,416,053 $ 1,265,652 $ 499,087 $ 388,294 $ 706,912 $ 1,204,870 $ 10,595,473 Special mention — 13,967 3,552 13,137 21,501 9,450 5,598 67,205 Substandard 5,919 14,756 2,867 12,471 — 17,604 9,898 63,515 Total $ 4,120,524 $ 2,444,776 $ 1,272,071 $ 524,695 $ 409,795 $ 733,966 $ 1,220,366 $ 10,726,193 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 ACL allocated to these loans as of: Equipment/ ACL (dollars in thousands) Real Estate Cash Receivables Total Allocation December 31, 2022: Loans secured by real estate: Residential properties Single family $ 2,435 $ — $ — $ 2,435 $ — Commercial real estate loans 3,171 — — 3,171 — Commercial loans — 250 638 888 630 Total $ 5,606 $ 250 $ 638 $ 6,494 $ 630 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 $ — |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PREMISES AND EQUIPMENT | |
Summary of Premises and Equipment | A summary of premises and equipment is as follows at December 31: (dollars in thousands) 2022 2021 Leasehold improvements and artwork $ 22,210 $ 22,331 Information technology equipment 12,841 12,205 Furniture and fixtures 3,978 3,920 Land and auto 16,152 16,943 Total 55,181 55,399 Accumulated depreciation and amortization (19,041) (17,479) Net $ 36,140 $ 37,920 |
REAL ESTATE OWNED (Tables)
REAL ESTATE OWNED (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
REAL ESTATE OWNED | |
Schedule of Activity in Portfolio of REO | The activity in our portfolio of REO is as follows during the periods ending December 31: (dollars in thousands) 2022 2021 Beginning balance $ 6,210 $ — Loans transferred to REO — 6,210 REO acquired in merger — — Dispositions of REO — — Ending balance $ 6,210 $ 6,210 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 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: 2022 2021 Weighted Weighted (dollars in thousands) Amount Average Rate Amount Average Rate Demand deposits: Noninterest-bearing $ 2,736,691 — $ 3,280,455 — Interest-bearing 2,568,850 3.109 % 2,242,684 0.070 % Money market and savings 3,178,230 2.373 % 2,620,336 0.275 % Certificates of deposit 1,878,841 3.741 % 668,485 0.145 % Total $ 10,362,612 2.177 % $ 8,811,960 0.111 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
EARNINGS PER SHARE | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the Company’s earnings per share calculations for the years ended December 31: 2022 2021 2020 (dollars in thousands, except per share amounts) Basic Diluted Basic Diluted Basic Diluted Net income $ 110,512 $ 110,512 $ 109,511 $ 109,511 $ 84,369 $ 84,369 Basic common shares outstanding 56,422,450 56,422,450 45,272,183 45,272,183 44,639,430 44,639,430 Effect of options, restricted stock and contingent shares issuable 67,610 187,357 261,375 Diluted common shares outstanding 56,490,060 45,459,540 44,900,805 Earnings per share $ 1.96 $ 1.96 $ 2.42 $ 2.41 $ 1.89 $ 1.88 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
STOCK BASED COMPENSATION | |
Summary of Stock Option Activity | The following table summarizes the activities in the Plans during 2022: Weighted Average Weighted Average (dollars in thousands except Exercise Price per Remaining Aggregate per share amounts) Options Granted Share Contractual Term Intrinsic Value Balance: December 31, 2021 47,050 $ 8.68 Options granted — — Options exercised (2,000) 9.00 Options forfeited — — Balance: December 31, 2022 45,050 8.67 0.95 Years $ 255 Options exercisable 45,050 $ 8.67 0.95 Years $ 255 The intrinsic value of stock options exercised in 2022 was $33,400 The following table summarizes the activities in the Plans during 2021: Weighted Average Weighted Average (dollars in thousands except Exercise Price per Remaining Aggregate per share amounts) Options Granted Share Contractual Term Intrinsic Value Balance: December 31, 2020 374,050 $ 7.81 Options granted — — Options exercised (327,000) 7.69 Options forfeited — — Balance: December 31, 2021 47,050 8.68 1.96 Years $ 761 Options exercisable 47,050 $ 8.68 1.96 Years $ 761 The intrinsic value of stock options exercised in 2021 was $5.8 million. The following table summarizes the activities in the Plans during 2020: Weighted Average Weighted Average (dollars in thousands except Exercise Price per Remaining Aggregate per share amounts) Options Granted Share Contractual Term Intrinsic Value Balance: December 31, 2019 548,550 $ 7.79 Options granted — — Options exercised (117,500) 7.79 Options forfeited (57,000) 8 Balance: December 31, 2020 374,050 7.81 1.08 Years $ 3,586 Options exercisable 374,050 $ 7.81 1.08 Years $ 3,586 The intrinsic value of stock options exercised in 2020 was $0.8 million. |
Summary of RSUs Issued under Equity Incentive Plan | The following table provides a summary of the RSUs issued by the Company under its equity incentive plans for the periods ended December 31: 2022 2021 2020 Weighted Weighted Weighted Average Grant Average Grant Average Grant Shares Date Fair Value Shares Date Fair Value Shares Date Fair Value Balance: January 1 199,574 $ 19.34 193,190 $ 15.32 139,278 $ 15.69 New RSUs 241,020 22.87 134,973 23.33 159,186 15.26 Shares vested and issued (148,139) 20.09 (126,528) 17.45 (103,741) 15.74 RSUs forfeited (93,439) 0.44 (2,061) 20.06 (1,533) — Balance December 31 199,016 $ 31.92 199,574 $ 19.34 193,190 $ 15.32 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
Schedule of Income Tax Expense (Benefit) | The Company is subject to federal income tax and California franchise tax. Income tax expense (benefit) was as follows for the years ended December 31: (dollars in thousands) 2022 2021 2020 Current expense: Federal $ 25,708 $ 28,550 $ 23,316 State 13,096 15,303 12,661 Deferred expense (benefit): Federal 803 (867) (1,315) State (316) (712) (264) Total $ 39,291 $ 42,274 $ 34,398 |
Schedule of Comparison of the Federal Statutory Income Tax Rates | The following is a comparison of the federal statutory income tax rates to the Company’s effective income tax rate for the years ended December 31: 2022 2021 2020 (dollars in thousands) Amount Rate Amount Rate Amount Rate Income before taxes $ 149,803 $ 151,785 $ 118,767 Federal tax statutory rate $ 31,459 21.00 % $ 31,875 21.00 % $ 24,941 21.00 % State tax, net of Federal benefit 12,085 8.07 % 12,262 8.08 % 9,612 8.09 % Windfall benefit – exercise of stock options (205) (0.14) % (1,708) (1.13) % (118) (0.10) % Transaction costs — - % 551 0.36 % — — % Low income housing, net benefit (998) (0.67) % (732) (0.48) % (638) (0.54) % Tax exempt interest income (2,965) (1.98) % (1,014) (0.67) % (150) (0.12) % Other items, net (85) (0.05) % 1,040 0.69 % 751 0.63 % Effective tax rate $ 39,291 26.23 % $ 42,274 27.85 % $ 34,398 28.96 % |
Summary of Components of the Net Deferred Tax Assets Recognized | (dollars in thousands) 2022 2021 Deferred tax assets (liabilities) Allowance for credit and REO losses $ 12,560 $ 14,062 Operating loss carryforwards 1,528 1,775 State taxes 2,930 3,157 Stock-based compensation 683 538 Market valuation: merger 3,174 3,252 Capital activities – mark to market 828 3,927 Compensation related 1,407 1,343 Core deposit intangible (1,914) (2,471) Prepaid expenses (2,772) (1,853) Depreciation (945) (1,065) Accumulated other comprehensive income 4,530 (945) Other 2,189 (885) Net deferred tax assets $ 24,198 $ 20,835 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES. | |
Schedule Of Supplemental Lease Information | The following table presents supplemental lease information at or for the twelve months ended December: (dollars in thousands) 2022 2021 Balance Sheet: Operating lease asset classified as other assets $ 31,210 $ 19,384 Operating lease liability classified as other liabilities 32,416 20,575 2022 2021 2020 Income Statement: Operating lease cost classified as occupancy and equipment expense $ 7,638 $ 6,559 $ 6,082 Weighted average lease term, in years 5.92 4.57 5.03 Weighted average discount rate 5.62 % 4.85 % 5.39 % Operating cash flows $ 7,611 $ 6,794 $ 6,278 |
Summary of Maturity of Remaining Lease Liabilities | Future minimum lease commitments under all non-cancelable operating leases at December 31, 2022 are as follows: (dollars in thousands) 2023 $ 6,794 2024 6,656 2025 6,544 2026 5,469 2027 and after 13,373 Total future minimum lease payments $ 38,836 Discount on cash flows (6,420) Total lease liability $ 32,416 |
Off Balance Sheet Arrangements of Bank | The following table provides the off-balance sheet arrangements of the Bank as of December 31: (dollars in thousands) 2022 2021 Commitments to fund new loans $ — $ 29,545 Commitments to fund under existing loans, lines of credit 1,292,332 881,605 Commitments under standby letters of credit 19,486 14,576 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
REGULATORY MATTERS | |
Schedule of Capital and Capital Ratios | To Be Well-Capitalized For Capital Under Prompt Corrective Actual Adequacy Purposes Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio FFI December 31, 2022 CET1 capital ratio $ 931,125 9.18 % $ 456,603 4.50 % Tier 1 leverage ratio 931,125 7.44 % 500,327 4.00 % Tier 1 risk-based capital ratio 931,125 9.18 % 608,804 6.00 % Total risk-based capital ratio 1,145,765 11.29 % 811,739 8.00 % December 31, 2021 CET1 capital ratio $ 846,515 11.34 % $ 335,801 4.50 % Tier 1 leverage ratio 846,515 8.43 % 401,645 4.00 % Tier 1 risk-based capital ratio 846,515 11.34 % 447,735 6.00 % Total risk-based capital ratio 887,821 11.90 % 596,980 8.00 % FFB December 31, 2022 CET1 capital ratio $ 1,070,648 10.60 % $ 454,655 4.50 % $ 656,724 6.50 % Tier 1 leverage ratio 1,070,648 8.59 % 498,725 4.00 % 623,406 5.00 % Tier 1 risk-based capital ratio 1,070,648 10.60 % 606,207 6.00 % 808,276 8.00 % Total risk-based capital ratio 1,111,952 11.01 % 808,276 8.00 % 1,010,345 10.00 % December 31, 2021 CET1 capital ratio $ 854,075 11.49 % $ 334,608 4.50 % $ 483,323 6.50 % Tier 1 leverage ratio 854,075 8.53 % 400,616 4.00 % 500,770 5.00 % Tier 1 risk-based capital ratio 854,075 11.49 % 446,144 6.00 % 594,859 8.00 % Total risk-based capital ratio 895,381 12.04 % 594,859 8.00 % 743,574 10.00 % |
Schedule of Minimum Capital Ratios Plus the Applicable Increment of the Capital Conservation | CET-1 to risk-weighted assets 7.00 % Tier 1 capital (i.e., CET-1 plus Additional Tier 1) to risk-weighted assets 8.50 % Total capital (i.e., Tier 1 plus Tier 2) to risk-weighted assets 10.50 % |
NONINTEREST INCOME (Tables)
NONINTEREST INCOME (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
NONINTEREST INCOME | |
Schedule of Revenue from Contracts with Customers and Other Noninterest Income | The following table represents revenue from contracts with customers as well as other noninterest income for the years ended December 31: (dollars in thousands) 2022 2021 2020 Asset management, consulting and other fees: Wealth management $ 28,997 $ 28,447 $ 23,413 Trust fees 9,394 7,161 5,645 Consulting fees 396 414 407 Total $ 38,787 $ 36,022 $ 29,465 Other income (loss): Deposit fees $ 2,507 $ 1,714 $ 1,236 Loan related fees 9,228 9,208 8,334 Valuation loss on equity investment (6,258) — — Other 3,970 2,050 472 Total $ 9,447 $ 12,972 $ 10,042 |
OTHER EXPENSES (Tables)
OTHER EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER EXPENSES | |
Schedule of Items Included in Consolidated Income Statements as Other Expenses | The following items are included in the consolidated income statements as other expenses for the years ended December 31: (dollars in thousands) 2022 2021 2020 Regulatory assessments $ 6,089 $ 4,200 $ 3,817 Directors’ compensation expenses 1,020 820 639 Acquisition expenses — 2,606 — |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT REPORTING | |
Key Operating Results of Business Segments | The following tables show key operating results for each of our business segments used to arrive at our consolidated totals for the years ended December 31: Wealth (dollars in thousands) Banking Management Other Total 2022: Interest income $ 403,878 $ — $ — $ 403,878 Interest expense 78,766 — 6,422 85,188 Net interest income 325,112 — (6,422) 318,690 Provision for credit losses 532 — — 532 Noninterest income 26,148 30,027 (7,941) 48,234 Noninterest expense 188,619 24,371 3,599 216,589 Income (loss) before taxes on income $ 162,109 $ 5,656 $ (17,962) $ 149,803 2021: Interest income $ 247,218 $ — $ — $ 247,218 Interest expense 13,688 — 246 13,934 Net interest income 233,530 — (246) 233,284 Provision for credit losses 3,866 — — 3,866 Noninterest income 41,068 29,917 (532) 70,453 Noninterest expense 121,375 23,349 3,362 148,086 Income (loss) before taxes on income $ 149,357 $ 6,568 $ (4,140) $ 151,785 2020: Interest income $ 243,891 $ — $ — $ 243,891 Interest expense 47,078 — 169 47,247 Net interest income 196,813 — (169) 196,644 Provision for credit losses 6,746 — — 6,746 Noninterest income 31,567 24,510 (1,430) 54,647 Noninterest expense 102,019 21,778 1,981 125,778 Income (loss) before taxes on income $ 119,615 $ 2,732 $ (3,580) $ 118,767 |
