Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 02, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 56,511,864 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
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, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and cash equivalents | $ 1,588,036 | $ 1,326,629 |
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 797,215 | 703,226 |
Securities held-to-maturity ("HTM") | 775,702 | 789,578 |
Loans held for investment | 10,086,346 | 10,177,802 |
Allowance for credit losses - loans | (29,295) | (29,205) |
Net loans | 10,057,051 | 10,148,597 |
Investment in FHLB stock | 36,668 | 24,613 |
Accrued interest receivable | 53,446 | 54,163 |
Deferred taxes | 33,565 | 29,142 |
Premises and equipment, net | 40,019 | 39,925 |
Real estate owned ("REO") | 6,210 | 8,381 |
Bank owned life insurance | 48,978 | 48,653 |
Core deposit intangibles | 4,578 | 4,948 |
Derivative assets | 6,035 | |
Other assets | 138,772 | 149,393 |
Total Assets | 13,586,275 | 13,327,248 |
Liabilities: | ||
Deposits | 10,638,970 | 10,688,932 |
Borrowings | 1,705,493 | 1,409,056 |
Subordinated debt | 173,413 | 173,397 |
Accounts payable and other liabilities | 139,665 | 130,520 |
Total Liabilities | 12,657,541 | 12,401,905 |
Shareholders' Equity | ||
Common Stock | 57 | 56 |
Additional paid-in-capital | 721,362 | 720,899 |
Retained earnings | 218,802 | 218,575 |
Accumulated other comprehensive loss | (11,487) | (14,187) |
Total Shareholders' Equity | 928,734 | 925,343 |
Total Liabilities and Shareholders' Equity | $ 13,586,275 | $ 13,327,248 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||||
Amortized Cost | $ 828,568 | $ 731,489 | ||
Allowance for credit losses | $ 7,911 | $ 8,220 | $ 12,288 | $ 11,439 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest income: | ||
Loans | $ 118,444 | $ 120,643 |
Securities | 19,774 | 6,891 |
FHLB Stock, fed funds sold and interest-bearing deposits | 12,235 | 9,466 |
Total interest income | 150,453 | 137,000 |
Interest expense: | ||
Deposits | 94,492 | 62,140 |
Borrowings | 15,870 | 14,415 |
Subordinated debt | 1,705 | 1,690 |
Total interest expense | 112,067 | 78,245 |
Net interest income | 38,386 | 58,755 |
Provision for credit losses | 577 | 417 |
Net interest income after provision for credit losses | 37,809 | 58,338 |
Noninterest income: | ||
Asset management, consulting and other fees | $ 8,614 | $ 8,796 |
Type of Revenue [Extensible List] | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember |
Gain on sale of loans | $ 263 | $ 0 |
Gain on sale of securities available-for-sale | 221 | |
Capital market activities | 836 | |
Gain on sale of REO | 679 | |
Other income | 2,070 | 2,902 |
Total noninterest income | 12,683 | 11,698 |
Noninterest expense: | ||
Compensation and benefits | 19,407 | 25,286 |
Occupancy and depreciation | 9,087 | 8,897 |
Professional services and marketing costs | 3,390 | 4,295 |
Customer service costs | 10,738 | 16,715 |
Other expenses | 7,987 | 4,147 |
Total noninterest expense | 50,609 | 59,340 |
(Loss) income before income taxes | (117) | 10,696 |
Income tax (benefit) expense | (910) | 2,200 |
Net income | $ 793 | $ 8,496 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.01 | $ 0.15 |
Diluted (in dollars per share) | $ 0.01 | $ 0.15 |
Shares used in computation: | ||
Basic (in shares) | 56,484,655 | 56,376,669 |
Diluted (in shares) | 56,503,875 | 56,410,416 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - UNAUDITED - USD ($) $ in Thousands | Common Stock | Additional Paid-in-Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Beginning balance at Dec. 31, 2022 | $ 56 | $ 719,606 | $ 426,659 | $ (11,943) | $ 1,134,378 |
Beginning balance (in shares) at Dec. 31, 2022 | 56,325,242 | ||||
Net Income (Loss) | 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 | ||||
Beginning balance at Dec. 31, 2023 | $ 56 | 720,899 | 218,575 | (14,187) | 925,343 |
Beginning balance (in shares) at Dec. 31, 2023 | 56,467,623 | ||||
Net Income (Loss) | 793 | 793 | |||
Other comprehensive loss | 2,700 | 2,700 | |||
Stock based compensation | 605 | 605 | |||
Cash dividend | (566) | (566) | |||
Stock grants - vesting of restricted stock units (in shares) | 62,262 | ||||
Repurchase of shares from restricted shares vesting | (142) | (142) | |||
Repurchase of shares from restricted shares vesting (in shares) | (18,021) | ||||
Other | $ 1 | 1 | |||
Ending balance at Mar. 31, 2024 | $ 57 | $ 721,362 | $ 218,802 | $ (11,487) | $ 928,734 |
Ending balance (in shares) at Mar. 31, 2024 | 56,511,864 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - UNAUDITED | ||
Net Income (Loss) | $ 793 | $ 8,496 |
Other comprehensive income (loss), net of tax: | ||
Unrealized holding losses on securities arising during the period | (3,208) | (2,825) |
Credit loss (income) expense | (84) | 849 |
Net unrealized holding losses on securities arising during the period | (3,292) | (1,976) |
Reclassification adjustment for gain included in net income | 208 | |
Total change in unrealized loss on available-for-sale securities | (3,084) | (1,976) |
Realized gain on cash flow hedge | 788 | |
Unrealized gain arising during this period | 4,902 | |
Amortization of unrealized gain (loss) on securities transferred from available-for-sale to held-to-maturity | 94 | (616) |
Total other comprehensive income (loss) | 2,700 | (2,592) |
Total comprehensive income | $ 3,493 | $ 5,904 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Cash Flows from Operating Activities: | |||
Net income | $ 793 | $ 8,496 | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Provision (reversal) for credit losses | 885 | (432) | |
Provision (reversal) for credit losses - securities AFS | (309) | 849 | $ 752 |
Recovery of allowance for credit losses | 152 | 306 | |
Stock-based compensation expense | 605 | 32 | |
Depreciation and amortization | 1,190 | 1,104 | |
Deferred tax (benefit) expense | (3,429) | 2,761 | |
Amortization of (discount) premium on securities | (10,658) | (173) | |
Amortization of core deposit intangible | 370 | 434 | |
Amortization of mortgage servicing rights - net | 747 | 599 | |
Gain on sale of REO | (679) | ||
Gain on sale of loans | (263) | 0 | |
Gain on sale of securities available-for-sale | (221) | ||
Gain from hedging activities | (836) | ||
Amortization of OCI - securities transfer to HTM | (94) | 616 | |
Valuation allowance on mortgage servicing rights - net | (672) | ||
Decrease in accrued interest receivable and other assets | 10,434 | 7,657 | |
Increase (decrease) in accounts payable and other liabilities | 8,524 | (11,792) | |
Net cash provided by operating activities | 7,211 | 9,785 | |
Cash Flows from Investing Activities: | |||
Net decrease in loans | 87,232 | 54,387 | |
Proceeds from sale of loans | 3,994 | ||
Proceeds from sale of REO | 2,850 | ||
Purchase of premises and equipment | (1,285) | (2,494) | |
Disposals of premises and equipment | 1 | ||
Purchases of securities AFS | (1,135,662) | ||
Proceeds from sale of securities available-for-sale | 643,527 | ||
Maturities of securities AFS | 406,183 | 9,184 | |
Maturities of securities HTM | 13,628 | 15,948 | |
Net increase in FHLB stock | (12,055) | (33,358) | |
Net cash provided by investing activities | 8,413 | 43,667 | |
Cash Flows from Financing Activities: | |||
Decrease in deposits | (49,962) | (310,906) | |
Net increase in FHLB & FRB advances | 284,410 | 995,000 | |
Net increase in subordinated debt | 16 | 15 | |
Net increase (decrease) in repurchase agreements | 12,027 | (70,351) | |
Dividends paid | (566) | (6,199) | |
Proceeds from exercise of stock options | 158 | ||
Repurchase of stock | (142) | (534) | |
Net cash provided by financing activities | 245,783 | 607,183 | |
Increase in cash and cash equivalents | 261,407 | 660,635 | |
Cash and cash equivalents at beginning of year | 1,326,629 | 656,494 | 656,494 |
Cash and cash equivalents at end of period | 1,588,036 | 1,317,129 | 1,326,629 |
Supplemental disclosures of cash flow information: | |||
Interest | 15,422 | 65,720 | |
Noncash transactions: | |||
Right of use lease assets and liabilities recognized | 168 | 172 | |
Chargeoffs against allowance for credit losses - loans | $ 493 | $ 2,003 | $ 5,249 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023, 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 2024 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, 2023. 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, 2023 filed with the SEC, except for those described below. Derivative Asset (Cash Flow Hedge). Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities’ The cash flow hedge is classified as derivative assets in the accompanying consolidated balance sheets. The earnings and cash flow impact from this derivative asset are classified as an offset to interest expense which is consistent with the underlying hedged item. New Accounting Pronouncements In June 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. In November 2023, FASB issued ASU 2023-07, “Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures”. Segment Reporting |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024: Investment securities available-for-sale: Collateralized mortgage obligations $ 10,343 $ — $ 10,343 $ — Agency mortgage-backed securities 596,279 — 596,279 — Municipal bonds 46,289 — 46,289 — SBA securities 12,117 — 12,117 — Beneficial interests in FHLMC securitization 7,141 — — 7,141 Corporate bonds 123,797 — 123,797 — U.S. Treasury 1,249 1,249 — — Investment in equity securities 11,776 — — 11,776 Total assets at fair value on a recurring basis $ 808,991 $ 1,249 $ 788,825 $ 18,917 Derivatives: Cash flow hedge $ 6,035 $ — $ 6,035 $ — December 31, 2023 Investment securities available-for-sale: Collateralized mortgage obligations $ 7,605 $ — $ 7,605 $ — Agency mortgage-backed securities 107,347 — 107,347 — Municipal bonds 46,436 — 46,436 — SBA securities 13,527 — 13,527 — Beneficial interests in FHLMC securitization 7,242 — — 7,242 Corporate bonds 122,279 — 122,279 — U.S. Treasury 398,790 398,790 — — Investment in equity securities 11,768 — — 11,768 Total assets at fair value on a recurring basis $ 714,994 $ 398,790 $ 297,194 $ 19,010 The decrease in Level 3 assets from December 31, 2023 was primarily due to a $0.1 million increase in unrealized losses on the beneficial interests in FHLMC portfolio for the first three months of 2024. 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 The total collateral dependent impaired Level 3 loans were $5.7 million and $18.7 million at March 31, 2024 and December 31, 2023, respectively. There were no specific reserves related to these loans at March 31, 2024 and December 31, 2023. Real Estate Owned (REO) Mortgage Servicing Rights. Fair Value of Financial Instruments FASB ASC 825-10, “Disclosures about Fair Value of Financial Instruments” Fair value estimates are made at a discrete point in time based on relevant market information and other information about the financial instruments. Because no active market exists for a significant portion of our financial instruments, fair value estimates are based in large part on judgments we make primarily regarding current economic conditions, risk characteristics of various financial instruments, prepayment rates, and future expected loss experience. These estimates are subjective in nature and invariably involve some inherent uncertainties. Additionally, unexpected changes in events or circumstances can occur that could require us to make changes to our assumptions and which, in turn, could significantly affect and require us to make changes to our previous estimates of fair value. In addition, the fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of existing and anticipated future customer relationships and the value of assets and liabilities that are not considered financial instruments, such as premises and equipment and other real estate owned. The following methods and assumptions were used to estimate the fair value of financial instruments: Cash and Cash Equivalents Interest-Bearing Deposits with Financial Institutions. Investment Securities Available-for-Sale. Investment Securities Held-to-Maturity. Investment in Equity Securities. Investment in Federal Home Loan Bank Stock. Loans Held for Investment Accrued Interest Receivable. Derivative Assets (Cash Flow Hedge). value of this derivative asset is based on a discounted cash flow approach. The observable nature of the inputs used in deriving its fair value results in a Level 2 classification. Deposits Borrowings Subordinated Debt. Accrued Interest Payable. The following table sets forth the estimated fair values and related carrying amounts of our financial instruments as of: Carrying Fair Value Measurement Level (dollars in thousands) Value 1 2 3 Total March 31, 2024: Assets: Cash and cash equivalents $ 1,588,036 $ 1,588,036 $ — $ — $ 1,588,036 Securities AFS, net 797,215 1,249 788,825 7,141 797,215 Securities HTM 775,702 — 690,760 — 690,760 Loans, net 10,057,051 — — 9,604,899 9,604,899 Investment in FHLB stock 36,668 — 36,668 — 36,668 Investment in equity securities 11,776 — — 11,776 11,776 Accrued interest receivable 53,446 53,446 — — 53,446 Derivative assets 6,035 — 6,035 — 6,035 Liabilities: Deposits $ 10,638,970 $ 7,921,615 $ 2,705,671 $ — $ 10,627,286 Borrowings 1,705,493 905,493 800,000 — 1,705,493 Subordinated debt 173,413 — — 136,514 136,514 Accrued interest payable 44,342 44,342 — — 44,342 December 31, 2023: Assets: Cash and cash equivalents $ 1,326,629 $ 1,326,629 $ — $ — $ 1,326,629 Securities AFS, net 703,226 398,790 297,194 7,242 703,226 Securities HTM 789,578 — 710,021 — 710,021 Loans, net 10,148,597 — — 9,827,508 9,827,508 Investment in FHLB stock 24,613 — 24,613 — 24,613 Investment in equity securities 11,768 — — 11,768 11,768 Accrued interest receivable 54,163 54,163 — — 54,163 Liabilities: Deposits $ 10,688,932 $ 7,545,262 $ 3,145,870 $ — $ 10,691,132 Borrowings 1,409,056 609,056 800,000 — 1,409,056 Subordinated debt 173,397 — — 136,002 136,002 Accrued interest payable 42,177 42,177 — — 42,177 |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024: Collateralized mortgage obligations $ 11,705 $ — $ (1,362) $ — $ 10,343 Agency mortgage-backed securities 600,907 — (4,628) — 596,279 Municipal bonds 49,369 — (3,080) — 46,289 SBA securities 12,225 2 (110) — 12,117 Beneficial interests in FHLMC securitization 14,240 — (506) (6,593) 7,141 Corporate bonds 138,823 — (13,708) (1,318) 123,797 U.S. Treasury 1,299 — (50) — 1,249 Total $ 828,568 $ 2 $ (23,444) $ (7,911) $ 797,215 December 31, 2023: Collateralized mortgage obligations $ 8,946 $ — $ (1,341) $ — $ 7,605 Agency mortgage-backed securities 106,733 1,028 (414) — 107,347 Municipal bonds 49,473 — (3,037) — 46,436 SBA securities 13,631 2 (106) — 13,527 Beneficial interests in FHLMC securitization 14,473 4 (418) (6,818) 7,241 Corporate bonds 138,858 — (15,176) (1,402) 122,280 U.S. Treasury 399,375 — (585) — 398,790 Total $ 731,489 $ 1,034 $ (21,077) $ (8,220) $ 703,226 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, 2024: Agency mortgage-backed securities $ 775,702 $ — $ (84,942) $ — $ 690,760 Total $ 775,702 $ — $ (84,942) $ — $ 690,760 December 31, 2023: Agency mortgage-backed securities $ 789,578 $ 1 $ (79,558) $ — $ 710,021 Total $ 789,578 $ 1 $ (79,558) $ — $ 710,021 As of March 31, 2024, the tables above include $541.9 million in agency mortgage-backed securities pledged as collateral to the state of Florida to meet regulatory requirements; $1.2 million in U.S. Treasury securities pledged as collateral to various states to meet regulatory requirements related to the Bank’s trust operations; $260.8 million of agency mortgage-backed securities pledged as collateral as support for the Bank’s obligations under loan sales and securitization agreements entered into from 2018 and 2021; and $80.0 million in securities consisting of SBA securities, collateralized mortgage obligations, and agency mortgage-backed securities pledged as collateral for repurchase agreements obtained from a prior bank acquisition. A total of $444.5 million in SBA and agency mortgage-backed securities, collateralized mortgage obligations, corporate and municipal bonds are pledged as collateral to the Federal Reserve Bank’s discount window and bank term funding program from which the Bank may borrow. We monitor the credit quality of these securities by evaluating various quantitative attributes. The credit quality indicators the Company monitors include, but are not limited to, credit ratings of individual securities and the credit rating of United States government-sponsored enterprises that guarantee the securities. Credit ratings express opinions about the credit quality of a security. Securities rated investment grade, as defined by NRSROs, are generally considered by the rating agencies and market participants to be low credit risk. As of March 31, 2024, all of the Company’s securities were either investment grade or were issued by a U.S. government agency or GSE with an investment grade rating, with the exception of two corporate bonds having a combined market value of $31.5 million which were below investment grade. 