Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-36461 | |
Entity Registrant Name | FIRST FOUNDATION INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-8639702 | |
Entity Address, Address Line One | 200 Crescent Court | |
Entity Address, Address Line Two | Suite 1400 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 469 | |
Local Phone Number | 638-9636 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | FFWM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 56,424,276 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001413837 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 1,317,129 | $ 656,494 |
Securities available-for-sale ("AFS") | 223,612 | 237,597 |
Securities held-to-maturity ("HTM") | 847,036 | 862,544 |
Allowance for credit losses - investments | (12,288) | (11,439) |
Net securities | 1,058,360 | 1,088,702 |
Loans held for investment | 10,669,803 | 10,726,193 |
Allowance for credit losses - loans | (31,095) | (33,731) |
Net loans | 10,638,708 | 10,692,462 |
Investment in FHLB stock | 58,716 | 25,358 |
Deferred taxes | 22,763 | 24,198 |
Premises and equipment, net | 37,530 | 36,140 |
Real estate owned ("REO") | 6,210 | 6,210 |
Goodwill and intangibles | 221,401 | 221,835 |
Other assets | 255,367 | 262,780 |
Total Assets | 13,616,184 | 13,014,179 |
Liabilities: | ||
Deposits | 10,051,706 | 10,362,612 |
Borrowings | 2,294,600 | 1,369,936 |
Accounts payable and other liabilities | 136,140 | 147,253 |
Total Liabilities | 12,482,446 | 11,879,801 |
Shareholders' Equity | ||
Common Stock | 56 | 56 |
Additional paid-in-capital | 719,261 | 719,606 |
Retained earnings | 428,956 | 426,659 |
Accumulated other comprehensive (loss) income | (14,535) | (11,943) |
Total Shareholders' Equity | 1,133,738 | 1,134,378 |
Total Liabilities and Shareholders' Equity | $ 13,616,184 | $ 13,014,179 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest income: | ||
Loans | $ 120,643 | $ 72,027 |
Securities | 6,891 | 6,360 |
FHLB Stock, fed funds sold and interest-bearing deposits | 9,466 | 757 |
Total interest income | 137,000 | 79,144 |
Interest expense: | ||
Deposits | 62,140 | 3,358 |
Borrowings | 16,105 | 1,292 |
Total interest expense | 78,245 | 4,650 |
Net interest income | 58,755 | 74,494 |
Provision for credit losses | 417 | (792) |
Net interest income after provision for credit losses | 58,338 | 75,286 |
Noninterest income: | ||
Asset management, consulting and other fees | $ 8,796 | $ 10,197 |
Type of Revenue [Extensible List] | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember |
Other income | $ 2,902 | $ 5,230 |
Total noninterest income | 11,698 | 15,427 |
Noninterest expense: | ||
Compensation and benefits | 25,286 | 29,821 |
Occupancy and depreciation | 8,897 | 8,567 |
Professional services and marketing costs | 4,295 | 3,417 |
Customer service costs | 16,715 | 1,788 |
Other expenses | 4,147 | 4,025 |
Total noninterest expense | 59,340 | 47,618 |
Income before taxes on income | 10,696 | 43,095 |
Taxes on income | 2,200 | 12,259 |
Net income | $ 8,496 | $ 30,836 |
Net income per share: | ||
Basic | $ 0.15 | $ 0.55 |
Diluted | $ 0.15 | $ 0.55 |
Shares used in computation: | ||
Basic | 56,376,669 | 56,465,855 |
Diluted | 56,410,416 | 56,565,845 |
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, 2021 | $ 56 | $ 720,744 | $ 340,976 | $ 2,275 | $ 1,064,051 |
Beginning balance (in shares) at Dec. 31, 2021 | 56,432,070 | ||||
Net income | 30,836 | 30,836 | |||
Other comprehensive loss | (6,207) | (6,207) | |||
Stock based compensation | 1,204 | 1,204 | |||
Cash dividend | (6,208) | (6,208) | |||
Exercise of options | 18 | 18 | |||
Exercise of options (in shares) | 2,000 | ||||
Stock grants - vesting of restricted stock units | $ 1 | 1 | |||
Stock grants - vesting of restricted stock units (in shares) | 122,700 | ||||
Repurchase of shares from restricted shares vesting | (1,120) | (1,120) | |||
Repurchase of shares from restricted shares vesting (in shares) | (42,602) | ||||
Ending balance at Mar. 31, 2022 | $ 57 | 720,846 | 365,604 | (3,932) | 1,082,575 |
Ending balance (in shares) at Mar. 31, 2022 | 56,514,168 | ||||
Beginning balance at Dec. 31, 2022 | $ 56 | 719,606 | 426,659 | (11,943) | 1,134,378 |
Beginning balance (in shares) at Dec. 31, 2022 | 56,325,242 | ||||
Net income | 8,496 | 8,496 | |||
Other comprehensive loss | (2,592) | (2,592) | |||
Stock based compensation | 32 | 32 | |||
Cash dividend | (6,199) | (6,199) | |||
Exercise of options | 157 | 157 | |||
Exercise of options (in shares) | 19,500 | ||||
Stock grants - vesting of restricted stock units (in shares) | 114,592 | ||||
Repurchase of shares from restricted shares vesting | (534) | (534) | |||
Repurchase of shares from restricted shares vesting (in shares) | (35,058) | ||||
Ending balance at Mar. 31, 2023 | $ 56 | $ 719,261 | $ 428,956 | $ (14,535) | $ 1,133,738 |
Ending balance (in shares) at Mar. 31, 2023 | 56,424,276 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 8,496 | $ 30,836 |
Other comprehensive income (loss): | ||
Unrealized holding gains (losses) on securities arising during the period | (4,535) | (7,731) |
Other comprehensive income (loss) before tax | (4,535) | (7,731) |
Income tax benefit (expense) related to items of other comprehensive income | 1,943 | 1,524 |
Other comprehensive income (loss) | (2,592) | (6,207) |
Total comprehensive income | $ 5,904 | $ 24,629 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Cash Flows from Operating Activities: | |||
Net income | $ 8,496 | $ 30,836 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Reversal of provision for credit losses - loans | (432) | (1,136) | |
Provision for credit losses - securities AFS | 849 | 344 | |
Stock-based compensation expense | 32 | 1,204 | |
Depreciation and amortization | 1,104 | 974 | |
Deferred tax expense | 2,761 | 3,431 | |
Amortization of premium (discount) on securities | (173) | (351) | |
Amortization of core deposit intangible | 434 | 509 | |
Amortization of mortgage servicing rights - net | 599 | 549 | |
Amortization of OCI - securities transfer to HTM | 616 | ||
Valuation allowance on mortgage servicing rights - net | (672) | (201) | |
Decrease in other assets | 7,657 | 5,318 | |
Decrease in accounts payable and other liabilities | (11,792) | (1,138) | |
Net cash provided by operating activities | 9,479 | 40,339 | |
Cash Flows from Investing Activities: | |||
Net (increase) decrease in loans | 54,387 | (490,869) | |
Purchase of premises and equipment | (2,494) | (1,222) | |
Disposals of premises and equipment | 3,375 | ||
Recovery of allowance for credit losses | 306 | 134 | |
Purchases of securities AFS | (400) | ||
Purchases of securities HTM | (83,008) | ||
Maturities of securities AFS | 9,184 | 7,965 | |
Maturities of securities HTM | 15,948 | 79,660 | |
Sale (purchase) of FHLB and FRB stock, net | (33,358) | 999 | |
Net cash provided by (used in) investing activities | 43,973 | (483,366) | |
Cash Flows from Financing Activities: | |||
Increase (decrease) in deposits | (310,906) | 145,558 | |
Net increase in FHLB & other advances | 995,000 | ||
Line of credit net change - borrowings, net | (18,500) | ||
Net increase in subordinated debt | 15 | 147,592 | |
Net decrease in repurchase agreements | (70,351) | (13,250) | |
Gain on sale leaseback | (1,111) | ||
Dividends paid | (6,199) | (6,208) | |
Proceeds from exercise of stock options | 158 | 19 | |
Repurchase of stock | (534) | (1,120) | |
Net cash provided by financing activities | 607,183 | 252,980 | |
Increase (decrease) in cash and cash equivalents | 660,635 | (190,047) | |
Cash and cash equivalents at beginning of year | 656,494 | 1,121,757 | $ 1,121,757 |
Cash and cash equivalents at end of period | 1,317,129 | 931,710 | 656,494 |
Supplemental disclosures of cash flow information: | |||
Interest | 65,720 | 3,893 | |
Noncash transactions: | |||
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 | 172 | ||
Chargeoffs against allowance for credit losses | $ 2,003 | $ 145 | $ 720 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of Consolidation 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 and First Foundation Advisors, 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 provides a comprehensive platform of financial services to individuals, businesses and other organizations and has offices in California, Nevada, Florida, Texas, and Hawaii. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“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 for the period. Actual results could differ significantly from those estimates. The accompanying unaudited consolidated financial statements include the accounts of the Company as of March 31, 2023 and December 31, 2022, and for the three months ended March 31, 2023 and 2022, and include all information and footnotes required for interim financial reporting presentation. All intercompany accounts and transactions have been eliminated in consolidation. The results for the 2023 interim periods are not necessarily indicative of the results expected for the full year. These financial statements assume that readers have read the most recent Annual Report on Form 10-K filed with the SEC which contains the latest available audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2022. Significant Accounting Policies The accounting and reporting policies of the Company are based upon GAAP and conform to predominant practices within the banking industry. We have not made any changes in our significant accounting policies from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022. New Accounting Pronouncements On January 1, 2023, the Company adopted ASU 2022-02, “ Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures” Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors Financial Instruments – Credit Losses on Financial Instruments In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, “ Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting” reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this ASU are effective as of March 12, 2020 through December 31, 2022. The Company has permanently ceased originating any new loans or entering into any transaction that would increase its LIBOR-based exposure. For all new variable-rate loans and transactions, the Company primarily offers Prime and SOFR as the variable-rate index. For all LIBOR-based loans and transactions that mature after December 31, 2022, the Company has implemented procedures to identify and amend such loans and transactions to convert the base rate of the contract to a Prime or SOFR-based rate. The Company will also continue to assess impacts to its operations, financial models, data and technology as part of its transition plan. The Company does not expect the impact of this transition to have a material impact on its consolidated financial statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2023 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 2: FAIR VALUE MEASUREMENTS Assets Measured at Fair Value on a Recurring Basis Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Current accounting guidance establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The following tables show the recorded amounts of assets and liabilities measured at fair value on a recurring basis as of: Fair Value Measurement Level (dollars in thousands) Total Level 1 Level 2 Level 3 March 31, 2023: Investment securities available for sale: Collateralized mortgage obligations $ 8,511 $ — $ 8,511 $ — Agency mortgage-backed securities 7,157 — 7,157 — Municipal bonds 47,520 — 47,520 — SBA securities 16,819 — 16,819 — Beneficial interests in FHLMC securitization 6,830 — — 6,830 Corporate bonds 123,243 — 123,243 — U.S. Treasury 1,244 1,244 — — Investment in equity securities 9,758 — — 9,758 Total assets at fair value on a recurring basis $ 221,082 $ 1,244 $ 203,250 $ 16,588 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 The decrease in Level 3 assets from December 31, 2022 was primarily due to $0.3 million in securitization paydowns and $0.8 million in provisions for credit losses in the first three months of 2023. Assets Measured at Fair Value on a Nonrecurring Basis From time to time, we may be required to measure other assets at fair value on a nonrecurring basis. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Loans December 31, 2022, respectively. There were no specific reserves related to these loans at March 31, 2023 and December 31, 2022. Real Estate Owned Mortgage Servicing Rights. Fair Value of Financial Instruments FASB ASC 825-10, “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 2016-01. 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 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 values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. When a market is illiquid or there is a lack of transparency around the inputs to valuation, the securities are classified as Level 3 and reliance is placed upon external third party models, and management judgment and evaluation for valuation. Level 1 investment securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 investment securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Investment securities classified as Level 3 include beneficial interests in FHLMC securitizations. Significant assumptions in the valuation of these Level 3 securities as of March 31, 2023 and December 31, 2022 included prepayment rates ranging from 35% to 34% and discount rates ranging from 8.92% to 10.0%. Investment in Equity Securities. Investment in Federal Home Loan Bank Stock. Loans Held for Investment Deposits Borrowings The carrying amounts and estimated fair values of financial instruments are as follows as of: Carrying Fair Value Measurement Level (dollars in thousands) Value 1 2 3 Total March 31, 2023: Assets: Cash and cash equivalents $ 1,317,129 $ 1,317,129 $ — $ — $ 1,317,129 Securities AFS, net 211,324 1,244 203,250 6,830 211,324 Securities HTM 847,036 — 766,907 — 766,907 Loans, net 10,638,708 — — 10,302,070 10,302,070 Investment in FHLB stock 58,716 — 58,716 — 58,716 Investment in equity securities 9,758 — — 9,758 9,758 Liabilities: Deposits $ 10,051,706 $ 7,625,291 $ 2,409,187 $ — $ 10,034,478 Borrowings 2,294,600 2,020,000 — 153,121 2,173,121 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 |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2023 | |