Summary of Financial Position of Business Segments | The following tables show the financial position for each of our business segments, and of FFI which is included in the column labeled Other, and the eliminating entries used to arrive at our consolidated totals at December 31: Wealth (dollars in thousands) Banking Management Other Eliminations Total 2022: Cash and cash equivalents $ 656,247 $ 16,757 $ 24,083 $ (40,593) $ 656,494 Securities AFS, net 226,158 — — — 226,158 Securities HTM, net 862,544 — — — 862,544 Loans, net 10,692,462 — — — 10,692,462 Premises and equipment 35,788 216 136 — 36,140 FHLB Stock 25,358 — — — 25,358 Deferred taxes 19,671 78 4,449 — 24,198 REO 6,210 — — — 6,210 Goodwill and Intangibles 221,835 — — — 221,835 Other assets 233,621 428 1,314,681 (1,285,950) 262,780 Total assets $ 12,979,894 $ 17,479 $ 1,343,349 $ (1,326,543) $ 13,014,179 Deposits $ 10,403,205 $ — $ — $ (40,593) $ 10,362,612 Borrowings 1,176,601 — 193,335 — 1,369,936 Intercompany balances 1,001 971 (1,972) — — Other liabilities 125,254 4,392 17,608 (1) 147,253 Shareholders’ equity 1,273,833 12,116 1,134,378 (1,285,949) 1,134,378 Total liabilities and equity $ 12,979,894 $ 17,479 $ 1,343,349 $ (1,326,543) $ 13,014,179 2021: Cash and cash equivalents $ 1,121,089 $ 3,195 $ 21,763 $ (24,290) $ 1,121,757 Securities AFS, net 1,191,378 — — — 1,191,378 Loans held for sale 501,436 — — — 501,436 Loans, net 6,872,952 — — — 6,872,952 Premises and equipment 37,373 411 136 — 37,920 FHLB Stock 18,249 — — — 18,249 Deferred taxes 20,745 138 (48) — 20,835 REO 6,210 — — — 6,210 Goodwill and Intangibles 222,125 — — — 222,125 Other assets 179,385 365 1,103,181 (1,079,589) 203,342 Total assets $ 10,170,942 $ 4,109 $ 1,125,032 $ (1,103,879) $ 10,196,204 Deposits $ 8,836,250 $ — $ — $ (24,290) $ 8,811,960 Borrowings 165,930 — 44,197 — 210,127 Intercompany balances 4,605 (8,204) 3,599 — — Other liabilities 92,500 4,381 13,185 — 110,066 Shareholders’ equity 1,071,657 7,932 1,064,051 (1,079,589) 1,064,051 Total liabilities and equity $ 10,170,942 $ 4,109 $ 1,125,032 $ (1,103,879) $ 10,196,204 |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
Schedule Of Quarterly Financial Information | (dollars in thousands, First Second Third Fourth except per share amounts) Quarter Quarter Quarter Quarter Full Year Year Ended December 31, 2022: Interest income $ 79,144 $ 89,971 $ 108,746 $ 126,017 $ 403,878 Interest expense 4,650 8,166 21,074 51,298 85,188 Net interest income 74,494 81,805 87,672 74,719 318,690 Provision for credit losses (792) 173 (22) 1,173 532 Noninterest income 15,427 13,400 12,184 7,223 48,234 Noninterest expense 47,618 48,805 60,342 59,824 216,589 Income before taxes on income 43,095 46,227 39,536 20,945 149,803 Taxes on income 12,259 12,911 10,530 3,591 39,291 Net income $ 30,836 $ 33,316 $ 29,006 $ 17,354 $ 110,512 Income per share Basic $ 0.55 $ 0.59 $ 0.51 $ 0.31 $ 1.96 Diluted $ 0.55 $ 0.59 $ 0.51 $ 0.31 $ 1.96 Year Ended December 31, 2021: Interest income $ 59,138 $ 61,403 $ 61,989 $ 64,688 $ 247,218 Interest expense 4,909 3,493 2,802 2,730 13,934 Net interest income 54,229 57,910 59,187 61,958 233,284 Provision for credit losses 360 44 (417) 3,879 3,866 Noninterest income 11,908 14,035 30,680 13,830 70,453 Noninterest expense 34,511 35,617 38,394 39,564 148,086 Income before taxes on income 31,266 36,284 51,890 32,345 151,785 Taxes on income 8,911 10,230 14,664 8,469 42,274 Net income $ 22,355 $ 26,054 $ 37,226 $ 23,876 $ 109,511 Income per share Basic $ 0.50 $ 0.58 $ 0.83 $ 0.51 $ 2.42 Diluted $ 0.50 $ 0.58 $ 0.83 $ 0.51 $ 2.41 Year Ended December 31, 2020: Interest income $ 62,338 $ 61,932 $ 61,691 $ 57,930 $ 243,891 Interest expense 17,470 13,485 10,074 6,218 47,247 Net interest income 44,868 48,447 51,617 51,712 196,644 Provision for credit losses 4,064 1,367 1,548 (233) 6,746 Noninterest income 10,675 8,969 23,641 11,362 54,647 Noninterest expense 32,872 30,937 30,595 31,374 125,778 Income before taxes on income 18,607 25,112 43,115 31,933 118,767 Taxes on income 5,396 7,258 12,177 9,567 34,398 Net income $ 13,211 $ 17,854 $ 30,938 $ 22,366 $ 84,369 Income per share Basic $ 0.30 $ 0.40 $ 0.69 $ 0.50 $ 1.89 Diluted $ 0.29 $ 0.40 $ 0.69 $ 0.50 $ 1.88 |
PARENT ONLY FINANCIAL STATEME_2
PARENT ONLY FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
CONSOLIDATED BALANCE SHEETS | |
Condensed Balance Sheet | BALANCE SHEETS December 31, (dollars in thousands) 2022 2021 ASSETS Cash and cash equivalents $ 24,083 $ 21,763 Premises and equipment, net 136 136 Deferred taxes 4,449 (48) Investment in subsidiaries 1,285,949 1,079,589 Intercompany receivable 1,972 — Other assets 28,732 23,592 Total Assets $ 1,345,321 $ 1,125,032 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Borrowings $ 193,335 $ 44,197 Intercompany payable — 3,599 Accounts payable and other liabilities 17,608 13,185 Total Liabilities 210,943 60,981 Shareholders’ Equity Common Stock 56 56 Additional paid-in-capital 719,606 720,744 Retained earnings 426,659 340,976 Accumulated other comprehensive income (loss), net of tax (11,943) 2,275 Total Shareholders’ Equity 1,134,378 1,064,051 Total Liabilities and Shareholders’ Equity $ 1,345,321 $ 1,125,032 |
Condensed Income Statement | INCOME STATEMENTS For the Year Ended December 31, (dollars in thousands) 2022 2021 2020 Interest expense—borrowings $ 6,422 $ 246 $ 169 Noninterest income: Earnings from investment in subsidiaries 123,407 112,550 86,909 Other income (loss) (6,251) 1,271 (97) Total noninterest income 117,156 113,821 86,812 Noninterest expense: Compensation and benefits 1,331 972 1,343 Occupancy and depreciation 12 1 112 Professional services and marketing costs 2,946 3,329 848 Other expenses 1,000 863 1,011 Total noninterest expense 5,289 5,165 3,314 Income before taxes on income 105,445 108,410 83,329 Taxes on income (5,067) (1,101) (1,040) Net income $ 110,512 $ 109,511 $ 84,369 |
Condensed Statement of Comprehensive Income | STATEMENTS OF COMPREHENSIVE INCOME For the Year Ended December 31, (dollars in thousands) 2022 2021 2020 Net income $ 110,512 $ 109,511 $ 84,369 Other comprehensive income: Unrealized holding (losses) gains on securities arising during the period (18,702) (16,696) 13,866 Other comprehensive income (loss) before tax (18,702) (16,696) 13,866 Income tax benefit (expense) related to items of other comprehensive income 4,484 4,884 (4,055) Other comprehensive (loss) income (14,218) (11,812) 9,811 Total comprehensive income $ 96,294 $ 97,699 $ 94,180 |
Condensed Cash Flow Statement | STATEMENTS OF CASH FLOWS For the Year Ended December 31, (dollars in thousands) 2022 2021 2020 Cash Flows from Operating Activities: Net income $ 110,512 $ 109,511 $ 84,369 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Earnings from investment in subsidiaries (123,407) (112,550) (86,909) Stock–based compensation expense 153 115 98 Deferred tax liability (benefit) (4,497) (198) 414 Decrease (increase) in other assets (5,140) (26,308) 549 Increase (decrease) in accounts payable and other liabilities 4,425 3,400 (5,079) Net cash used in operating activities (17,954) (26,030) (6,558) Cash Flows from Investing Activities: Investment in subsidiaries (95,000) (10) — Dividend from subsidiary — 22,000 12,000 Net cash provided by (used in) investing activities (95,000) 21,990 12,000 Cash Flows from Financing Activities: Increase in borrowings, net 149,139 30,197 4,000 Proceeds from the sale of stock, net 18 2,514 908 Repurchase of stock (3,482) — (2,824) Intercompany accounts, net decrease (increase) (5,571) 4,573 2,606 Dividends paid (24,830) (16,173) (12,504) Net cash (used in) provided by financing activities 115,274 21,111 (7,814) Increase (decrease) in cash and cash equivalents 2,320 17,071 (2,372) Cash and cash equivalents at beginning of year 21,763 4,692 7,064 Cash and cash equivalents at end of year $ 24,083 $ 21,763 $ 4,692 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |||
Jan. 18, 2017 | Dec. 31, 2022 USD ($) employee subsidiary item | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of inactive wholly owned subsidiaries | subsidiary | 2 | |||
Number of full-time equivalent employees | employee | 713 | |||
Cash and cash equivalents held at the Federal Reserve Bank | $ 540,000,000 | |||
Provision for credit losses | 532,000 | $ 3,866,000 | $ 6,746,000 | |
Investment in FHLB stock | 25,358,000 | 18,249,000 | ||
Mortgage Servicing Rights Valuation Allowance | 5,900,000 | 6,800,000 | ||
Stock split, conversion ratio | 2 | |||
Other Assets. | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
BOLI | 47,400,000 | 46,600,000 | ||
Core Deposit | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Core deposit intangible assets | 6,600,000 | 8,500,000 | ||
Core deposit intangible amortization expense | 1,900,000 | $ 1,600,000 | $ 1,900,000 | |
Federal Home Loan Bank Stock. | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Adjustments in carrying value | $ 0 | |||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 3 years | |||
Estimated useful lives of other intangible assets | 7 years | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 10 years | |||
Estimated useful lives of other intangible assets | 10 years | |||
California | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of bank loans | 72% | |||
FFA | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Approximate number of clients | item | 1,700 | |||
Aggregate assets under management | $ 5,000,000,000 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) | 1 Months Ended | |||
Dec. 17, 2021 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,600,000 | |||
Deferred income tax asset, operating loss carry-forward and other tax attributes | $ 1,528,000 | $ 1,775,000 | ||
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 | |||
TGR Financial | Fair Value | ||||
Business Acquisition [Line Items] | ||||
Deferred taxes | $ 5,775,000 | |||
Operating loss carryforwards | $ 100,000 |
ACQUISITIONS - Schedule of Asse
ACQUISITIONS - Schedule of Assets Acquired and Liabilities Assumed (Details) - TGR Financial $ in Thousands | Dec. 17, 2021 USD ($) |
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 | 128,227 |
Deferred taxes | 2,361 |
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 | 128,408 |
Bank owned life insurance | 46,163 |
Deferred taxes | 5,775 |
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 |
FAIR VALUE MEASUREMENTS - Recor
FAIR VALUE MEASUREMENTS - Recorded Amounts of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 226,158 | $ 1,191,378 |
Investment in equity securities | 9,767 | 16,025 |
Agency Mortgage-backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 7,576 | 928,989 |
Municipal bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 46,790 | 52,146 |
SBA securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 18,955 | 27,972 |
Beneficial interest - FHLMC securitizations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 7,981 | 11,580 |
Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 135,013 | 156,376 |
U.S. Treasury | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 1,228 | 490 |
Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment in equity securities | 9,767 | 16,025 |
Total assets at fair value on a recurring basis | 235,925 | 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 | 8,615 | 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 | 7,576 | 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 | 46,790 | 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 | 18,955 | 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 | 7,981 | 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 | 135,013 | 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 | 1,228 | 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 | 1,228 | 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 | 1,228 | 490 |
Fair Value Measurement Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amount transferred from securities AFS to securities HTM | 917,000 | |
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 | 216,949 | 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 | 8,615 | 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 | 7,576 | 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 | 46,790 | 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 | 18,955 | 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 | 135,013 | 156,376 |
Fair Value Measurement Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment in equity securities | 9,767 | |
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 | 9,767 | |
Total assets at fair value on a recurring basis | 17,748 | 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 | 7,981 | $ 11,580 |