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, 2024 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 $ 2,879 $ (60) $ 7,464 $ (1,302) $ 10,343 $ (1,362) Agency mortgage-backed securities 591,018 (4,199) 5,261 (429) 596,279 (4,628) Municipal bonds 2,271 (34) 42,708 (3,046) 44,979 (3,080) SBA securities 65 — 10,627 (110) 10,692 (110) Beneficial interests in FHLMC securitization 1,308 (21) 3,992 (485) 5,300 (506) Corporate bonds 28,435 (1,565) 96,680 (12,143) 125,115 (13,708) U.S. Treasury 398 (2) 851 (48) 1,249 (50) Total $ 626,374 $ (5,881) $ 167,583 $ (17,563) $ 793,957 $ (23,444) Securities with Unrealized Loss at December 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 $ — $ — $ 7,606 $ (1,341) $ 7,606 $ (1,341) Agency mortgage-backed securities — — 5,710 (414) 5,710 (414) Municipal bonds 1,779 (26) 42,847 (3,011) 44,626 (3,037) SBA securities 353 — 12,025 (106) 12,378 (106) Beneficial interests in FHLMC securitization — — 4,041 (418) 4,041 (418) Corporate bonds 14,847 (153) 108,832 (15,023) 123,679 (15,176) U.S. Treasury 397,942 (534) 848 (51) 398,790 (585) Total $ 414,921 $ (713) $ 181,909 $ (20,364) $ 596,830 $ (21,077) Unrealized losses in the securities AFS portfolio have not been recognized into income because the securities are either 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, or 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 value of our securities HTM portfolio, aggregated by investment category and length of time that the individual securities have been in a continuous unrecognized loss position. Securities with Unrecognized Loss at March 31, 2024 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 $ 19,455 $ (111) $ 671,305 $ (84,831) $ 690,760 $ (84,942) Total $ 19,455 $ (111) $ 671,305 $ (84,831) $ 690,760 $ (84,942) Securities with Unrecognized Loss at December 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 $ — $ — $ 689,454 $ (79,558) $ 689,454 $ (79,558) Total $ — $ — $ 689,454 $ (79,558) $ 689,454 $ (79,558) During the quarter ended March 31, 2024, securities available-for-sale totaling $1.0 billion were sold or matured, resulting in a gain on sale of securities available-for-sale of $221 thousand. There were no security sales during the quarter ended March 31, 2023. The following is a rollforward of the Company’s allowance for credit losses related to investments for the following periods: Beginning Provision (Reversal) Ending (dollars in thousands) Balance for Credit Losses Charge-offs Recoveries Balance Three Months Ended March 31, 2024: Beneficial interests in FHLMC securitization $ 6,818 $ (225) $ — $ — $ 6,593 Corporate bonds 1,402 (84) — — 1,318 Total $ 8,220 $ (309) $ — $ — $ 7,911 Three Months Ended March 31, 2023: Beneficial interests in FHLMC securitization $ 11,439 $ (124) $ — $ — $ 11,315 Corporate bonds — 973 — — 973 Total $ 11,439 $ 849 $ — $ — $ 12,288 Year Ended December 31, 2023: Beneficial interests in FHLMC securitization $ 11,439 $ (650) $ (3,971) $ — $ 6,818 Corporate bonds — 1,402 — — 1,402 Total $ 11,439 $ 752 $ (3,971) $ — $ 8,220 During the three month periods ending March 31, 2024 and March 31, 2023, the Company recorded a provision (reversal) for credit losses of ($309) thousand and $849 thousand, respectively. The ACL on investment securities is determined for both held-to-maturity and available-for-sale classifications of the investment portfolio in accordance with ASC 326, and is evaluated on a quarterly basis. The ACL for held-to- maturity investment securities is determined on a collective basis, based on shared risk characteristics, and is determined at the individual security level when the Company deems a security to no longer possess shared risk characteristics. Under ASC 326-20, for investment securities where the Company has reason to believe the credit loss exposure is remote, such as those guaranteed by the U.S. government or government sponsored entities, a zero-loss expectation is applied and a company is not required to estimate and recognize an ACL. The ACL related to held-to-maturity investment securities was zero at March 31, 2024. 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’s 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 (loss), 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. On a quarterly basis, the Company engages 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. As of March 31, 2024, the analysis concluded and the Company concurred that seventeen corporate bonds were impacted by credit loss, for which ($84) thousand was recorded as reversal of provision to the ACL related to available-for-sale securities and that no municipal bond securities were impacted by credit loss. For the three-month periods ended March 31, 2024 and March 31, 2023, there were no charge-offs recorded. For the year ended December 31, 2023, the Company recorded charge-offs of $4.0 million related to several interest-only strip securities. The ACL related to available-for-sale securities totaled $7.9 million and $8.2 million as of March 31, 2024 and December 31, 2023, respectively. The amortized cost and fair value of investment securities AFS by contractual maturity were as follows for the periods indicated: 1 Year or More than 1 Year More than 5 Years More than (dollars in thousands) Less through 5 Years through 10 Years 10 Years Total March 31, 2024 Amortized Cost: Collateralized mortgage obligations $ — $ 455 $ — $ 11,250 $ 11,705 Agency mortgage-backed securities 87 3,997 — 596,823 600,907 Municipal bonds — 11,423 34,962 2,984 49,369 SBA securities — 838 588 10,799 12,225 Beneficial interests in FHLMC securitization 3,243 5,190 — 5,807 14,240 Corporate bonds 5,000 61,949 66,348 5,526 138,823 U.S. Treasury 799 500 — — 1,299 Total $ 9,129 $ 84,352 $ 101,898 $ 633,189 $ 828,568 Weighted average yield 2.84 % 6.40 % 2.89 % 5.35 % 5.13 % Estimated Fair Value: Collateralized mortgage obligations $ — $ 409 $ — $ 9,934 $ 10,343 Agency mortgage-backed securities 85 3,781 — 592,413 596,279 Municipal bonds — 10,885 32,934 2,470 46,289 SBA securities — 832 586 10,699 12,117 Beneficial interests in FHLMC securitization 3,243 5,190 — 5,301 13,734 Corporate bonds 4,997 58,795 57,344 3,979 125,115 U.S. Treasury 786 463 — — 1,249 Total $ 9,111 $ 80,355 $ 90,864 $ 624,796 $ 805,126 1 Year or More than 1 Year More than 5 Years More than (dollars in thousands) Less through 5 Years through 10 Years 10 Years Total December 31, 2023 Amortized Cost: Collateralized mortgage obligations $ — $ — $ 513 $ 8,433 $ 8,946 Agency mortgage-backed securities 141 4,364 — 102,228 106,733 Municipal bonds — 9,672 36,103 3,698 49,473 SBA securities — 944 623 12,064 13,631 Beneficial interests in FHLMC securitization 3,315 5,380 — 5,778 14,473 Corporate bonds 5,012 60,444 67,872 5,530 138,858 U.S. Treasury 398,676 699 — — 399,375 Total $ 407,144 $ 81,503 $ 105,111 $ 137,731 $ 731,489 Weighted average yield 5.47 % 6.46 % 2.90 % 5.94 % 5.30 % Estimated Fair Value: Collateralized mortgage obligations $ — $ — $ 466 $ 7,139 $ 7,605 Agency mortgage-backed securities 137 4,134 — 103,076 107,347 Municipal bonds — 9,231 34,142 3,063 46,436 SBA securities — 936 622 11,969 13,527 Beneficial interests in FHLMC securitization 3,315 5,380 — 5,364 14,059 Corporate bonds 4,973 58,337 56,395 3,977 123,682 U.S. Treasury 398,135 655 — — 398,790 Total $ 406,560 $ 78,673 $ 91,625 $ 134,588 $ 711,446 The amortized cost and fair value of investment securities HTM by contractual maturity were as follows for the periods indicated: 1 Year or More than 1 Year More than 5 Years More than (dollars in thousands) Less through 5 Years through 10 Years 10 Years Total March 31, 2024 Amortized Cost: Agency mortgage-backed securities $ — $ 3,915 $ 11,956 $ 759,831 $ 775,702 Total $ — $ 3,915 $ 11,956 $ 759,831 $ 775,702 Weighted average yield — % 0.87 % 1.47 % 2.30 % 2.28 % Estimated Fair Value: Agency mortgage-backed securities $ — $ 3,644 $ 10,847 $ 676,269 $ 690,760 Total $ — $ 3,644 $ 10,847 $ 676,269 $ 690,760 1 Year or More than 1 Year More than 5 Years More than (dollars in thousands) Less through 5 Years through 10 Years 10 Years Total December 31, 2023 Amortized Cost: Agency mortgage-backed securities $ — $ 4,259 $ 12,537 $ 772,782 $ 789,578 Total $ — $ 4,259 $ 12,537 $ 772,782 $ 789,578 Weighted average yield — % 0.86 % 1.44 % 2.26 % 2.24 % Estimated Fair Value: Agency mortgage-backed securities $ — $ 3,972 $ 11,457 $ 694,592 $ 710,021 Total $ — $ 3,972 $ 11,457 $ 694,592 $ 710,021 |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2024 | |
LOANS | |
LOANS | NOTE 4: LOANS The following is a summary of our loans held for investment as of: March 31, December 31, (dollars in thousands) 2024 2023 Outstanding principal balance: Loans secured by real estate: Residential properties: Multifamily $ 5,220,725 $ 5,227,885 Single family 929,922 950,712 Total real estate loans secured by residential properties 6,150,647 6,178,597 Commercial properties 990,769 987,596 Land and construction 95,532 137,298 Total real estate loans 7,236,948 7,303,491 Commercial and industrial loans 2,831,982 2,856,228 Consumer loans 1,261 1,328 Total loans 10,070,191 10,161,047 Premiums, discounts and deferred fees and expenses 16,155 16,755 Total $ 10,086,346 $ 10,177,802 The Company’s loans held for investment portfolio is segmented according to loans that share similar attributes and risk characteristics. Loans secured by real estate include those secured by either residential or commercial real estate properties, such as multifamily and single-family residential loans; owner occupied and non-owner occupied commercial real estate loans; and land and construction loans. Commercial and industrial loans are loans to businesses where the operating cash flow of the business is the primary source of payment. This segment includes commercial revolving lines of credit and term loans, municipal finance loans, equipment finance loans and SBA loans. Consumer loans include personal installment loans and line of credit, and home equity lines of credit. These loan products are offered as an accommodation to clients of our primary business lines. Loans with a collateral value totaling $287.6 million and $283.7 million were pledged as collateral to secure borrowings with the Federal Reserve Bank at March 31, 2024 and December 31, 2023, respectively. Loans with a market value of During the quarter ended March 31, 2024, loans totaling $3.7 million in unpaid principal balance were sold, resulting in a net gain on sale of loans of $263 thousand. There were There were no outstanding loans held-for-sale as of March 31, 2024 and December 31, 2023. 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, 2024: Real estate loans: Residential properties $ 816 $ 732 $ — $ 448 $ 1,996 $ 6,167,416 $ 6,169,412 Commercial properties 8,570 — — 8,315 16,885 972,961 989,846 Land and construction — — — — — 95,269 95,269 Commercial and industrial loans 3,280 4,550 — 9,047 16,877 2,813,628 2,830,505 Consumer loans 156 — — — 156 1,158 1,314 Total $ 12,822 $ 5,282 $ — $ 17,810 $ 35,914 $ 10,050,432 $ 10,086,346 Percentage of total loans 0.13 % 0.05 % — % 0.18 % 0.36 % December 31, 2023: Real estate loans: Residential properties $ 93 $ 416 $ — $ 112 $ 621 $ 6,196,923 $ 6,197,544 Commercial properties 27,403 403 1,730 2,915 32,451 954,321 986,772 Land and construction — — — — — 136,827 136,827 Commercial and industrial loans 525 88 — 8,804 9,417 2,845,845 2,855,262 Consumer loans — — — — — 1,397 1,397 Total $ 28,021 $ 907 $ 1,730 $ 11,831 $ 42,489 $ 10,135,313 $ 10,177,802 Percentage of total loans 0.28 % 0.01 % 0.02 % 0.12 % 0.42 % 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, 2024: Real estate loans: Residential properties $ 448 $ — Commercial properties 2,853 5,462 Commercial and industrial loans 8,797 250 Consumer loans — — Total $ 12,098 $ 5,712 December 31, 2023: Real estate loans: Residential properties $ — $ 112 Commercial properties — 2,915 Commercial and industrial loans 7,406 1,398 Total $ 7,406 $ 4,425 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 following table presents our loan modifications made to borrowers experiencing financial difficulty by type of modification for the quarter ended March 31, 2024, with related amortized cost balances, respective percentage share of the total class of loans, and the related financial effect: March 31, 2024: Term Extension Amortized Cost Basis % of Total Class of Loans Financial Effect Commercial real estate loans $ 12,900 1.3 % 1 loan with term extension of 3 months . Commercial and industrial loans 736 0.03 % 10 loans with term extensions of 3 months ; 3 loans with term extensions of 10 months , 12 months and 60 months , respectively. Total $ 13,636 Combination Amortized Cost Basis % of Total Class of Loans Financial Effect Commercial and industrial loans $ 6,800 0.24 % 1 loan with term extension of 6 months and 5 month payment forbearance; 4 loans with term extensions of 7 months and payment forbearances of 6 months . Total $ 6,800 Total Amortized Cost Basis % of Total Class of Loans Commercial real estate loans $ 12,900 1.30 % Commercial and industrial loans 7,536 0.27 % Total $ 20,436 The Company did not make any loan modifications to borrowers experiencing financial difficulty for the quarter ended March 31, 2023. The following presents the payment status of our loan modifications made during the previous twelve-month period of April 1, 2023 to March 31, 2024: 30-89 Days 90+ Days (dollars in thousands) Current Past Due Past Due Nonaccrual Total March 31, 2024: Residential loans $ 247 $ — $ — $ — $ 247 Commercial real estate loans 13,525 — — 8,084 21,609 Commercial and industrial loans 13,968 — — — 13,968 Total $ 27,740 $ — $ — $ 8,084 $ 35,824 None of the loans modified during the previous twelve-month period of April 1, 2023 to March 31, 2024 subsequently had a payment default. |
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES | 3 Months Ended |
Mar. 31, 2024 | |
ALLOWANCE FOR CREDIT LOSSES | |
ALLOWANCE FOR CREDIT LOSSES | NOTE 5: ALLOWANCE FOR CREDIT LOSSES The Company accounts for ACL related to loans in accordance with ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The measurement of the ACL is performed by collectively pooling and evaluating loans with similar risk characteristics. The quantitative CECL model estimates credit losses by applying pool-specific probability of default (“PD”) and loss given default (“LGD”) rates to the expected exposure at default ("EAD") over the contractual life of the loans. A significant portion of the ACL is calculated and measured on a collective pool basis, representing $9.8 billion or approximately 97.5% of the total blended loan portfolio as of March 31, 2024. Pooled loan segments consisted of multifamily, commercial, single-family, non-owner occupied commercial real estate, and construction loans. The remaining portion of the loan portfolio, representing $247 million or approximately 2.5% of the total blended loan portfolio, consisted of small homogeneous loan portfolios which has its quantitative reserve calculated separately based on historical loss factors for the respective portfolios or, if no historical loss is available, based on peer group historical losses. These loan portfolios include equipment finance, land, consumer and commercial small balance loans. In addition, collateral dependent loans are separately valued based on the fair value of the underlying collateral. As of December 31, 2023, the ACL was calculated and measured based upon $9.9 billion or 97.2% of the total blended portfolio evaluated on a collective pool basis and $268 million in small homogeneous loan portfolios or 2.6% of the total blended portfolio evaluated using historical loss factors. The measurement also incorporates qualitative components such as internal and external risk factors that may not be adequately assessed in the quantitative model. Qualitative adjustments primarily relate to segments of the loan portfolio deemed by management to be of a higher-risk profile or other factors where management believes the quantitative component of the ACL model may not be fully reflective of levels deemed adequate in the judgement of management. Qualitative adjustments may also relate to uncertainty as to future macroeconomic conditions and the related impact on certain loan segments. Management reviews the need for an appropriate level of quantitative adjustments on a quarterly basis, and as such, the amount and allocation of qualitative adjustments may change in future periods. For purposes of calculating the ACL, the Company has elected to include deferred loan fees and expenses in the loan balance and exclude accrued interest from loan balances. The following is a rollforward of the allowance for credit losses related to loans for the following periods: Provision Beginning (Reversal) for Ending (dollars in thousands) Balance Credit Losses Charge-offs Recoveries Balance Three Months Ended March 31, 2024: Real estate loans: Residential properties $ 9,921 $ (1,547) $ — $ — $ 8,374 Commercial properties 4,148 449 — — 4,597 Land and construction 332 (266) — — 66 Commercial and industrial loans 14,796 1,797 (493) 151 16,251 Consumer loans 8 (2) — 1 7 Total $ 29,205 $ 431 $ (493) $ 152 $ 29,295 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 Year Ended December 31, 2023: Real estate loans: Residential properties $ 8,306 $ 1,615 $ — $ — $ 9,921 Commercial properties 8,714 (4,317) (249) — 4,148 Land and construction 164 168 — — 332 Commercial and industrial loans 16,521 1,171 (4,998) 