SECURITIES | |
SECURITIES | NOTE 3: SECURITIES The following table provides a summary of the Company’s securities AFS portfolio as of: Amortized Gross Unrealized Allowance for Estimated (dollars in thousands) Cost Gains Losses Credit Losses Fair Value March 31, 2023: Collateralized mortgage obligations $ 9,585 $ — $ (1,074) $ — $ 8,511 Agency mortgage-backed securities 7,627 — (470) — 7,157 Municipal bonds 50,093 1 (2,574) — 47,520 SBA securities 16,947 2 (130) — 16,819 Beneficial interests in FHLMC securitization 19,113 110 (105) (11,315) 7,803 Corporate bonds 138,972 — (15,729) (973) 122,270 U.S. Treasury 1,298 3 (57) — 1,244 Total $ 243,635 $ 116 $ (20,139) $ (12,288) $ 211,324 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 As of March 31, 2023, 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, $231.9 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 $184.2 million in securities consisting of SBA securities, collateralized mortgage obligations, agency mortgage-backed securities, and municipal bonds are pledged as collateral for repurchase agreements. A total of $841.6 million in agency mortgage-backed securities, corporate bonds, and loans are pledged as collateral to the Federal Reserve’s discount window from which the Bank may borrow. 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 March 31, 2023: Agency mortgage-backed securities $ 847,036 $ — $ (80,129) $ — $ 766,907 Total $ 847,036 $ — $ (80,129) $ — $ 766,907 December 31, 2022: Agency mortgage-backed securities $ 862,544 $ — $ (89,483) $ — $ 773,061 Total $ 862,544 $ — $ (89,483) $ — $ 773,061 In 2022, the Company transferred $917 million in securities AFS to securities HTM. The securities were transferred at their amortized cost basis, net of any remaining unrealized gain or loss reported in accumulated other comprehensive income. The related unrealized gain (or loss) of $0.6 million included in other comprehensive income remained in other comprehensive income to be amortized, with an offsetting entry to interest income as a yield adjustment through earnings over the remaining term of the securities. Subsequent to transfer, the ACL on these securities was evaluated under the accounting policy for securities HTM. The securities HTM portfolio consists solely of agency-backed MBS securities in which the Company has reason to believe the credit loss exposure is remote, as these securities are guaranteed by a U.S. government sponsored entity (“GSE”). As such, the ACL related to the securities HTM portfolio was zero at March 31, 2023 and December 31, 2022, respectively. We monitor the credit quality of the securities in the investment portfolios by evaluating various quantitative attributes. The credit quality indicators the Company monitors include, but are not limited to, credit ratings of individual securities and the credit rating of government sponsored enterprises that guarantee the securities. Credit ratings express opinions about the credit quality of a security. Securities rated investment grade, that is, those with ratings similar to BBB-/Baa3 or above, as defined by NRSROs, are generally considered by the rating agencies and market participants to be low credit risk. As of March 31, 2023, all of the Company’s securities were either investment grade or were issued by a U.S. government agency or a U.S. government sponsored enterprise with an investment grade rating. The tables below indicate 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 March 31, 2023 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 $ — $ — $ 8,511 $ (1,074) $ 8,511 $ (1,074) Agency mortgage-backed securities 1,407 (50) 5,750 (420) 7,157 (470) Municipal bonds 1,796 (15) 42,108 (2,559) 43,904 (2,574) SBA securities 14,823 (122) 912 (8) 15,735 (130) Beneficial interests in FHLMC securitization 4,224 (105) — — 4,224 (105) Corporate bonds 52,772 (1,228) 70,472 (14,501) 123,244 (15,729) U.S. Treasury — — 841 (57) 841 (57) Total temporarily impaired securities $ 75,022 $ (1,520) $ 128,594 $ (18,619) $ 203,616 $ (20,139) 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) 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 tables below indicate the gross unrecognized losses and fair values 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 March 31, 2023 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 $ 76,301 $ (6,768) $ 690,606 $ (73,361) $ 766,907 $ (80,129) Total temporarily impaired securities $ 76,301 $ (6,768) $ 690,606 $ (73,361) $ 766,907 $ (80,129) 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) $ 378,442 $ (52,065) $ 773,061 $ (89,483) Total temporarily impaired securities $ 394,619 $ (37,418) $ 378,442 $ (52,065) $ 773,061 $ (89,483) The following is a rollforward of the Bank’s allowance for credit losses related to investments for the following periods: (dollars in thousands) Total Three Months Ended March 31, 2023: Beginning balance $ 11,439 Provision for credit losses 849 Balance: March 31, 2023 $ 12,288 Three Months Ended March 31, 2022: Beginning balance $ 10,399 Provision for credit losses 344 Balance: March 31, 2022 $ 10,743 Provision for credit losses of $0.8 million and $0.3 million were recorded on the consolidated income statements for the three month periods ended March 31, 2023 and 2022, 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. 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. In March 2023, the Company engaged with an independent third party to perform an analysis of expected credit losses for its municipal and corporate bond securities in order to supplement our own internal review. The analysis concluded and the Company concurred that seven corporate bond securities were impacted by credit loss totaling $973 thousand, which was recorded against the allowance. 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 March 31, 2023 Amortized Cost: Collateralized mortgage obligations $ — $ — $ 569 $ 9,016 $ 9,585 Agency mortgage-backed securities — 5,969 — 1,658 7,627 Municipal bonds 300 9,280 35,064 5,449 50,093 SBA securities 5 1,101 1,108 14,733 16,947 Beneficial interests in FHLMC securitization — 9,537 — 9,576 19,113 Corporate bonds — 28,985 104,456 5,531 138,972 U.S. Treasury — 1,298 — — 1,298 Total $ 305 $ 56,170 $ 141,197 $ 45,963 $ 243,635 Weighted average yield 0.29 % 4.11 % 3.43 % 4.17 % 3.72 % Estimated Fair Value: Collateralized mortgage obligations $ — $ — $ 521 $ 7,990 $ 8,511 Agency mortgage-backed securities — 5,665 — 1,492 7,157 Municipal bonds 300 8,944 33,682 4,594 47,520 SBA securities 5 1,094 1,103 14,617 16,819 Beneficial interests in FHLMC securitization — 9,537 — 9,581 19,118 Corporate bonds — 27,970 90,758 4,515 123,243 U.S. Treasury — 1,244 — — 1,244 Total $ 305 $ 54,454 $ 126,064 $ 42,789 $ 223,612 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 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 March 31, 2023 Amortized Cost: Agency mortgage-backed securities $ — $ 574 $ 18,925 $ 827,537 $ 847,036 Total $ — $ 574 $ 18,925 $ 827,537 $ 847,036 Weighted average yield — % 0.60 % 1.22 % 2.47 % 2.44 % Estimated Fair Value: Agency mortgage-backed securities $ — $ 537 $ 17,451 $ 748,919 $ 766,907 Total $ — $ 537 $ 17,451 $ 748,919 $ 766,907 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 | 3 Months Ended |
Mar. 31, 2023 | |
LOANS | |
LOANS | NOTE 4: LOANS The following is a summary of our loans as of: March 31, December 31, (dollars in thousands) 2023 2022 Outstanding principal balance: Loans secured by real estate: Residential properties: Multifamily $ 5,332,815 $ 5,341,596 Single family 1,008,657 1,016,498 Total real estate loans secured by residential properties 6,341,472 6,358,094 Commercial properties 1,155,624 1,203,292 Land and construction 166,166 158,565 Total real estate loans 7,663,262 7,719,951 Commercial and industrial loans 2,985,984 2,984,748 Consumer loans 3,862 4,481 Total loans 10,653,108 10,709,180 Premiums, discounts and deferred fees and expenses 16,695 17,013 Total $ 10,669,803 $ 10,726,193 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 March 31, 2023: Real estate loans: Residential properties $ 20,272 $ — $ — $ 2,518 $ 22,790 $ 6,338,021 $ 6,360,811 Commercial properties 5,561 — 217 3,969 9,747 1,144,772 1,154,519 Land and construction 521 6,835 — — 7,356 157,860 165,216 Commercial and industrial loans 1,200 233 2,227 4,694 8,354 2,977,013 2,985,367 Consumer loans 10 — — — 10 3,880 3,890 Total $ 27,564 $ 7,068 $ 2,444 $ 11,181 $ 48,257 $ 10,621,546 $ 10,669,803 Percentage of total loans 0.26 % 0.07 % 0.02 % 0.10 % 0.45 % 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 % 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 March 31, 2023: Real estate loans: Residential properties $ — $ 2,518 Commercial properties — 3,969 Commercial and industrial loans 3,672 1,022 Total $ 3,672 $ 7,509 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 The Company adopted ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures Based on the guidance in ASU 2022-02, a loan modification or refinancing results in a new loan if the terms of the new loan are at least as favorable to the lender as the terms with customers with similar collection risks that are not refinancing or restructuring their loans and the modification to the terms of the loan are more than minor. If a loan modification or refinancing does not result in a new loan, it is classified as a loan modification. There are additional disclosures for modification of loans with borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows. The disclosures are applicable to situations where there is interest rate reduction, term extensions, principal forgiveness, other-than-insignificant payment delays, or a combination of any of these items. The Company had no loan modifications to borrowers experiencing financial difficulties in the first quarter of 2023 and there were no modifications to borrowers experiencing financial difficulties that were outstanding at March 31, 2023. FASB has provided transition guidance to assist with the implementation of ASU 2022-02. Per this guidance, FASB expects that for comparative periods presented before adoption, current TDR disclosures should continue to be provided. As such, the following table presents the loans classified as TDRs by accrual and nonaccrual status as of the comparative period ended December 31, 2022: December 31, 2022 (dollars in thousands) Accrual Nonaccrual Total Residential loans $ — $ — $ — Commercial real estate loans 929 1,066 1,995 Commercial and industrial loans 166 1,412 1,578 Total $ 1,095 $ 2,478 $ 3,573 |
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES | 3 Months Ended |
Mar. 31, 2023 | |
ALLOWANCE FOR CREDIT LOSSES | |