NYDIG | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Gain (loss) on investment | $ (6,300) |
FAIR VALUE MEASUREMENTS - Valua
FAIR VALUE MEASUREMENTS - Valuation assumptions (Details) - Fair Value Measurement Level 3 $ in Millions | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 47.2 | $ 61.6 |
Reserves related to impaired loans | $ 0 | $ 0 |
Prepayment Rate | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Alternative investment measurement input | 0.35 | |
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 | |
Prepayment Rate | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Alternative investment measurement input | 0.45 | |
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 | |
Discount Rate | Mortgage Servicing Rights. | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Alternative investment measurement input | 0.10 | |
Discount Rate | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Alternative investment measurement input | 0.077 | |
Discount Rate | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Alternative investment measurement input | 0.100 |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying Amounts and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Cash and cash equivalents | $ 656,494 | $ 1,121,757 |
Securities AFS, net | 226,158 | 1,191,378 |
Securities HTM | 862,544 | |
Loans held for sale | 501,436 | |
Loans, net | 10,692,462 | 6,872,952 |
Investment in FHLB stock | 25,358 | 18,249 |
Investment in equity securities | 9,767 | 16,025 |
Liabilities: | ||
Deposits | 10,362,612 | 8,811,960 |
Borrowings | 1,369,936 | 210,127 |
Assets Fair Value: | ||
Cash and cash equivalents | 656,494 | 1,121,757 |
Securities AFS, net | 226,158 | 1,191,378 |
Securities HTM | 773,061 | |
Loans held for sale | 515,978 | |
Loans, net | 10,354,052 | 7,072,878 |
Investment in FHLB stock | 25,358 | 18,249 |
Investment in equity securities | 9,767 | 16,025 |
Liabilities Fair Value: | ||
Deposits | 10,349,272 | 8,811,960 |
Borrowings | 1,329,722 | 210,127 |
Fair Value Measurement Level 1 | ||
Assets: | ||
Investment in equity securities | 16,025 | |
Assets Fair Value: | ||
Cash and cash equivalents | 656,494 | 1,121,757 |
Securities AFS, net | 1,228 | 490 |
Investment in equity securities | 16,025 | |
Liabilities Fair Value: | ||
Deposits | 8,483,770 | 8,143,473 |
Borrowings | 1,176,601 | 165,930 |
Fair Value Measurement Level 2 | ||
Assets: | ||
Investment in FHLB stock | 25,358 | 18,249 |
Assets Fair Value: | ||
Securities AFS, net | 216,949 | 1,179,308 |
Securities HTM | 773,061 | |
Loans held for sale | 515,978 | |
Investment in FHLB stock | 25,358 | 18,249 |
Liabilities Fair Value: | ||
Deposits | 1,865,502 | 668,487 |
Fair Value Measurement Level 3 | ||
Assets: | ||
Investment in equity securities | 9,767 | |
Assets Fair Value: | ||
Securities AFS, net | 7,981 | 11,580 |
Loans, net | 10,354,052 | 7,072,878 |
Investment in equity securities | 9,767 | |
Liabilities Fair Value: | ||
Borrowings | $ 153,121 | $ 44,197 |
SECURITIES - Summary of AFS Sec
SECURITIES - Summary of AFS Securities Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | $ 253,085 | $ 1,198,562 | |
Gross Unrealized gains | 112 | 9,473 | |
Gross Unrealized losses | (15,600) | (6,258) | |
Allowance for credit losses - investments | (11,439) | (10,399) | $ (7,245) |
Estimated Fair Value | 226,158 | 1,191,378 | |
Collateralized mortgage obligations | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | 9,865 | 13,862 | |
Gross Unrealized losses | (1,250) | (37) | |
Estimated Fair Value | 8,615 | 13,825 | |
Agency Mortgage-backed Securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | 8,161 | 928,546 | |
Gross Unrealized gains | 6,563 | ||
Gross Unrealized losses | (585) | (6,120) | |
Estimated Fair Value | 7,576 | 928,989 | |
Beneficial interest - FHLMC securitizations | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | 19,415 | 21,606 | |
Gross Unrealized gains | 108 | 373 | |
Gross Unrealized losses | (103) | ||
Allowance for credit losses - investments | (11,439) | (10,399) | |
Estimated Fair Value | 7,981 | 11,580 | |
Municipal bonds | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | 50,232 | 52,052 | |
Gross Unrealized gains | 94 | ||
Gross Unrealized losses | (3,442) | ||
Estimated Fair Value | 46,790 | 52,146 | |
Corporate Bonds | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | 145,024 | 154,027 | |
Gross Unrealized gains | 2,441 | ||
Gross Unrealized losses | (10,011) | (92) | |
Estimated Fair Value | 135,013 | 156,376 | |
U.S. Treasury | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | 1,298 | 499 | |
Gross Unrealized gains | 1 | ||
Gross Unrealized losses | (71) | (9) | |
Estimated Fair Value | 1,228 | 490 | |
SBA securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized Cost | 19,090 | 27,970 | |
Gross Unrealized gains | 3 | 2 | |
Gross Unrealized losses | (138) | ||
Estimated Fair Value | $ 18,955 | $ 27,972 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Schedule Of Available For Sale Securities [Line Items] | |
Securities pledged as collateral | $ 186.3 |
U.S. Treasury | |
Schedule Of Available For Sale Securities [Line Items] | |
Securities pledged as collateral | 1.2 |
Agency Mortgage-backed Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Securities pledged as collateral | 231.7 |
SBA securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Securities pledged as collateral | $ 186.3 |
SECURITIES - Summary of HTM Sec
SECURITIES - Summary of HTM Securities Portfolio (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 862,544 | |
Gross Unrealized Loss | (89,483) | |
Estimated Fair Value | 773,061 | |
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 | 862,544 | |
Gross Unrealized Loss | (89,483) | |
Estimated Fair Value | $ 773,061 |
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 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | |||
Less than 12 months, Fair Value | $ 181,741 | $ 496,315 | |
Less than 12 months, Unrealized Loss | (10,508) | (5,189) | |
12 months or more, Fair Value | 38,657 | 36,136 | |
12 months or more, Unrealized Loss | (5,092) | (1,069) | |
Total, Fair Value | 220,398 | 532,451 | |
Total, Unrealized Loss | (15,600) | (6,258) | $ 0 |
Collateralized mortgage obligations | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 2 | 12,971 | |
Less than 12 months, Unrealized Loss | (37) | ||
12 months or more, Fair Value | 8,613 | ||
12 months or more, Unrealized Loss | (1,250) | ||
Total, Fair Value | 8,615 | 12,971 | |
Total, Unrealized Loss | (1,250) | (37) | |
Agency Mortgage-backed Securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 6,882 | 434,973 | |
Less than 12 months, Unrealized Loss | (525) | (5,051) | |
12 months or more, Fair Value | 696 | 36,136 | |
12 months or more, Unrealized Loss | (60) | (1,069) | |
Total, Fair Value | 7,578 | 471,109 | |
Total, Unrealized Loss | (585) | (6,120) | |
Beneficial interest - FHLMC securitizations | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 4,217 | ||
Less than 12 months, Unrealized Loss | (103) | ||
Total, Fair Value | 4,217 | ||
Total, Unrealized Loss | (103) | ||
Municipal bonds | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 44,971 | ||
Less than 12 months, Unrealized Loss | (3,244) | ||
12 months or more, Fair Value | 1,819 | ||
12 months or more, Unrealized Loss | (198) | ||
Total, Fair Value | 46,790 | ||
Total, Unrealized Loss | (3,442) | ||
Corporate Bonds | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 108,056 | 47,880 | |
Less than 12 months, Unrealized Loss | (6,476) | (92) | |
12 months or more, Fair Value | 26,957 | ||
12 months or more, Unrealized Loss | (3,535) | ||
Total, Fair Value | 135,013 | 47,880 | |
Total, Unrealized Loss | (10,011) | (92) | |
U.S. Treasury | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 376 | 491 | |
Less than 12 months, Unrealized Loss | (23) | (9) | |
12 months or more, Fair Value | 451 | ||
12 months or more, Unrealized Loss | (48) | ||
Total, Fair Value | 827 | 491 | |
Total, Unrealized Loss | (71) | $ (9) | |
SBA securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Less than 12 months, Fair Value | 17,237 | ||
Less than 12 months, Unrealized Loss | (137) | ||
12 months or more, Fair Value | 121 | ||
12 months or more, Unrealized Loss | (1) | ||
Total, Fair Value | 17,358 | ||
Total, Unrealized Loss | $ (138) |
SECURITIES - Schedule of HTM se
SECURITIES - Schedule of HTM securities in a Continuous Unrealized Loss Position Aggregated by Investment Category and Length of Time (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 394,619 | |
Less than 12 months, Unrecognized Loss | (37,418) | |
12 months or more, Fair Value | 378,441 | |
12 months or more, Unrecognized Loss | (52,065) | |
Total, Fair Value | 773,060 | |
Total, Unrecognized Loss | (89,483) | |
Securities HTM. | $ 0 | |
Agency Mortgage-backed Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, Fair Value | 394,619 | |
Less than 12 months, Unrecognized Loss | (37,418) | |
12 months or more, Fair Value | 378,441 | |
12 months or more, Unrecognized Loss | (52,065) | |
Total, Fair Value | 773,060 | |
Total, Unrecognized Loss | $ (89,483) |
SECURITIES - Schedule of Allowa
SECURITIES - Schedule of Allowance for Credit Losses - Securities AFS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SECURITIES | |||
Beginning Balance for period | $ 10,399 | $ 7,245 | |
Provision for credit losses | 1,040 | 3,154 | $ 7,245 |
Ending Balance for period | $ 11,439 | $ 10,399 | $ 7,245 |
SECURITIES - Scheduled Maturiti
SECURITIES - Scheduled Maturities of Securities AFS and the Related Weighted Average Yields (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, less than one year | $ 6,321 | $ 3,575 |
Amortized cost, one through five years | 53,939 | 29,275 |
Amortized cost, five through ten years | 143,066 | 200,174 |
Amortized cost, after ten years | 49,759 | 965,538 |
Amortized cost, total | $ 253,085 | $ 1,198,562 |
Weighted average yield, less than one year | 4.36% | (4.94%) |
Weighted average yield, one through five years | 3.96% | 0.36% |
Weighted average yield, five through ten years | 3.38% | 3.11% |
Weighted average yield, after ten years | 1.91% | 1.64% |
Weighted average yield, total | 3.24% | 1.84% |
Estimated fair value, less than one year | $ 6,314 | $ 3,575 |
Estimated fair value, one through five years | 52,203 | 29,336 |
Estimated fair value, five through ten years | 133,279 | 203,063 |
Estimated fair value, after ten years | 45,801 | 965,803 |
Estimated fair value, total | 237,597 | 1,201,777 |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, less than one year | 6,006 | 3,505 |
Amortized cost, one through five years | 28,993 | 11,634 |
Amortized cost, five through ten years | 104,494 | 133,352 |
Amortized cost, after ten years | 5,531 | 5,535 |
Amortized cost, total | 145,024 | 154,026 |
Estimated fair value, less than one year | 6,001 | 3,505 |
Estimated fair value, one through five years | 28,022 | 11,624 |
Estimated fair value, five through ten years | 96,734 | 135,653 |
Estimated fair value, after ten years | 4,256 | 5,594 |
Estimated fair value, total | 135,013 | 156,376 |
U.S. Treasury | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, one through five years | 1,298 | 499 |
Amortized cost, total | 1,298 | 499 |
Estimated fair value, one through five years | 1,228 | 490 |
Estimated fair value, total | 1,228 | 490 |
Agency Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, one through five years | 4,384 | 2,151 |
Amortized cost, five through ten years | 2,107 | 27,407 |
Amortized cost, after ten years | 1,670 | 898,990 |
Amortized cost, total | 8,161 | 928,548 |
Estimated fair value, one through five years | 4,133 | 2,152 |
Estimated fair value, five through ten years | 1,960 | 27,987 |
Estimated fair value, after ten years | 1,483 | 898,851 |
Estimated fair value, total | 7,576 | 928,990 |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, less than one year | 301 | |
Amortized cost, one through five years | 8,002 | 1,347 |
Amortized cost, five through ten years | 34,501 | 35,080 |
Amortized cost, after ten years | 7,428 | 15,625 |
Amortized cost, total | 50,232 | 52,052 |
Estimated fair value, less than one year | 299 | |
Estimated fair value, one through five years | 7,565 | 1,425 |
Estimated fair value, five through ten years | 32,690 | 35,091 |
Estimated fair value, after ten years | 6,236 | 15,629 |
Estimated fair value, total | 46,790 | 52,145 |
Beneficial interest - FHLMC securitizations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, one through five years | 9,860 | 11,902 |
Amortized cost, after ten years | 9,555 | 9,704 |
Amortized cost, total | 19,415 | 21,606 |