2,102 14,796 Consumer loans 26 (18) (2) 2 8 Total $ 33,731 $ (1,381) $ (5,249) $ 2,104 $ 29,205 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 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, 2024: Loans secured by real estate: Commercial real estate loans 5,462 — — 5,462 — Commercial loans — 250 — 250 — Total $ 5,462 $ 250 $ — $ 5,712 $ — December 31, 2023: Loans secured by real estate: Commercial real estate loans 2,523 — — 2,523 — Commercial loans — 250 978 1,228 — Total $ 2,523 $ 250 $ 978 $ 3,751 $ — Credit Risk Management 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: 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, and includes gross charge-offs in accordance with ASU 2022-02 as of the dates presented: Revolving (dollars in thousands) 2024 2023 2022 2021 2020 Prior Loans Total March 31, 2024: Loans secured by real estate: Residential Multifamily Pass $ 11,840 $ 37,338 $ 2,353,803 $ 1,537,271 $ 755,425 $ 526,040 $ — $ 5,221,717 Special mention — — — — — 1,125 — 1,125 Substandard — — — — — 13,027 — 13,027 Total $ 11,840 $ 37,338 $ 2,353,803 $ 1,537,271 $ 755,425 $ 540,192 $ — $ 5,235,869 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Single family Pass $ — $ 10,594 $ 256,453 $ 265,560 $ 92,293 $ 239,977 $ 47,630 $ 912,507 Special mention — — — — — 20,004 — 20,004 Substandard — — — — — 898 134 1,032 Total $ — $ 10,594 $ 256,453 $ 265,560 $ 92,293 $ 260,879 $ 47,764 $ 933,543 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Pass $ 614 $ 2,435 $ 222,908 $ 129,672 $ 146,487 $ 441,460 $ — $ 943,576 Special mention — — — 1,215 2,259 1,201 — 4,675 Substandard — 12,900 — 114 1,389 27,192 — 41,595 Total $ 614 $ 15,335 $ 222,908 $ 131,001 $ 150,135 $ 469,853 $ — $ 989,846 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Land and construction Pass $ — $ 22,503 $ 37,070 $ 18,646 $ 9,388 $ 7,662 $ — $ 95,269 Special mention — — — — — — — — Substandard — — — — — — — — Total $ — $ 22,503 $ 37,070 $ 18,646 $ 9,388 $ 7,662 $ — $ 95,269 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass $ 43,231 $ 177,918 $ 1,065,076 $ 273,177 $ 113,850 $ 41,252 $ 1,070,563 $ 2,785,067 Special mention — — 1,240 24,578 298 644 730 27,490 Substandard 133 53 380 798 3,768 1,788 11,028 17,948 Total $ 43,364 $ 177,971 $ 1,066,696 $ 298,553 $ 117,916 $ 43,684 $ 1,082,321 $ 2,830,505 Gross charge-offs $ — $ 15 $ 359 $ 84 $ 35 $ — $ — $ 493 Consumer Pass $ 32 $ 11 $ — $ 557 $ — $ 353 $ 361 $ 1,314 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 32 $ 11 $ — $ 557 $ — $ 353 $ 361 $ 1,314 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Total loans Pass $ 55,717 $ 250,799 $ 3,935,310 $ 2,224,883 $ 1,117,443 $ 1,256,744 $ 1,118,554 $ 9,959,450 Special mention — — 1,240 25,793 2,557 22,974 730 53,294 Substandard 133 12,953 380 912 5,157 42,905 11,162 73,602 Total $ 55,850 $ 263,752 $ 3,936,930 $ 2,251,588 $ 1,125,157 $ 1,322,623 $ 1,130,446 $ 10,086,346 Gross charge-offs $ — $ 15 $ 359 $ 84 $ 35 $ — $ — $ 493 Revolving (dollars in thousands) 2023 2022 2021 2020 2019 Prior Loans Total December 31, 2023: Loans secured by real estate: Residential Multifamily Pass $ 37,343 $ 2,355,381 $ 1,537,636 $ 763,736 $ 289,675 $ 243,146 $ — $ 5,226,917 Special mention — — 1,248 — 5,577 9,426 — 16,251 Substandard — — — — — — — — Total $ 37,343 $ 2,355,381 $ 1,538,884 $ 763,736 $ 295,252 $ 252,572 $ — $ 5,243,168 Gross charge-offs $ — — — — — — — $ — Single family Pass $ 13,631 $ 259,043 $ 267,373 $ 92,567 $ 38,132 $ 208,035 $ 54,444 $ 933,225 Special mention — — — — — 20,166 — 20,166 Substandard — — — — — 846 139 985 Total $ 13,631 $ 259,043 $ 267,373 $ 92,567 $ 38,132 $ 229,047 $ 54,583 $ 954,376 Gross charge-offs $ — — — — — — — $ — Commercial real estate Pass $ 2,469 $ 221,525 $ 130,579 $ 119,684 $ 81,243 $ 383,729 $ — $ 939,229 Special mention — — 1,223 2,275 — 10,747 — 14,245 Substandard 12,900 — 116 1,445 11,424 7,413 — 33,298 Total $ 15,369 $ 221,525 $ 131,918 $ 123,404 $ 92,667 $ 401,889 $ — $ 986,772 Gross charge-offs $ — — — — — 249 — $ 249 Land and construction Pass $ 19,151 $ 43,923 $ 29,445 $ 36,498 $ 807 $ 7,003 $ — $ 136,827 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 19,151 $ 43,923 $ 29,445 $ 36,498 $ 807 $ 7,003 $ — $ 136,827 Gross charge-offs $ — — — — — — — $ — Commercial Pass $ 182,391 $ 1,082,510 $ 291,663 $ 119,035 $ 21,314 $ 25,030 $ 1,087,075 $ 2,809,018 Special mention — 1,360 24,653 703 56 656 735 28,163 Substandard 55 12 842 3,881 1,325 458 11,508 18,081 Total $ 182,446 $ 1,083,882 $ 317,158 $ 123,619 $ 22,695 $ 26,144 $ 1,099,318 $ 2,855,262 Gross charge-offs $ 257 1,420 1,205 587 117 48 1,364 $ 4,998 Consumer Pass $ 47 $ — $ 577 $ — $ 299 $ 59 $ 415 $ 1,397 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 47 $ — $ 577 $ — $ 299 $ 59 $ 415 $ 1,397 Gross charge-offs $ — — — — — — 2 $ 2 Total loans Pass $ 255,032 $ 3,962,382 $ 2,257,273 $ 1,131,520 $ 431,470 $ 867,002 $ 1,141,934 $ 10,046,613 Special mention — 1,360 27,124 2,978 5,633 40,995 735 78,825 Substandard 12,955 12 958 5,326 12,749 8,717 11,647 52,364 Total $ 267,987 $ 3,963,754 $ 2,285,355 $ 1,139,824 $ 449,852 $ 916,714 $ 1,154,316 $ 10,177,802 Gross charge-offs $ 257 1,420 1,205 587 117 297 1,366 $ 5,249 |
CORE DEPOSIT INTANGIBLES
CORE DEPOSIT INTANGIBLES | 3 Months Ended |
Mar. 31, 2024 | |
CORE DEPOSIT INTANGIBLES | |
CORE DEPOSIT INTANGIBLES | NOTE 6: CORE DEPOSIT INTANGIBLES Core deposit intangibles are intangible assets having definite useful lives arising from whole bank acquisitions. Core deposit intangibles are amortized on an accelerated method over their estimated useful lives, ranging from 7 to 10 years. At March 31, 2024 and December 31, 2023, core deposit intangible assets totaled $4.6 million and $4.9 million, respectively, and we recognized $370 thousand and $434 thousand in core deposit intangible amortization expense for the three-month periods ended March 31, 2024 and March 31, 2023, respectively. |
DERIVATIVE ASSETS
DERIVATIVE ASSETS | 3 Months Ended |
Mar. 31, 2024 | |
DERIVATIVE ASSETS | |
DERIVATIVE ASSETS | NOTE 7: DERIVATIVE ASSETS On February 1, 2024, the Bank entered into an interest rate swap agreement with an institutional counterparty to hedge against our exposure to changes in interest rates as part of our overall interest rate risk management strategy. On the date the agreement was entered into, the derivative was designated as a cash flow hedge, as it was undertaken to manage the risk of changes in cash flows on interest payments associated with a stream of variable-rate, short-term borrowings for a corresponding amount that are attributable to changes in the future financing rates of each rolling maturity. At inception and on a quarterly basis thereafter, an assessment is performed to determine the effectiveness of the derivative at reducing the risk associated with the hedged exposure. A cash flow hedge designated as highly effective is carried at fair value on the balance sheet with the portion of change in fair value of the cash flow hedge considered highly effective recognized in AOCI. If the cash flow hedge becomes ineffective, the portion of the change in fair value of the cash flow hedge considered ineffective is reclassified from AOCI to earnings. The hedging instrument is a pay-fixed, receive variable interest rate swap agreement having a beginning notional amount of $450 million. The Bank pays quarterly interest at a fixed rate of 3.583% and receives quarterly interest payments calculated at the Daily Simple SOFR over the same period. The original term of the agreement is five years, expiring on February 1, 2029. On March 28, 2024, the original hedge position notional amount was reduced by $100 million, and a corresponding amount of the hedged item was simultaneously de-designated, resulting in the recording of a partial gain of $0.8 million, classified as capital markets activities on the accompanying statements of operations. At March 31, 2024, the fair value of the cash flow hedge was $6.0 million and is classified as derivative assets on the accompanying balance sheet. A corresponding $5.2 million is classified as a component of AOCI, which represents the fair value of the derivative asset less the $0.8 million realized gain recognized on the de-designation. |
LOAN SALES AND MORTGAGE SERVICI
LOAN SALES AND MORTGAGE SERVICING RIGHTS | 3 Months Ended |
Mar. 31, 2024 | |
LOAN SALES AND MORTGAGE SERVICING RIGHTS | |
LOAN SALES AND MORTGAGE SERVICING RIGHTS | NOTE 8: 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, 2024 and December 31, 2023, mortgage servicing rights net of valuation allowance totaled $4.8 million and $5.5 million, respectively and is classified as a component of other assets in the accompanying consolidated balance sheets. The amount of loans serviced for others totaled $1.0 billion at March 31, 2024 and December 31, 2023. Servicing fees collected for the first three months of 2024 and 2023 were $0.6 million. There were no loan sale or purchase transactions that resulted in the recognition of mortgage servicing rights in 2024 and 2023. |
DEPOSITS
DEPOSITS | 3 Months Ended |
Mar. 31, 2024 | |
DEPOSITS | |
DEPOSITS | NOTE 9: DEPOSITS The following table summarizes the outstanding balance of deposits and average rates paid thereon as of: March 31, 2024 December 31, 2023 Weighted Weighted (dollars in thousands) Amount Average Rate Amount Average Rate Demand deposits: Noninterest-bearing $ 1,827,520 — $ 1,467,806 — Interest-bearing 2,785,092 3.65 % 2,881,786 2.94 % Money market and savings 3,309,002 3.79 % 3,195,670 3.81 % Certificates of deposit 2,717,356 4.76 % 3,143,670 4.87 % Total $ 10,638,970 3.35 % $ 10,688,932 3.36 % The following table provides the remaining maturities of certificate of deposit accounts of greater than $250,000 as of: March 31, 2024 December 31, 2023 Large Denomination Certificates of Deposit Maturity Distribution (dollars in thousands) 3 months or less $ 25,049 $ 343,078 Over 3 months through 6 months 23,652 24,126 Over 6 months through 12 months 110,073 56,415 Over 12 months 3,676 30,994 Total $ 162,450 $ 454,613 Large depositor relationships, consisting of deposit relationships which exceed 2% of total deposits, accounted for, in the aggregate, 11.7% and 12.5% of our total deposits as of March 31, 2024 and December 31, 2023, respectively. The composition of our large depositor relationships continues to include clients which have maintained long-term depository relationships with us. Accrued interest payable on deposits, which is included in accounts payable and other liabilities, was $35.4 million and $36.7 million at March 31, 2024 and December 31, 2023, respectively. |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2024 | |
BORROWINGS | |
BORROWINGS | NOTE 10: BORROWINGS The Bank has established secured and unsecured lines of credit under which it may borrow funds from time to time on a term or overnight basis from the FHLB, Federal Reserve Bank of San Francisco (the “Federal Reserve Bank”), and other institutions. At March 31, 2024, our borrowings consisted of $800 million in FHLB putable advances at the Bank, $550 million of FHLB term advances at the Bank, $279 million in term advances from the Federal Reserve Bank, and $76 million in repurchase agreements at the Bank. At December 31, 2023, our borrowings consisted of $800 million in FHLB putable advances at the Bank, $100 million of FHLB term advances at the Bank, $160 million in overnight advances and $285 million in term advances from the Federal Reserve Bank, and $64 million in repurchase agreements at the Bank. FHLB Advances The FHLB putable advances outstanding at March 31, 2024 had a weighted average remaining life of 5.16 The FHLB term advances outstanding at March 31, 2024 consist of the following: $100 million in a three-month fixed-rate advance maturing on May 1, 2024 at an interest rate of 5.60%. $350 million in a three-month fixed-rate advance maturing on April 30, 2024 at an interest rate of 5.60%. $100 million in a five-year fixed rate advance maturing on June 28, 2028 at an interest rate of 4.21%. FHLB advances are collateralized primarily by loans secured by single family, multifamily, and commercial real estate properties with a market value of $5.7 billion as of March 31, 2024. The Bank’s total unused borrowing capacity from the FHLB as of March 31, 2024 was $2.0 billion. The Bank had in place $10 million of letters of credit from the FHLB as of March 31, 2024, which are used to meet collateral requirements for deposits from local agencies. The FHLB putable advances outstanding at December 31, 2023 had a weighted average remaining life of 5.41 years and a weighted average interest rate of 3.74%. The FHLB term advances had an interest rate of 4.21% and matures on June 28, 2028. FHLB advances were collateralized primarily by loans secured by single family, multifamily, and commercial real estate properties with a market value of $4.3 billion as of December 31, 2023. The Bank’s total unused borrowing capacity from the FHLB as of December 31, 2023 was $2.0 billion. The Bank had in place $310 million of letters of credit from the FHLB as of December 31, 2023, which are used to meet collateral requirements for deposits from the State of California and local agencies. Federal Reserve Bank Borrowings The Bank has a secured line of credit with the Federal Reserve Bank including the secured borrowing capacity through the Federal Reserve Bank’s Discount Window, Borrower-in-Custody (“BIC”), and Bank Term Funding (“BTFP”) programs. Borrowings under the BIC program are overnight advances with interest chargeable at the primary credit borrowing rate. At March 31, 2024, the Bank did not have any borrowings outstanding under the BIC program. Borrowings under the BTFP, which was established in March 2023, are for periods up to one year in length, with interest rates based on the one-year overnight index swap (“OIS”) rate plus a spread of 10 basis points. BTFP borrowings totaled $279 million at March 31, 2024 and are collateralized by eligible investment securities valued at par and provide an additional source of liquidity. At March 31, 2024, the Bank had secured unused borrowing capacity of $452 million under this agreement. At December 31, 2023, the Bank had outstanding BIC program borrowings totaling $160 million, bearing an interest rate of 5.50% and were repaid in full in early January, 2024. At December 31, 2023, the Bank had outstanding BTFP borrowings totaling $285 million. At December 31, 2023, the Bank had secured unused borrowing capacity of $402 million under this agreement. Uncommitted Credit Facilities: The Bank has a total of $170 million in borrowing capacity through unsecured federal funds lines, ranging in size from $20 million to $100 million, with four correspondent financial institutions. There were no balances outstanding under these arrangements as of March 31, 2024 and December 31, 2023. Holding Company Line of Credit: 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 2025. 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, 2024 and December 31, 2023, FFI was in compliance with the covenants contained in the loan agreement. As of March 31, 2024 and December 31, 2023, there were no balances outstanding under this agreement. Repurchase Agreements: 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, 2024 and December 31, 2023, the repurchase agreements are collateralized by investment securities with a fair value of approximately $80.0 million and $76.3 million, respectively. |
SUBORDINATED DEBT
SUBORDINATED DEBT | 3 Months Ended |
Mar. 31, 2024 | |
SUBORDINATED DEBT. | |
SUBORDINATED DEBT | NOTE 11: SUBORDINATED DEBT At March 31, 2024 and December 31, 2023, FFI had two issuances of subordinated notes outstanding with an aggregate carrying value of $173 million. At March 31, 2024 and December 31, 2023, FFI was in compliance with all covenants under its subordinated debt agreements. The following table summarizes the outstanding subordinated notes as of the dates indicated: Current Current Carrying Value Stated Interest Principal March 31, December 31, (dollars in thousands) Maturity Rate Balance 2024 2023 Subordinated notes Subordinated notes due 2032, 3.50% per annum until February 1, 2027, 3-month SOFR + 2.04% thereafter February 1, 2032 3.50 % $ 150,000 $ 148,118 $ 148,058 Subordinated notes due 2030, 6.0% per annum until June 30, 2025, 3-month SOFR + 5.90% thereafter. June 30, 2030 6.00 % 24,165 25,295 25,339 Total $ 174,165 $ 173,413 $ 173,397 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
INCOME TAXES | |