ALLOWANCE FOR CREDIT LOSSES | NOTE 5: ALLOWANCE FOR CREDIT LOSSES The following is a rollforward of the allowance for credit losses related to loans for the following periods: Provision for Beginning (Reduction of) Ending (dollars in thousands) Balance Credit Losses Charge-offs Recoveries Balance Three Months Ended March 31, 2023: Real estate loans: Residential properties $ 8,306 $ (43) $ — $ — $ 8,263 Commercial properties 8,714 (2,732) (249) — 5,733 Land and construction 164 152 — — 316 Commercial and industrial loans 16,521 1,685 (1,752) 306 16,760 Consumer loans 26 (1) (2) — 23 Total $ 33,731 $ (939) $ (2,003) $ 306 $ 31,095 Three Months Ended March 31, 2022: Real estate loans: Residential properties $ 2,637 $ 561 $ — $ — $ 3,198 Commercial properties 17,049 (1,413) — — 15,636 Land and construction 1,995 (227) — — 1,768 Commercial and industrial loans 11,992 149 (145) 134 12,130 Consumer loans 103 (13) — — 90 Total $ 33,776 $ (943) $ (145) $ 134 $ 32,822 Year Ended December 31, 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 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 March 31, 2023: Allowance for credit losses: Real estate loans: Residential properties $ 62 $ 8,201 $ 8,263 Commercial properties 1,044 4,689 5,733 Land and construction — 316 316 Commercial and industrial loans 1,144 15,616 16,760 Consumer loans — 23 23 Total $ 2,250 $ 28,845 $ 31,095 Loans: Real estate loans: Residential properties $ 3,428 $ 6,357,383 $ 6,360,811 Commercial properties 28,197 1,126,322 1,154,519 Land and construction — 165,216 165,216 Commercial and industrial loans 5,875 2,979,492 2,985,367 Consumer loans — 3,890 3,890 Total $ 37,500 $ 10,632,303 $ 10,669,803 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 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 the periods shown. In accordance with the adoption of ASU 2022-02 in January 2023, gross charge-off information is disclosed by vintage year (year of origination) on a prospective basis beginning in 2023: Revolving (dollars in thousands) 2023 2022 2021 2020 2019 Prior Loans Total March 31, 2023: Loans secured by real estate: Residential Multifamily Pass $ 16,080 $ 2,398,706 $ 1,547,733 $ 793,127 $ 297,324 $ 278,675 $ — $ 5,331,645 Special mention — — — — 5,637 11,248 — 16,885 Substandard — — — — — — — — Total $ 16,080 $ 2,398,706 $ 1,547,733 $ 793,127 $ 302,961 $ 289,923 $ — $ 5,348,530 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Single family Pass $ 9,505 $ 269,712 $ 274,013 $ 95,026 $ 39,831 $ 253,304 $ 67,462 $ 1,008,853 Special mention — — — — — — — — Substandard — — — — — 3,398 30 3,428 Total $ 9,505 $ 269,712 $ 274,013 $ 95,026 $ 39,831 $ 256,702 $ 67,492 $ 1,012,281 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Pass $ 13,589 $ 221,479 $ 157,009 $ 134,635 $ 85,223 $ 477,039 $ — $ 1,088,974 Special mention — — — 2,324 7,040 19,138 — 28,502 Substandard — 5,864 9,418 698 10,558 10,505 — 37,043 Total $ 13,589 $ 227,343 $ 166,427 $ 137,657 $ 102,821 $ 506,682 $ — $ 1,154,519 Gross charge-offs $ — $ — $ — $ — $ — $ 249 $ — $ 249 Land and construction Pass $ 4,205 $ 41,435 $ 62,677 $ 48,764 $ 842 $ 7,293 $ — $ 165,216 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 4,205 $ 41,435 $ 62,677 $ 48,764 $ 842 $ 7,293 $ — $ 165,216 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass $ 52,358 $ 1,171,201 $ 317,465 $ 148,594 $ 39,128 $ 31,893 $ 1,182,534 $ 2,943,173 Special mention — — 20,671 4,739 192 — 4,824 30,426 Substandard — — 365 1,900 1,423 1,023 7,057 11,768 Total $ 52,358 $ 1,171,201 $ 338,501 $ 155,233 $ 40,743 $ 32,916 $ 1,194,415 $ 2,985,367 Gross charge-offs $ — $ 375 $ 193 $ 86 $ 51 $ — $ 1,047 $ 1,752 Consumer Pass $ 10 $ 7 $ 1,069 $ — $ 332 $ 173 $ 2,299 $ 3,890 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 10 $ 7 $ 1,069 $ — $ 332 $ 173 $ 2,299 $ 3,890 Gross charge-offs $ — $ — $ — $ — $ — $ — $ 2 $ 2 Total loans Pass $ 95,747 $ 4,102,540 $ 2,359,966 $ 1,220,146 $ 462,680 $ 1,048,377 $ 1,252,295 $ 10,541,751 Special mention — — 20,671 7,063 12,869 30,386 4,824 75,813 Substandard — 5,864 9,783 2,598 11,981 14,926 7,087 52,239 Total $ 95,747 $ 4,108,404 $ 2,390,420 $ 1,229,807 $ 487,530 $ 1,093,689 $ 1,264,206 $ 10,669,803 Gross charge-offs $ — $ 375 $ 193 $ 86 $ 51 $ 249 $ 1,049 $ 2,003 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 A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the operation or sale of the collateral. Collateral dependent loans are evaluated individually to determine expected credit losses and any allowance for credit losses (“ACL”) allocation is determined based upon the amount by which amortized costs exceed the estimated fair value of the collateral, adjusted for estimated selling costs (if applicable). The following table presents the amortized cost basis of collateral dependent loans and the related ACL allocated to these loans as of the dates indicated: Equipment/ ACL (dollars in thousands) Real Estate Cash Receivables Total Allocation March 31, 2023: Loans secured by real estate: Residential properties Single family $ 2,415 $ — $ — $ 2,415 $ — Commercial real estate loans 2,637 — — 2,637 — Commercial loans — 250 — 250 — Total $ 5,052 $ 250 $ — $ 5,302 $ — 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 |
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES | 3 Months Ended |
Mar. 31, 2023 | |
GOODWILL AND INTANGIBLES | |
GOODWILL AND INTANGIBLES | NOTE 6: GOODWILL AND INTANGIBLES 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. Goodwill is deemed to have an indefinite useful life and as such is not subject to amortization and instead is tested for impairment annually unless a triggering event occurs thereby requiring an updated assessment. Our regular annual impairment assessment occurs in the fourth quarter. Impairment exists when the carrying value of the goodwill exceeds its fair value. An impairment loss would be recognized in an amount equal to that excess as a charge to noninterest expense in the consolidated statements of earnings. The goodwill recorded by the Company was recognized from prior acquisitions and was not considered impaired as of March 31, 2023 and December 31, 2022, respectively. Goodwill totaled $215.2 million at March 31, 2023 and December 31, 2022, respectively. Other intangible assets are deemed to have definite useful lives and as such 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, ranging from 7 to 10 years. At March 31, 2023 and December 31, 2022, core deposit intangible assets totaled $6.2 million and $6.6 million, respectively, and we recognized $0.4 million and $0.5 million in core deposit intangible amortization expense for the three month periods ended March 31, 2023 and March 31, 2022, respectively. |
LOAN SALES AND MORTGAGE SERVICI
LOAN SALES AND MORTGAGE SERVICING RIGHTS | 3 Months Ended |
Mar. 31, 2023 | |
LOAN SALES AND MORTGAGE SERVICING RIGHTS | |
LOAN SALES AND MORTGAGE SERVICING RIGHTS | NOTE 7: LOAN SALES AND MORTGAGE SERVICING RIGHTS The Company retained servicing rights for the majority of the loans sold and recognized mortgage servicing rights in connection with multifamily loan sale transactions that occurred in 2021 and prior. As of March 31, 2023 and December 31, 2022, mortgage servicing rights were $5.9 million respectively, net of valuation allowances of $0.8 million and $1.4 million, respectively. The amount of loans serviced for others totaled $1.0 billion and $1.1 billion at March 31, 2023 and December 31, 2022, respectively. Servicing fees collected for the first three months of 2023 and 2022 were $0.6 million and $0.9 million, respectively. |
DEPOSITS
DEPOSITS | 3 Months Ended |
Mar. 31, 2023 | |
DEPOSITS | |
DEPOSITS | NOTE 8: DEPOSITS The following table summarizes the outstanding balance of deposits and average rates paid thereon as of: March 31, 2023 December 31, 2022 Weighted Weighted (dollars in thousands) Amount Average Rate Amount Average Rate Demand deposits: Noninterest-bearing $ 2,263,412 — $ 2,736,691 — Interest-bearing 2,364,213 3.380 % 2,568,850 3.109 % Money market and savings 2,997,666 3.098 % 3,178,230 2.373 % Certificates of deposit 2,426,415 4.170 % 1,878,841 3.741 % Total $ 10,051,706 2.726 % $ 10,362,612 2.177 % At March 31, 2023, of the $461 million of certificates of deposits of $250,000 or more, $442 million mature within one year and $19 million mature after one year. Of the $2.0 billion of certificates of deposit of less than $250,000, $1.5 billion mature within one year and $480 million mature after one year. 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. |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2023 | |
BORROWINGS | |
BORROWINGS | NOTE 9: BORROWINGS At March 31, 2023, our borrowings consisted of $1.0 billion in overnight and $1.0 billion in short-term FHLB advances at the Bank, $174 million in subordinated notes at FFI, $101 million in repurchase agreements at the Bank, and $20 million of borrowings under a holding company line of credit. 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 million of borrowings under a holding company line of credit. The overnight FHLB advance outstanding at March 31, 2023 was paid in full in early April and bore an interest rate of 5.11%. The short-term FHLB advance outstanding at March 31, 2023 was paid in full in early April and bore an interest rate of 5.08%. FHLB advances are collateralized primarily by loans secured by single family, multifamily, and commercial real estate properties with a carrying value of $5.4 billion as of March 31, 2023. The Bank’s total borrowing capacity from the FHLB as of March 31, 2023 was $930 million. The Bank had in place $315 million of letters of credit from the FHLB as of March 31, 2023, which are used to meet collateral requirements for borrowings from the State of California and local agencies. 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 million maturing in 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 March 31, 2023 and December 31, 2022, FFI was in compliance with the covenants contained in the loan agreement. As of March 31, 2023 and December 31, 2022, the balance outstanding under this line of credit agreement was $20 million. The weighted average interest rate paid on borrowings during the three months ended March 31, 2023, and December 31, 2022 was 8.05% and 8.0%, respectively. The Bank has a secured line of credit with the Federal Reserve Bank of San Francisco under which the Bank pledges collateral in the form of qualifying loans and securities. As of March 31, 2023, the Bank had secured borrowing capacity of $841.6 million under this agreement. As of March 31, 2023 and December 31, 2022, there were no balances outstanding. 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 March 31, 2023, there were no balances outstanding under these arrangements. At December 31, 2022, the Bank had outstanding borrowings with one of the five institutions under these arrangements totaling $100 million and an additional $100 million outstanding separate from these agreements with the same financial institution. The total $200 million outstanding at December 31, 2022 were in the form of federal funds purchased and were paid in full in early March, 2023. The repurchase agreements are treated as overnight borrowings with the obligations to repurchase securities sold reflected as a liability. The investment securities underlying these agreements remain in the Company’s securities AFS portfolio. As of March 31, 2023 and December 31, 2022, the repurchase agreements are collateralized by investment securities with a fair value of approximately $184.2 million and $186.3 million, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 10: EARNINGS PER SHARE Basic earnings per share excludes dilution and is computed by dividing net income or loss available to common 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. The following table sets forth the Company’s unaudited earnings per share calculations for the three months ended March 31: Three Months Ended Three Months Ended March 31, 2023 March 31, 2022 (dollars in thousands, except per share amounts) Basic Diluted Basic Diluted Net income $ 8,496 $ 8,496 $ 30,836 $ 30,836 Basic common shares outstanding 56,376,669 56,376,669 56,465,855 56,465,855 Effect of options, restricted stock and contingent shares issuable 33,747 99,990 Diluted common shares outstanding 56,410,416 56,565,845 Earnings per share $ 0.15 $ 0.15 $ 0.55 $ 0.55 |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2023 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 11: SEGMENT REPORTING For the three months ended March 31, 2023 and 2022, 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 following periods: Wealth (dollars in thousands) Banking Management Other Total Three Months Ended March 31, 2023: Interest income $ 137,000 $ — $ — $ 137,000 Interest expense 76,449 — 1,796 78,245 Net interest income 60,551 — (1,796) 58,755 Provision for credit losses 417 — — 417 Noninterest income 4,801 7,291 (394) 11,698 Noninterest expense 51,645 6,065 1,630 59,340 Income (loss) before taxes on income 13,290 1,226 (3,820) 10,696 Taxes on income 2,947 364 (1,111) 2,200 Net income (loss) $ 10,343 $ 862 $ (2,709) $ 8,496 Three Months Ended March 31, 2022: Interest income $ 79,144 $ — $ — $ 79,144 Interest expense 3,413 — 1,237 4,650 Net interest income 75,731 — (1,237) 74,494 Provision for credit losses (792) — — (792) Noninterest income 7,531 8,345 (449) 15,427 Noninterest expense 40,101 6,644 873 47,618 Income (loss) before taxes on income 43,953 1,701 (2,559) 43,095 Taxes on income 12,715 493 (949) 12,259 Net income (loss) $ 31,238 $ 1,208 $ (1,610) $ 30,836 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 12: SUBSEQUENT EVENTS Cash Dividend On April 27, 2023, the Board of Directors of the Company declared a quarterly cash dividend of $0.02 per common share to be paid on May 19, 2023 to shareholders of record as of the close of business on May 8, 2023. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Operations and Principles of Consolidation | Nature of Operations and Principles of Consolidation 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 and First Foundation Advisors, 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 provides a comprehensive platform of financial services to individuals, businesses and other organizations and has offices in California, Nevada, Florida, Texas, and Hawaii. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“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 for the period. Actual results could differ significantly from those estimates. The accompanying unaudited consolidated financial statements include the accounts of the Company as of March 31, 2023 and December 31, 2022, and for the three months ended March 31, 2023 and 2022, and include all information and footnotes required for interim financial reporting presentation. All intercompany accounts and transactions have been eliminated in consolidation. The results for the 2023 interim periods are not necessarily indicative of the results expected for the full year. These financial statements assume that readers have read the most recent Annual Report on Form 10-K filed with the SEC which contains the latest available audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2022. |