Estimated fair value, one through five years | 9,860 | 11,902 |
Estimated fair value, after ten years | 9,560 | 10,077 |
Estimated fair value, total | 19,420 | 21,979 |
SBA securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, less than one year | 14 | 70 |
Amortized cost, one through five years | 1,402 | 1,032 |
Amortized cost, five through ten years | 1,278 | 3,533 |
Amortized cost, after ten years | 16,396 | 23,335 |
Amortized cost, total | 19,090 | 27,970 |
Estimated fair value, less than one year | 14 | 70 |
Estimated fair value, one through five years | 1,395 | 1,033 |
Estimated fair value, five through ten years | 1,272 | 3,533 |
Estimated fair value, after ten years | 16,274 | 23,336 |
Estimated fair value, total | 18,955 | 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 | 686 | 802 |
Amortized cost, after ten years | 9,179 | 12,349 |
Amortized cost, total | 9,865 | 13,861 |
Estimated fair value, one through five years | 710 | |
Estimated fair value, five through ten years | 623 | 799 |
Estimated fair value, after ten years | 7,992 | 12,316 |
Estimated fair value, total | $ 8,615 | $ 13,825 |
SECURITIES - Scheduled Maturi_2
SECURITIES - Scheduled Maturities of Securities HTM and the Related Weighted Average Yields (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
HTM - Amortized Cost | |
Amortized cost, one through five years | $ 208 |
Amortized cost, five through ten years | 17,689 |
Amortized cost, after ten years | 844,647 |
Amortized cost, total | $ 862,544 |
HTM - Weighted average yield | |
Weighted average yield, one through five years | 0.36% |
Weighted average yield, five through ten years | 1.12% |
Weighted average yield, after ten years | 2.31% |
Weighted average yield, total | 2.28% |
HTM - Estimated Fair Value | |
Estimated fair value, one through five years | $ 192 |
Estimated fair value, five through ten years | 16,148 |
Estimated fair value, after ten years | 756,721 |
Estimated fair value, total | 773,061 |
Agency Mortgage-backed Securities | |
HTM - Amortized Cost | |
Amortized cost, one through five years | 208 |
Amortized cost, five through ten years | 17,689 |
Amortized cost, after ten years | 844,647 |
Amortized cost, total | 862,544 |
HTM - Estimated Fair Value | |
Estimated fair value, one through five years | 192 |
Estimated fair value, five through ten years | 16,148 |
Estimated fair value, after ten years | 756,721 |
Estimated fair value, total | $ 773,061 |
LOANS - Summary of Loans (Detai
LOANS - Summary of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 10,709,180 | $ 6,893,984 |
Premiums, discounts and deferred fees and expenses | 17,013 | 12,744 |
Total | 10,726,193 | 6,906,728 |
Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 6,377,224 | 3,832,495 |
Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 1,202,063 | 1,309,575 |
Land and Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 157,630 | 155,926 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,984,748 | 1,598,422 |
Total | 2,984,758 | 1,597,865 |
Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 4,481 | 10,834 |
Total | 4,518 | 10,867 |
Real Estate Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 7,719,951 | 5,284,728 |
Real Estate Loans | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 6,358,094 | 3,819,500 |
Total | 6,377,224 | 3,832,495 |
Real Estate Loans | Multifamily | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 5,341,596 | 2,886,055 |
Real Estate Loans | Single family | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,016,498 | 933,445 |
Real Estate Loans | Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,203,292 | 1,309,200 |
Total | 1,202,063 | 1,309,575 |
Real Estate Loans | Land and Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 158,565 | 156,028 |
Total | $ 157,630 | $ 155,926 |
LOANS - Summary of Delinquent a
LOANS - Summary of Delinquent and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual Past Due and Still Accruing | $ 10,331 | $ 8,330 |
Total loans | 10,726,193 | 6,906,728 |
Total | $ 10,726,193 | $ 6,906,728 |
Percentage of Total Loans Due Nonaccrual | 0.10% | 0.12% |
Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 31,087 | $ 13,656 |
Percentage of Total Loans | 0.29% | 0.20% |
30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 15,896 | $ 4,756 |
Percentage of Total Loans Due 30-59 Days | 0.15% | 0.07% |
60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 2,665 | $ 570 |
Percentage of Total Loans Due 60-89 Days | 0.02% | 0.01% |
90 Days or More | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 2,195 | |
Percentage of Total Loans Due 90 Days or More | 0.02% | |
Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 10,695,106 | $ 6,893,072 |
Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 6,377,224 | 3,832,495 |
Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,202,063 | 1,309,575 |
Total | 1,202,063 | 1,309,575 |
Land and Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 157,630 | 155,926 |
Total | 157,630 | 155,926 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual Past Due and Still Accruing | 3,228 | 3,520 |
Total loans | 2,984,758 | 1,597,865 |
Total | 2,984,758 | 1,597,865 |
Commercial and Industrial Loans | Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 6,090 | 4,083 |
Commercial and Industrial Loans | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 385 | 303 |
Commercial and Industrial Loans | 60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,495 | 260 |
Commercial and Industrial Loans | 90 Days or More | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 982 | |
Commercial and Industrial Loans | Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,978,668 | 1,593,782 |
Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 4,518 | 10,867 |
Total | 4,518 | 10,867 |
Consumer Loans | Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 167 | |
Consumer Loans | 60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 167 | |
Consumer Loans | Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 4,351 | 10,867 |
Real Estate Loans | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual Past Due and Still Accruing | 2,556 | 3,281 |
Total | 6,377,224 | 3,832,495 |
Real Estate Loans | Residential Properties | Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 3,124 | 5,110 |
Real Estate Loans | Residential Properties | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 511 | 1,519 |
Real Estate Loans | Residential Properties | 60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 57 | 310 |
Real Estate Loans | Residential Properties | Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 6,374,100 | 3,827,385 |
Real Estate Loans | Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual Past Due and Still Accruing | 4,547 | 1,529 |
Total | 1,202,063 | 1,309,575 |
Real Estate Loans | Commercial real estate | Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 21,706 | 4,463 |
Real Estate Loans | Commercial real estate | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 15,000 | 2,934 |
Real Estate Loans | Commercial real estate | 60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 946 | |
Real Estate Loans | Commercial real estate | 90 Days or More | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,213 | |
Real Estate Loans | Commercial real estate | Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,180,357 | 1,305,112 |
Real Estate Loans | Land and Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 157,630 | 155,926 |
Real Estate Loans | Land and Construction | Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 157,630 | $ 155,926 |
LOANS - Summary of Nonaccrual L
LOANS - Summary of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with Allowance for Credit Losses | $ 2,016 | $ 1,733 |
Nonaccrual with No Allowance for Credit Losses | 8,315 | 6,598 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with Allowance for Credit Losses | 2,016 | 1,733 |
Nonaccrual with No Allowance for Credit Losses | 1,212 | 1,788 |
Real Estate Loans | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with No Allowance for Credit Losses | 2,556 | 3,281 |
Real Estate Loans | Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with No Allowance for Credit Losses | $ 4,547 | $ 1,529 |
LOANS - Composition of TDRs by
LOANS - Composition of TDRs by Accrual and Nonaccrual Status (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Nonaccrual | $ 10,331 | $ 8,330 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Nonaccrual | 3,228 | 3,520 |
Principal Reduction And Extended Maturity | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Accrual | 1,095 | 2,714 |
Troubled Debt Restructurings, Nonaccrual | 2,478 | 3,204 |
Troubled Debt Restructurings, Total | 3,573 | 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 | 929 | 1,021 |
Troubled Debt Restructurings, Nonaccrual | 1,066 | 1,174 |
Troubled Debt Restructurings, Total | 1,995 | 2,195 |
Principal Reduction And Extended Maturity | Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Accrual | 166 | 493 |
Troubled Debt Restructurings, Nonaccrual | 1,412 | 2,030 |
Troubled Debt Restructurings, Total | $ 1,578 | $ 2,523 |
LOANS - Schedule of Detail of L
LOANS - Schedule of Detail of Loans Modified as Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Financing Receivable Modifications [Line Items] | ||
Number of loans | loan | 3 | 1 |
Outstanding recorded investment, pre-modification | $ 672 | $ 346 |
Outstanding recorded investment, post-modification | $ 672 | $ 346 |
Commercial and Industrial Loans | ||
Financing Receivable Modifications [Line Items] | ||
Number of loans | loan | 3 | 1 |
Outstanding recorded investment, pre-modification | $ 672 | $ 346 |
Outstanding recorded investment, post-modification | $ 672 | $ 346 |
ALLOWANCE FOR CREDIT LOSSES - B
ALLOWANCE FOR CREDIT LOSSES - Bank's Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | $ 33,776 | $ 24,200 | $ 20,800 |
Changes due to adoption | 4,215 | ||
Provision for Credit Losses | 239 | 856 | 26 |
Initial Allowance on Acquired PCD Loans | 9,545 | ||
Charge-offs | (720) | (1,824) | (1,844) |
Recoveries | 436 | 999 | 1,003 |
Ending Balance | 33,731 | 33,776 | 24,200 |
Residential Properties | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 2,637 | 5,115 | 8,423 |
Changes due to adoption | 363 | ||
Provision for Credit Losses | 5,674 | (1,453) | (3,671) |
Initial Allowance on Acquired PCD Loans | 93 | ||
Charge-offs | (5) | (1,118) | |
Ending Balance | 8,306 | 2,637 | 5,115 |
Commercial real estate | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 17,049 | 8,711 | 4,166 |
Changes due to adoption | 3,760 | ||
Provision for Credit Losses | (8,335) | 774 | 785 |
Initial Allowance on Acquired PCD Loans | 7,564 | ||
Ending Balance | 8,714 | 17,049 | 8,711 |
Land and Construction | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 1,995 | 892 | 573 |
Changes due to adoption | 92 | ||
Provision for Credit Losses | (1,831) | 1,051 | 227 |
Initial Allowance on Acquired PCD Loans | 52 | ||
Ending Balance | 164 | 1,995 | 892 |
Commercial and Industrial Loans | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 11,992 | 9,249 | 7,448 |
Provision for Credit Losses | 4,804 | 614 | 2,642 |
Initial Allowance on Acquired PCD Loans | 1,836 | ||
Charge-offs | (711) | (706) | (1,844) |
Recoveries | 436 | 999 | 1,003 |
Ending Balance | 16,521 | 11,992 | 9,249 |
Consumer Loans | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 103 | 233 | 190 |
Provision for Credit Losses | (73) | (130) | 43 |
Charge-offs | (4) | ||
Ending Balance | $ 26 | $ 103 | $ 233 |
ALLOWANCE FOR CREDIT LOSSES -_2
ALLOWANCE FOR CREDIT LOSSES - Balance in Allowance for Credit Losses and Recorded Investment in Loans by Impairment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | $ 5,043 | $ 10,516 |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 28,688 | 23,260 |
Total Allowance for Credit Losses | 33,731 | 33,776 |
Loans, Individually Evaluated for Impairment | 47,154 | 61,563 |
Loans, Collectively Evaluated for Impairment | 10,679,039 | 6,845,165 |
Total | 10,726,193 | 6,906,728 |
Residential Properties | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | 87 | 111 |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 8,219 | 2,526 |
Total Allowance for Credit Losses | 8,306 | 2,637 |
Loans, Individually Evaluated for Impairment | 3,479 | 9,593 |
Loans, Collectively Evaluated for Impairment | 6,373,745 | 3,822,902 |
Total | 6,377,224 | 3,832,495 |
Commercial real estate | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | 1,834 | 7,967 |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 6,880 | 9,082 |
Total Allowance for Credit Losses | 8,714 | 17,049 |
Loans, Individually Evaluated for Impairment | 34,278 | 41,313 |