INCOME TAXES | NOTE 12: INCOME TAXES For the three months ended March 31, 2024, the Company recorded an income tax benefit of $910 thousand and had an effective tax rate of 777.8%. For the three months ended March 31, 2023, the Company recorded income tax expense of $2.2 million and had an effective tax rate of 20.6%. The changes in the effective tax rate were predominately due to the changes in pretax income. The effective tax rates differ from the combined federal and state statutory rates for the Company of 28.2% due primarily to various permanent tax differences, including tax-exempt income, tax credits from low-income housing tax credit investments, and other items that impact our effective tax rate. The Company accounts for income taxes by recognizing deferred tax assets and liabilities based upon future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is established if it is “more likely than not” that all or a portion of the deferred tax assets will not be realized. Management has evaluated the realization of deferred tax assets and has determined that it is more likely than not that all of the deferred tax assets would be realized, therefore no valuation allowance was provided against the deferred tax assets. Deferred tax assets totaled $33.6 million and $29.1 million at March 31, 2024 and December 31, 2023, respectively. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | NOTE 13: SHAREHOLDERS’ EQUITY FFI is a holding company and does not have any direct operating activities. Any future cash flow needs of FFI are expected to be met by its existing cash and cash equivalents and dividends from its subsidiaries. The Bank is subject to various laws and regulations that limit the amount of dividends that a bank can pay without obtaining prior approval from bank regulators. Additionally, under the terms of the holding company line of credit agreement, FFI may only declare and pay a dividend if the total amount of dividends and stock repurchases during the current twelve months does not exceed 50% of FFI’s net income for the same twelve-month period. FFI’s cash and cash equivalents totaled $5.3 million and $15.3 million at March 31, 2024 and December 31, 2023, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 14: EARNINGS PER SHARE Basic earnings per share (“EPS”) 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, 2024 March 31, 2023 (dollars in thousands, except per share amounts) Basic Diluted Basic Diluted Net income $ 793 $ 793 $ 8,496 $ 8,496 Basic common shares outstanding 56,484,655 56,484,655 56,376,669 56,376,669 Effect of options, restricted stock and contingent shares issuable 19,220 33,747 Diluted common shares outstanding 56,503,875 56,410,416 Net income per share $ 0.01 $ 0.01 $ 0.15 $ 0.15 |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2024 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 15: SEGMENT REPORTING For the three months ended March 31, 2024 and 2023, 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. In accordance with ASU 2023-07 “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”, Chief Executive Officer. 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, 2024: Interest income $ 150,453 $ — $ — $ 150,453 Interest expense 110,362 — 1,705 112,067 Net interest income 40,091 — (1,705) 38,386 Provision for credit losses 577 — — 577 Noninterest income 5,683 7,349 (349) 12,683 Noninterest expense Compensation and benefits 15,172 4,095 140 19,407 Customer service costs 10,738 — — 10,738 Professional services and marketing costs 2,532 901 (43) 3,390 Other 16,098 680 296 17,074 Income (loss) before income taxes 657 1,673 (2,447) (117) Income tax (benefit) expense (711) 487 (686) (910) Net income (loss) $ 1,368 $ 1,186 $ (1,761) $ 793 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 Compensation and benefits 20,260 4,560 466 25,286 Customer service costs 16,715 — — 16,715 Professional services and marketing costs 2,664 804 827 4,295 Other 12,006 701 337 13,044 Income (loss) before income taxes 13,290 1,226 (3,820) 10,696 Income tax expense (benefit) 2,947 364 (1,111) 2,200 Net income (loss) $ 10,343 $ 862 $ (2,709) $ 8,496 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 16: SUBSEQUENT EVENTS Cash Dividend On April 25, 2024, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.01 per common share to be paid on May 16, 2024 to shareholders of record as of the close of business on May 6, 2024. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023, 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 2024 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, 2023. |
Derivatives Asset (Cash Flow Hedge) | Derivative Asset (Cash Flow Hedge). Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities’ The cash flow hedge is classified as derivative assets in the accompanying consolidated balance sheets. The earnings and cash flow impact from this derivative asset are classified as an offset to interest expense which is consistent with the underlying hedged item. |
New Accounting Pronouncements | New Accounting Pronouncements In June 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. In November 2023, FASB issued ASU 2023-07, “Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures”. Segment Reporting |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024: Investment securities available-for-sale: Collateralized mortgage obligations $ 10,343 $ — $ 10,343 $ — Agency mortgage-backed securities 596,279 — 596,279 — Municipal bonds 46,289 — 46,289 — SBA securities 12,117 — 12,117 — Beneficial interests in FHLMC securitization 7,141 — — 7,141 Corporate bonds 123,797 — 123,797 — U.S. Treasury 1,249 1,249 — — Investment in equity securities 11,776 — — 11,776 Total assets at fair value on a recurring basis $ 808,991 $ 1,249 $ 788,825 $ 18,917 Derivatives: Cash flow hedge $ 6,035 $ — $ 6,035 $ — December 31, 2023 Investment securities available-for-sale: Collateralized mortgage obligations $ 7,605 $ — $ 7,605 $ — Agency mortgage-backed securities 107,347 — 107,347 — Municipal bonds 46,436 — 46,436 — SBA securities 13,527 — 13,527 — Beneficial interests in FHLMC securitization 7,242 — — 7,242 Corporate bonds 122,279 — 122,279 — U.S. Treasury 398,790 398,790 — — Investment in equity securities 11,768 — — 11,768 Total assets at fair value on a recurring basis $ 714,994 $ 398,790 $ 297,194 $ 19,010 |
Carrying Amounts and Estimated Fair Value of Financial Instruments | The following table sets forth the estimated fair values and related carrying amounts of our financial instruments as of: Carrying Fair Value Measurement Level (dollars in thousands) Value 1 2 3 Total March 31, 2024: Assets: Cash and cash equivalents $ 1,588,036 $ 1,588,036 $ — $ — $ 1,588,036 Securities AFS, net 797,215 1,249 788,825 7,141 797,215 Securities HTM 775,702 — 690,760 — 690,760 Loans, net 10,057,051 — — 9,604,899 9,604,899 Investment in FHLB stock 36,668 — 36,668 — 36,668 Investment in equity securities 11,776 — — 11,776 11,776 Accrued interest receivable 53,446 53,446 — — 53,446 Derivative assets 6,035 — 6,035 — 6,035 Liabilities: Deposits $ 10,638,970 $ 7,921,615 $ 2,705,671 $ — $ 10,627,286 Borrowings 1,705,493 905,493 800,000 — 1,705,493 Subordinated debt 173,413 — — 136,514 136,514 Accrued interest payable 44,342 44,342 — — 44,342 December 31, 2023: Assets: Cash and cash equivalents $ 1,326,629 $ 1,326,629 $ — $ — $ 1,326,629 Securities AFS, net 703,226 398,790 297,194 7,242 703,226 Securities HTM 789,578 — 710,021 — 710,021 Loans, net 10,148,597 — — 9,827,508 9,827,508 Investment in FHLB stock 24,613 — 24,613 — 24,613 Investment in equity securities 11,768 — — 11,768 11,768 Accrued interest receivable 54,163 54,163 — — 54,163 Liabilities: Deposits $ 10,688,932 $ 7,545,262 $ 3,145,870 $ — $ 10,691,132 Borrowings 1,409,056 609,056 800,000 — 1,409,056 Subordinated debt 173,397 — — 136,002 136,002 Accrued interest payable 42,177 42,177 — — 42,177 |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024: Collateralized mortgage obligations $ 11,705 $ — $ (1,362) $ — $ 10,343 Agency mortgage-backed securities 600,907 — (4,628) — 596,279 Municipal bonds 49,369 — (3,080) — 46,289 SBA securities 12,225 2 (110) — 12,117 Beneficial interests in FHLMC securitization 14,240 — (506) (6,593) 7,141 Corporate bonds 138,823 — (13,708) (1,318) 123,797 U.S. Treasury 1,299 — (50) — 1,249 Total $ 828,568 $ 2 $ (23,444) $ (7,911) $ 797,215 December 31, 2023: Collateralized mortgage obligations $ 8,946 $ — $ (1,341) $ — $ 7,605 Agency mortgage-backed securities 106,733 1,028 (414) — 107,347 Municipal bonds 49,473 — (3,037) — 46,436 SBA securities 13,631 2 (106) — 13,527 Beneficial interests in FHLMC securitization 14,473 4 (418) (6,818) 7,241 Corporate bonds 138,858 — (15,176) (1,402) 122,280 U.S. Treasury 399,375 — (585) — 398,790 Total $ 731,489 $ 1,034 $ (21,077) $ (8,220) $ 703,226 |
Summary of HTM Securities Portfolio | Amortized Gross Unrecognized Allowance for Estimated (dollars in thousands) Cost Gains Losses Credit Losses Fair Value March 31, 2024: Agency mortgage-backed securities $ 775,702 $ — $ (84,942) $ — $ 690,760 Total $ 775,702 $ — $ (84,942) $ — $ 690,760 December 31, 2023: Agency mortgage-backed securities $ 789,578 $ 1 $ (79,558) $ — $ 710,021 Total $ 789,578 $ 1 $ (79,558) $ — $ 710,021 |
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, 2024 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 $ 2,879 $ (60) $ 7,464 $ (1,302) $ 10,343 $ (1,362) Agency mortgage-backed securities 591,018 (4,199) 5,261 (429) 596,279 (4,628) Municipal bonds 2,271 (34) 42,708 (3,046) 44,979 (3,080) SBA securities 65 — 10,627 (110) 10,692 (110) Beneficial interests in FHLMC securitization 1,308 (21) 3,992 (485) 5,300 (506) Corporate bonds 28,435 (1,565) 96,680 (12,143) 125,115 (13,708) U.S. Treasury 398 (2) 851 (48) 1,249 (50) Total $ 626,374 $ (5,881) $ 167,583 $ (17,563) $ 793,957 $ (23,444) Securities with Unrealized Loss at December 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 $ — $ — $ 7,606 $ (1,341) $ 7,606 $ (1,341) Agency mortgage-backed securities — — 5,710 (414) 5,710 (414) Municipal bonds 1,779 (26) 42,847 (3,011) 44,626 (3,037) SBA securities 353 — 12,025 (106) 12,378 (106) Beneficial interests in FHLMC securitization — — 4,041 (418) 4,041 (418) Corporate bonds 14,847 (153) 108,832 (15,023) 123,679 (15,176) U.S. Treasury 397,942 (534) 848 (51) 398,790 (585) Total $ 414,921 $ (713) $ 181,909 $ (20,364) $ 596,830 $ (21,077) Securities with Unrecognized Loss at March 31, 2024 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 $ 19,455 $ (111) $ 671,305 $ (84,831) $ 690,760 $ (84,942) Total $ 19,455 $ (111) $ 671,305 $ (84,831) $ 690,760 $ (84,942) Securities with Unrecognized Loss at December 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 $ — $ — $ 689,454 $ (79,558) $ 689,454 $ (79,558) Total $ — $ — $ 689,454 $ (79,558) $ 689,454 $ (79,558) |
Summary of Allowance For Credit Losses - Securities AFS | Beginning Provision (Reversal) Ending (dollars in thousands) Balance for Credit Losses Charge-offs Recoveries Balance Three Months Ended March 31, 2024: Beneficial interests in FHLMC securitization $ 6,818 $ (225) $ — $ — $ 6,593 Corporate bonds 1,402 (84) — — 1,318 Total $ 8,220 $ (309) $ — $ — $ 7,911 Three Months Ended March 31, 2023: Beneficial interests in FHLMC securitization $ 11,439 $ (124) $ — $ — $ 11,315 Corporate bonds — 973 — — 973 Total $ 11,439 $ 849 $ — $ — $ 12,288 Year Ended December 31, 2023: Beneficial interests in FHLMC securitization $ 11,439 $ (650) $ (3,971) $ — $ 6,818 Corporate bonds — 1,402 — — 1,402 Total $ 11,439 $ 752 $ (3,971) $ — $ 8,220 |
Schedule Maturities of Securities AFS by Contractual Maturity | The amortized cost and fair value of investment securities AFS by contractual maturity were as follows for the periods indicated: 1 Year or More than 1 Year More than 5 Years More than (dollars in thousands) Less through 5 Years through 10 Years 10 Years Total March 31, 2024 Amortized Cost: Collateralized mortgage obligations $ — $ 455 $ — $ 11,250 $ 11,705 Agency mortgage-backed securities 87 3,997 — 596,823 600,907 Municipal bonds — 11,423 34,962 2,984 49,369 SBA securities — 838 588 10,799 12,225 Beneficial interests in FHLMC securitization 3,243 5,190 — 5,807 14,240 Corporate bonds 5,000 61,949 66,348 5,526 138,823 U.S. Treasury 799 500 — — 1,299 Total $ 9,129 $ 84,352 $ 101,898 $ 633,189 $ 828,568 Weighted average yield 2.84 % 6.40 % 2.89 % 5.35 % 5.13 % Estimated Fair Value: Collateralized mortgage obligations $ — $ 409 $ — $ 9,934 $ 10,343 Agency mortgage-backed securities 85 3,781 — 592,413 596,279 Municipal bonds — 10,885 32,934 2,470 46,289 SBA securities — 832 586 10,699 12,117 Beneficial interests in FHLMC securitization 3,243 5,190 — 5,301 13,734 Corporate bonds 4,997 58,795 57,344 3,979 125,115 U.S. Treasury 786 463 — — 1,249 Total $ 9,111 $ 80,355 $ 90,864 $ 624,796 $ 805,126 1 Year or More than 1 Year More than 5 Years More than (dollars in thousands) Less through 5 Years through 10 Years 10 Years Total December 31, 2023 Amortized Cost: Collateralized mortgage obligations $ — $ — $ 513 $ 8,433 $ 8,946 Agency mortgage-backed securities 141 4,364 — 102,228 106,733 Municipal bonds — 9,672 36,103 3,698 49,473 SBA securities — 944 623 12,064 13,631 Beneficial interests in FHLMC securitization 3,315 5,380 — 5,778 14,473 Corporate bonds 5,012 60,444 67,872 5,530 138,858 U.S. Treasury 398,676 699 — — 399,375 Total $ 407,144 $ 81,503 $ 105,111 $ 137,731 $ 731,489 Weighted average yield 5.47 % 6.46 % 2.90 % 5.94 % 5.30 % Estimated Fair Value: Collateralized mortgage obligations $ — $ — $ 466 $ 7,139 $ 7,605 Agency mortgage-backed securities 137 4,134 — 103,076 107,347 Municipal bonds — 9,231 34,142 3,063 46,436 SBA securities — 936 622 11,969 13,527 Beneficial interests in FHLMC securitization 3,315 5,380 — 5,364 14,059 Corporate bonds 4,973 58,337 56,395 3,977 123,682 U.S. Treasury 398,135 655 — — 398,790 Total $ 406,560 $ 78,673 $ 91,625 $ 134,588 $ 711,446 |
Schedule of Maturities of Securities HTM | The amortized cost and fair value of investment securities HTM by contractual maturity were as follows for the periods indicated: 1 Year or More than 1 Year More than 5 Years More than (dollars in thousands) Less through 5 Years through 10 Years 10 Years Total March 31, 2024 Amortized Cost: Agency mortgage-backed securities $ — $ 3,915 $ 11,956 $ 759,831 $ 775,702 Total $ — $ 3,915 $ 11,956 $ 759,831 $ 775,702 Weighted average yield — % 0.87 % 1.47 % 2.30 % 2.28 % Estimated Fair Value: Agency mortgage-backed securities $ — $ 3,644 $ 10,847 $ 676,269 $ 690,760 Total $ — $ 3,644 $ 10,847 $ 676,269 $ 690,760 1 Year or More than 1 Year More than 5 Years More than (dollars in thousands) Less through 5 Years through 10 Years 10 Years Total December 31, 2023 Amortized Cost: Agency mortgage-backed securities $ — $ 4,259 $ 12,537 $ 772,782 $ 789,578 Total $ — $ 4,259 $ 12,537 $ 772,782 $ 789,578 Weighted average yield — % 0.86 % 1.44 % 2.26 % 2.24 % Estimated Fair Value: Agency mortgage-backed securities $ — $ 3,972 $ 11,457 $ 694,592 $ 710,021 Total $ — $ 3,972 $ 11,457 $ 694,592 $ 710,021 |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
LOANS | |
Schedule of summary of loans held for investment | The following is a summary of our loans held for investment as of: March 31, December 31, (dollars in thousands) 2024 2023 Outstanding principal balance: Loans secured by real estate: Residential properties: Multifamily $ 5,220,725 $ 5,227,885 Single family 929,922 950,712 Total real estate loans secured by residential properties 6,150,647 6,178,597 Commercial properties 990,769 987,596 Land and construction 95,532 137,298 Total real estate loans 7,236,948 7,303,491 Commercial and industrial loans 2,831,982 2,856,228 Consumer loans 1,261 1,328 Total loans 10,070,191 10,161,047 Premiums, discounts and deferred fees and expenses 16,155 16,755 Total $ 10,086,346 $ 10,177,802 |
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, 2024: Real estate loans: Residential properties $ 816 $ 732 $ — $ 448 $ 1,996 $ 6,167,416 $ 6,169,412 Commercial properties 8,570 — — 8,315 16,885 972,961 989,846 Land and construction — — — — — 95,269 95,269 Commercial and industrial loans 3,280 4,550 — 9,047 16,877 2,813,628 2,830,505 Consumer loans 156 — — — 156 1,158 1,314 Total $ 12,822 $ 5,282 $ — $ 17,810 $ 35,914 $ 10,050,432 $ 10,086,346 Percentage of total loans 0.13 % 0.05 % — % 0.18 % 0.36 % December 31, 2023: Real estate loans: Residential properties $ 93 $ 416 $ — $ 112 $ 621 $ 6,196,923 $ 6,197,544 Commercial properties 27,403 403 1,730 2,915 32,451 954,321 986,772 Land and construction — — — — — 136,827 136,827 Commercial and industrial loans 525 88 — 8,804 9,417 2,845,845 2,855,262 Consumer loans — — — — — 1,397 1,397 Total $ 28,021 $ 907 $ 1,730 $ 11,831 $ 42,489 $ 10,135,313 $ 10,177,802 Percentage of total loans 0.28 % 0.01 % 0.02 % 0.12 % 0.42 % |
Summary of nonaccrual loans | Nonaccrual Nonaccrual with Allowance with no Allowance (dollars in thousands) for Credit Losses for Credit Losses March 31, 2024: Real estate loans: Residential properties $ 448 $ — Commercial properties 2,853 5,462 Commercial and industrial loans 8,797 250 Consumer loans — — Total $ 12,098 $ 5,712 December 31, 2023: Real estate loans: Residential properties $ — $ 112 Commercial properties — 2,915 Commercial and industrial loans 7,406 1,398 Total $ 7,406 $ 4,425 |
Schedule of composition of TDRs by accrual and nonaccrual status | March 31, 2024: Term Extension Amortized Cost Basis % of Total Class of Loans Financial Effect Commercial real estate loans $ 12,900 1.3 % 1 loan with term extension of 3 months . Commercial and industrial loans 736 0.03 % 10 loans with term extensions of 3 months ; 3 loans with term extensions of 10 months , 12 months and 60 months , respectively. Total $ 13,636 Combination Amortized Cost Basis % of Total Class of Loans Financial Effect Commercial and industrial loans $ 6,800 0.24 % 1 loan with term extension of 6 months and 5 month payment forbearance; 4 loans with term extensions of 7 months and payment forbearances of 6 months . Total $ 6,800 Total Amortized Cost Basis % of Total Class of Loans Commercial real estate loans $ 12,900 1.30 % Commercial and industrial loans 7,536 0.27 % Total $ 20,436 The following presents the payment status of our loan modifications made during the previous twelve-month period of April 1, 2023 to March 31, 2024: 30-89 Days 90+ Days (dollars in thousands) Current Past Due Past Due Nonaccrual Total March 31, 2024: Residential loans $ 247 $ — $ — $ — $ 247 Commercial real estate loans 13,525 — — 8,084 21,609 Commercial and industrial loans 13,968 — — — 13,968 Total $ 27,740 $ — $ — $ 8,084 $ 35,824 |