New Accounting Pronouncements | New Accounting Pronouncements On January 1, 2023, the Company adopted ASU 2022-02, “ Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures” Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors Financial Instruments – Credit Losses on Financial Instruments In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, “ Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting” reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this ASU are effective as of March 12, 2020 through December 31, 2022. The Company has permanently ceased originating any new loans or entering into any transaction that would increase its LIBOR-based exposure. For all new variable-rate loans and transactions, the Company primarily offers Prime and SOFR as the variable-rate index. For all LIBOR-based loans and transactions that mature after December 31, 2022, the Company has implemented procedures to identify and amend such loans and transactions to convert the base rate of the contract to a Prime or SOFR-based rate. The Company will also continue to assess impacts to its operations, financial models, data and technology as part of its transition plan. The Company does not expect the impact of this transition to have a material impact on its consolidated financial statements. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
FAIR VALUE MEASUREMENTS | |
Recorded Amounts of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables show the recorded amounts of assets and liabilities measured at fair value on a recurring basis as of: Fair Value Measurement Level (dollars in thousands) Total Level 1 Level 2 Level 3 March 31, 2023: Investment securities available for sale: Collateralized mortgage obligations $ 8,511 $ — $ 8,511 $ — Agency mortgage-backed securities 7,157 — 7,157 — Municipal bonds 47,520 — 47,520 — SBA securities 16,819 — 16,819 — Beneficial interests in FHLMC securitization 6,830 — — 6,830 Corporate bonds 123,243 — 123,243 — U.S. Treasury 1,244 1,244 — — Investment in equity securities 9,758 — — 9,758 Total assets at fair value on a recurring basis $ 221,082 $ 1,244 $ 203,250 $ 16,588 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 |
Carrying Amounts and Estimated Fair Value of Financial Instruments | The carrying amounts and estimated fair values of financial instruments are as follows as of: Carrying Fair Value Measurement Level (dollars in thousands) Value 1 2 3 Total March 31, 2023: Assets: Cash and cash equivalents $ 1,317,129 $ 1,317,129 $ — $ — $ 1,317,129 Securities AFS, net 211,324 1,244 203,250 6,830 211,324 Securities HTM 847,036 — 766,907 — 766,907 Loans, net 10,638,708 — — 10,302,070 10,302,070 Investment in FHLB stock 58,716 — 58,716 — 58,716 Investment in equity securities 9,758 — — 9,758 9,758 Liabilities: Deposits $ 10,051,706 $ 7,625,291 $ 2,409,187 $ — $ 10,034,478 Borrowings 2,294,600 2,020,000 — 153,121 2,173,121 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 |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023: Collateralized mortgage obligations $ 9,585 $ — $ (1,074) $ — $ 8,511 Agency mortgage-backed securities 7,627 — (470) — 7,157 Municipal bonds 50,093 1 (2,574) — 47,520 SBA securities 16,947 2 (130) — 16,819 Beneficial interests in FHLMC securitization 19,113 110 (105) (11,315) 7,803 Corporate bonds 138,972 — (15,729) (973) 122,270 U.S. Treasury 1,298 3 (57) — 1,244 Total $ 243,635 $ 116 $ (20,139) $ (12,288) $ 211,324 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 |
Summary of HTM Securities Portfolio | Amortized Gross Unrecognized Allowance for Estimated (dollars in thousands) Cost Gains Losses Credit Losses Fair Value March 31, 2023: Agency mortgage-backed securities $ 847,036 $ — $ (80,129) $ — $ 766,907 Total $ 847,036 $ — $ (80,129) $ — $ 766,907 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 March 31, 2023 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 $ — $ — $ 8,511 $ (1,074) $ 8,511 $ (1,074) Agency mortgage-backed securities 1,407 (50) 5,750 (420) 7,157 (470) Municipal bonds 1,796 (15) 42,108 (2,559) 43,904 (2,574) SBA securities 14,823 (122) 912 (8) 15,735 (130) Beneficial interests in FHLMC securitization 4,224 (105) — — 4,224 (105) Corporate bonds 52,772 (1,228) 70,472 (14,501) 123,244 (15,729) U.S. Treasury — — 841 (57) 841 (57) Total temporarily impaired securities $ 75,022 $ (1,520) $ 128,594 $ (18,619) $ 203,616 $ (20,139) 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 Unrecognized Loss at March 31, 2023 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 $ 76,301 $ (6,768) $ 690,606 $ (73,361) $ 766,907 $ (80,129) Total temporarily impaired securities $ 76,301 $ (6,768) $ 690,606 $ (73,361) $ 766,907 $ (80,129) 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) $ 378,442 $ (52,065) $ 773,061 $ (89,483) Total temporarily impaired securities $ 394,619 $ (37,418) $ 378,442 $ (52,065) $ 773,061 $ (89,483) |
Summary of Allowance For Credit Losses - Securities AFS | (dollars in thousands) Total Three Months Ended March 31, 2023: Beginning balance $ 11,439 Provision for credit losses 849 Balance: March 31, 2023 $ 12,288 Three Months Ended March 31, 2022: Beginning balance $ 10,399 Provision for credit losses 344 Balance: March 31, 2022 $ 10,743 |
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 March 31, 2023 Amortized Cost: Collateralized mortgage obligations $ — $ — $ 569 $ 9,016 $ 9,585 Agency mortgage-backed securities — 5,969 — 1,658 7,627 Municipal bonds 300 9,280 35,064 5,449 50,093 SBA securities 5 1,101 1,108 14,733 16,947 Beneficial interests in FHLMC securitization — 9,537 — 9,576 19,113 Corporate bonds — 28,985 104,456 5,531 138,972 U.S. Treasury — 1,298 — — 1,298 Total $ 305 $ 56,170 $ 141,197 $ 45,963 $ 243,635 Weighted average yield 0.29 % 4.11 % 3.43 % 4.17 % 3.72 % Estimated Fair Value: Collateralized mortgage obligations $ — $ — $ 521 $ 7,990 $ 8,511 Agency mortgage-backed securities — 5,665 — 1,492 7,157 Municipal bonds 300 8,944 33,682 4,594 47,520 SBA securities 5 1,094 1,103 14,617 16,819 Beneficial interests in FHLMC securitization — 9,537 — 9,581 19,118 Corporate bonds — 27,970 90,758 4,515 123,243 U.S. Treasury — 1,244 — — 1,244 Total $ 305 $ 54,454 $ 126,064 $ 42,789 $ 223,612 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 |
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 March 31, 2023 Amortized Cost: Agency mortgage-backed securities $ — $ 574 $ 18,925 $ 827,537 $ 847,036 Total $ — $ 574 $ 18,925 $ 827,537 $ 847,036 Weighted average yield — % 0.60 % 1.22 % 2.47 % 2.44 % Estimated Fair Value: Agency mortgage-backed securities $ — $ 537 $ 17,451 $ 748,919 $ 766,907 Total $ — $ 537 $ 17,451 $ 748,919 $ 766,907 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) | 3 Months Ended |
Mar. 31, 2023 | |
LOANS | |
Summary of Loans | March 31, December 31, (dollars in thousands) 2023 2022 Outstanding principal balance: Loans secured by real estate: Residential properties: Multifamily $ 5,332,815 $ 5,341,596 Single family 1,008,657 1,016,498 Total real estate loans secured by residential properties 6,341,472 6,358,094 Commercial properties 1,155,624 1,203,292 Land and construction 166,166 158,565 Total real estate loans 7,663,262 7,719,951 Commercial and industrial loans 2,985,984 2,984,748 Consumer loans 3,862 4,481 Total loans 10,653,108 10,709,180 Premiums, discounts and deferred fees and expenses 16,695 17,013 Total $ 10,669,803 $ 10,726,193 |
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 March 31, 2023: Real estate loans: Residential properties $ 20,272 $ — $ — $ 2,518 $ 22,790 $ 6,338,021 $ 6,360,811 Commercial properties 5,561 — 217 3,969 9,747 1,144,772 1,154,519 Land and construction 521 6,835 — — 7,356 157,860 165,216 Commercial and industrial loans 1,200 233 2,227 4,694 8,354 2,977,013 2,985,367 Consumer loans 10 — — — 10 3,880 3,890 Total $ 27,564 $ 7,068 $ 2,444 $ 11,181 $ 48,257 $ 10,621,546 $ 10,669,803 Percentage of total loans 0.26 % 0.07 % 0.02 % 0.10 % 0.45 % 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 % |
Summary of nonaccrual loans | Nonaccrual Nonaccrual with Allowance with no Allowance (dollars in thousands) for Credit Losses for Credit Losses March 31, 2023: Real estate loans: Residential properties $ — $ 2,518 Commercial properties — 3,969 Commercial and industrial loans 3,672 1,022 Total $ 3,672 $ 7,509 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 |
Composition of TDRs by Accrual and Nonaccrual Status | December 31, 2022 (dollars in thousands) Accrual Nonaccrual Total Residential loans $ — $ — $ — Commercial real estate loans 929 1,066 1,995 Commercial and industrial loans 166 1,412 1,578 Total $ 1,095 $ 2,478 $ 3,573 |
ALLOWANCE FOR CREDIT LOSSES (Ta
ALLOWANCE FOR CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 following periods: Provision for Beginning (Reduction of) Ending (dollars in thousands) Balance Credit Losses Charge-offs Recoveries Balance Three Months Ended March 31, 2023: Real estate loans: Residential properties $ 8,306 $ (43) $ — $ — $ 8,263 Commercial properties 8,714 (2,732) (249) — 5,733 Land and construction 164 152 — — 316 Commercial and industrial loans 16,521 1,685 (1,752) 306 16,760 Consumer loans 26 (1) (2) — 23 Total $ 33,731 $ (939) $ (2,003) $ 306 $ 31,095 Three Months Ended March 31, 2022: Real estate loans: Residential properties $ 2,637 $ 561 $ — $ — $ 3,198 Commercial properties 17,049 (1,413) — — 15,636 Land and construction 1,995 (227) — — 1,768 Commercial and industrial loans 11,992 149 (145) 134 12,130 Consumer loans 103 (13) — — 90 Total $ 33,776 $ (943) $ (145) $ 134 $ 32,822 Year Ended December 31, 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 |
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 March 31, 2023: Allowance for credit losses: Real estate loans: Residential properties $ 62 $ 8,201 $ 8,263 Commercial properties 1,044 4,689 5,733 Land and construction — 316 316 Commercial and industrial loans 1,144 15,616 16,760 Consumer loans — 23 23 Total $ 2,250 $ 28,845 $ 31,095 Loans: Real estate loans: Residential properties $ 3,428 $ 6,357,383 $ 6,360,811 Commercial properties 28,197 1,126,322 1,154,519 Land and construction — 165,216 165,216 Commercial and industrial loans 5,875 2,979,492 2,985,367 Consumer loans — 3,890 3,890 Total $ 37,500 $ 10,632,303 $ 10,669,803 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 |
Risk Category of Loans Based on Year of Origination | Revolving (dollars in thousands) 2023 2022 2021 2020 2019 Prior Loans Total March 31, 2023: Loans secured by real estate: Residential Multifamily Pass $ 16,080 $ 2,398,706 $ 1,547,733 $ 793,127 $ 297,324 $ 278,675 $ — $ 5,331,645 Special mention — — — — 5,637 11,248 — 16,885 Substandard — — — — — — — — Total $ 16,080 $ 2,398,706 $ 1,547,733 $ 793,127 $ 302,961 $ 289,923 $ — $ 5,348,530 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Single family Pass $ 9,505 $ 269,712 $ 274,013 $ 95,026 $ 39,831 $ 253,304 $ 67,462 $ 1,008,853 Special mention — — — — — — — — Substandard — — — — — 3,398 30 3,428 Total $ 9,505 $ 269,712 $ 274,013 $ 95,026 $ 39,831 $ 256,702 $ 67,492 $ 1,012,281 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Pass $ 13,589 $ 221,479 $ 157,009 $ 134,635 $ 85,223 $ 477,039 $ — $ 1,088,974 Special mention — — — 2,324 7,040 19,138 — 28,502 Substandard — 5,864 9,418 698 10,558 10,505 — 37,043 Total $ 13,589 $ 227,343 $ 166,427 $ 137,657 $ 102,821 $ 506,682 $ — $ 1,154,519 Gross charge-offs $ — $ — $ — $ — $ — $ 249 $ — $ 249 Land and construction Pass $ 4,205 $ 41,435 $ 62,677 $ 48,764 $ 842 $ 7,293 $ — $ 165,216 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 4,205 $ 41,435 $ 62,677 $ 48,764 $ 842 $ 7,293 $ — $ 165,216 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass $ 52,358 $ 1,171,201 $ 317,465 $ 148,594 $ 39,128 $ 31,893 $ 1,182,534 $ 2,943,173 Special mention — — 20,671 4,739 192 — 4,824 30,426 Substandard — — 365 1,900 1,423 1,023 7,057 11,768 Total $ 52,358 $ 1,171,201 $ 338,501 $ 155,233 $ 40,743 $ 32,916 $ 1,194,415 $ 2,985,367 Gross charge-offs $ — $ 375 $ 193 $ 86 $ 51 $ — $ 1,047 $ 1,752 Consumer Pass $ 10 $ 7 $ 1,069 $ — $ 332 $ 173 $ 2,299 $ 3,890 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 10 $ 7 $ 1,069 $ — $ 332 $ 173 $ 2,299 $ 3,890 Gross charge-offs $ — $ — $ — $ — $ — $ — $ 2 $ 2 Total loans Pass $ 95,747 $ 4,102,540 $ 2,359,966 $ 1,220,146 $ 462,680 $ 1,048,377 $ 1,252,295 $ 10,541,751 Special mention — — 20,671 7,063 12,869 30,386 4,824 75,813 Substandard — 5,864 9,783 2,598 11,981 14,926 7,087 52,239 Total $ 95,747 $ 4,108,404 $ 2,390,420 $ 1,229,807 $ 487,530 $ 1,093,689 $ 1,264,206 $ 10,669,803 Gross charge-offs $ — $ 375 $ 193 $ 86 $ 51 $ 249 $ 1,049 $ 2,003 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 |
Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Credit Losses and Related ACL Allocated to Loans | A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the operation or sale of the collateral. Collateral dependent loans are evaluated individually to determine expected credit losses and any allowance for credit losses (“ACL”) allocation is determined based upon the amount by which amortized costs exceed the estimated fair value of the collateral, adjusted for estimated selling costs (if applicable). The following table presents the amortized cost basis of collateral dependent loans and the related ACL allocated to these loans as of the dates indicated: Equipment/ ACL (dollars in thousands) Real Estate Cash Receivables Total Allocation March 31, 2023: Loans secured by real estate: Residential properties Single family $ 2,415 $ — $ — $ 2,415 $ — Commercial real estate loans 2,637 — — 2,637 — Commercial loans — 250 — 250 — Total $ 5,052 $ 250 $ — $ 5,302 $ — 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 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 December 31, 2022 Weighted Weighted (dollars in thousands) Amount Average Rate Amount Average Rate Demand deposits: Noninterest-bearing $ 2,263,412 — $ 2,736,691 — Interest-bearing 2,364,213 3.380 % 2,568,850 3.109 % Money market and savings 2,997,666 3.098 % 3,178,230 2.373 % Certificates of deposit 2,426,415 4.170 % 1,878,841 3.741 % Total $ 10,051,706 2.726 % $ 10,362,612 2.177 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
EARNINGS PER SHARE | |
Computation of Basic and Diluted Earnings Per Share | Three Months Ended Three Months Ended March 31, 2023 March 31, 2022 (dollars in thousands, except per share amounts) Basic Diluted Basic Diluted Net income $ 8,496 $ 8,496 $ 30,836 $ 30,836 Basic common shares outstanding 56,376,669 56,376,669 56,465,855 56,465,855 Effect of options, restricted stock and contingent shares issuable 33,747 99,990 Diluted common shares outstanding 56,410,416 56,565,845 Earnings per share $ 0.15 $ 0.15 $ 0.55 $ 0.55 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
SEGMENT REPORTING | |
Key Operating Results of Business Segments | Wealth (dollars in thousands) Banking Management Other Total Three Months Ended March 31, 2023: Interest income $ 137,000 $ — $ — $ 137,000 Interest expense 76,449 — 1,796 78,245 Net interest income 60,551 — (1,796) 58,755 Provision for credit losses 417 — — 417 Noninterest income 4,801 7,291 (394) 11,698 Noninterest expense 51,645 6,065 1,630 59,340 Income (loss) before taxes on income 13,290 1,226 (3,820) 10,696 Taxes on income 2,947 364 (1,111) 2,200 Net income (loss) $ 10,343 $ 862 $ (2,709) $ 8,496 Three Months Ended March 31, 2022: Interest income $ 79,144 $ — $ — $ 79,144 Interest expense 3,413 — 1,237 4,650 Net interest income 75,731 — (1,237) 74,494 Provision for credit losses (792) — — (792) Noninterest income 7,531 8,345 (449) 15,427 Noninterest expense 40,101 6,644 873 47,618 Income (loss) before taxes on income 43,953 1,701 (2,559) 43,095 Taxes on income 12,715 493 (949) 12,259 Net income (loss) $ 31,238 $ 1,208 $ (1,610) $ 30,836 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended |
Mar. 31, 2023 subsidiary | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Number of inactive wholly owned subsidiaries | 2 |
FAIR VALUE MEASUREMENTS - Recor
FAIR VALUE MEASUREMENTS - Recorded Amounts of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available for sale | $ 211,324 | $ 226,158 | |
Investment in equity securities | 9,758 | 9,767 | |
Provision for credit losses | 417 | $ (792) | |
Specific reserves | 0 | 0 | |
Agency Mortgage-backed Securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available for sale | 7,157 | 7,576 | |
Municipal bonds | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available for sale | 47,520 | 46,790 | |
SBA securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available for sale | 16,819 | 18,955 | |
Beneficial interest - FHLMC securitizations | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available for sale | 7,803 | 7,981 | |
Corporate Bonds | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available for sale | 122,270 | 135,013 | |
U.S. Treasury | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available for sale | 1,244 | 1,228 | |
Fair Value on Recurring Basis | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment in equity securities | 9,758 | 9,767 | |
Total assets at fair value on a recurring basis | 221,082 | 235,925 | |
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 | 8,511 | 8,615 | |
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 | 7,157 | 7,576 | |
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 | 47,520 | 46,790 | |
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 | 16,819 | 18,955 | |
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 | 6,830 | 7,981 | |
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 | 123,243 | 135,013 | |
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 | 1,244 | 1,228 | |
Fair Value Measurement Level 1 | 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 | 1,244 | 1,228 | |
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 | 1,244 | 1,228 | |
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 | 203,250 | 216,949 | |
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 | 8,511 | 8,615 | |
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 | 7,157 | 7,576 | |
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 | 47,520 | 46,790 | |
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 | 16,819 | 18,955 | |
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 | 123,243 | 135,013 | |
Fair Value Measurement Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment in equity securities | 9,758 | 9,767 | |
Decrease due to securitization paydowns | 300 | ||
Provision for credit losses | 800 | ||
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 | 9,758 | 9,767 | |
Total assets at fair value on a recurring basis | 16,588 | 17,748 | |
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 | $ 6,830 | $ 7,981 |
FAIR VALUE MEASUREMENTS - Valua
FAIR VALUE MEASUREMENTS - Valuation assumptions (Details) - Fair Value Measurement Level 3 $ in Millions | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 37.5 | $ 47.2 |
Prepayment Rate | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Alternative investment measurement input | 0.35 | 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 | 0.34 | 0.34 |
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 | 0.0892 | 0.0892 |
Discount Rate | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Alternative investment measurement input | 0.100 | 0.100 |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying Amounts and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Cash and cash equivalents | $ 1,317,129 | $ 656,494 |
Securities AFS, net | 211,324 | 226,158 |
Securities HTM | 847,036 | 862,544 |
Loans, net | 10,638,708 | 10,692,462 |
Investment in FHLB stock | 58,716 | 25,358 |
Investment in equity securities | 9,758 | 9,767 |
Liabilities: | ||
Deposits | 10,051,706 | 10,362,612 |
Borrowings | 2,294,600 | 1,369,936 |
Assets Fair Value: | ||
Cash and cash equivalents | 1,317,129 | 656,494 |
Securities AFS, net | 211,324 | 226,158 |
Securities HTM | 766,907 | 773,061 |
Loans, net | 10,302,070 | 10,354,052 |
Investment in FHLB stock | 58,716 | 25,358 |
Investment in equity securities | 9,758 | 9,767 |
Liabilities Fair Value: | ||
Deposits | 10,034,478 | 10,349,272 |
Borrowings | 2,173,121 | 1,329,722 |
Fair Value Measurement Level 1 | ||
Assets Fair Value: | ||
Cash and cash equivalents | 1,317,129 | 656,494 |
Securities AFS, net | 1,244 | 1,228 |
Liabilities Fair Value: | ||
Deposits | 7,625,291 | 8,483,770 |
Borrowings | 2,020,000 | 1,176,601 |
Fair Value Measurement Level 2 | ||
Assets: | ||
Investment in FHLB stock | 58,716 | 25,358 |
Assets Fair Value: | ||
Securities AFS, net | 203,250 | 216,949 |
Securities HTM | 766,907 | 773,061 |
Investment in FHLB stock | 58,716 | 25,358 |
Liabilities Fair Value: | ||
Deposits | 2,409,187 | 1,865,502 |
Fair Value Measurement Level 3 | ||
Assets: | ||
Investment in equity securities | 9,758 | 9,767 |
Assets Fair Value: | ||
Securities AFS, net | 6,830 | 7,981 |
Loans, net | 10,302,070 | 10,354,052 |
Investment in equity securities | 9,758 | 9,767 |
Liabilities Fair Value: | ||
Borrowings | $ 153,121 | $ 153,121 |
SECURITIES - Summary of AFS Sec
SECURITIES - Summary of AFS Securities Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||||
Amortized Cost | $ 243,635 | $ 253,085 | ||
Gross Unrealized gains | 116 | 112 | ||
Gross Unrealized losses | (20,139) | (15,600) | ||
Allowance for credit losses - investments | (12,288) | (11,439) | $ (10,743) | $ (10,399) |
Estimated Fair Value | 211,324 | 226,158 | ||
Collateralized mortgage obligations | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Amortized Cost | 9,585 | 9,865 | ||
Gross Unrealized losses | (1,074) | (1,250) | ||
Estimated Fair Value | 8,511 | 8,615 | ||
Agency Mortgage-backed Securities | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Amortized Cost | 7,627 | 8,161 | ||
Gross Unrealized losses | (470) | (585) | ||
Estimated Fair Value | 7,157 | 7,576 | ||
Beneficial interest - FHLMC securitizations | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Amortized Cost | 19,113 | 19,415 | ||
Gross Unrealized gains | 110 | 108 | ||
Gross Unrealized losses | (105) | (103) | ||
Allowance for credit losses - investments | (11,315) | (11,439) | ||
Estimated Fair Value | 7,803 | 7,981 | ||
Municipal bonds | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Amortized Cost | 50,093 | 50,232 | ||
Gross Unrealized gains | 1 | |||
Gross Unrealized losses | (2,574) | (3,442) | ||
Estimated Fair Value | 47,520 | 46,790 | ||
Corporate Bonds | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Amortized Cost | 138,972 | 145,024 | ||
Gross Unrealized losses | (15,729) | (10,011) | ||
Allowance for credit losses - investments | (973) | |||
Estimated Fair Value | 122,270 | 135,013 | ||
U.S. Treasury | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Amortized Cost | 1,298 | 1,298 | ||
Gross Unrealized gains | 3 | 1 | ||
Gross Unrealized losses | (57) | (71) | ||
Estimated Fair Value | 1,244 | 1,228 | ||
SBA securities | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Amortized Cost | 16,947 | 19,090 | ||
Gross Unrealized gains | 2 | 3 | ||
Gross Unrealized losses | (130) | (138) | ||
Estimated Fair Value | $ 16,819 | $ 18,955 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) instrument | Dec. 31, 2022 USD ($) | |
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available for sale | $ 211,324 | $ 226,158 |
Estimated Fair Value | 766,907 | 773,061 |
U.S. Treasury | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available for sale | 1,244 | 1,228 |
U.S. Treasury | Asset Pledged as Collateral [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available for sale | 1,200 | |
Agency Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available for sale | 7,157 | 7,576 |
Estimated Fair Value | 766,907 | 773,061 |
Agency Mortgage-backed Securities | Asset Pledged as Collateral [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available for sale | 231,900 | |
Estimated Fair Value | 841,600 | |
SBA securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available for sale | 16,819 | 18,955 |
SBA securities | Asset Pledged as Collateral [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available for sale | 184,200 | |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available for sale | $ 122,270 | $ 135,013 |
Number of financial instruments impacted by credit loss | instrument | 7 |
SECURITIES - Summary of HTM Sec
SECURITIES - Summary of HTM Securities Portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2023 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 862,544 | $ 847,036 |
Gross Unrealized Loss | (89,483) | (80,129) |