Loans, Collectively Evaluated for Impairment | 1,167,785 | 1,268,262 |
Total | 1,202,063 | 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 | 164 | 1,943 |
Total Allowance for Credit Losses | 164 | 1,995 |
Loans, Individually Evaluated for Impairment | 694 | |
Loans, Collectively Evaluated for Impairment | 157,630 | 155,232 |
Total | 157,630 | 155,926 |
Commercial and Industrial Loans | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | 3,122 | 2,386 |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 13,399 | 9,606 |
Total Allowance for Credit Losses | 16,521 | 11,992 |
Loans, Individually Evaluated for Impairment | 9,397 | 9,963 |
Loans, Collectively Evaluated for Impairment | 2,975,361 | 1,587,902 |
Total | 2,984,758 | 1,597,865 |
Consumer Loans | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Collectively Evaluated for Impairment | 26 | 103 |
Total Allowance for Credit Losses | 26 | 103 |
Loans, Collectively Evaluated for Impairment | 4,518 | 10,867 |
Total | $ 4,518 | $ 10,867 |
ALLOWANCE FOR CREDIT LOSSES - R
ALLOWANCE FOR CREDIT LOSSES - Risk Category of Loans Based on Year of Origination (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | $ 4,120,524 | $ 1,973,024 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 2,444,776 | 1,224,189 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,272,071 | 666,713 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 524,695 | 476,178 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 409,795 | 326,563 |
Prior | 733,966 | 1,515,612 |
Revolving Loans | 1,220,366 | 724,449 |
Total loans | 10,726,193 | 6,906,728 |
Total | 10,726,193 | 6,906,728 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 4,114,605 | 1,972,141 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 2,416,053 | 1,221,553 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,265,652 | 636,509 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 499,087 | 475,196 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 388,294 | 322,281 |
Prior | 706,912 | 1,451,179 |
Revolving Loans | 1,204,870 | 718,463 |
Total loans | 10,595,473 | 6,797,322 |
Special mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 883 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 13,967 | 1,101 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 3,552 | 25,505 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 13,137 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 21,501 | |
Prior | 9,450 | 32,453 |
Revolving Loans | 5,598 | 2,816 |
Total loans | 67,205 | 62,758 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 5,919 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 14,756 | 1,535 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 2,867 | 4,699 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 12,471 | 982 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 4,282 | |
Prior | 17,604 | 31,980 |
Revolving Loans | 9,898 | 3,170 |
Total loans | 63,515 | 46,648 |
Residential Properties | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 6,377,224 | 3,832,495 |
Multifamily | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 2,399,360 | 1,092,903 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 1,552,311 | 868,483 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 795,263 | 419,523 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 306,691 | 265,872 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 155,442 | 141,433 |
Prior | 148,167 | 108,529 |
Total loans | 5,357,234 | 2,896,743 |
Multifamily | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 2,399,360 | 1,092,903 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 1,552,311 | 868,483 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 795,263 | 418,346 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 301,025 | 265,872 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 145,675 | 141,433 |
Prior | 146,622 | 108,529 |
Total loans | 5,340,256 | 2,895,566 |
Multifamily | Special mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,177 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 5,666 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 9,767 | |
Prior | 1,545 | |
Total loans | 16,978 | 1,177 |
Single family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 270,589 | 278,337 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 276,244 | 122,530 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 96,183 | 52,995 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 40,010 | 60,559 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 49,676 | 59,047 |
Prior | 218,643 | 287,046 |
Revolving Loans | 68,645 | 75,238 |
Total loans | 1,019,990 | 935,752 |
Single family | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 270,589 | 278,337 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 276,244 | 122,530 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 96,183 | 52,995 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 40,010 | 60,559 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 49,676 | 57,174 |
Prior | 215,209 | 280,216 |
Revolving Loans | 68,575 | 74,934 |
Total loans | 1,016,486 | 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] | ||
Financing Receivable Originated Four Years Before Latest Fiscal Year | 1,873 | |
Prior | 3,434 | 6,830 |
Revolving Loans | 45 | 278 |
Total loans | 3,479 | 8,981 |
Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 229,422 | 114,678 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 186,164 | 39,135 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 147,187 | 85,855 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 111,709 | 94,930 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 183,194 | 117,831 |
Prior | 344,387 | 857,146 |
Total loans | 1,202,063 | 1,309,575 |
Total | 1,202,063 | 1,309,575 |
Commercial real estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 223,503 | 114,678 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 158,363 | 39,135 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 144,105 | 59,426 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 93,960 | 94,930 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 171,460 | 115,614 |
Prior | 325,048 | 804,295 |
Total loans | 1,116,439 | 1,228,078 |
Commercial real estate | Special mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 13,425 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 2,340 | 23,495 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 7,088 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 11,734 | |
Prior | 7,905 | 30,389 |
Total loans | 42,492 | 53,884 |
Commercial real estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 5,919 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 14,376 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 742 | 2,934 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 10,661 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 2,217 | |
Prior | 11,434 | 22,462 |
Total loans | 43,132 | 27,613 |
Land and Construction | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 43,846 | 14,738 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 58,268 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 47,212 | 17,692 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 854 | 31,952 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 5,044 | 2,529 |
Prior | 2,406 | 89,015 |
Total loans | 157,630 | 155,926 |
Total | 157,630 | 155,926 |
Land and Construction | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 43,846 | 14,738 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 58,268 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 47,212 | 17,692 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 854 | 31,952 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 5,044 | 2,529 |
Prior | 2,406 | 88,321 |
Total loans | 157,630 | 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] | ||
Financing Receivable Originated In Current Fiscal Year | 1,176,851 | 472,314 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 370,697 | 194,041 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 186,226 | 90,648 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 64,960 | 21,691 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 16,306 | 5,723 |
Prior | 20,294 | 171,259 |
Revolving Loans | 1,149,424 | 642,189 |
Total loans | 2,984,758 | 1,597,865 |
Total | 2,984,758 | 1,597,865 |
Commercial and Industrial Loans | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 1,176,851 | 471,431 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 369,775 | 191,405 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 182,889 | 88,050 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 62,767 | 20,709 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 16,306 | 5,531 |
Prior | 17,558 | 167,201 |
Revolving Loans | 1,133,998 | 636,507 |
Total loans | 2,960,144 | 1,580,834 |
Commercial and Industrial Loans | Special mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 883 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 542 | 1,101 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,212 | 833 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 383 | |
Prior | 1,370 | |
Revolving Loans | 5,573 | 2,790 |
Total loans | 7,710 | 6,977 |
Commercial and Industrial Loans | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 380 | 1,535 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 2,125 | 1,765 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 1,810 | 982 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 192 | |
Prior | 2,736 | 2,688 |
Revolving Loans | 9,853 | 2,892 |
Total loans | 16,904 | 10,054 |
Consumer Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 456 | 54 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 1,092 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 471 | 1,174 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 133 | |
Prior | 69 | 2,617 |
Revolving Loans | 2,297 | 7,022 |
Total loans | 4,518 | 10,867 |
Total | 4,518 | 10,867 |
Consumer Loans | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 456 | 54 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 1,092 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 471 | 1,174 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 133 | |
Prior | 69 | 2,617 |
Revolving Loans | 2,297 | 7,022 |
Total loans | $ 4,518 | $ 10,867 |
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 | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Allowance for Credit Losses | $ 33,731 | $ 33,776 |
Collateral Dependent Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 6,494 | 2,818 |
Total Allowance for Credit Losses | 630 | |
Collateral Dependent Loans | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 5,606 | 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 | 638 | |
Collateral Dependent Loans | Single family | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 2,435 | 2,568 |
Collateral Dependent Loans | Single family | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 2,435 | 2,568 |
Collateral Dependent Loans | Commercial real estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 3,171 | |
Collateral Dependent Loans | Commercial real estate | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 3,171 | |
Collateral Dependent Loans | Commercial and Industrial Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 888 | 250 |
Total Allowance for Credit Losses | 630 | |
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 | $ 638 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
PREMISES AND EQUIPMENT | ||
Leasehold improvements and artwork | $ 22,210 | $ 22,331 |
Information technology equipment | 12,841 | 12,205 |
Furniture and fixtures | 3,978 | 3,920 |
Land and auto | 16,152 | 16,943 |
Total | 55,181 | 55,399 |
Accumulated depreciation and amortization | (19,041) | (17,479) |
Property, Plant and Equipment, Net, Total | $ 36,140 | $ 37,920 |
REAL ESTATE OWNED (Details)
REAL ESTATE OWNED (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
REAL ESTATE OWNED | |
Beginning Balance | $ 6,210 |
Loans transferred to REO | 6,210 |
Ending Balance | $ 6,210 |
LOAN SALES AND MORTGAGE SERVI_2
LOAN SALES AND MORTGAGE SERVICING RIGHTS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Gain on sale of loans | $ 21,459,000 | $ 15,140,000 | |
Valuation allowance of mortgage servicing rights | $ 5,900,000 | 6,800,000 | |
First Foundation Bank | |||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Sale of multifamily loans through securitization | 0 | 559,000,000 | 553,000,000 |
Gain on sale of loans | 21,500,000 | 15,100,000 | |
Mortgage servicing rights | 5,900,000 | 6,800,000 | |
Loans serviced for others | 1,100,000,000 | 1,400,000,000 | |
Valuation allowance of mortgage servicing rights | 1,400,000 | 3,300,000 | |