ALLOWANCE FOR CREDIT LOSSES (Ta
ALLOWANCE FOR CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 Beginning (Reversal) for Ending (dollars in thousands) Balance Credit Losses Charge-offs Recoveries Balance Three Months Ended March 31, 2024: Real estate loans: Residential properties $ 9,921 $ (1,547) $ — $ — $ 8,374 Commercial properties 4,148 449 — — 4,597 Land and construction 332 (266) — — 66 Commercial and industrial loans 14,796 1,797 (493) 151 16,251 Consumer loans 8 (2) — 1 7 Total $ 29,205 $ 431 $ (493) $ 152 $ 29,295 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 Year Ended December 31, 2023: Real estate loans: Residential properties $ 8,306 $ 1,615 $ — $ — $ 9,921 Commercial properties 8,714 (4,317) (249) — 4,148 Land and construction 164 168 — — 332 Commercial and industrial loans 16,521 1,171 (4,998) 2,102 14,796 Consumer loans 26 (18) (2) 2 8 Total $ 33,731 $ (1,381) $ (5,249) $ 2,104 $ 29,205 |
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 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, 2024: Loans secured by real estate: Commercial real estate loans 5,462 — — 5,462 — Commercial loans — 250 — 250 — Total $ 5,462 $ 250 $ — $ 5,712 $ — December 31, 2023: Loans secured by real estate: Commercial real estate loans 2,523 — — 2,523 — Commercial loans — 250 978 1,228 — Total $ 2,523 $ 250 $ 978 $ 3,751 $ — |
Risk Category of Loans by Class of Loans | The following tables present risk categories of loans based on year of origination, and includes gross charge-offs in accordance with ASU 2022-02 as of the dates presented: Revolving (dollars in thousands) 2024 2023 2022 2021 2020 Prior Loans Total March 31, 2024: Loans secured by real estate: Residential Multifamily Pass $ 11,840 $ 37,338 $ 2,353,803 $ 1,537,271 $ 755,425 $ 526,040 $ — $ 5,221,717 Special mention — — — — — 1,125 — 1,125 Substandard — — — — — 13,027 — 13,027 Total $ 11,840 $ 37,338 $ 2,353,803 $ 1,537,271 $ 755,425 $ 540,192 $ — $ 5,235,869 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Single family Pass $ — $ 10,594 $ 256,453 $ 265,560 $ 92,293 $ 239,977 $ 47,630 $ 912,507 Special mention — — — — — 20,004 — 20,004 Substandard — — — — — 898 134 1,032 Total $ — $ 10,594 $ 256,453 $ 265,560 $ 92,293 $ 260,879 $ 47,764 $ 933,543 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Pass $ 614 $ 2,435 $ 222,908 $ 129,672 $ 146,487 $ 441,460 $ — $ 943,576 Special mention — — — 1,215 2,259 1,201 — 4,675 Substandard — 12,900 — 114 1,389 27,192 — 41,595 Total $ 614 $ 15,335 $ 222,908 $ 131,001 $ 150,135 $ 469,853 $ — $ 989,846 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Land and construction Pass $ — $ 22,503 $ 37,070 $ 18,646 $ 9,388 $ 7,662 $ — $ 95,269 Special mention — — — — — — — — Substandard — — — — — — — — Total $ — $ 22,503 $ 37,070 $ 18,646 $ 9,388 $ 7,662 $ — $ 95,269 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass $ 43,231 $ 177,918 $ 1,065,076 $ 273,177 $ 113,850 $ 41,252 $ 1,070,563 $ 2,785,067 Special mention — — 1,240 24,578 298 644 730 27,490 Substandard 133 53 380 798 3,768 1,788 11,028 17,948 Total $ 43,364 $ 177,971 $ 1,066,696 $ 298,553 $ 117,916 $ 43,684 $ 1,082,321 $ 2,830,505 Gross charge-offs $ — $ 15 $ 359 $ 84 $ 35 $ — $ — $ 493 Consumer Pass $ 32 $ 11 $ — $ 557 $ — $ 353 $ 361 $ 1,314 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 32 $ 11 $ — $ 557 $ — $ 353 $ 361 $ 1,314 Gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Total loans Pass $ 55,717 $ 250,799 $ 3,935,310 $ 2,224,883 $ 1,117,443 $ 1,256,744 $ 1,118,554 $ 9,959,450 Special mention — — 1,240 25,793 2,557 22,974 730 53,294 Substandard 133 12,953 380 912 5,157 42,905 11,162 73,602 Total $ 55,850 $ 263,752 $ 3,936,930 $ 2,251,588 $ 1,125,157 $ 1,322,623 $ 1,130,446 $ 10,086,346 Gross charge-offs $ — $ 15 $ 359 $ 84 $ 35 $ — $ — $ 493 Revolving (dollars in thousands) 2023 2022 2021 2020 2019 Prior Loans Total December 31, 2023: Loans secured by real estate: Residential Multifamily Pass $ 37,343 $ 2,355,381 $ 1,537,636 $ 763,736 $ 289,675 $ 243,146 $ — $ 5,226,917 Special mention — — 1,248 — 5,577 9,426 — 16,251 Substandard — — — — — — — — Total $ 37,343 $ 2,355,381 $ 1,538,884 $ 763,736 $ 295,252 $ 252,572 $ — $ 5,243,168 Gross charge-offs $ — — — — — — — $ — Single family Pass $ 13,631 $ 259,043 $ 267,373 $ 92,567 $ 38,132 $ 208,035 $ 54,444 $ 933,225 Special mention — — — — — 20,166 — 20,166 Substandard — — — — — 846 139 985 Total $ 13,631 $ 259,043 $ 267,373 $ 92,567 $ 38,132 $ 229,047 $ 54,583 $ 954,376 Gross charge-offs $ — — — — — — — $ — Commercial real estate Pass $ 2,469 $ 221,525 $ 130,579 $ 119,684 $ 81,243 $ 383,729 $ — $ 939,229 Special mention — — 1,223 2,275 — 10,747 — 14,245 Substandard 12,900 — 116 1,445 11,424 7,413 — 33,298 Total $ 15,369 $ 221,525 $ 131,918 $ 123,404 $ 92,667 $ 401,889 $ — $ 986,772 Gross charge-offs $ — — — — — 249 — $ 249 Land and construction Pass $ 19,151 $ 43,923 $ 29,445 $ 36,498 $ 807 $ 7,003 $ — $ 136,827 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 19,151 $ 43,923 $ 29,445 $ 36,498 $ 807 $ 7,003 $ — $ 136,827 Gross charge-offs $ — — — — — — — $ — Commercial Pass $ 182,391 $ 1,082,510 $ 291,663 $ 119,035 $ 21,314 $ 25,030 $ 1,087,075 $ 2,809,018 Special mention — 1,360 24,653 703 56 656 735 28,163 Substandard 55 12 842 3,881 1,325 458 11,508 18,081 Total $ 182,446 $ 1,083,882 $ 317,158 $ 123,619 $ 22,695 $ 26,144 $ 1,099,318 $ 2,855,262 Gross charge-offs $ 257 1,420 1,205 587 117 48 1,364 $ 4,998 Consumer Pass $ 47 $ — $ 577 $ — $ 299 $ 59 $ 415 $ 1,397 Special mention — — — — — — — — Substandard — — — — — — — — Total $ 47 $ — $ 577 $ — $ 299 $ 59 $ 415 $ 1,397 Gross charge-offs $ — — — — — — 2 $ 2 Total loans Pass $ 255,032 $ 3,962,382 $ 2,257,273 $ 1,131,520 $ 431,470 $ 867,002 $ 1,141,934 $ 10,046,613 Special mention — 1,360 27,124 2,978 5,633 40,995 735 78,825 Substandard 12,955 12 958 5,326 12,749 8,717 11,647 52,364 Total $ 267,987 $ 3,963,754 $ 2,285,355 $ 1,139,824 $ 449,852 $ 916,714 $ 1,154,316 $ 10,177,802 Gross charge-offs $ 257 1,420 1,205 587 117 297 1,366 $ 5,249 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 December 31, 2023 Weighted Weighted (dollars in thousands) Amount Average Rate Amount Average Rate Demand deposits: Noninterest-bearing $ 1,827,520 — $ 1,467,806 — Interest-bearing 2,785,092 3.65 % 2,881,786 2.94 % Money market and savings 3,309,002 3.79 % 3,195,670 3.81 % Certificates of deposit 2,717,356 4.76 % 3,143,670 4.87 % Total $ 10,638,970 3.35 % $ 10,688,932 3.36 % |
Summary of Large Denomination Certificates of Deposit Maturity Distribution | March 31, 2024 December 31, 2023 Large Denomination Certificates of Deposit Maturity Distribution (dollars in thousands) 3 months or less $ 25,049 $ 343,078 Over 3 months through 6 months 23,652 24,126 Over 6 months through 12 months 110,073 56,415 Over 12 months 3,676 30,994 Total $ 162,450 $ 454,613 |
SUBORDINATED DEBT (Tables)
SUBORDINATED DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
SUBORDINATED DEBT. | |
Summary of outstanding subordinated notes | Current Current Carrying Value Stated Interest Principal March 31, December 31, (dollars in thousands) Maturity Rate Balance 2024 2023 Subordinated notes Subordinated notes due 2032, 3.50% per annum until February 1, 2027, 3-month SOFR + 2.04% thereafter February 1, 2032 3.50 % $ 150,000 $ 148,118 $ 148,058 Subordinated notes due 2030, 6.0% per annum until June 30, 2025, 3-month SOFR + 5.90% thereafter. June 30, 2030 6.00 % 24,165 25,295 25,339 Total $ 174,165 $ 173,413 $ 173,397 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER SHARE | |
Computation of Basic and Diluted Earnings Per Share | Three Months Ended Three Months Ended March 31, 2024 March 31, 2023 (dollars in thousands, except per share amounts) Basic Diluted Basic Diluted Net income $ 793 $ 793 $ 8,496 $ 8,496 Basic common shares outstanding 56,484,655 56,484,655 56,376,669 56,376,669 Effect of options, restricted stock and contingent shares issuable 19,220 33,747 Diluted common shares outstanding 56,503,875 56,410,416 Net income per share $ 0.01 $ 0.01 $ 0.15 $ 0.15 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
SEGMENT REPORTING | |
Key Operating Results of Business Segments | Wealth (dollars in thousands) Banking Management Other Total Three Months Ended March 31, 2024: Interest income $ 150,453 $ — $ — $ 150,453 Interest expense 110,362 — 1,705 112,067 Net interest income 40,091 — (1,705) 38,386 Provision for credit losses 577 — — 577 Noninterest income 5,683 7,349 (349) 12,683 Noninterest expense Compensation and benefits 15,172 4,095 140 19,407 Customer service costs 10,738 — — 10,738 Professional services and marketing costs 2,532 901 (43) 3,390 Other 16,098 680 296 17,074 Income (loss) before income taxes 657 1,673 (2,447) (117) Income tax (benefit) expense (711) 487 (686) (910) Net income (loss) $ 1,368 $ 1,186 $ (1,761) $ 793 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 Compensation and benefits 20,260 4,560 466 25,286 Customer service costs 16,715 — — 16,715 Professional services and marketing costs 2,664 804 827 4,295 Other 12,006 701 337 13,044 Income (loss) before income taxes 13,290 1,226 (3,820) 10,696 Income tax expense (benefit) 2,947 364 (1,111) 2,200 Net income (loss) $ 10,343 $ 862 $ (2,709) $ 8,496 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | |
Mar. 31, 2024 segment subsidiary | Mar. 31, 2023 segment | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Number of inactive wholly owned subsidiaries | subsidiary | 2 | |
Reportable business segments | segment | 2 | 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, 2024 | Dec. 31, 2023 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | $ 797,215 | $ 703,226 |
Investment in equity securities | 11,776 | 11,768 |
Derivatives | 6,035 | |
Agency mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 596,279 | 107,347 |
Municipal bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 46,289 | 46,436 |
SBA securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 12,117 | 13,527 |
Beneficial interest - FHLMC securitizations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 7,141 | 7,241 |
Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 123,797 | 122,280 |
U.S. Treasury | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 1,249 | 398,790 |
Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Investment in equity securities | 11,776 | 11,768 |
Total assets at fair value on a recurring basis | 808,991 | 714,994 |
Derivatives | 6,035 | |
Fair Value on Recurring Basis | Collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 10,343 | 7,605 |
Fair Value on Recurring Basis | Agency mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 596,279 | 107,347 |
Fair Value on Recurring Basis | Municipal bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 46,289 | 46,436 |
Fair Value on Recurring Basis | SBA securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 12,117 | 13,527 |
Fair Value on Recurring Basis | Beneficial interest - FHLMC securitizations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 7,141 | 7,242 |
Fair Value on Recurring Basis | Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 123,797 | 122,279 |
Fair Value on Recurring Basis | U.S. Treasury | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 1,249 | 398,790 |
Fair Value Measurement Level 1 | Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Total assets at fair value on a recurring basis | 1,249 | 398,790 |
Fair Value Measurement Level 1 | Fair Value on Recurring Basis | U.S. Treasury | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 1,249 | 398,790 |
Fair Value Measurement Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Derivatives | 6,035 | |
Fair Value Measurement Level 2 | Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Total assets at fair value on a recurring basis | 788,825 | 297,194 |
Derivatives | 6,035 | |
Fair Value Measurement Level 2 | Fair Value on Recurring Basis | Collateralized mortgage obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 10,343 | 7,605 |
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 | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 596,279 | 107,347 |
Fair Value Measurement Level 2 | Fair Value on Recurring Basis | Municipal bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 46,289 | 46,436 |
Fair Value Measurement Level 2 | Fair Value on Recurring Basis | SBA securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 12,117 | 13,527 |
Fair Value Measurement Level 2 | Fair Value on Recurring Basis | Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 123,797 | 122,279 |
Fair Value Measurement Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Investment in equity securities | 11,776 | 11,768 |
Fair Value Measurement Level 3 | Beneficial interest - FHLMC securitizations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Gain (loss) on investment | (100) | |
Fair Value Measurement Level 3 | Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||
Investment in equity securities | 11,776 | 11,768 |
Total assets at fair value on a recurring basis | 18,917 | 19,010 |
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 | ||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | $ 7,141 | $ 7,242 |
FAIR VALUE MEASUREMENTS - Valua
FAIR VALUE MEASUREMENTS - Valuation Assumptions (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) item | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||||
Allowance for credit losses | $ 29,295 | $ 29,205 | $ 31,095 | $ 33,731 |
Real estate owned ("REO") | 6,210 | $ 8,381 | ||
Number Of Real Estate Properties Sold | item | 1 | |||
Number of Real Estate Properties | item | 2 | |||
Gain on sale of REO | 679 | |||
Specific reserves | 0 | $ 0 | ||
Fair Value Measurement Level 3 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||||
Impaired loans | $ 5,700 | $ 18,700 | ||
Fair Value Measurement Level 3 | Prepayment Rate | Minimum | Mortgage Servicing Rights. | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||||
Alternative investment measurement input | 0.20 | |||
Fair Value Measurement Level 3 | Prepayment Rate | Minimum | Beneficial interest - FHLMC securitizations | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||||
Alternative investment measurement input | 0.20 | 0.20 | ||
Fair Value Measurement Level 3 | Prepayment Rate | Maximum | Mortgage Servicing Rights. | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||||
Alternative investment measurement input | 0.30 | |||
Fair Value Measurement Level 3 | Prepayment Rate | Maximum | Beneficial interest - FHLMC securitizations | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||||
Alternative investment measurement input | 0.25 | 0.25 | ||
Fair Value Measurement Level 3 | Discount Rate | Mortgage Servicing Rights. | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||||
Alternative investment measurement input | 0.10 | |||
Fair Value Measurement Level 3 | Discount Rate | Minimum | Beneficial interest - FHLMC securitizations | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||||
Alternative investment measurement input | 0.0755 | 0.0835 | ||
Fair Value Measurement Level 3 | Discount Rate | Maximum | Beneficial interest - FHLMC securitizations | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis | ||||
Alternative investment measurement input | 0.0984 | 0.100 |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying Amounts and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Cash and cash equivalents | $ 1,588,036 | $ 1,326,629 |
Securities AFS, net | 797,215 | 703,226 |
Securities HTM | 775,702 | 789,578 |
Loans, net | 10,057,051 | 10,148,597 |
Investment in FHLB stock | 36,668 | 24,613 |
Investment in equity securities | 11,776 | 11,768 |
Accrued interest receivable | 53,446 | 54,163 |
Derivative assets | 6,035 | |
Liabilities: | ||
Deposits | 10,638,970 | 10,688,932 |
Borrowings | 1,705,493 | 1,409,056 |
Subordinated debt | 173,413 | 173,397 |
Accrued interest payable | 44,342 | 42,177 |
Assets Fair Value: | ||
Cash and cash equivalents | 1,588,036 | 1,326,629 |
Securities AFS, net | 797,215 | 703,226 |
Securities HTM | 690,760 | 710,021 |
Loans, net | 9,604,899 | 9,827,508 |
Investment in FHLB stock | 36,668 | 24,613 |
Investment in equity securities | 11,776 | 11,768 |
Liabilities Fair Value: | ||
Deposits | 10,627,286 | 10,691,132 |
Borrowings | 1,705,493 | 1,409,056 |
Subordinated debt | 136,514 | 136,002 |
Fair Value Measurement Level 1 | ||
Assets: | ||
Accrued interest receivable | 53,446 | 54,163 |
Liabilities: | ||
Accrued interest payable | 44,342 | 42,177 |
Assets Fair Value: | ||
Cash and cash equivalents | 1,588,036 | 1,326,629 |
Securities AFS, net | 1,249 | 398,790 |
Liabilities Fair Value: | ||
Deposits | 7,921,615 | 7,545,262 |
Borrowings | 905,493 | 609,056 |
Fair Value Measurement Level 2 | ||
Assets: | ||
Investment in FHLB stock | 36,668 | 24,613 |