Estimated Fair Value | 773,061 | 766,907 |
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 | 847,036 |
Gross Unrealized Loss | (89,483) | (80,129) |
Estimated Fair Value | $ 773,061 | $ 766,907 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 75,022 | $ 181,741 |
Less than 12 months, Unrealized Loss | (1,520) | (10,508) |
12 months or more, Fair Value | 128,594 | 38,657 |
12 months or more, Unrealized Loss | (18,619) | (5,092) |
Total, Fair Value | 203,616 | 220,398 |
Total, Unrealized Loss | (20,139) | (15,600) |
Collateralized mortgage obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 2 | |
12 months or more, Fair Value | 8,511 | 8,613 |
12 months or more, Unrealized Loss | (1,074) | (1,250) |
Total, Fair Value | 8,511 | 8,615 |
Total, Unrealized Loss | (1,074) | (1,250) |
Agency Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 1,407 | 6,882 |
Less than 12 months, Unrealized Loss | (50) | (525) |
12 months or more, Fair Value | 5,750 | 696 |
12 months or more, Unrealized Loss | (420) | (60) |
Total, Fair Value | 7,157 | 7,578 |
Total, Unrealized Loss | (470) | (585) |
Beneficial interest - FHLMC securitizations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 4,224 | 4,217 |
Less than 12 months, Unrealized Loss | (105) | (103) |
Total, Fair Value | 4,224 | 4,217 |
Total, Unrealized Loss | (105) | (103) |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 1,796 | 44,971 |
Less than 12 months, Unrealized Loss | (15) | (3,244) |
12 months or more, Fair Value | 42,108 | 1,819 |
12 months or more, Unrealized Loss | (2,559) | (198) |
Total, Fair Value | 43,904 | 46,790 |
Total, Unrealized Loss | (2,574) | (3,442) |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 52,772 | 108,056 |
Less than 12 months, Unrealized Loss | (1,228) | (6,476) |
12 months or more, Fair Value | 70,472 | 26,957 |
12 months or more, Unrealized Loss | (14,501) | (3,535) |
Total, Fair Value | 123,244 | 135,013 |
Total, Unrealized Loss | (15,729) | (10,011) |
U.S. Treasury | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 376 | |
Less than 12 months, Unrealized Loss | (23) | |
12 months or more, Fair Value | 841 | 451 |
12 months or more, Unrealized Loss | (57) | (48) |
Total, Fair Value | 841 | 827 |
Total, Unrealized Loss | (57) | (71) |
SBA securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 14,823 | 17,237 |
Less than 12 months, Unrealized Loss | (122) | (137) |
12 months or more, Fair Value | 912 | 121 |
12 months or more, Unrealized Loss | (8) | (1) |
Total, Fair Value | 15,735 | 17,358 |
Total, Unrealized Loss | $ (130) | $ (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 | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 76,301 | $ 394,619 |
Less than 12 months, Unrecognized Loss | (6,768) | (37,418) |
12 months or more, Fair Value | 690,606 | 378,442 |
12 months or more, Unrecognized Loss | (73,361) | (52,065) |
Total, Fair Value | 766,907 | 773,061 |
Total, Unrecognized Loss | (80,129) | (89,483) |
Agency Mortgage-backed Securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, Fair Value | 76,301 | 394,619 |
Less than 12 months, Unrecognized Loss | (6,768) | (37,418) |
12 months or more, Fair Value | 690,606 | 378,442 |
12 months or more, Unrecognized Loss | (73,361) | (52,065) |
Total, Fair Value | 766,907 | 773,061 |
Total, Unrecognized Loss | $ (80,129) | $ (89,483) |
SECURITIES - Schedule of Allowa
SECURITIES - Schedule of Allowance for Credit Losses - Securities AFS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
SECURITIES | ||
Beginning Balance for period | $ 11,439 | $ 10,399 |
Provision for credit losses | 849 | 344 |
Ending Balance for period | $ 12,288 | $ 10,743 |
SECURITIES - Scheduled Maturiti
SECURITIES - Scheduled Maturities of Securities AFS and the Related Weighted Average Yields (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, less than one year | $ 305 | $ 6,321 |
Amortized cost, one through five years | 56,170 | 53,939 |
Amortized cost, five through ten years | 141,197 | 143,066 |
Amortized cost, after ten years | 45,963 | 49,759 |
Amortized cost, total | $ 243,635 | $ 253,085 |
Weighted average yield, less than one year | 0.29% | 4.36% |
Weighted average yield, one through five years | 4.11% | 3.96% |
Weighted average yield, five through ten years | 3.43% | 3.38% |
Weighted average yield, after ten years | 4.17% | 1.91% |
Weighted average yield, total | 3.72% | 3.24% |
Estimated fair value, less than one year | $ 305 | $ 6,314 |
Estimated fair value, one through five years | 54,454 | 52,203 |
Estimated fair value, five through ten years | 126,064 | 133,279 |
Estimated fair value, after ten years | 42,789 | 45,801 |
Estimated fair value, total | 223,612 | 237,597 |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, less than one year | 6,006 | |
Amortized cost, one through five years | 28,985 | 28,993 |
Amortized cost, five through ten years | 104,456 | 104,494 |
Amortized cost, after ten years | 5,531 | 5,531 |
Amortized cost, total | 138,972 | 145,024 |
Estimated fair value, less than one year | 6,001 | |
Estimated fair value, one through five years | 27,970 | 28,022 |
Estimated fair value, five through ten years | 90,758 | 96,734 |
Estimated fair value, after ten years | 4,515 | 4,256 |
Estimated fair value, total | 123,243 | 135,013 |
U.S. Treasury | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, one through five years | 1,298 | 1,298 |
Amortized cost, total | 1,298 | 1,298 |
Estimated fair value, one through five years | 1,244 | 1,228 |
Estimated fair value, total | 1,244 | 1,228 |
Agency Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, one through five years | 5,969 | 4,384 |
Amortized cost, five through ten years | 2,107 | |
Amortized cost, after ten years | 1,658 | 1,670 |
Amortized cost, total | 7,627 | 8,161 |
Estimated fair value, one through five years | 5,665 | 4,133 |
Estimated fair value, five through ten years | 1,960 | |
Estimated fair value, after ten years | 1,492 | 1,483 |
Estimated fair value, total | 7,157 | 7,576 |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, less than one year | 300 | 301 |
Amortized cost, one through five years | 9,280 | 8,002 |
Amortized cost, five through ten years | 35,064 | 34,501 |
Amortized cost, after ten years | 5,449 | 7,428 |
Amortized cost, total | 50,093 | 50,232 |
Estimated fair value, less than one year | 300 | 299 |
Estimated fair value, one through five years | 8,944 | 7,565 |
Estimated fair value, five through ten years | 33,682 | 32,690 |
Estimated fair value, after ten years | 4,594 | 6,236 |
Estimated fair value, total | 47,520 | 46,790 |
Beneficial interest - FHLMC securitizations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, one through five years | 9,537 | 9,860 |
Amortized cost, after ten years | 9,576 | 9,555 |
Amortized cost, total | 19,113 | 19,415 |
Estimated fair value, one through five years | 9,537 | 9,860 |
Estimated fair value, after ten years | 9,581 | 9,560 |
Estimated fair value, total | 19,118 | 19,420 |
SBA securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, less than one year | 5 | 14 |
Amortized cost, one through five years | 1,101 | 1,402 |
Amortized cost, five through ten years | 1,108 | 1,278 |
Amortized cost, after ten years | 14,733 | 16,396 |
Amortized cost, total | 16,947 | 19,090 |
Estimated fair value, less than one year | 5 | 14 |
Estimated fair value, one through five years | 1,094 | 1,395 |
Estimated fair value, five through ten years | 1,103 | 1,272 |
Estimated fair value, after ten years | 14,617 | 16,274 |
Estimated fair value, total | 16,819 | 18,955 |
Collateralized mortgage obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, five through ten years | 569 | 686 |
Amortized cost, after ten years | 9,016 | 9,179 |
Amortized cost, total | 9,585 | 9,865 |
Estimated fair value, five through ten years | 521 | 623 |
Estimated fair value, after ten years | 7,990 | 7,992 |
Estimated fair value, total | $ 8,511 | $ 8,615 |
SECURITIES - Scheduled Maturi_2
SECURITIES - Scheduled Maturities of Securities HTM and the Related Weighted Average Yields (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
HTM - Amortized Cost | ||
Amortized cost, one through five years | $ 574 | $ 208 |
Amortized cost, five through ten years | 18,925 | 17,689 |
Amortized cost, after ten years | 827,537 | 844,647 |
Amortized cost, total | $ 847,036 | $ 862,544 |
HTM - Weighted average yield | ||
Weighted average yield, one through five years | 0.60% | 0.36% |
Weighted average yield, five through ten years | 1.22% | 1.12% |
Weighted average yield, after ten years | 2.47% | 2.31% |
Weighted average yield, total | 2.44% | 2.28% |
HTM - Estimated Fair Value | ||
Estimated fair value, one through five years | $ 537 | $ 192 |
Estimated fair value, five through ten years | 17,451 | 16,148 |
Estimated fair value, after ten years | 748,919 | 756,721 |
Estimated fair value, total | 766,907 | 773,061 |
Agency Mortgage-backed Securities | ||
HTM - Amortized Cost | ||
Amortized cost, one through five years | 574 | 208 |
Amortized cost, five through ten years | 18,925 | 17,689 |
Amortized cost, after ten years | 827,537 | 844,647 |
Amortized cost, total | 847,036 | 862,544 |
HTM - Estimated Fair Value | ||
Estimated fair value, one through five years | 537 | 192 |
Estimated fair value, five through ten years | 17,451 | 16,148 |
Estimated fair value, after ten years | 748,919 | 756,721 |
Estimated fair value, total | $ 766,907 | $ 773,061 |
LOANS - Summary of Loans (Detai
LOANS - Summary of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 10,653,108 | $ 10,709,180 |
Premiums, discounts and deferred fees and expenses | 16,695 | 17,013 |
Total | 10,669,803 | 10,726,193 |
Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 6,360,811 | 6,377,224 |
Multifamily | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 5,348,530 | 5,357,234 |
Single family | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 1,012,281 | 1,019,990 |
Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 1,154,519 | 1,202,063 |
Land and Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 165,216 | 157,630 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,985,984 | 2,984,748 |
Total | 2,985,367 | 2,984,758 |
Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 3,862 | 4,481 |
Total | 3,890 | 4,518 |
Real Estate Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 7,663,262 | 7,719,951 |
Real Estate Loans | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 6,341,472 | 6,358,094 |
Total | 6,360,811 | 6,377,224 |
Real Estate Loans | Multifamily | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 5,332,815 | 5,341,596 |
Real Estate Loans | Single family | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,008,657 | 1,016,498 |
Real Estate Loans | Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,155,624 | 1,203,292 |
Total | 1,154,519 | 1,202,063 |
Real Estate Loans | Land and Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 166,166 | 158,565 |
Total | $ 165,216 | $ 157,630 |
LOANS - Summary of Delinquent a
LOANS - Summary of Delinquent and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual Past Due and Still Accruing | $ 11,181 | $ 10,331 |
Total | $ 10,669,803 | $ 10,726,193 |
Percentage of Total Loans Due Nonaccrual | 0.10% | 0.10% |
Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | $ 48,257 | $ 31,087 |
Percentage of Total Loans | 0.45% | 0.29% |
30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | $ 27,564 | $ 15,896 |
Percentage of Total Loans Due 30-59 Days | 0.26% | 0.15% |
60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | $ 7,068 | $ 2,665 |
Percentage of Total Loans Due 60-89 Days | 0.07% | 0.02% |
90 Days or More | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | $ 2,444 | $ 2,195 |
Percentage of Total Loans Due 90 Days or More | 0.02% | 0.02% |
Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | $ 10,621,546 | $ 10,695,106 |
Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 6,360,811 | 6,377,224 |
Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 1,154,519 | 1,202,063 |
Land and Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 165,216 | 157,630 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual Past Due and Still Accruing | 4,694 | 3,228 |
Total | 2,985,367 | 2,984,758 |
Commercial and Industrial Loans | Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 8,354 | 6,090 |
Commercial and Industrial Loans | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 1,200 | 385 |
Commercial and Industrial Loans | 60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 233 | 1,495 |
Commercial and Industrial Loans | 90 Days or More | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 2,227 | 982 |
Commercial and Industrial Loans | Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 2,977,013 | 2,978,668 |
Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 3,890 | 4,518 |
Consumer Loans | Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 10 | 167 |