Servicing fees earned on loans | $ 3,000,000 | $ 3,400,000 | $ 3,300,000 |
DEPOSITS - Summary of Outstandi
DEPOSITS - Summary of Outstanding Balance of Deposits and Average Rates (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
DEPOSITS | ||
Demand deposits, Noninterest-bearing | $ 2,736,691 | $ 3,280,455 |
Demand deposits, Interest-bearing | 2,568,850 | 2,242,684 |
Money market and savings | 3,178,230 | 2,620,336 |
Certificates of deposits | 1,878,841 | 668,485 |
Total | $ 10,362,612 | $ 8,811,960 |
Demand deposits, Interest-bearing, Weighted Average Rate | 3.109% | 0.07% |
Money market and savings, Weighted Average Rate | 2.373% | 0.275% |
Certificates of deposits, Weighted Average Rate | 3.741% | 0.145% |
Total, Weighted Average Rate | 2.177% | 0.111% |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
DEPOSITS | ||
Certificates of deposits of $250,000 or more, maturities within one year | $ 409 | $ 361 |
Certificates of deposits of $250,000 or more, maturities after one year | 27 | 6 |
Certificates of deposits of $250,000 or more, total | 436 | 367 |
Certificates of deposit of less than $ 250,000, maturities within one year | 1,100 | 229 |
Certificates of deposit of less than $ 250,000, maturities after one year | 345 | 72 |
Certificates of deposit of less than $250,000, total | $ 1,400 | $ 301 |
BORROWINGS (Details)
BORROWINGS (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Institution | Dec. 31, 2021 USD ($) | Dec. 31, 2017 USD ($) | |
Debt Instrument [Line Items] | |||
Subordinated notes | $ 174,000,000 | ||
Overnight FHLB advances | 805,000,000 | ||
Federal funds purchased | 200,000,000 | ||
Loans pledged as collateral | 5,600,000,000 | ||
Federal Home Loan Bank, maximum borrowing capacity | 2,400,000,000 | ||
Federal Home Loan Bank, additional credit available | 315,000,000 | ||
Unsecured debt | $ 245,000,000 | ||
Number of financial institutions | Institution | 5 | ||
Securities pledged as collateral | $ 186,300,000 | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 20,000,000 | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Unsecured debt | $ 100,000,000 | ||
Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument basis point rate | 5.90% | ||
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% | ||
Subordinated Notes Due 2030 | |||
Debt Instrument [Line Items] | |||
Subordinated notes | $ 24,000,000 | $ 25,600,000 | |
Line of credit facility, Interest rate | 6% | ||
Secured debt | $ 171,000,000 | $ 166,000,000 | |
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% | ||
Overnight FHLB Advance | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 4.65% | ||
Federal funds purchased | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 4.55% | ||
Federal Reserve Bank advances | |||
Debt Instrument [Line Items] | |||
Secured debt | $ 345,000,000 | ||
Outstanding borrowings | 0 | ||
Unsecured federal funds | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 100,000,000 | ||
Additional Unsecured Debt | 100,000,000 | ||
FFI | |||
Debt Instrument [Line Items] | |||
Long-term line of credit | 20,000,000 | $ 18,500,000 | |
FFI | Subordinated Notes Due 2030 | |||
Debt Instrument [Line Items] | |||
Subordinated notes | $ 174,000,000 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Subsidiary Sale Of Stock [Line Items] | ||
Cash and cash equivalents | $ 656,494 | $ 1,121,757 |
FFI | ||
Subsidiary Sale Of Stock [Line Items] | ||
Dividend payment restrictions (as a percent) | 50% | |
Cash and cash equivalents | $ 24,083 | $ 21,763 |
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 | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
EARNINGS PER SHARE | |||||||||||||||
Net income, Basic | $ 110,512 | $ 109,511 | $ 84,369 | ||||||||||||
Basic common shares outstanding | 56,422,450 | 45,272,183 | 44,639,430 | ||||||||||||
Earnings per share, Basic | $ 0.31 | $ 0.51 | $ 0.59 | $ 0.55 | $ 0.51 | $ 0.83 | $ 0.58 | $ 0.50 | $ 0.50 | $ 0.69 | $ 0.40 | $ 0.30 | $ 1.96 | $ 2.42 | $ 1.89 |
Net income, Diluted | $ 110,512 | $ 109,511 | $ 84,369 | ||||||||||||
Effect of options, restricted stock and contingent shares issuable | 67,610 | 187,357 | 261,375 | ||||||||||||
Diluted common shares outstanding | 56,490,060 | 45,459,540 | 44,900,805 | ||||||||||||
Earnings per share, Diluted | $ 0.31 | $ 0.51 | $ 0.59 | $ 0.55 | $ 0.51 | $ 0.83 | $ 0.58 | $ 0.50 | $ 0.50 | $ 0.69 | $ 0.40 | $ 0.29 | $ 1.96 | $ 2.41 | $ 1.88 |
STOCK BASED COMPENSATION (Detai
STOCK BASED COMPENSATION (Details) | 1 Months Ended | 12 Months Ended | |||||
Jan. 18, 2017 | Dec. 31, 2010 shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2007 item shares | Dec. 31, 2015 shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of equity incentive plans | item | 2 | ||||||
Future grant of options purchased | shares | 1,300,282 | ||||||
Increase in number of shares for issuance | shares | 580,000 | ||||||
Stock split, conversion ratio | 2 | ||||||
Stock-based compensation expense | $ 3,467,000 | $ 2,756,000 | $ 2,075,000 | ||||
Stock options exercised, intrinsic value | 33,400 | 5,800,000 | 800,000 | ||||
Restricted Stock | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Fair value of shares vested | 3,400,000 | 2,200,000 | 1,600,000 | ||||
Fair value of shares issued | 3,400,000 | $ 2,200,000 | $ 1,600,000 | ||||
Unrecognized compensation costs | $ 2,800,000 | ||||||
Executive Officers, Other Key Employees and Directors | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares available for grant | shares | 750,000 | ||||||
Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Award term | 10 years |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Options Granted | |||
Outstanding at beginning of period | 47,050 | 374,050 | 548,550 |
Options exercised | (2,000) | (327,000) | (117,500) |
Options forfeited | (57,000) | ||
Outstanding at end of period | 45,050 | 47,050 | 374,050 |
Options exercisable | 45,050 | 47,050 | 374,050 |
Weighted Average Exercise Price | |||
Outstanding at beginning of period | $ 8.68 | $ 7.81 | $ 7.79 |
Options exercised | 9 | 7.69 | 7.79 |
Options forfeited | 8 | ||
Outstanding at end of period | 8.67 | 8.68 | 7.81 |
Options exercisable | $ 8.67 | $ 8.68 | $ 7.81 |
Weighted-Average Remaining Contractual Term | |||
Outstanding at end of period | 11 months 12 days | 1 year 11 months 15 days | 1 year 29 days |
Options exercisable | 11 months 12 days | 1 year 11 months 15 days | 1 year 29 days |
Aggregate Intrinsic Value | |||
Outstanding at end of period | $ 255 | $ 761 | $ 3,586 |
Options exercisable | $ 255 | $ 761 | $ 3,586 |
STOCK BASED COMPENSATION - Su_2
STOCK BASED COMPENSATION - Summary of RSUs Issued under Equity Incentive Plan (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares | |||
Nonvested at beginning of period, Shares | 199,574 | 193,190 | 139,278 |
New RSUs, Shares | 241,020 | 134,973 | 159,186 |
Shares vested and issued, Shares | (148,139) | (126,528) | (103,741) |
RSUs forfeited, Shares | (93,439) | (2,061) | (1,533) |
Nonvested at end of period, Shares | 199,016 | 199,574 | 193,190 |
Weighted Average Grant Date Fair Value | |||
Nonvested at end of period, Shares | $ 19.34 | $ 15.32 | $ 15.69 |
New RSUs, Weighted-Average Grant Date Fair Value | 22.87 | 23.33 | 15.26 |
Shares vested and issued, Weighted-Average Grant Date Fair Value | 20.09 | 17.45 | 15.74 |
RSUs forfeited, Weighted-Average Grant Date Fair Value | 0.44 | 20.06 | |
Nonvested at end of period, Weighted-Average Grant Date Fair Value | $ 31.92 | $ 19.34 | $ 15.32 |
401(k) PROFIT SHARING PLAN (Det
401(k) PROFIT SHARING PLAN (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
401(k) profit sharing plan | |||
Duration to join 401k Plan | 3 months | ||
Employee contribution on compensation, maximum | 100% | ||
Percentage of employees' annual contribution, eligible for employers match | 100% | 100% | 100% |
Additional percentage of employees' annual contribution, eligible for employers match | 50% | 50% | 50% |
Percentage of employees' annual contribution matched | 3% | 3% | 3% |
Additional percentage of employees' annual contribution matched | 2% | 2% | 2% |
Employer contribution amount | $ 2,800,000 | $ 2,200,000 | $ 1,800,000 |
Deferred Profit Sharing | |||
401(k) profit sharing plan | |||
Employer contribution amount | $ 0 | $ 0 | $ 0 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current expense: | |||||||||||||||
Federal | $ 25,708 | $ 28,550 | $ 23,316 | ||||||||||||
State | 13,096 | 15,303 | 12,661 | ||||||||||||
Deferred expense (benefit): | |||||||||||||||
Federal | 803 | (867) | (1,315) | ||||||||||||
State | (316) | (712) | (264) | ||||||||||||
Total | $ 3,591 | $ 10,530 | $ 12,911 | $ 12,259 | $ 8,469 | $ 14,664 | $ 10,230 | $ 8,911 | $ 9,567 | $ 12,177 | $ 7,258 | $ 5,396 | $ 39,291 | $ 42,274 | $ 34,398 |
INCOME TAXES - Schedule of Reco
INCOME TAXES - Schedule of Reconciliation of Statutory Income Taxes and Effective Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||||||||||||
Federal statutory income tax rate | 21% | 21% | 21% | ||||||||||||
State tax, net of Federal benefit, rate | 8.07% | 8.08% | 8.09% | ||||||||||||
Windfall benefit - exercise of stock options, rate | (0.14%) | 1.13% | (0.10%) | ||||||||||||
Transaction costs, rate | 0.36% | ||||||||||||||
Low income housing, net benefit, rate | (0.67%) | (0.48%) | (0.54%) | ||||||||||||
Tax exempt interest income, rate | (1.98%) | (0.67%) | (0.12%) | ||||||||||||
Other items, net, rate | (0.05%) | 0.69% | 0.63% | ||||||||||||
Effective income tax rate | 26.23% | 27.85% | 28.96% | ||||||||||||
Income before taxes | $ 20,945 | $ 39,536 | $ 46,227 | $ 43,095 | $ 32,345 | $ 51,890 | $ 36,284 | $ 31,266 | $ 31,933 | $ 43,115 | $ 25,112 | $ 18,607 | $ 149,803 | $ 151,785 | $ 118,767 |
Federal statutory income tax, amount | 31,459 | 31,875 | 24,941 | ||||||||||||
State tax, net of Federal benefit, amount | 12,085 | 12,262 | 9,612 | ||||||||||||
Windfall benefit - exercise of stock options, amount | (205) | (1,708) | (118) | ||||||||||||
Transaction costs, amount | 551 | ||||||||||||||
Low income housing, net benefit, amount | (998) | (732) | (638) | ||||||||||||
Tax exempt interest income, amount | (2,965) | (1,014) | (150) | ||||||||||||
Other items, net, amount | (85) | 1,040 | 751 | ||||||||||||
Total | $ 3,591 | $ 10,530 | $ 12,911 | $ 12,259 | $ 8,469 | $ 14,664 | $ 10,230 | $ 8,911 | $ 9,567 | $ 12,177 | $ 7,258 | $ 5,396 | $ 39,291 | $ 42,274 | $ 34,398 |
INCOME TAXES - Net Deferred Tax
INCOME TAXES - Net Deferred Tax Assets Recognized (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets (liabilities) | ||
Allowance for credit and REO losses | $ 12,560 | $ 14,062 |
Operating loss carryforwards | 1,528 | 1,775 |
State taxes | 2,930 | 3,157 |
Stock-based compensation | 683 | 538 |
Market valuation: merger | 3,174 | 3,252 |
Capital activities - mark to market | 828 | 3,927 |
Compensation related | 1,407 | 1,343 |
Core deposit intangible | (1,914) | (2,471) |
Prepaid expenses | (2,772) | (1,853) |
Depreciation | (945) | (1,065) |
Accumulated other comprehensive income | 4,530 | (945) |
Other | 2,189 | (885) |
Net deferred tax assets | $ 24,198 | $ 20,835 |
INCOME TAXES - Operating loss c
INCOME TAXES - Operating loss carryforwards (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Operating loss carryforwards | |
Operating loss carryfowards, utilization amount | $ 5.2 |
Tax Year 2012 | |
Operating loss carryforwards | |
Operating loss carryforwards | 13.4 |
Operating loss carryfowards, utilization amount | $ 7.6 |
Operating loss carryforwards, utilization period | 20 years |
Tax Year 2015 | |
Operating loss carryforwards | |
Operating loss carryforwards | $ 3.6 |
Tax Year 2017 | |
Operating loss carryforwards | |
Operating loss carryforwards | 0.7 |
Tax Year 2018 | |
Operating loss carryforwards | |
Operating loss carryforwards | 3.2 |
Tax Year 2021 | |
Operating loss carryforwards | |
Operating loss carryforwards | $ 0.1 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES. | |||
Operating lease, existence of options to renew | true | ||
Lease expense | $ 7.7 | $ 6.5 | $ 6.1 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule of Supplemental Lease Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance Sheet: | |||
Operating lease asset classified as other assets | $ 31,210 | $ 19,384 | |
Operating Lease Right of Use Asset Statement of Financial Position [Extensible List] | Other assets | Other assets | |
Operating lease liability classified as other liabilities | $ 32,416 | $ 20,575 | |
Operating Lease Liability Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities | |
Income Statement: | |||
Operating lease cost classified as occupancy and equipment expense | $ 7,638 | $ 6,559 | $ 6,082 |