Derivative assets | 6,035 | |
Assets Fair Value: | ||
Securities AFS, net | 788,825 | 297,194 |
Securities HTM | 690,760 | 710,021 |
Investment in FHLB stock | 36,668 | 24,613 |
Liabilities Fair Value: | ||
Deposits | 2,705,671 | 3,145,870 |
Borrowings | 800,000 | 800,000 |
Fair Value Measurement Level 3 | ||
Assets: | ||
Investment in equity securities | 11,776 | 11,768 |
Liabilities: | ||
Subordinated debt | 136,514 | 136,002 |
Assets Fair Value: | ||
Securities AFS, net | 7,141 | 7,242 |
Loans, net | 9,604,899 | 9,827,508 |
Investment in equity securities | $ 11,776 | $ 11,768 |
SECURITIES - Summary of AFS Sec
SECURITIES - Summary of AFS Securities Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule Of Available For Sale Securities | ||||
Amortized Cost | $ 828,568 | $ 731,489 | ||
Gross Unrealized Gains | 2 | 1,034 | ||
Gross Unrealized Losses | (23,444) | (21,077) | ||
Allowance for Credit Losses | (7,911) | (8,220) | $ (12,288) | $ (11,439) |
Estimated Fair Value | 797,215 | 703,226 | ||
Collateralized mortgage obligations | ||||
Schedule Of Available For Sale Securities | ||||
Amortized Cost | 11,705 | 8,946 | ||
Gross Unrealized Losses | (1,362) | (1,341) | ||
Estimated Fair Value | 10,343 | 7,605 | ||
Agency mortgage-backed securities | ||||
Schedule Of Available For Sale Securities | ||||
Amortized Cost | 600,907 | 106,733 | ||
Gross Unrealized Gains | 1,028 | |||
Gross Unrealized Losses | (4,628) | (414) | ||
Estimated Fair Value | 596,279 | 107,347 | ||
Municipal bonds | ||||
Schedule Of Available For Sale Securities | ||||
Amortized Cost | 49,369 | 49,473 | ||
Gross Unrealized Losses | (3,080) | (3,037) | ||
Estimated Fair Value | 46,289 | 46,436 | ||
SBA securities | ||||
Schedule Of Available For Sale Securities | ||||
Amortized Cost | 12,225 | 13,631 | ||
Gross Unrealized Gains | 2 | 2 | ||
Gross Unrealized Losses | (110) | (106) | ||
Estimated Fair Value | 12,117 | 13,527 | ||
Beneficial interest - FHLMC securitizations | ||||
Schedule Of Available For Sale Securities | ||||
Amortized Cost | 14,240 | 14,473 | ||
Gross Unrealized Gains | 4 | |||
Gross Unrealized Losses | (506) | (418) | ||
Allowance for Credit Losses | (6,593) | (6,818) | (11,315) | $ (11,439) |
Estimated Fair Value | 7,141 | 7,241 | ||
Corporate bonds | ||||
Schedule Of Available For Sale Securities | ||||
Amortized Cost | 138,823 | 138,858 | ||
Gross Unrealized Losses | (13,708) | (15,176) | ||
Allowance for Credit Losses | (1,318) | (1,402) | $ (973) | |
Estimated Fair Value | 123,797 | 122,280 | ||
U.S. Treasury | ||||
Schedule Of Available For Sale Securities | ||||
Amortized Cost | 1,299 | 399,375 | ||
Gross Unrealized Losses | (50) | (585) | ||
Estimated Fair Value | $ 1,249 | $ 398,790 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 USD ($) instrument | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Schedule Of Available For Sale Securities | ||||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | $ 797,215,000 | $ 703,226,000 | ||
Estimated Fair Value | 690,760,000 | 710,021,000 | ||
Charge-offs related to interest -only strip securities | 0 | $ 0 | 4,000,000 | |
Allowance for credit losses | 7,911,000 | 12,288,000 | 8,220,000 | $ 11,439,000 |
Provision (reversal) for credit losses - securities AFS | (309,000) | 849,000 | 752,000 | |
Securities available-for-sale | 1,000,000,000 | |||
Net gain on sale of securities available-for-sale | 221,000 | |||
Repurchase agreements | Asset pledged as collateral | ||||
Schedule Of Available For Sale Securities | ||||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 80,000,000 | |||
Federal Funds Purchased | Asset pledged as collateral | ||||
Schedule Of Available For Sale Securities | ||||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 444,500,000 | |||
U.S. Treasury | ||||
Schedule Of Available For Sale Securities | ||||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 1,249,000 | 398,790,000 | ||
U.S. Treasury | Asset pledged as collateral | ||||
Schedule Of Available For Sale Securities | ||||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 1,200,000 | |||
Agency mortgage-backed securities | ||||
Schedule Of Available For Sale Securities | ||||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 596,279,000 | 107,347,000 | ||
Estimated Fair Value | 690,760,000 | 710,021,000 | ||
Agency mortgage-backed securities | Asset pledged as collateral | ||||
Schedule Of Available For Sale Securities | ||||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 260,800,000 | |||
Agency mortgage-backed securities | Federal Funds Purchased | Asset pledged as collateral | ||||
Schedule Of Available For Sale Securities | ||||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 541,900,000 | |||
SBA securities | ||||
Schedule Of Available For Sale Securities | ||||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 12,117,000 | 13,527,000 | ||
Corporate bonds | ||||
Schedule Of Available For Sale Securities | ||||
Securities available-for-sale ("AFS"), at fair value (amortized cost of $828,568 and $731,489 at March 31, 2024 and December 31, 2023; allowance for credit losses of $7,911 and $8,220 at March 31, 2024 and December 31, 2023) | 123,797,000 | 122,280,000 | ||
Allowance for credit losses | $ 1,318,000 | 973,000 | 1,402,000 | |
Number of financial instruments impacted by credit loss | instrument | 17 | |||
Provision (reversal) for credit losses - securities AFS | $ (84,000) | $ 973,000 | $ 1,402,000 | |
Market value | $ 31,500,000 |
SECURITIES - Summary of HTM Sec
SECURITIES - Summary of HTM Securities Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Held-to-maturity Securities | ||
Amortized Cost | $ 775,702 | $ 789,578 |
Gross Unrealized Gain | 1 | |
Gross Unrealized Loss | (84,942) | (79,558) |
Estimated Fair Value | 690,760 | 710,021 |
Agency mortgage-backed securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 775,702 | 789,578 |
Gross Unrealized Gain | 1 | |
Gross Unrealized Loss | (84,942) | (79,558) |
Estimated Fair Value | $ 690,760 | $ 710,021 |
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, 2024 | Dec. 31, 2023 |
Schedule Of Available For Sale Securities | ||
Less than 12 months, Fair Value | $ 626,374 | $ 414,921 |
Less than 12 months, Unrealized Loss | (5,881) | (713) |
12 months or more, Fair Value | 167,583 | 181,909 |
12 months or more, Unrealized Loss | (17,563) | (20,364) |
Total, Fair Value | 793,957 | 596,830 |
Total, Unrealized Loss | (23,444) | (21,077) |
Collateralized mortgage obligations | ||
Schedule Of Available For Sale Securities | ||
Less than 12 months, Fair Value | 2,879 | |
Less than 12 months, Unrealized Loss | (60) | |
12 months or more, Fair Value | 7,464 | 7,606 |
12 months or more, Unrealized Loss | (1,302) | (1,341) |
Total, Fair Value | 10,343 | 7,606 |
Total, Unrealized Loss | (1,362) | (1,341) |
Agency mortgage-backed securities | ||
Schedule Of Available For Sale Securities | ||
Less than 12 months, Fair Value | 591,018 | |
Less than 12 months, Unrealized Loss | (4,199) | |
12 months or more, Fair Value | 5,261 | 5,710 |
12 months or more, Unrealized Loss | (429) | (414) |
Total, Fair Value | 596,279 | 5,710 |
Total, Unrealized Loss | (4,628) | (414) |
Municipal bonds | ||
Schedule Of Available For Sale Securities | ||
Less than 12 months, Fair Value | 2,271 | 1,779 |
Less than 12 months, Unrealized Loss | (34) | (26) |
12 months or more, Fair Value | 42,708 | 42,847 |
12 months or more, Unrealized Loss | (3,046) | (3,011) |
Total, Fair Value | 44,979 | 44,626 |
Total, Unrealized Loss | (3,080) | (3,037) |
SBA securities | ||
Schedule Of Available For Sale Securities | ||
Less than 12 months, Fair Value | 65 | 353 |
12 months or more, Fair Value | 10,627 | 12,025 |
12 months or more, Unrealized Loss | (110) | (106) |
Total, Fair Value | 10,692 | 12,378 |
Total, Unrealized Loss | (110) | (106) |
Beneficial interest - FHLMC securitizations | ||
Schedule Of Available For Sale Securities | ||
Less than 12 months, Fair Value | 1,308 | |
Less than 12 months, Unrealized Loss | (21) | |
12 months or more, Fair Value | 3,992 | 4,041 |
12 months or more, Unrealized Loss | (485) | (418) |
Total, Fair Value | 5,300 | 4,041 |
Total, Unrealized Loss | (506) | (418) |
Corporate bonds | ||
Schedule Of Available For Sale Securities | ||
Less than 12 months, Fair Value | 28,435 | 14,847 |
Less than 12 months, Unrealized Loss | (1,565) | (153) |
12 months or more, Fair Value | 96,680 | 108,832 |
12 months or more, Unrealized Loss | (12,143) | (15,023) |
Total, Fair Value | 125,115 | 123,679 |
Total, Unrealized Loss | (13,708) | (15,176) |
U.S. Treasury | ||
Schedule Of Available For Sale Securities | ||
Less than 12 months, Fair Value | 398 | 397,942 |
Less than 12 months, Unrealized Loss | (2) | (534) |
12 months or more, Fair Value | 851 | 848 |
12 months or more, Unrealized Loss | (48) | (51) |
Total, Fair Value | 1,249 | 398,790 |
Total, Unrealized Loss | $ (50) | $ (585) |
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, 2024 | Dec. 31, 2023 |
Schedule of Held-to-maturity Securities | ||
Less than 12 months, Fair Value | $ 19,455 | |
Less than 12 months, Unrecognized Loss | (111) | |
12 months or more, Fair Value | 671,305 | $ 689,454 |
12 months or more, Unrecognized Loss | (84,831) | (79,558) |
Total, Fair Value | 690,760 | 689,454 |
Total, Unrecognized Loss | (84,942) | (79,558) |
Agency mortgage-backed securities | ||
Schedule of Held-to-maturity Securities | ||
Less than 12 months, Fair Value | 19,455 | |
Less than 12 months, Unrecognized Loss | (111) | |
12 months or more, Fair Value | 671,305 | 689,454 |
12 months or more, Unrecognized Loss | (84,831) | (79,558) |
Total, Fair Value | 690,760 | 689,454 |
Total, Unrecognized Loss | $ (84,942) | $ (79,558) |
SECURITIES - Schedule of Allowa
SECURITIES - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Schedule Of Available For Sale Securities | |||
Beginning Balance for period | $ 8,220 | $ 11,439 | $ 11,439 |
Provision (Reversal) for Credit Losses | (309) | 849 | 752 |
Charge-offs | (3,971) | ||
Ending Balance for period | 7,911 | 12,288 | 8,220 |
Beneficial interest - FHLMC securitizations | |||
Schedule Of Available For Sale Securities | |||
Beginning Balance for period | 6,818 | 11,439 | 11,439 |
Provision (Reversal) for Credit Losses | (225) | (124) | (650) |
Charge-offs | (3,971) | ||
Ending Balance for period | 6,593 | 11,315 | 6,818 |
Corporate bonds | |||
Schedule Of Available For Sale Securities | |||
Beginning Balance for period | 1,402 | ||
Provision (Reversal) for Credit Losses | (84) | 973 | 1,402 |
Ending Balance for period | $ 1,318 | $ 973 | $ 1,402 |
SECURITIES - Scheduled Maturiti
SECURITIES - Scheduled Maturities of Securities AFS and the Related Weighted Average Yields (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule Of Available For Sale Securities | ||
Amortized cost, 1 Year or Less | $ 9,129 | $ 407,144 |
Amortized cost, More than 1 Year through 5 Years | 84,352 | 81,503 |
Amortized cost, More than 5 Years through 10 Years | 101,898 | 105,111 |
Amortized cost, More than 10 Years | 633,189 | 137,731 |
Amortized cost, total | $ 828,568 | $ 731,489 |
Weighted average yield, 1 Year or Less | 2.84% | 5.47% |
Weighted average yield, More than 1 Year through 5 Years | 6.40% | 6.46% |
Weighted average yield, More than 5 Years through 10 Years | 2.89% | 2.90% |
Weighted average yield, More than 10 Years | 5.35% | 5.94% |
Weighted average yield, total | 5.13% | 5.30% |
Estimated fair value, 1 Year or Less | $ 9,111 | $ 406,560 |
Estimated fair value, More than 1 Year through 5 Years | 80,355 | 78,673 |
Estimated fair value, More than 5 Years through 10 Years | 90,864 | 91,625 |
Estimated fair value, More than 10 Years | 624,796 | 134,588 |
Estimated fair value, total | 805,126 | 711,446 |
Agency mortgage-backed securities | ||
Schedule Of Available For Sale Securities | ||
Amortized cost, 1 Year or Less | 87 | 141 |
Amortized cost, More than 1 Year through 5 Years | 3,997 | 4,364 |
Amortized cost, More than 10 Years | 596,823 | 102,228 |
Amortized cost, total | 600,907 | 106,733 |
Estimated fair value, 1 Year or Less | 85 | 137 |
Estimated fair value, More than 1 Year through 5 Years | 3,781 | 4,134 |
Estimated fair value, More than 10 Years | 592,413 | 103,076 |
Estimated fair value, total | 596,279 | 107,347 |
Municipal bonds | ||
Schedule Of Available For Sale Securities | ||
Amortized cost, More than 1 Year through 5 Years | 11,423 | 9,672 |
Amortized cost, More than 5 Years through 10 Years | 34,962 | 36,103 |
Amortized cost, More than 10 Years | 2,984 | 3,698 |
Amortized cost, total | 49,369 | 49,473 |
Estimated fair value, More than 1 Year through 5 Years | 10,885 | 9,231 |
Estimated fair value, More than 5 Years through 10 Years | 32,934 | 34,142 |
Estimated fair value, More than 10 Years | 2,470 | 3,063 |
Estimated fair value, total | 46,289 | 46,436 |
SBA securities | ||
Schedule Of Available For Sale Securities | ||
Amortized cost, More than 1 Year through 5 Years | 838 | 944 |
Amortized cost, More than 5 Years through 10 Years | 588 | 623 |
Amortized cost, More than 10 Years | 10,799 | 12,064 |
Amortized cost, total | 12,225 | 13,631 |
Estimated fair value, More than 1 Year through 5 Years | 832 | 936 |
Estimated fair value, More than 5 Years through 10 Years | 586 | 622 |
Estimated fair value, More than 10 Years | 10,699 | 11,969 |
Estimated fair value, total | 12,117 | 13,527 |
Beneficial interest - FHLMC securitizations | ||
Schedule Of Available For Sale Securities | ||
Amortized cost, 1 Year or Less | 3,243 | 3,315 |
Amortized cost, More than 1 Year through 5 Years | 5,190 | 5,380 |
Amortized cost, More than 10 Years | 5,807 | 5,778 |
Amortized cost, total | 14,240 | 14,473 |
Estimated fair value, 1 Year or Less | 3,243 | 3,315 |
Estimated fair value, More than 1 Year through 5 Years | 5,190 | 5,380 |
Estimated fair value, More than 10 Years | 5,301 | 5,364 |
Estimated fair value, total | 13,734 | 14,059 |
Corporate bonds | ||
Schedule Of Available For Sale Securities | ||
Amortized cost, 1 Year or Less | 5,000 | 5,012 |
Amortized cost, More than 1 Year through 5 Years | 61,949 | 60,444 |
Amortized cost, More than 5 Years through 10 Years | 66,348 | 67,872 |
Amortized cost, More than 10 Years | 5,526 | 5,530 |
Amortized cost, total | 138,823 | 138,858 |
Estimated fair value, 1 Year or Less | 4,997 | 4,973 |
Estimated fair value, More than 1 Year through 5 Years | 58,795 | 58,337 |
Estimated fair value, More than 5 Years through 10 Years | 57,344 | 56,395 |
Estimated fair value, More than 10 Years | 3,979 | 3,977 |
Estimated fair value, total | 125,115 | 123,682 |
U.S. Treasury | ||
Schedule Of Available For Sale Securities | ||
Amortized cost, 1 Year or Less | 799 | 398,676 |
Amortized cost, More than 1 Year through 5 Years | 500 | 699 |
Amortized cost, total | 1,299 | 399,375 |
Estimated fair value, 1 Year or Less | 786 | 398,135 |
Estimated fair value, More than 1 Year through 5 Years | 463 | 655 |
Estimated fair value, total | 1,249 | 398,790 |
Collateralized mortgage obligations | ||
Schedule Of Available For Sale Securities | ||
Amortized cost, More than 1 Year through 5 Years | 455 | |
Amortized cost, More than 5 Years through 10 Years | 513 | |
Amortized cost, More than 10 Years | 11,250 | 8,433 |
Amortized cost, total | 11,705 | 8,946 |
Estimated fair value, More than 1 Year through 5 Years | 409 | |
Estimated fair value, More than 5 Years through 10 Years | 466 | |
Estimated fair value, More than 10 Years | 9,934 | 7,139 |
Estimated fair value, total | $ 10,343 | $ 7,605 |
SECURITIES - Scheduled Maturi_2
SECURITIES - Scheduled Maturities of Securities HTM and the Related Weighted Average Yields (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
HTM - Amortized Cost | ||
Amortized cost, More than 1 Year through 5 Years | $ 3,915 | $ 4,259 |
Amortized cost, More than 5 Years through 10 Years | 11,956 | 12,537 |
Amortized cost, More than 10 Years | 759,831 | 772,782 |
Amortized cost, total | $ 775,702 | $ 789,578 |
HTM - Weighted average yield | ||
Weighted average yield, More than 1 Year through 5 Years | 0.87% | 0.86% |
Weighted average yield, More than 5 Years through 10 Years | 1.47% | 1.44% |
Weighted average yield, More than 10 Years | 2.30% | 2.26% |
Weighted average yield, total | 2.28% | 2.24% |
HTM - Estimated Fair Value | ||
Estimated fair value, More than 1 Year through 5 Years | $ 3,644 | $ 3,972 |
Estimated fair value, More than 5 Years through 10 Years | 10,847 | 11,457 |
Estimated fair value, More than 10 Years | 676,269 | 694,592 |
Estimated fair value, total | 690,760 | 710,021 |
Agency mortgage-backed securities | ||
HTM - Amortized Cost | ||
Amortized cost, More than 1 Year through 5 Years | 3,915 | 4,259 |
Amortized cost, More than 5 Years through 10 Years | 11,956 | 12,537 |
Amortized cost, More than 10 Years | 759,831 | 772,782 |
Amortized cost, total | 775,702 | 789,578 |
HTM - Estimated Fair Value | ||
Estimated fair value, More than 1 Year through 5 Years | 3,644 | 3,972 |
Estimated fair value, More than 5 Years through 10 Years | 10,847 | 11,457 |
Estimated fair value, More than 10 Years | 676,269 | 694,592 |
Estimated fair value, total | $ 690,760 | $ 710,021 |
LOANS - Summary of Loans (Detai
LOANS - Summary of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Loans | |||
Total loans | $ 10,070,191 | $ 10,161,047 | |