Consumer Loans | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 10 | |
Consumer Loans | 60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 167 | |
Consumer Loans | Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 3,880 | 4,351 |
Real Estate Loans | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual Past Due and Still Accruing | 2,518 | 2,556 |
Total | 6,360,811 | 6,377,224 |
Real Estate Loans | Residential Properties | Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 22,790 | 3,124 |
Real Estate Loans | Residential Properties | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 20,272 | 511 |
Real Estate Loans | Residential Properties | 60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 57 | |
Real Estate Loans | Residential Properties | Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 6,338,021 | 6,374,100 |
Real Estate Loans | Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual Past Due and Still Accruing | 3,969 | 4,547 |
Total | 1,154,519 | 1,202,063 |
Real Estate Loans | Commercial real estate | Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 9,747 | 21,706 |
Real Estate Loans | Commercial real estate | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 5,561 | 15,000 |
Real Estate Loans | Commercial real estate | 60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 946 | |
Real Estate Loans | Commercial real estate | 90 Days or More | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 217 | 1,213 |
Real Estate Loans | Commercial real estate | Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 1,144,772 | 1,180,357 |
Real Estate Loans | Land and Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 165,216 | 157,630 |
Real Estate Loans | Land and Construction | Financial Asset, Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 7,356 | |
Real Estate Loans | Land and Construction | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 521 | |
Real Estate Loans | Land and Construction | 60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 6,835 | |
Real Estate Loans | Land and Construction | Financial Asset, Not Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | $ 157,860 | $ 157,630 |
LOANS - Summary of Nonaccrual L
LOANS - Summary of Nonaccrual Loans (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with Allowance for Credit Losses | $ 3,672 | $ 2,016 |
Nonaccrual with No Allowance for Credit Losses | $ 7,509 | 8,315 |
Modifications to number of contracts | item | 0 | |
Modifications to borrowers, Outstanding number of contracts | item | 0 | |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with Allowance for Credit Losses | $ 3,672 | 2,016 |
Nonaccrual with No Allowance for Credit Losses | 1,022 | 1,212 |
Real Estate Loans | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with No Allowance for Credit Losses | 2,518 | 2,556 |
Real Estate Loans | Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with No Allowance for Credit Losses | $ 3,969 | $ 4,547 |
LOANS - Composition of TDRs by
LOANS - Composition of TDRs by Accrual and Nonaccrual Status (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Nonaccrual | $ 11,181 | $ 10,331 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Nonaccrual | $ 4,694 | 3,228 |
Principal Reduction And Extended Maturity | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Accrual | 1,095 | |
Troubled Debt Restructurings, Nonaccrual | 2,478 | |
Troubled Debt Restructurings, Total | 3,573 | |
Principal Reduction And Extended Maturity | Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Accrual | 929 | |
Troubled Debt Restructurings, Nonaccrual | 1,066 | |
Troubled Debt Restructurings, Total | 1,995 | |
Principal Reduction And Extended Maturity | Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Accrual | 166 | |
Troubled Debt Restructurings, Nonaccrual | 1,412 | |
Troubled Debt Restructurings, Total | $ 1,578 |
ALLOWANCE FOR CREDIT LOSSES - B
ALLOWANCE FOR CREDIT LOSSES - Bank's Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | $ 33,731 | $ 33,776 | $ 33,776 |
Provision for (Reduction of) Credit Losses | (939) | (943) | 239 |
Charge-offs | (2,003) | (145) | (720) |
Recoveries | 306 | 134 | 436 |
Ending Balance | 31,095 | 32,822 | 33,731 |
Residential Properties | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 8,306 | 2,637 | 2,637 |
Provision for (Reduction of) Credit Losses | (43) | 561 | 5,674 |
Charge-offs | (5) | ||
Ending Balance | 8,263 | 3,198 | 8,306 |
Commercial real estate | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 8,714 | 17,049 | 17,049 |
Provision for (Reduction of) Credit Losses | (2,732) | (1,413) | (8,335) |
Charge-offs | (249) | ||
Ending Balance | 5,733 | 15,636 | 8,714 |
Land and Construction | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 164 | 1,995 | 1,995 |
Provision for (Reduction of) Credit Losses | 152 | (227) | (1,831) |
Ending Balance | 316 | 1,768 | 164 |
Commercial and Industrial Loans | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 16,521 | 11,992 | 11,992 |
Provision for (Reduction of) Credit Losses | 1,685 | 149 | 4,804 |
Charge-offs | (1,752) | (145) | (711) |
Recoveries | 306 | 134 | 436 |
Ending Balance | 16,760 | 12,130 | 16,521 |
Consumer Loans | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 26 | 103 | 103 |
Provision for (Reduction of) Credit Losses | (1) | (13) | (73) |
Charge-offs | (2) | (4) | |
Ending Balance | $ 23 | $ 90 | $ 26 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | $ 2,250 | $ 5,043 |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 28,845 | 28,688 |
Total Allowance for Credit Losses | 31,095 | 33,731 |
Loans, Individually Evaluated for Impairment | 37,500 | 47,154 |
Loans, Collectively Evaluated for Impairment | 10,632,303 | 10,679,039 |
Total Allowance for Credit Losses | 31,095 | 33,731 |
Total | 10,669,803 | 10,726,193 |
Residential Properties | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | 62 | 87 |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 8,201 | 8,219 |
Total Allowance for Credit Losses | 8,263 | 8,306 |
Loans, Individually Evaluated for Impairment | 3,428 | 3,479 |
Loans, Collectively Evaluated for Impairment | 6,357,383 | 6,373,745 |
Total | 6,360,811 | 6,377,224 |
Commercial real estate | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | 1,044 | 1,834 |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 4,689 | 6,880 |
Total Allowance for Credit Losses | 5,733 | 8,714 |
Loans, Individually Evaluated for Impairment | 28,197 | 34,278 |
Loans, Collectively Evaluated for Impairment | 1,126,322 | 1,167,785 |
Total | 1,154,519 | 1,202,063 |
Land and Construction | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Collectively Evaluated for Impairment | 316 | 164 |
Total Allowance for Credit Losses | 316 | 164 |
Loans, Collectively Evaluated for Impairment | 165,216 | 157,630 |
Total | 165,216 | 157,630 |
Commercial and Industrial Loans | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | 1,144 | 3,122 |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 15,616 | 13,399 |
Total Allowance for Credit Losses | 16,760 | 16,521 |
Loans, Individually Evaluated for Impairment | 5,875 | 9,397 |
Loans, Collectively Evaluated for Impairment | 2,979,492 | 2,975,361 |
Total | 2,985,367 | 2,984,758 |
Consumer Loans | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Collectively Evaluated for Impairment | 23 | 26 |
Total Allowance for Credit Losses | 23 | 26 |
Loans, Collectively Evaluated for Impairment | 3,890 | 4,518 |
Total | $ 3,890 | $ 4,518 |
ALLOWANCE FOR CREDIT LOSSES - R
ALLOWANCE FOR CREDIT LOSSES - Risk Category of Loans Based on Year of Origination (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | $ 95,747 | $ 4,120,524 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 4,108,404 | 2,444,776 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 2,390,420 | 1,272,071 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 1,229,807 | 524,695 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 487,530 | 409,795 |
Prior | 1,093,689 | 733,966 |
Revolving Loans | 1,264,206 | 1,220,366 |
Total | 10,669,803 | 10,726,193 |
Financing Receivable Recorded Investment | ||
Gross charge-offs Originated In Fiscal Year Before Latest Fiscal Year | 375 | |
Gross charge-offs Originated Two Years Before Latest Fiscal Year | 193 | |
Gross charge-offs Originated Three Years Before Latest Fiscal Year | 86 | |
Gross charge-offs Originated Four Years Before Latest Fiscal Year | 51 | |
Gross charge-offs Prior | 249 | |
Gross charge-offs Revolving Loans | 1,049 | |
Gross charge-offs Total loans | 2,003 | |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 95,747 | 4,114,605 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 4,102,540 | 2,416,053 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 2,359,966 | 1,265,652 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 1,220,146 | 499,087 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 462,680 | 388,294 |
Prior | 1,048,377 | 706,912 |
Revolving Loans | 1,252,295 | 1,204,870 |
Total | 10,541,751 | 10,595,473 |
Special mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 13,967 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 20,671 | 3,552 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 7,063 | 13,137 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 12,869 | 21,501 |
Prior | 30,386 | 9,450 |
Revolving Loans | 4,824 | 5,598 |
Total | 75,813 | 67,205 |
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 | 5,864 | 14,756 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 9,783 | 2,867 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 2,598 | 12,471 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 11,981 | |
Prior | 14,926 | 17,604 |
Revolving Loans | 7,087 | 9,898 |
Total | 52,239 | 63,515 |
Residential Properties | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total | 6,360,811 | 6,377,224 |
Multifamily | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 16,080 | 2,399,360 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 2,398,706 | 1,552,311 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,547,733 | 795,263 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 793,127 | 306,691 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 302,961 | 155,442 |
Prior | 289,923 | 148,167 |
Total | 5,348,530 | 5,357,234 |
Multifamily | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 16,080 | 2,399,360 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 2,398,706 | 1,552,311 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,547,733 | 795,263 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 793,127 | 301,025 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 297,324 | 145,675 |
Prior | 278,675 | 146,622 |
Total | 5,331,645 | 5,340,256 |
Multifamily | Special mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated Three Years Before Latest Fiscal Year | 5,666 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 5,637 | 9,767 |
Prior | 11,248 | 1,545 |
Total | 16,885 | 16,978 |
Single family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 9,505 | 270,589 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 269,712 | 276,244 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 274,013 | 96,183 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 95,026 | 40,010 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 39,831 | 49,676 |
Prior | 256,702 | 218,643 |
Revolving Loans | 67,492 | 68,645 |
Total | 1,012,281 | 1,019,990 |
Single family | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 9,505 | 270,589 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 269,712 | 276,244 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 274,013 | 96,183 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 95,026 | 40,010 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 39,831 | 49,676 |
Prior | 253,304 | 215,209 |
Revolving Loans | 67,462 | 68,575 |
Total | 1,008,853 | 1,016,486 |
Single family | Special mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Revolving Loans | 25 | |
Total | 25 | |
Single family | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Prior | 3,398 | 3,434 |
Revolving Loans | 30 | 45 |
Total | 3,428 | 3,479 |
Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 13,589 | 229,422 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 227,343 | 186,164 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 166,427 | 147,187 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 137,657 | 111,709 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 102,821 | 183,194 |
Prior | 506,682 | 344,387 |
Total | 1,154,519 | 1,202,063 |
Financing Receivable Recorded Investment | ||
Gross charge-offs Prior | 249 | |
Gross charge-offs Total loans | 249 | |
Commercial real estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 13,589 | 223,503 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 221,479 | 158,363 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 157,009 | 144,105 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 134,635 | 93,960 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 85,223 | 171,460 |