Weighted average lease term, in years | 5 years 11 months 1 day | 4 years 6 months 25 days | 5 years 10 days |
Weighted average discount rate | 5.62% | 4.85% | 5.39% |
Operating cash flows | $ 7,611 | $ 6,794 | $ 6,278 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Summary of Maturity of Remaining Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 6,794 | |
2024 | 6,656 | |
2025 | 6,544 | |
2026 | 5,469 | |
2027 and after | 13,373 | |
Total future minimum lease payments | 38,836 | |
Discount on cash flows | (6,420) | |
Total lease liability | $ 32,416 | $ 20,575 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Off Balance Sheet Arrangements of Bank (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
COMMITMENTS AND CONTINGENCIES. | ||
Commitments to fund new loans | $ 29,545 | |
Commitments to fund under existing loans, lines of credit | $ 1,292,332 | 881,605 |
Commitments under standby letters of credit | $ 19,486 | $ 14,576 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - Sale leaseback (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) property | Dec. 31, 2021 USD ($) | |
Lessee Lease Description [Line Items] | ||
Operating lease liability | $ 32,416 | $ 20,575 |
Right of use asset | $ 31,210 | $ 19,384 |
Number of branches associated in sale leaseback | property | 2 | |
Sale leaseback transaction price | $ 3,800 | |
Gain on leaseback | 1,100 | |
New Lease Term | ||
Lessee Lease Description [Line Items] | ||
Operating lease liability | 2,100 | |
Right of use asset | $ 2,100 | |
Branches with new lease agreements | property | 2 | |
Term of contract | 13 years |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) instrument | Dec. 31, 2021 instrument | Dec. 31, 2020 instrument | |
Derivatives Fair Value [Line Items] | |||
Number of derivative agreements | instrument | 0 | 0 | 0 |
Interest Rate Swaps | |||
Derivatives Fair Value [Line Items] | |||
Amount received from settlement proceeds from terminated interest rate swap agreements | $ 12.1 | ||
Net gain from settlement of terminated interest rate swap agreements | $ 0.6 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transactions | |||||
Gain on sale of loans | $ 21,459,000 | $ 15,140,000 | |||
Directors, executive officers and affiliates | |||||
Related Party Transactions | |||||
Deposits from related parties | $ 3,500,000 | 6,200,000 | |||
Interest paid | 8,000 | 37,000 | 22,000 | ||
Assets under management | 4,400,000 | ||||
Fees amount received | 26,000 | 19,000 | 100,000 | ||
Director | |||||
Related Party Transactions | |||||
Subordinated notes held at FFI | 70,000 | ||||
Chief Executive Officer | |||||
Related Party Transactions | |||||
Interest paid | 147,000 | 33,100 | 200,000 | ||
Purchase of loans | 15,400,000 | 200,000 | $ 52,100,000 | $ 121,900,000 | |
Loans serviced for other financial institution | 27,300,000 | ||||
Loans and leases, participating sub debt offering | $ 15,000,000 | ||||
Gain on loans and leases, participating sub debt offering | $ 900,000 | $ 800,000 | $ 800,000 |
QUALIFIED AFFORDABLE HOUSING _2
QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS | ||||
Duration to use LIHTC and other tax benefits | 10 years | |||
Balance of investment for qualified affordable housing projects | $ 88,500 | $ 59,100 | ||
Unfunded commitments | 60,900 | 45,200 | ||
Recognized amortization expense | 5,600 | 3,600 | $ 2,600 | |
Recognized tax credits | 4,100 | 3,200 | 1,500 | |
Impairment loss | $ 0 | $ 0 | $ 0 |
REGULATORY MATTERS - Schedule o
REGULATORY MATTERS - Schedule of Capital and Capital Ratios (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
FFI | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
CET1 capital ratio, Actual Amount | $ 931,125 | $ 846,515 |
Tier 1 leverage/(core) ratio, Actual Amount | 931,125 | 846,515 |
Tier 1 risk-based capital ratio, Actual Amount | 931,125 | 846,515 |
Total risk-based capital ratio, Actual Amount | $ 1,145,765 | $ 887,821 |
CET1 capital ratio, Actual Ratio | 0.0918 | 0.1134 |
Tier 1 leverage/(core) ratio, Actual Ratio | 0.0744 | 0.0843 |
Tier 1 risk-based capital ratio, Actual Ratio | 0.0918 | 0.1134 |
Total risk-based capital ratio, Actual Ratio | 0.1129 | 0.1190 |
CET1 capital ratio, For Capital Adequacy Purposes Amount | $ 456,603 | $ 335,801 |
Tier 1 leverage/(core) ratio, For Capital Adequacy Purposes Amount | 500,327 | 401,645 |
Tier 1 risk-based capital ratio, For Capital Adequacy Purposes Amount | 608,804 | 447,735 |
Total risk-based capital ratio, For Capital Adequacy Purposes Amount | $ 811,739 | $ 596,980 |
CET1 capital ratio, For Capital Adequacy Purposes Ratio | 0.0450 | 0.0450 |
Tier 1 leverage/(core) ratio, For Capital Adequacy Purposes Ratio | 0.0400 | 0.0400 |
Tier 1 risk-based capital ratio, For Capital Adequacy Purposes Ratio | 0.0600 | 0.0600 |
Total risk-based capital ratio, For Capital Adequacy Purposes Ratio | 0.0800 | 0.0800 |
FFB | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
CET1 capital ratio, Actual Amount | $ 1,070,648 | $ 854,075 |
Tier 1 leverage/(core) ratio, Actual Amount | 1,070,648 | 854,075 |
Tier 1 risk-based capital ratio, Actual Amount | 1,070,648 | 854,075 |
Total risk-based capital ratio, Actual Amount | $ 1,111,952 | $ 895,381 |
CET1 capital ratio, Actual Ratio | 0.1060 | 0.1149 |
Tier 1 leverage/(core) ratio, Actual Ratio | 0.0859 | 0.0853 |
Tier 1 risk-based capital ratio, Actual Ratio | 0.1060 | 0.1149 |
Total risk-based capital ratio, Actual Ratio | 0.1101 | 0.1204 |
CET1 capital ratio, For Capital Adequacy Purposes Amount | $ 454,655 | $ 334,608 |
Tier 1 leverage/(core) ratio, For Capital Adequacy Purposes Amount | 498,725 | 400,616 |
Tier 1 risk-based capital ratio, For Capital Adequacy Purposes Amount | 606,207 | 446,144 |
Total risk-based capital ratio, For Capital Adequacy Purposes Amount | $ 808,276 | $ 594,859 |
CET1 capital ratio, For Capital Adequacy Purposes Ratio | 0.0450 | 0.0450 |
Tier 1 leverage/(core) ratio, For Capital Adequacy Purposes Ratio | 0.0400 | 0.0400 |
Tier 1 risk-based capital ratio, For Capital Adequacy Purposes Ratio | 0.0600 | 0.0600 |
Total risk-based capital ratio, For Capital Adequacy Purposes Ratio | 0.0800 | 0.0800 |
CET1 capital ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount | $ 656,724 | $ 483,323 |
Tier 1 leverage/(core) ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount | 623,406 | 500,770 |
Tier 1 risk-based capital ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount | 808,276 | 594,859 |
Total risk-based capital ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount | $ 1,010,345 | $ 743,574 |
CET1 leverage ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio | 0.0650 | 0.0650 |
Tier 1 leverage/(core) ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio | 0.0500 | 0.0500 |
Tier 1 risk-based capital ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio | 0.0800 | 0.0800 |
Total risk-based capital ratio, To Be Well-Capitalized Under Prompt Corrective Action Provisions Ratio | 0.1000 | 0.1000 |
REGULATORY MATTERS - Additional
REGULATORY MATTERS - Additional Information (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |
Capital buffer against risk weighted assets cumulative | 2.50% |
First Foundation Bank | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |
CET1 capital ratio, to be well-capitalized amount | $ 414 |
Tier 1 leverage ratio, to be well-capitalized amount | 447 |
Tier 1 risk-based capital ratio, to be well-capitalized amount | 262 |
Excess total risk-based capital ratio, to be well-capitalized amount | $ 102 |
REGULATORY MATTERS - Schedule_2
REGULATORY MATTERS - Schedule of Minimum Capital Ratios Plus the Applicable Increment of the Capital Conservation (Details) | Jan. 01, 2019 |
REGULATORY MATTERS | |
CET-1 to risk-weighted assets | 7% |
Tier 1 capital (i.e., CET-1 plus Additional Tier 1) to risk-weighted assets | 8.50% |
Total capital (i.e., Tier 1 plus Tier 2) to risk-weighted assets | 10.50% |
NONINTEREST INCOME (Details)
NONINTEREST INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Asset management, consulting and other fees | $ 38,787 | $ 36,022 | $ 29,465 |
Type of Revenue [Extensible List] | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember |
Other income (loss) | $ 9,447 | $ 12,972 | $ 10,042 |
Wealth Management | |||
Disaggregation Of Revenue [Line Items] | |||
Asset management, consulting and other fees | 28,997 | 28,447 | 23,413 |
Trust Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Asset management, consulting and other fees | 9,394 | 7,161 | 5,645 |
Consulting Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Asset management, consulting and other fees | 396 | 414 | 407 |
Deposit Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Other income (loss) | 2,507 | 1,714 | 1,236 |
Loan Related Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Other income (loss) | 9,228 | 9,208 | 8,334 |
Valuation loss on equity investment | |||
Disaggregation Of Revenue [Line Items] | |||
Other income (loss) | (6,258) | ||
Other, | |||
Disaggregation Of Revenue [Line Items] | |||
Other income (loss) | $ 3,970 | $ 2,050 | $ 472 |
NONINTEREST INCOME - Additional
NONINTEREST INCOME - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Asset Management Fees | Other Assets. | |||
Disaggregation Of Revenue [Line Items] | |||
Receivables from contract with customers | $ 3.9 | $ 6 | $ 8.7 |
OTHER EXPENSES (Details)
OTHER EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OTHER EXPENSES | |||
Regulatory assessments | $ 6,089 | $ 4,200 | $ 3,817 |
Directors' compensation expenses | $ 1,020 | 820 | $ 639 |
Acquisition expenses | $ 2,606 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - segment | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEGMENT REPORTING | |||
Reportable business segments | 2 | 2 | 2 |
SEGMENT REPORTING - Key Operati
SEGMENT REPORTING - Key Operating Results of Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | $ 126,017 | $ 108,746 | $ 89,971 | $ 79,144 | $ 64,688 | $ 61,989 | $ 61,403 | $ 59,138 | $ 57,930 | $ 61,691 | $ 61,932 | $ 62,338 | $ 403,878 | $ 247,218 | $ 243,891 |
Interest expense | 51,298 | 21,074 | 8,166 | 4,650 | 2,730 | 2,802 | 3,493 | 4,909 | 6,218 | 10,074 | 13,485 | 17,470 | 85,188 | 13,934 | 47,247 |
Net interest income | 74,719 | 87,672 | 81,805 | 74,494 | 61,958 | 59,187 | 57,910 | 54,229 | 51,712 | 51,617 | 48,447 | 44,868 | 318,690 | 233,284 | 196,644 |
Provision for credit losses | 1,173 | (22) | 173 | (792) | 3,879 | (417) | 44 | 360 | (233) | 1,548 | 1,367 | 4,064 | 532 | 3,866 | 6,746 |
Noninterest income | 7,223 | 12,184 | 13,400 | 15,427 | 13,830 | 30,680 | 14,035 | 11,908 | 11,362 | 23,641 | 8,969 | 10,675 | 48,234 | 70,453 | 54,647 |
Noninterest expense | 59,824 | 60,342 | 48,805 | 47,618 | 39,564 | 38,394 | 35,617 | 34,511 | 31,374 | 30,595 | 30,937 | 32,872 | 216,589 | 148,086 | 125,778 |
Income (loss) before taxes on income | $ 20,945 | $ 39,536 | $ 46,227 | $ 43,095 | $ 32,345 | $ 51,890 | $ 36,284 | $ 31,266 | $ 31,933 | $ 43,115 | $ 25,112 | $ 18,607 | 149,803 | 151,785 | 118,767 |
Operating Segments | Banking | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest income | 403,878 | 247,218 | 243,891 | ||||||||||||
Interest expense | 78,766 | 13,688 | 47,078 | ||||||||||||
Net interest income | 325,112 | 233,530 | 196,813 | ||||||||||||
Provision for credit losses | 532 | 3,866 | 6,746 | ||||||||||||
Noninterest income | 26,148 | 41,068 | 31,567 | ||||||||||||
Noninterest expense | 188,619 | 121,375 | 102,019 | ||||||||||||
Income (loss) before taxes on income | 162,109 | 149,357 | 119,615 | ||||||||||||
Operating Segments | Wealth Management | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Noninterest income | 30,027 | 29,917 | 24,510 | ||||||||||||
Noninterest expense | 24,371 | 23,349 | 21,778 | ||||||||||||
Income (loss) before taxes on income | 5,656 | 6,568 | 2,732 | ||||||||||||
Other. | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest expense | 6,422 | 246 | 169 | ||||||||||||
Net interest income | (6,422) | (246) | (169) | ||||||||||||
Noninterest income | (7,941) | (532) | (1,430) | ||||||||||||
Noninterest expense | 3,599 | 3,362 | 1,981 | ||||||||||||
Income (loss) before taxes on income | $ (17,962) | $ (4,140) | $ (3,580) |
SEGMENT REPORTING - Financial P
SEGMENT REPORTING - Financial Position For Each of Our Business Segments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | $ 656,494 | $ 1,121,757 | ||
Securities AFS, net | 226,158 | 1,191,378 | ||
Securities HTM, net | 862,544 | |||
Loans held for sale | 501,436 | |||
Loans, net | 10,692,462 | 6,872,952 | ||
Premises and equipment | 36,140 | 37,920 | ||
FHLB Stock | 25,358 | 18,249 | ||
Deferred taxes | 24,198 | 20,835 | ||
REO | 6,210 | 6,210 | ||
Goodwill and intangibles | 221,835 | 222,125 | ||
Other assets | 262,780 | 203,342 | ||