Premiums, discounts and deferred fees and expenses | 16,155 | 16,755 | |
Total loans | 10,086,346 | 10,177,802 | |
Securities pledged as collateral | 80,000 | 76,300 | |
Unpaid principal balance | 3,700 | ||
Gain on sale of loans | 263 | $ 0 | |
Loans held for sale | 0 | 0 | |
Asset pledged as collateral | Federal Reserve Bank advances | Loan Origination Commitments | |||
Loans | |||
Securities pledged as collateral | 287,600 | 283,700 | |
Asset pledged as collateral | Federal Home Loan Bank Advances | Loan Origination Commitments | |||
Loans | |||
Securities pledged as collateral | 4,300,000 | 4,200,000 | |
Multifamily | |||
Loans | |||
Total loans | 5,235,869 | 5,243,168 | |
Single family | |||
Loans | |||
Total loans | 933,543 | 954,376 | |
Commercial properties | |||
Loans | |||
Total loans | 989,846 | 986,772 | |
Land and construction | |||
Loans | |||
Total loans | 95,269 | 136,827 | |
Commercial and industrial loans | |||
Loans | |||
Total loans | 2,831,982 | 2,856,228 | |
Total loans | 2,830,505 | 2,855,262 | |
Consumer loans | |||
Loans | |||
Total loans | 1,261 | 1,328 | |
Total loans | 1,314 | 1,397 | |
Real Estate Loans | |||
Loans | |||
Total loans | 7,236,948 | 7,303,491 | |
Real Estate Loans | Residential properties | |||
Loans | |||
Total loans | 6,150,647 | 6,178,597 | |
Total loans | 6,169,412 | 6,197,544 | |
Real Estate Loans | Multifamily | |||
Loans | |||
Total loans | 5,220,725 | 5,227,885 | |
Real Estate Loans | Single family | |||
Loans | |||
Total loans | 929,922 | 950,712 | |
Real Estate Loans | Commercial properties | |||
Loans | |||
Total loans | 990,769 | 987,596 | |
Total loans | 989,846 | 986,772 | |
Real Estate Loans | Land and construction | |||
Loans | |||
Total loans | 95,532 | 137,298 | |
Total loans | $ 95,269 | $ 136,827 |
LOANS - Summary of Delinquent a
LOANS - Summary of Delinquent and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Loans | ||
Nonaccrual | $ 17,810 | $ 11,831 |
Total | $ 10,086,346 | $ 10,177,802 |
Percentage of Total Loans Due Nonaccrual | 0.18% | 0.12% |
Financial Asset, Past Due | ||
Loans | ||
Total | $ 35,914 | $ 42,489 |
Percentage of Total Loans | 0.36% | 0.42% |
30-59 Days | ||
Loans | ||
Total | $ 12,822 | $ 28,021 |
Percentage of Total Loans Due 30-59 Days | 0.13% | 0.28% |
60-89 Days | ||
Loans | ||
Total | $ 5,282 | $ 907 |
Percentage of Total Loans Due 60-89 Days | 0.05% | 0.01% |
90 Days or More | ||
Loans | ||
Total | $ 1,730 | |
Percentage of Total Loans Due 90 Days or More | 0.02% | |
Financial Asset, Not Past Due | ||
Loans | ||
Total | $ 10,050,432 | $ 10,135,313 |
Commercial properties | ||
Loans | ||
Total | 989,846 | 986,772 |
Land and construction | ||
Loans | ||
Total | 95,269 | 136,827 |
Commercial and industrial loans | ||
Loans | ||
Nonaccrual | 9,047 | 8,804 |
Total | 2,830,505 | 2,855,262 |
Commercial and industrial loans | Financial Asset, Past Due | ||
Loans | ||
Total | 16,877 | 9,417 |
Commercial and industrial loans | 30-59 Days | ||
Loans | ||
Total | 3,280 | 525 |
Commercial and industrial loans | 60-89 Days | ||
Loans | ||
Total | 4,550 | 88 |
Commercial and industrial loans | Financial Asset, Not Past Due | ||
Loans | ||
Total | 2,813,628 | 2,845,845 |
Consumer loans | ||
Loans | ||
Total | 1,314 | 1,397 |
Consumer loans | Financial Asset, Past Due | ||
Loans | ||
Total | 156 | |
Consumer loans | 30-59 Days | ||
Loans | ||
Total | 156 | |
Consumer loans | Financial Asset, Not Past Due | ||
Loans | ||
Total | 1,158 | 1,397 |
Real Estate Loans | Residential properties | ||
Loans | ||
Nonaccrual | 448 | 112 |
Total | 6,169,412 | 6,197,544 |
Real Estate Loans | Residential properties | Financial Asset, Past Due | ||
Loans | ||
Total | 1,996 | 621 |
Real Estate Loans | Residential properties | 30-59 Days | ||
Loans | ||
Total | 816 | 93 |
Real Estate Loans | Residential properties | 60-89 Days | ||
Loans | ||
Total | 732 | 416 |
Real Estate Loans | Residential properties | Financial Asset, Not Past Due | ||
Loans | ||
Total | 6,167,416 | 6,196,923 |
Real Estate Loans | Commercial properties | ||
Loans | ||
Nonaccrual | 8,315 | 2,915 |
Total | 989,846 | 986,772 |
Real Estate Loans | Commercial properties | Financial Asset, Past Due | ||
Loans | ||
Total | 16,885 | 32,451 |
Real Estate Loans | Commercial properties | 30-59 Days | ||
Loans | ||
Total | 8,570 | 27,403 |
Real Estate Loans | Commercial properties | 60-89 Days | ||
Loans | ||
Total | 403 | |
Real Estate Loans | Commercial properties | 90 Days or More | ||
Loans | ||
Total | 1,730 | |
Real Estate Loans | Commercial properties | Financial Asset, Not Past Due | ||
Loans | ||
Total | 972,961 | 954,321 |
Real Estate Loans | Land and construction | ||
Loans | ||
Total | 95,269 | 136,827 |
Real Estate Loans | Land and construction | Financial Asset, Not Past Due | ||
Loans | ||
Total | $ 95,269 | $ 136,827 |
LOANS - Summary of Nonaccrual L
LOANS - Summary of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Loans | ||
Nonaccrual with Allowance for Credit Losses | $ 12,098 | $ 7,406 |
Nonaccrual with No Allowance for Credit Losses | 5,712 | 4,425 |
Commercial and industrial loans | ||
Loans | ||
Nonaccrual with Allowance for Credit Losses | 8,797 | 7,406 |
Nonaccrual with No Allowance for Credit Losses | 250 | 1,398 |
Real Estate Loans | Residential loans | ||
Loans | ||
Nonaccrual with Allowance for Credit Losses | 448 | |
Nonaccrual with No Allowance for Credit Losses | 112 | |
Real Estate Loans | Commercial properties | ||
Loans | ||
Nonaccrual with Allowance for Credit Losses | 2,853 | |
Nonaccrual with No Allowance for Credit Losses | $ 5,462 | $ 2,915 |
LOANS - Summary of Loan Modific
LOANS - Summary of Loan Modifications (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 USD ($) item | Mar. 31, 2024 USD ($) item | |
Financing Receivable Modifications | ||
Amortized Cost Basis | $ 20,436 | $ 20,436 |
Loans modification | 0 | |
Term Extension | ||
Financing Receivable Modifications | ||
Amortized Cost Basis | 13,636 | 13,636 |
Payment Deferral And Extended Maturity | ||
Financing Receivable Modifications | ||
Amortized Cost Basis | 6,800 | 6,800 |
Real Estate Loans | ||
Financing Receivable Modifications | ||
Nonaccrual | 8,084 | 8,084 |
Amortized Cost Basis with Payment Default | 35,824 | |
Real Estate Loans | Financial Asset, Not Past Due | ||
Financing Receivable Modifications | ||
Amortized Cost Basis | 27,740 | 27,740 |
Residential properties | Real Estate Loans | ||
Financing Receivable Modifications | ||
Amortized Cost Basis with Payment Default | 247 | |
Residential properties | Real Estate Loans | Financial Asset, Not Past Due | ||
Financing Receivable Modifications | ||
Amortized Cost Basis | $ 247 | $ 247 |
Commercial properties | Term Extension | ||
Financing Receivable Modifications | ||
Loans modified | item | 1 | 1 |
Payment Deferral Term | 3 months | |
Commercial properties | Real Estate Loans | ||
Financing Receivable Modifications | ||
Amortized Cost Basis | $ 12,900 | $ 12,900 |
Nonaccrual | $ 8,084 | 8,084 |
Amortized Cost Basis with Payment Default | 21,609 | |
Total Class of Loans | 1.30% | |
Commercial properties | Real Estate Loans | Financial Asset, Not Past Due | ||
Financing Receivable Modifications | ||
Amortized Cost Basis | $ 13,525 | 13,525 |
Commercial properties | Real Estate Loans | Term Extension | ||
Financing Receivable Modifications | ||
Amortized Cost Basis | $ 12,900 | 12,900 |
Total Class of Loans | 1.30% | |
Commercial and industrial loans | ||
Financing Receivable Modifications | ||
Amortized Cost Basis | $ 7,536 | 7,536 |
Amortized Cost Basis with Payment Default | 13,968 | |
Total Class of Loans | 0.27% | |
Commercial and industrial loans | Financial Asset, Not Past Due | ||
Financing Receivable Modifications | ||
Amortized Cost Basis | $ 13,968 | $ 13,968 |
Commercial and industrial loans | Term Extension | ||
Financing Receivable Modifications | ||
Loans modified | item | 3 | 3 |
Payment Deferral Term | 6 months | |
Commercial and industrial loans | Extended Maturity for One Loan [Member] | ||
Financing Receivable Modifications | ||
Loans modified | item | 10 | 10 |
Payment Deferral Term | 3 months | |
Period of payment forbearance | 5 months | |
Commercial and industrial loans | Extended Maturity for Four Loans [Member] | ||
Financing Receivable Modifications | ||
Period of payment forbearance | 6 months | |
Extended Term | 7 months | |
Commercial and industrial loans | Extended Maturity Loan One [Member] | ||
Financing Receivable Modifications | ||
Payment Deferral Term | 10 months | |
Commercial and industrial loans | Extended Maturity Loan Two [Member] | ||
Financing Receivable Modifications | ||
Payment Deferral Term | 12 months | |
Commercial and industrial loans | Extended Maturity Loan Three [Member] | ||
Financing Receivable Modifications | ||
Payment Deferral Term | 60 months | |
Commercial and industrial loans | Payment Deferral And Extended Maturity | ||
Financing Receivable Modifications | ||
Amortized Cost Basis | $ 6,800 | $ 6,800 |
Total Class of Loans | 0.24% | |
Loans modified | item | 1 | 1 |
Commercial and industrial loans | Payment Deferral for Four Loans [Member] | ||
Financing Receivable Modifications | ||
Loans modified | item | 4 | 4 |
Commercial and industrial loans | Real Estate Loans | Term Extension | ||
Financing Receivable Modifications | ||
Amortized Cost Basis | $ 736 | $ 736 |
Total Class of Loans | 0.03% |
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, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Financing Receivable Allowance For Credit Losses | |||
ACL calculated and measured on a collective basis | $ 9,800,000 | $ 9,900,000 | |
Percentage of financing receivables collectively evaluated for impairment | 97.50% | 97.20% | |
ACL calculated and measured on a individual basis | $ 247,000 | $ 268,000 | |
Percentage of financing receivables individually evaluated for impairment | 2.50% | 2.60% | |
Financing Receivable, Allowance for Credit Loss, Beginning Balance | $ 29,205 | $ 33,731 | $ 33,731 |
Provision (Reversal) for Credit Losses | 431 | (939) | (1,381) |
Charge-offs | (493) | (2,003) | (5,249) |
Recoveries | 152 | 306 | 2,104 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 29,295 | 31,095 | 29,205 |
Residential properties | |||
Financing Receivable Allowance For Credit Losses | |||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 9,921 | 8,306 | 8,306 |
Provision (Reversal) for Credit Losses | (1,547) | (43) | 1,615 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 8,374 | 8,263 | 9,921 |
Commercial real estate | |||
Financing Receivable Allowance For Credit Losses | |||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 4,148 | 8,714 | 8,714 |
Provision (Reversal) for Credit Losses | 449 | (2,732) | (4,317) |
Charge-offs | (249) | (249) | |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 4,597 | 5,733 | 4,148 |
Land and construction | |||
Financing Receivable Allowance For Credit Losses | |||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 332 | 164 | 164 |
Provision (Reversal) for Credit Losses | (266) | 152 | 168 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 66 | 316 | 332 |
Commercial and industrial loans | |||
Financing Receivable Allowance For Credit Losses | |||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 14,796 | 16,521 | 16,521 |
Provision (Reversal) for Credit Losses | 1,797 | 1,685 | 1,171 |
Charge-offs | (493) | (1,752) | (4,998) |
Recoveries | 151 | 306 | 2,102 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 16,251 | 16,760 | 14,796 |
Consumer loans | |||
Financing Receivable Allowance For Credit Losses | |||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 8 | 26 | 26 |
Provision (Reversal) for Credit Losses | (2) | (1) | (18) |
Charge-offs | (2) | (2) | |
Recoveries | 1 | 2 | |
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 7 | $ 23 | $ 8 |
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, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Allowance For Credit Losses | ||||
Total Allowance for Credit Losses | $ 29,295 | $ 29,205 | $ 31,095 | $ 33,731 |
Residential properties | ||||
Financing Receivable Allowance For Credit Losses | ||||
Total Allowance for Credit Losses | 8,374 | 9,921 | 8,263 | 8,306 |
Commercial real estate | ||||
Financing Receivable Allowance For Credit Losses | ||||
Total Allowance for Credit Losses | 4,597 | 4,148 | 5,733 | 8,714 |
Land and construction | ||||
Financing Receivable Allowance For Credit Losses | ||||
Total Allowance for Credit Losses | 66 | 332 | 316 | 164 |
Commercial and industrial loans | ||||
Financing Receivable Allowance For Credit Losses | ||||
Total Allowance for Credit Losses | 16,251 | 14,796 | 16,760 | 16,521 |
Consumer loans | ||||
Financing Receivable Allowance For Credit Losses | ||||
Total Allowance for Credit Losses | 7 | 8 | $ 23 | $ 26 |
Collateral Dependent Loans | ||||
Financing Receivable Allowance For Credit Losses | ||||
Amortized cost | 5,712 | 3,751 | ||
Collateral Dependent Loans | Real Estate | ||||
Financing Receivable Allowance For Credit Losses | ||||
Amortized cost | 5,462 | 2,523 | ||
Collateral Dependent Loans | Cash | ||||
Financing Receivable Allowance For Credit Losses | ||||
Amortized cost | 250 | 250 | ||
Collateral Dependent Loans | Equipment/Receivables | ||||
Financing Receivable Allowance For Credit Losses | ||||
Amortized cost | 978 | |||
Collateral Dependent Loans | Commercial real estate | ||||
Financing Receivable Allowance For Credit Losses | ||||
Amortized cost | 5,462 | 2,523 | ||
Collateral Dependent Loans | Commercial real estate | Real Estate | ||||
Financing Receivable Allowance For Credit Losses | ||||
Amortized cost | 5,462 | 2,523 | ||
Collateral Dependent Loans | Commercial and industrial loans | ||||
Financing Receivable Allowance For Credit Losses | ||||
Amortized cost | 250 | 1,228 | ||
Collateral Dependent Loans | Commercial and industrial loans | Cash | ||||
Financing Receivable Allowance For Credit Losses | ||||
Amortized cost | $ 250 | 250 | ||
Collateral Dependent Loans | Commercial and industrial loans | Equipment/Receivables | ||||
Financing Receivable Allowance For Credit Losses | ||||
Amortized cost | $ 978 |
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 | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | $ 55,850 | $ 267,987 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 263,752 | 3,963,754 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 3,936,930 | 2,285,355 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 2,251,588 | 1,139,824 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 1,125,157 | 449,852 |
Prior | 1,322,623 | 916,714 |
Revolving Loans | 1,130,446 | 1,154,316 |
Total | 10,086,346 | 10,177,802 |
Financing Receivable Recorded Investment | ||
Gross charge-offs Originated In Current Fiscal Year | 257 | |
Gross charge-offs Originated In Fiscal Year Before Latest Fiscal Year | 15 | 1,420 |
Gross charge-offs Originated Two Years Before Latest Fiscal Year | 359 | 1,205 |
Gross charge-offs Originated Three Years Before Latest Fiscal Year | 84 | 587 |
Gross charge-offs Originated Four Years Before Latest Fiscal Year | 35 | 117 |
Gross charge-offs Prior | 297 | |
Gross charge-offs Revolving Loans | 1,366 | |
Gross charge-offs Total loans | 493 | 5,249 |
Pass | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | 55,717 | 255,032 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 250,799 | 3,962,382 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 3,935,310 | 2,257,273 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 2,224,883 | 1,131,520 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 1,117,443 | 431,470 |
Prior | 1,256,744 | 867,002 |
Revolving Loans | 1,118,554 | 1,141,934 |
Total | 9,959,450 | 10,046,613 |
Special mention | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 1,360 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,240 | 27,124 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 25,793 | 2,978 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 2,557 | 5,633 |
Prior | 22,974 | 40,995 |
Revolving Loans | 730 | 735 |
Total | 53,294 | 78,825 |
Substandard | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | 133 | 12,955 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 12,953 | 12 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 380 | 958 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 912 | 5,326 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 5,157 | 12,749 |
Prior | 42,905 | 8,717 |
Revolving Loans | 11,162 | 11,647 |
Total | 73,602 | 52,364 |
Multifamily | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | 11,840 | 37,343 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 37,338 | 2,355,381 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 2,353,803 | 1,538,884 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 1,537,271 | 763,736 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 755,425 | 295,252 |
Prior | 540,192 | 252,572 |
Total | 5,235,869 | 5,243,168 |
Multifamily | Pass | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | 11,840 | 37,343 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 37,338 | 2,355,381 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 2,353,803 | 1,537,636 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 1,537,271 | 763,736 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 755,425 | 289,675 |
Prior | 526,040 | 243,146 |