Prior | 477,039 | 325,048 |
Total | 1,088,974 | 1,116,439 |
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 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 2,324 | 7,088 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 7,040 | 11,734 |
Prior | 19,138 | 7,905 |
Total | 28,502 | 42,492 |
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 | 5,864 | 14,376 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 9,418 | 742 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 698 | 10,661 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 10,558 | |
Prior | 10,505 | 11,434 |
Total | 37,043 | 43,132 |
Land and Construction | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 4,205 | 43,846 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 41,435 | 58,268 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 62,677 | 47,212 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 48,764 | 854 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 842 | 5,044 |
Prior | 7,293 | 2,406 |
Total | 165,216 | 157,630 |
Land and Construction | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 4,205 | 43,846 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 41,435 | 58,268 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 62,677 | 47,212 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 48,764 | 854 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 842 | 5,044 |
Prior | 7,293 | 2,406 |
Total | 165,216 | 157,630 |
Commercial and Industrial Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 52,358 | 1,176,851 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 1,171,201 | 370,697 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 338,501 | 186,226 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 155,233 | 64,960 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 40,743 | 16,306 |
Prior | 32,916 | 20,294 |
Revolving Loans | 1,194,415 | 1,149,424 |
Total | 2,985,367 | 2,984,758 |
Financing Receivable Recorded Investment | ||
Gross charge-offs Originated In Fiscal Year Before Latest Fiscal Year | 375 | |
Gross charge-offs Originated Two Years Before Latest Fiscal Year | 193 | |
Gross charge-offs Originated Three Years Before Latest Fiscal Year | 86 | |
Gross charge-offs Originated Four Years Before Latest Fiscal Year | 51 | |
Gross charge-offs Revolving Loans | 1,047 | |
Gross charge-offs Total loans | 1,752 | |
Commercial and Industrial Loans | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 52,358 | 1,176,851 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 1,171,201 | 369,775 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 317,465 | 182,889 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 148,594 | 62,767 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 39,128 | 16,306 |
Prior | 31,893 | 17,558 |
Revolving Loans | 1,182,534 | 1,133,998 |
Total | 2,943,173 | 2,960,144 |
Commercial and Industrial Loans | Special mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 542 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 20,671 | 1,212 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 4,739 | 383 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 192 | |
Revolving Loans | 4,824 | 5,573 |
Total | 30,426 | 7,710 |
Commercial and Industrial Loans | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 380 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 365 | 2,125 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 1,900 | 1,810 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 1,423 | |
Prior | 1,023 | 2,736 |
Revolving Loans | 7,057 | 9,853 |
Total | 11,768 | 16,904 |
Consumer Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 10 | 456 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 7 | 1,092 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,069 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 471 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 332 | 133 |
Prior | 173 | 69 |
Revolving Loans | 2,299 | 2,297 |
Total | 3,890 | 4,518 |
Financing Receivable Recorded Investment | ||
Gross charge-offs Revolving Loans | 2 | |
Gross charge-offs Total loans | 2 | |
Consumer Loans | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 10 | 456 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 7 | 1,092 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,069 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 471 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 332 | 133 |
Prior | 173 | 69 |
Revolving Loans | 2,299 | 2,297 |
Total | $ 3,890 | $ 4,518 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Allowance for Credit Losses | $ 31,095 | $ 33,731 |
Collateral Dependent Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 5,302 | 6,494 |
Total Allowance for Credit Losses | 630 | |
Collateral Dependent Loans | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 5,052 | 5,606 |
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 | 2,415 | 2,435 |
Collateral Dependent Loans | Single family | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 2,415 | 2,435 |
Collateral Dependent Loans | Commercial real estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 2,637 | 3,171 |
Collateral Dependent Loans | Commercial real estate | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 2,637 | 3,171 |
Collateral Dependent Loans | Commercial and Industrial Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 250 | 888 |
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 |
GOODWILL AND INTANGIBLES (Detai
GOODWILL AND INTANGIBLES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
GOODWILL AND INTANGIBLES | |||
Goodwill | $ 215.2 | $ 215.2 | |
Core Deposit | |||
GOODWILL AND INTANGIBLES | |||
Core deposit intangible assets | 6.2 | $ 6.6 | |
Core deposit intangible amortization expense | $ 0.4 | $ 0.5 | |
Minimum | |||
GOODWILL AND INTANGIBLES | |||
Estimated useful lives of other intangible assets | 7 years | ||
Maximum | |||
GOODWILL AND INTANGIBLES | |||
Estimated useful lives of other intangible assets | 10 years |
LOAN SALES AND MORTGAGE SERVI_2
LOAN SALES AND MORTGAGE SERVICING RIGHTS (Details) - First Foundation Bank - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Loan Sales And Mortgage Servicing Rights [Line Items] | |||
Mortgage servicing rights | $ 5.9 | $ 5.9 | |
Loans serviced for other financial institution | 1,000 | 1,100 | |
Valuation allowance of mortgage servicing rights | 0.8 | $ 1.4 | |
Servicing fees earned on loans | $ 0.6 | $ 0.9 | |
Contractually Specified Servicing Fee Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income Other Operating Income | Noninterest Income Other Operating Income |
DEPOSITS - Summary of Outstandi
DEPOSITS - Summary of Outstanding Balance of Deposits and Average Rates (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
DEPOSITS | ||
Demand deposits, Noninterest-bearing | $ 2,263,412 | $ 2,736,691 |
Demand deposits, Interest-bearing | 2,364,213 | 2,568,850 |
Money market and savings | 2,997,666 | 3,178,230 |
Certificates of deposits | 2,426,415 | 1,878,841 |
Total | $ 10,051,706 | $ 10,362,612 |
Demand deposits, Interest-bearing, Weighted Average Rate | 3.38% | 3.109% |
Money market and savings, Weighted Average Rate | 3.098% | 2.373% |
Certificates of deposits, Weighted Average Rate | 4.17% | 3.741% |
Total, Weighted Average Rate | 2.726% | 2.177% |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
DEPOSITS | ||
Certificates of deposits of $250,000 or more, maturities within one year | $ 442 | $ 409 |
Certificates of deposits of $250,000 or more, maturities after one year | 19 | 27 |
Certificates of deposits of $250,000 or more, total | 461 | 436 |
Certificates of deposit of less than $ 250,000, maturities within one year | 1,500 | 1,100 |
Certificates of deposit of less than $ 250,000, maturities after one year | 480 | 345 |
Certificates of deposit of less than $250,000, total | $ 2,000 | $ 1,400 |
BORROWINGS (Details)
BORROWINGS (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) Institution | Dec. 31, 2017 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Subordinated notes | $ 174,000 | ||
Federal funds purchased | $ 200,000 | ||
Long-term line of credit | 0 | 0 | |
Borrowing in short-term FHLB | 1,000,000 | ||
Federal Home Loan Bank, maximum borrowing capacity | 930,000 | ||
FHLB advances | 1,000,000 | 805,000 | |
Federal Home Loan Bank, additional credit available | $ 315,000 | ||
Interest rate (as a percent) | 5.08% | ||
Unsecured debt | $ 245,000 | ||
Number of financial institutions | Institution | 5 | ||
Financial institutions with outstanding borrowings | Institution | 1 | ||
Securities pledged as collateral | $ 184,200 | $ 186,300 | |
Weighted average rate | 8.05% | 8% | |
Notes Receivable Gross | $ 10,669,803 | $ 10,726,193 | |
Minimum | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 20,000 | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 100,000 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term line of credit | 20,000 | 20,000 | |
Line of credit, borrowing capacity | $ 20,000 | ||
Revolving Credit Facility | 90 Day LIBOR | |||
Debt Instrument [Line Items] | |||
Debt instrument basis point rate | 0.50% | ||
Asset pledged as collateral | |||
Debt Instrument [Line Items] | |||
Notes Receivable Gross | 5,400,000 | ||
Subordinated Notes Due 2030 | |||
Debt Instrument [Line Items] | |||
Subordinated notes | $ 24,000 | ||
Line of credit facility, Interest rate | 6% | ||
Secured debt | $ 101,000 | 171,000 | |
Subordinated Notes Due 2030 | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument basis point rate | 5.90% | ||
Subordinated Notes Due 2032 | |||
Debt Instrument [Line Items] | |||
Subordinated notes | $ 150,000 | ||
Interest rate (as a percent) | 3.50% | ||
Subordinated Notes Due 2032 | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument basis point rate | 2.04% | ||
Overnight FHLB Advance | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 5.11% | ||
Unsecured federal funds | |||
Debt Instrument [Line Items] | |||
Unsecured debt | $ 0 | 100,000 | |
Additional Unsecured Debt | 100,000 | ||
Federal reserve bank of San Francisco | |||
Debt Instrument [Line Items] | |||
Remaining borrowing capacity | 841,600 | ||
FFI | |||
Debt Instrument [Line Items] | |||
Long-term line of credit | 20,000 | 20,000 | |
FFI | Subordinated Notes Due 2030 | |||
Debt Instrument [Line Items] | |||
Subordinated notes | $ 174,000 | $ 174,000 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
EARNINGS PER SHARE | ||
Net income, Basic | $ 8,496 | $ 30,836 |
Basic common shares outstanding | 56,376,669 | 56,465,855 |
Earnings per share, Basic | $ 0.15 | $ 0.55 |
Net income, Diluted | $ 8,496 | $ 30,836 |
Effect of options, restricted stock and contingent shares issuable | 33,747 | 99,990 |
Diluted common shares outstanding | 56,410,416 | 56,565,845 |
Earnings per share, Diluted | $ 0.15 | $ 0.55 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - segment | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
SEGMENT REPORTING | ||
Reportable business segments | 2 | 2 |
SEGMENT REPORTING - Key Operati
SEGMENT REPORTING - Key Operating Results of Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Interest income | $ 137,000 | $ 79,144 |
Interest expense | 78,245 | 4,650 |
Net interest income | 58,755 | 74,494 |
Provision for credit losses | 417 | (792) |
Noninterest income | 11,698 | 15,427 |
Noninterest expense | 59,340 | 47,618 |
Income (loss) before taxes on income | 10,696 | 43,095 |
Taxes on income | 2,200 | 12,259 |
Net income (loss) | 8,496 | 30,836 |
Operating Segments | Banking | ||
Segment Reporting Information [Line Items] | ||
Interest income | 137,000 | 79,144 |
Interest expense | 76,449 | 3,413 |
Net interest income | 60,551 | 75,731 |
Provision for credit losses | 417 | (792) |
Noninterest income | 4,801 | 7,531 |
Noninterest expense | 51,645 | 40,101 |
Income (loss) before taxes on income | 13,290 | 43,953 |
Taxes on income | 2,947 | 12,715 |
Net income (loss) | 10,343 | 31,238 |
Operating Segments | Wealth Management | ||
Segment Reporting Information [Line Items] | ||
Noninterest income | 7,291 | 8,345 |
Noninterest expense | 6,065 | 6,644 |
Income (loss) before taxes on income | 1,226 | 1,701 |
Taxes on income | 364 | 493 |
Net income (loss) | 862 | 1,208 |
Other. | ||
Segment Reporting Information [Line Items] | ||
Interest expense | 1,796 | 1,237 |
Net interest income | (1,796) | (1,237) |
Noninterest income | (394) | (449) |
Noninterest expense | 1,630 | 873 |
Income (loss) before taxes on income | (3,820) | (2,559) |
Taxes on income | (1,111) | (949) |
Net income (loss) | $ (2,709) | $ (1,610) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event | Apr. 27, 2023 $ / shares |
Subsequent Event [Line Items] | |
Dividends payable, date declared | Apr. 27, 2023 |
Dividends payable, amount per share | $ 0.02 |
Dividends payable, date to be paid | May 19, 2023 |
Dividends payable, date of record | May 08, 2023 |