Total Assets | 13,014,179 | 10,196,204 | ||
Deposits | 10,362,612 | 8,811,960 | ||
Borrowings | 1,369,936 | 210,127 | ||
Other liabilities | 147,253 | 110,066 | ||
Shareholders' equity | 1,134,378 | 1,064,051 | $ 695,711 | $ 613,869 |
Total Liabilities and Shareholders' Equity | 13,014,179 | 10,196,204 | ||
Operating Segments | Banking | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 656,247 | 1,121,089 | ||
Securities AFS, net | 226,158 | 1,191,378 | ||
Securities HTM, net | 862,544 | |||
Loans held for sale | 501,436 | |||
Loans, net | 10,692,462 | 6,872,952 | ||
Premises and equipment | 35,788 | 37,373 | ||
FHLB Stock | 25,358 | 18,249 | ||
Deferred taxes | 19,671 | 20,745 | ||
REO | 6,210 | 6,210 | ||
Goodwill and intangibles | 221,835 | 222,125 | ||
Other assets | 233,621 | 179,385 | ||
Total Assets | 12,979,894 | 10,170,942 | ||
Deposits | 10,403,205 | 8,836,250 | ||
Borrowings | 1,176,601 | 165,930 | ||
Intercompany balances | 1,001 | 4,605 | ||
Other liabilities | 125,254 | 92,500 | ||
Shareholders' equity | 1,273,833 | 1,071,657 | ||
Total Liabilities and Shareholders' Equity | 12,979,894 | 10,170,942 | ||
Operating Segments | Wealth Management | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 16,757 | 3,195 | ||
Premises and equipment | 216 | 411 | ||
Deferred taxes | 78 | 138 | ||
Other assets | 428 | 365 | ||
Total Assets | 17,479 | 4,109 | ||
Intercompany balances | 971 | (8,204) | ||
Other liabilities | 4,392 | 4,381 | ||
Shareholders' equity | 12,116 | 7,932 | ||
Total Liabilities and Shareholders' Equity | 17,479 | 4,109 | ||
Other Segment | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 24,083 | 21,763 | ||
Premises and equipment | 136 | 136 | ||
Deferred taxes | 4,449 | (48) | ||
Other assets | 1,314,681 | 1,103,181 | ||
Total Assets | 1,343,349 | 1,125,032 | ||
Borrowings | 193,335 | 44,197 | ||
Intercompany balances | (1,972) | 3,599 | ||
Other liabilities | 17,608 | 13,185 | ||
Shareholders' equity | 1,134,378 | 1,064,051 | ||
Total Liabilities and Shareholders' Equity | 1,343,349 | 1,125,032 | ||
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | (40,593) | (24,290) | ||
Other assets | (1,285,950) | (1,079,589) | ||
Total Assets | (1,326,543) | (1,103,879) | ||
Deposits | (40,593) | (24,290) | ||
Other liabilities | (1) | |||
Shareholders' equity | (1,285,949) | (1,079,589) | ||
Total Liabilities and Shareholders' Equity | $ (1,326,543) | $ (1,103,879) |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||||
Interest income | $ 126,017 | $ 108,746 | $ 89,971 | $ 79,144 | $ 64,688 | $ 61,989 | $ 61,403 | $ 59,138 | $ 57,930 | $ 61,691 | $ 61,932 | $ 62,338 | $ 403,878 | $ 247,218 | $ 243,891 |
Interest expense | 51,298 | 21,074 | 8,166 | 4,650 | 2,730 | 2,802 | 3,493 | 4,909 | 6,218 | 10,074 | 13,485 | 17,470 | 85,188 | 13,934 | 47,247 |
Net interest income | 74,719 | 87,672 | 81,805 | 74,494 | 61,958 | 59,187 | 57,910 | 54,229 | 51,712 | 51,617 | 48,447 | 44,868 | 318,690 | 233,284 | 196,644 |
Provision for credit losses | 1,173 | (22) | 173 | (792) | 3,879 | (417) | 44 | 360 | (233) | 1,548 | 1,367 | 4,064 | 532 | 3,866 | 6,746 |
Noninterest income | 7,223 | 12,184 | 13,400 | 15,427 | 13,830 | 30,680 | 14,035 | 11,908 | 11,362 | 23,641 | 8,969 | 10,675 | 48,234 | 70,453 | 54,647 |
Noninterest expense | 59,824 | 60,342 | 48,805 | 47,618 | 39,564 | 38,394 | 35,617 | 34,511 | 31,374 | 30,595 | 30,937 | 32,872 | 216,589 | 148,086 | 125,778 |
Income (loss) before taxes on income | 20,945 | 39,536 | 46,227 | 43,095 | 32,345 | 51,890 | 36,284 | 31,266 | 31,933 | 43,115 | 25,112 | 18,607 | 149,803 | 151,785 | 118,767 |
Taxes on income | 3,591 | 10,530 | 12,911 | 12,259 | 8,469 | 14,664 | 10,230 | 8,911 | 9,567 | 12,177 | 7,258 | 5,396 | 39,291 | 42,274 | 34,398 |
Net income | $ 17,354 | $ 29,006 | $ 33,316 | $ 30,836 | $ 23,876 | $ 37,226 | $ 26,054 | $ 22,355 | $ 22,366 | $ 30,938 | $ 17,854 | $ 13,211 | $ 110,512 | $ 109,511 | $ 84,369 |
Net income per share: | |||||||||||||||
Basic | $ 0.31 | $ 0.51 | $ 0.59 | $ 0.55 | $ 0.51 | $ 0.83 | $ 0.58 | $ 0.50 | $ 0.50 | $ 0.69 | $ 0.40 | $ 0.30 | $ 1.96 | $ 2.42 | $ 1.89 |
Diluted | $ 0.31 | $ 0.51 | $ 0.59 | $ 0.55 | $ 0.51 | $ 0.83 | $ 0.58 | $ 0.50 | $ 0.50 | $ 0.69 | $ 0.40 | $ 0.29 | $ 1.96 | $ 2.41 | $ 1.88 |
PARENT ONLY FINANCIAL STATEME_3
PARENT ONLY FINANCIAL STATEMENTS - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||||
Cash and cash equivalents | $ 656,494 | $ 1,121,757 | ||
Premises and equipment, net | 36,140 | 37,920 | ||
Other assets | 262,780 | 203,342 | ||
Total Assets | 13,014,179 | 10,196,204 | ||
Liabilities: | ||||
Borrowings | 1,369,936 | 210,127 | ||
Accounts payable and other liabilities | 147,253 | 110,066 | ||
Total Liabilities | 11,879,801 | 9,132,153 | ||
Shareholders' Equity | ||||
Common Stock | 56 | 56 | ||
Additional paid-in-capital | 719,606 | 720,744 | ||
Retained earnings | 426,659 | 340,976 | ||
Accumulated other comprehensive (loss) income | (11,943) | 2,275 | ||
Total Shareholders' Equity | 1,134,378 | 1,064,051 | $ 695,711 | $ 613,869 |
Total Liabilities and Shareholders' Equity | 13,014,179 | 10,196,204 | ||
FFI | ||||
ASSETS | ||||
Cash and cash equivalents | 24,083 | 21,763 | ||
Premises and equipment, net | 136 | 136 | ||
Deferred taxes | 4,449 | (48) | ||
Investment in subsidiaries | 1,285,949 | 1,079,589 | ||
Intercompany receivable | 1,972 | |||
Other assets | 28,732 | 23,592 | ||
Total Assets | 1,345,321 | 1,125,032 | ||
Liabilities: | ||||
Borrowings | 193,335 | 44,197 | ||
Intercompany payable | 3,599 | |||
Accounts payable and other liabilities | 17,608 | 13,185 | ||
Total Liabilities | 210,943 | 60,981 | ||
Shareholders' Equity | ||||
Common Stock | 56 | 56 | ||
Additional paid-in-capital | 719,606 | 720,744 | ||
Retained earnings | 426,659 | 340,976 | ||
Accumulated other comprehensive (loss) income | (11,943) | 2,275 | ||
Total Shareholders' Equity | 1,134,378 | 1,064,051 | ||
Total Liabilities and Shareholders' Equity | $ 1,345,321 | $ 1,125,032 |
PARENT ONLY FINANCIAL STATEME_4
PARENT ONLY FINANCIAL STATEMENTS - Income Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest expense-borrowings | $ 23,343 | $ 481 | $ 7,815 | ||||||||||||
Noninterest income: | |||||||||||||||
Other income (loss) | 9,447 | 12,972 | 10,042 | ||||||||||||
Total noninterest income | $ 7,223 | $ 12,184 | $ 13,400 | $ 15,427 | $ 13,830 | $ 30,680 | $ 14,035 | $ 11,908 | $ 11,362 | $ 23,641 | $ 8,969 | $ 10,675 | 48,234 | 70,453 | 54,647 |
Noninterest expense: | |||||||||||||||
Compensation and benefits | 110,222 | 87,908 | 73,868 | ||||||||||||
Occupancy and depreciation | 36,236 | 24,977 | 23,892 | ||||||||||||
Professional services and marketing costs | 13,660 | 12,224 | 8,045 | ||||||||||||
Other expenses | 18,293 | 14,202 | 12,528 | ||||||||||||
Total noninterest expense | 59,824 | 60,342 | 48,805 | 47,618 | 39,564 | 38,394 | 35,617 | 34,511 | 31,374 | 30,595 | 30,937 | 32,872 | 216,589 | 148,086 | 125,778 |
Income (loss) before taxes on income | 20,945 | 39,536 | 46,227 | 43,095 | 32,345 | 51,890 | 36,284 | 31,266 | 31,933 | 43,115 | 25,112 | 18,607 | 149,803 | 151,785 | 118,767 |
Taxes on income | 3,591 | 10,530 | 12,911 | 12,259 | 8,469 | 14,664 | 10,230 | 8,911 | 9,567 | 12,177 | 7,258 | 5,396 | 39,291 | 42,274 | 34,398 |
Net income | $ 17,354 | $ 29,006 | $ 33,316 | $ 30,836 | $ 23,876 | $ 37,226 | $ 26,054 | $ 22,355 | $ 22,366 | $ 30,938 | $ 17,854 | $ 13,211 | 110,512 | 109,511 | 84,369 |
FFI | |||||||||||||||
Interest expense-borrowings | 6,422 | 246 | 169 | ||||||||||||
Noninterest income: | |||||||||||||||
Earnings from investment in subsidiaries | 123,407 | 112,550 | 86,909 | ||||||||||||
Other income (loss) | (6,251) | 1,271 | (97) | ||||||||||||
Total noninterest income | 117,156 | 113,821 | 86,812 | ||||||||||||
Noninterest expense: | |||||||||||||||
Compensation and benefits | 1,331 | 972 | 1,343 | ||||||||||||
Occupancy and depreciation | 12 | 1 | 112 | ||||||||||||
Professional services and marketing costs | 2,946 | 3,329 | 848 | ||||||||||||
Other expenses | 1,000 | 863 | 1,011 | ||||||||||||
Total noninterest expense | 5,289 | 5,165 | 3,314 | ||||||||||||
Income (loss) before taxes on income | 105,445 | 108,410 | 83,329 | ||||||||||||
Taxes on income | (5,067) | (1,101) | (1,040) | ||||||||||||
Net income | $ 110,512 | $ 109,511 | $ 84,369 |
PARENT ONLY FINANCIAL STATEME_5
PARENT ONLY FINANCIAL STATEMENTS - Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income | $ 17,354 | $ 29,006 | $ 33,316 | $ 30,836 | $ 23,876 | $ 37,226 | $ 26,054 | $ 22,355 | $ 22,366 | $ 30,938 | $ 17,854 | $ 13,211 | $ 110,512 | $ 109,511 | $ 84,369 |
Other comprehensive income: | |||||||||||||||
Unrealized holding (losses) gains on securities arising during the period | (18,702) | (16,696) | 13,866 | ||||||||||||
Other comprehensive income (loss) before tax | (18,702) | (16,696) | 13,866 | ||||||||||||
Income tax benefit (expense) related to items of other comprehensive income | 4,484 | 4,884 | (4,055) | ||||||||||||
Other comprehensive (loss) income | (14,218) | (11,812) | 9,811 | ||||||||||||
Total comprehensive income | 96,294 | 97,699 | 94,180 | ||||||||||||
FFI | |||||||||||||||
Net income | 110,512 | 109,511 | 84,369 | ||||||||||||
Other comprehensive income: | |||||||||||||||
Unrealized holding (losses) gains on securities arising during the period | (18,702) | (16,696) | 13,866 | ||||||||||||
Other comprehensive income (loss) before tax | (18,702) | (16,696) | 13,866 | ||||||||||||
Income tax benefit (expense) related to items of other comprehensive income | 4,484 | 4,884 | (4,055) | ||||||||||||
Other comprehensive (loss) income | (14,218) | (11,812) | 9,811 | ||||||||||||
Total comprehensive income | $ 96,294 | $ 97,699 | $ 94,180 |
PARENT ONLY FINANCIAL STATEME_6
PARENT ONLY FINANCIAL STATEMENTS - Statements of Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | |||
Net income | $ 110,512 | $ 109,511 | $ 84,369 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Stock-based compensation expense | 3,467 | 2,756 | 2,075 |
Deferred tax liability (benefit) | 487 | (1,579) | (1,579) |
Decrease (increase) in other assets | (38,999) | (39,173) | (38,899) |
Increase (decrease) in accounts payable and other liabilities | 16,286 | 23,336 | 12,593 |
Net cash used in operating activities | 101,054 | 96,935 | 67,442 |
Cash Flows from Investing Activities: | |||
Net cash provided by (used in) investing activities | (3,246,282) | (79,373) | (24,896) |
Cash Flows from Financing Activities: | |||
Increase in borrowings, net | 1,500 | 17,085 | 4,000 |
Proceeds from the sale of stock, net | 18 | 2,759 | 915 |
Repurchase of stock | (4,623) | (1,722) | (2,824) |
Dividends paid | (24,830) | (16,173) | (12,504) |
Net cash (used in) provided by financing activities | 2,679,965 | 474,488 | 521,774 |
Increase (decrease) in cash and cash equivalents | (465,263) | 492,050 | 564,320 |
Cash and cash equivalents at beginning of year | 1,121,757 | 629,707 | 65,387 |
Cash and cash equivalents at end of period | 656,494 | 1,121,757 | 629,707 |
FFI | |||
Cash Flows from Operating Activities: | |||
Net income | 110,512 | 109,511 | 84,369 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Earnings from investment in subsidiaries | (123,407) | (112,550) | (86,909) |
Stock-based compensation expense | 153 | 115 | 98 |
Deferred tax liability (benefit) | (4,497) | (198) | 414 |
Decrease (increase) in other assets | (5,140) | (26,308) | 549 |
Increase (decrease) in accounts payable and other liabilities | 4,425 | 3,400 | (5,079) |
Net cash used in operating activities | (17,954) | (26,030) | (6,558) |
Cash Flows from Investing Activities: | |||
Investment in subsidiaries | (95,000) | (10) | |
Dividend from subsidiary | 22,000 | 12,000 | |
Net cash provided by (used in) investing activities | (95,000) | 21,990 | 12,000 |
Cash Flows from Financing Activities: | |||
Increase in borrowings, net | 149,139 | 30,197 | 4,000 |
Proceeds from the sale of stock, net | 18 | 2,514 | 908 |
Repurchase of stock | (3,482) | (2,824) | |
Intercompany accounts, net decrease (increase) | (5,571) | 4,573 | 2,606 |
Dividends paid | (24,830) | (16,173) | (12,504) |
Net cash (used in) provided by financing activities | 115,274 | 21,111 | (7,814) |
Increase (decrease) in cash and cash equivalents | 2,320 | 17,071 | (2,372) |
Cash and cash equivalents at beginning of year | 21,763 | 4,692 | 7,064 |
Cash and cash equivalents at end of period | $ 24,083 | $ 21,763 | $ 4,692 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event | Jan. 26, 2023 $ / shares |
Subsequent Event [Line Items] | |
Dividends payable, date declared | Jan. 26, 2023 |
Dividends payable, amount per share | $ 0.11 |
Dividends payable, date to be paid | Feb. 16, 2023 |
Dividends payable, date of record | Feb. 06, 2023 |