Total | 5,221,717 | 5,226,917 |
Multifamily | Special mention | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,248 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 5,577 | |
Prior | 1,125 | 9,426 |
Total | 1,125 | 16,251 |
Multifamily | Substandard | ||
Financing Receivable Recorded Investment | ||
Prior | 13,027 | |
Total | 13,027 | |
Single family | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | 13,631 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 10,594 | 259,043 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 256,453 | 267,373 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 265,560 | 92,567 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 92,293 | 38,132 |
Prior | 260,879 | 229,047 |
Revolving Loans | 47,764 | 54,583 |
Total | 933,543 | 954,376 |
Single family | Pass | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | 13,631 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 10,594 | 259,043 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 256,453 | 267,373 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 265,560 | 92,567 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 92,293 | 38,132 |
Prior | 239,977 | 208,035 |
Revolving Loans | 47,630 | 54,444 |
Total | 912,507 | 933,225 |
Single family | Special mention | ||
Financing Receivable Recorded Investment | ||
Prior | 20,004 | 20,166 |
Total | 20,004 | 20,166 |
Single family | Substandard | ||
Financing Receivable Recorded Investment | ||
Prior | 898 | 846 |
Revolving Loans | 134 | 139 |
Total | 1,032 | 985 |
Commercial real estate | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | 614 | 15,369 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 15,335 | 221,525 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 222,908 | 131,918 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 131,001 | 123,404 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 150,135 | 92,667 |
Prior | 469,853 | 401,889 |
Total | 989,846 | 986,772 |
Financing Receivable Recorded Investment | ||
Gross charge-offs Prior | 249 | |
Gross charge-offs Total loans | 249 | |
Commercial real estate | Pass | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | 614 | 2,469 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 2,435 | 221,525 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 222,908 | 130,579 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 129,672 | 119,684 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 146,487 | 81,243 |
Prior | 441,460 | 383,729 |
Total | 943,576 | 939,229 |
Commercial real estate | Special mention | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,223 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 1,215 | 2,275 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 2,259 | |
Prior | 1,201 | 10,747 |
Total | 4,675 | 14,245 |
Commercial real estate | Substandard | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | 12,900 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 12,900 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 116 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 114 | 1,445 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 1,389 | 11,424 |
Prior | 27,192 | 7,413 |
Total | 41,595 | 33,298 |
Land and construction | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | 19,151 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 22,503 | 43,923 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 37,070 | 29,445 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 18,646 | 36,498 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 9,388 | 807 |
Prior | 7,662 | 7,003 |
Total | 95,269 | 136,827 |
Land and construction | Pass | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | 19,151 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 22,503 | 43,923 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 37,070 | 29,445 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 18,646 | 36,498 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 9,388 | 807 |
Prior | 7,662 | 7,003 |
Total | 95,269 | 136,827 |
Commercial and industrial loans | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | 43,364 | 182,446 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 177,971 | 1,083,882 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,066,696 | 317,158 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 298,553 | 123,619 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 117,916 | 22,695 |
Prior | 43,684 | 26,144 |
Revolving Loans | 1,082,321 | 1,099,318 |
Total | 2,830,505 | 2,855,262 |
Financing Receivable Recorded Investment | ||
Gross charge-offs Originated In Current Fiscal Year | 257 | |
Gross charge-offs Originated In Fiscal Year Before Latest Fiscal Year | 15 | 1,420 |
Gross charge-offs Originated Two Years Before Latest Fiscal Year | 359 | 1,205 |
Gross charge-offs Originated Three Years Before Latest Fiscal Year | 84 | 587 |
Gross charge-offs Originated Four Years Before Latest Fiscal Year | 35 | 117 |
Gross charge-offs Prior | 48 | |
Gross charge-offs Revolving Loans | 1,364 | |
Gross charge-offs Total loans | 493 | 4,998 |
Commercial and industrial loans | Pass | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | 43,231 | 182,391 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 177,918 | 1,082,510 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,065,076 | 291,663 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 273,177 | 119,035 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 113,850 | 21,314 |
Prior | 41,252 | 25,030 |
Revolving Loans | 1,070,563 | 1,087,075 |
Total | 2,785,067 | 2,809,018 |
Commercial and industrial loans | Special mention | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 1,360 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,240 | 24,653 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 24,578 | 703 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 298 | 56 |
Prior | 644 | 656 |
Revolving Loans | 730 | 735 |
Total | 27,490 | 28,163 |
Commercial and industrial loans | Substandard | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | 133 | 55 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 53 | 12 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 380 | 842 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 798 | 3,881 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 3,768 | 1,325 |
Prior | 1,788 | 458 |
Revolving Loans | 11,028 | 11,508 |
Total | 17,948 | 18,081 |
Consumer loans | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | 32 | 47 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 11 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 577 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 557 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 299 | |
Prior | 353 | 59 |
Revolving Loans | 361 | 415 |
Total | 1,314 | 1,397 |
Financing Receivable Recorded Investment | ||
Gross charge-offs Revolving Loans | 2 | |
Gross charge-offs Total loans | 2 | |
Consumer loans | Pass | ||
Financing Receivable Recorded Investment | ||
Financing Receivable Originated In Current Fiscal Year | 32 | 47 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 11 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 577 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 557 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 299 | |
Prior | 353 | 59 |
Revolving Loans | 361 | 415 |
Total | $ 1,314 | $ 1,397 |
CORE DEPOSIT INTANGIBLES (Detai
CORE DEPOSIT INTANGIBLES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Core Deposit | ||
CORE DEPOSIT INTANGIBLES | ||
Core deposit intangible assets | $ 4,600 | $ 4,900 |
Core deposit intangible amortization expense | $ 370 | $ 434 |
Minimum | ||
CORE DEPOSIT INTANGIBLES | ||
Estimated useful lives of other intangible assets | 7 years | |
Maximum | ||
CORE DEPOSIT INTANGIBLES | ||
Estimated useful lives of other intangible assets | 10 years |
DERIVATIVES ASSETS (Details)
DERIVATIVES ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2024 | Feb. 01, 2024 | Mar. 31, 2024 | |
Derivatives Fair Value [Line Items] | |||
Partial gain | $ 836 | ||
Cash flow hedge | 6,000 | ||
Component of AOCI | 5,200 | ||
Realized gain recognized | $ 788 | ||
Interest Rate Swaps | |||
Derivatives Fair Value [Line Items] | |||
Quarterly interest at a fixed rate | 3.583% | ||
Term of the agreement | 5 years | ||
Notional amount | $ 450,000 | ||
Notional amount reduction | $ 100,000 | ||
Partial gain | $ 800 |
LOAN SALES AND MORTGAGE SERVI_2
LOAN SALES AND MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
LOAN SALES AND MORTGAGE SERVICING RIGHTS | |||
Mortgage servicing rights | $ 4,800 | $ 5,500 | |
Loans serviced for other financial institution | 1,000,000 | $ 1,000,000 | |
Servicing fees earned on loans | 600 | $ 600 | |
Sale of multifamily loans through securitization | $ 0 | $ 0 |
DEPOSITS - Summary of Outstandi
DEPOSITS - Summary of Outstanding Balance of Deposits and Average Rates (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
DEPOSITS | ||
Demand deposits, Noninterest-bearing | $ 1,827,520 | $ 1,467,806 |
Demand deposits, Interest-bearing | 2,785,092 | 2,881,786 |
Money market and savings | 3,309,002 | 3,195,670 |
Certificates of deposit | 2,717,356 | 3,143,670 |
Total | $ 10,638,970 | $ 10,688,932 |
Demand deposits, Interest-bearing, Weighted Average Rate | 3.65% | 2.94% |
Money market and savings, Weighted Average Rate | 3.79% | 3.81% |
Certificates of deposit, Weighted Average Rate | 4.76% | 4.87% |
Total, Weighted Average Rate | 3.35% | 3.36% |
DEPOSITS - Remaining maturities
DEPOSITS - Remaining maturities of Certificate of Deposit Accounts (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
DEPOSITS | ||
3 months or less | $ 25,049 | $ 343,078 |
Over 3 months through 6 months | 23,652 | 24,126 |
Over 6 months through 12 months | 110,073 | 56,415 |
Over 12 months | 3,676 | 30,994 |
Total | $ 162,450 | $ 454,613 |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
DEPOSITS | ||
Large depositor relationships, percentage of total deposits | 2% | |
Large depositor relationships, consisting of deposit relationships, total deposits | 11.70% | 12.50% |
Accrued interest payable on deposits | $ 35.4 | $ 36.7 |
BORROWINGS (Details)
BORROWINGS (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 USD ($) | Mar. 31, 2024 USD ($) Institution | Dec. 31, 2017 USD ($) | Dec. 31, 2023 USD ($) | |
Borrowings | ||||
Borrowing in term FHLB | $ 550,000,000 | $ 550,000,000 | $ 100,000,000 | |
Carrying Value | 173,413,000 | 173,413,000 | 173,397,000 | |
Loans held for investment | 5,700,000,000 | 5,700,000,000 | 4,300,000,000 | |
Federal Home Loan Bank, maximum borrowing capacity | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | |
Federal Home Loan Bank, additional credit available | 10,000,000 | $ 10,000,000 | $ 310,000,000 | |
FHLB term advances interest rate | 4.21% | |||
Unsecured debt | $ 170,000,000 | |||
Number of financial institutions | Institution | 4 | |||
Securities pledged as collateral | 80,000,000 | $ 80,000,000 | 76,300,000 | |
FHLB putable advances | ||||
Borrowings | ||||
FHLB advances | $ 800,000,000 | $ 800,000,000 | $ 800,000,000 | |
Weighted average interest rate | 3.74% | 3.74% | 3.74% | |
Minimum | ||||
Borrowings | ||||
Unsecured debt | $ 20,000,000 | |||
Maximum | ||||
Borrowings | ||||
Unsecured debt | $ 100,000,000 | |||
Weighted Average | FHLB putable advances | ||||
Borrowings | ||||
Weighted average life | 5 years 1 month 28 days | 5 years 1 month 28 days | 5 years 4 months 28 days | |
Revolving Credit Facility | ||||
Borrowings | ||||
Long-term line of credit | $ 0 | $ 0 | $ 0 | |
Debt instrument basis point rate | 0.50% | |||
Line of credit, borrowing capacity | $ 20,000,000 | |||
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | ||||
Borrowings | ||||
Debt instrument basis point rate | 0.50% | |||
FHLB Advances Maturing on May 1, 2024 | ||||
Borrowings | ||||
FHLB advances | $ 100,000,000 | $ 100,000,000 | ||
Interest rate (as a percent) | 5.60% | 5.60% | ||
FHLB Advances Maturing on April 30, 2024 | ||||
Borrowings | ||||
FHLB advances | $ 350,000,000 | $ 350,000,000 | ||
Interest rate (as a percent) | 5.60% | 5.60% | ||
FHLB Advances Maturing on June 28, 2028 | ||||
Borrowings | ||||
FHLB advances | $ 100,000,000 | $ 100,000,000 | ||
Interest rate (as a percent) | 4.21% | 4.21% | ||
Subordinated notes due 2030 | ||||
Borrowings | ||||
Secured debt | $ 76,000,000 | $ 76,000,000 | 64,000,000 | |
Overnight FHLB Advance | ||||
Borrowings | ||||
Secured debt | 160,000,000 | |||
Federal Reserve Bank advances | ||||
Borrowings | ||||
Secured debt | 279,000,000 | 279,000,000 | 285,000,000 | |
Unsecured federal funds | ||||
Borrowings | ||||
Unsecured debt | 0 | 0 | ||
Borrower In Custody | ||||
Borrowings | ||||
Long-term line of credit | $ 160,000,000 | |||
Interest rate (as a percent) | 5.50% | |||
Bank Term Funding Program | ||||
Borrowings | ||||
Long-term line of credit | 279,000,000 | 279,000,000 | $ 285,000,000 | |
Remaining borrowing capacity | $ 452,000,000 | $ 452,000,000 | $ 402,000,000 | |
Bank Term Funding Program | Secured Overnight Financing Rate (SOFR) | ||||
Borrowings | ||||
Debt instrument basis point rate | 0.10% |
SUBORDINATED DEBT (Details)
SUBORDINATED DEBT (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 USD ($) item | Dec. 31, 2023 USD ($) item | |
Subordinated Debt | ||
Number of subordinated notes | item | 2 | 2 |
Current Principal Balance | $ 174,165 | |
Carrying Value | $ 173,413 | $ 173,397 |
Subordinated notes due 2032 | ||
Subordinated Debt | ||
Current Interest Rate | 0.035% | |
Current Principal Balance | $ 150,000 | |
Carrying Value | $ 148,118 | 148,058 |
Subordinated notes due 2032 | Secured Overnight Financing Rate (SOFR) | ||
Subordinated Debt | ||
Current Interest Rate | 0.0204% | |
Subordinated notes due 2030 | ||
Subordinated Debt | ||
Current Interest Rate | 0.06% | |
Current Principal Balance | $ 24,165 | |
Carrying Value | $ 25,295 | $ 25,339 |
Subordinated notes due 2030 | Secured Overnight Financing Rate (SOFR) | ||
Subordinated Debt | ||
Current Interest Rate | 0.059% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
INCOME TAXES | |||
Income tax (benefit) expense | $ (910) | $ 2,200 | |
Effective income tax rate | 777.80% | 20.60% | |
Combined federal and state statutory rates | 28.20% | ||
Valuation allowance | $ 0 | ||
Deferred tax assets | $ 33,600 | $ 29,100 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Subsidiary Sale Of Stock [Line Items] | ||
Cash and cash equivalents | $ 1,588,036 | $ 1,326,629 |
FFI | ||
Subsidiary Sale Of Stock [Line Items] | ||
Dividend payment restrictions (as a percent) | 50% | |
Cash and cash equivalents | $ 5,300 | $ 15,300 |
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, 2024 | Mar. 31, 2023 | |
EARNINGS PER SHARE | ||
Net income, Basic | $ 793 | $ 8,496 |
Net income, Diluted | $ 793 | $ 8,496 |
Basic common shares outstanding | 56,484,655 | 56,376,669 |
Effect of options, restricted stock and contingent shares issuable | 19,220 | 33,747 |
Diluted common shares outstanding | 56,503,875 | 56,410,416 |
Net income per share, Basic | $ 0.01 | $ 0.15 |
Net income per share, Diluted | $ 0.01 | $ 0.15 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - segment | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
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, 2024 | Mar. 31, 2023 | |
Segment Reporting Information | ||
Interest income | $ 150,453 | $ 137,000 |
Interest expense | 112,067 | 78,245 |
Net interest income | 38,386 | 58,755 |
Provision for credit losses | 577 | 417 |
Noninterest income | 12,683 | 11,698 |
Compensation and benefits | 19,407 | 25,286 |
Customer service costs | 10,738 | 16,715 |
Professional services and marketing costs | 3,390 | 4,295 |
Other | 17,074 | 13,044 |
Income (loss) before income taxes | (117) | 10,696 |
Income tax (benefit) expense | (910) | 2,200 |
Net income (loss) | 793 | 8,496 |
Operating Segments | Banking | ||
Segment Reporting Information | ||
Interest income | 150,453 | 137,000 |
Interest expense | 110,362 | 76,449 |
Net interest income | 40,091 | 60,551 |
Provision for credit losses | 577 | 417 |
Noninterest income | 5,683 | 4,801 |
Compensation and benefits | 15,172 | 20,260 |
Customer service costs | 10,738 | 16,715 |
Professional services and marketing costs | 2,532 | 2,664 |
Other | 16,098 | 12,006 |
Income (loss) before income taxes | 657 | 13,290 |
Income tax (benefit) expense | (711) | 2,947 |
Net income (loss) | 1,368 | 10,343 |
Operating Segments | Wealth Management | ||
Segment Reporting Information | ||
Noninterest income | 7,349 | 7,291 |
Compensation and benefits | 4,095 | 4,560 |
Professional services and marketing costs | 901 | 804 |
Other | 680 | 701 |
Income (loss) before income taxes | 1,673 | 1,226 |
Income tax (benefit) expense | 487 | 364 |
Net income (loss) | 1,186 | 862 |
Other. | ||
Segment Reporting Information | ||
Interest expense | 1,705 | 1,796 |
Net interest income | (1,705) | (1,796) |
Noninterest income | (349) | (394) |
Compensation and benefits | 140 | 466 |
Professional services and marketing costs | (43) | 827 |
Other | 296 | 337 |
Income (loss) before income taxes | (2,447) | (3,820) |
Income tax (benefit) expense | (686) | (1,111) |
Net income (loss) | $ (1,761) | $ (2,709) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event | Apr. 25, 2024 $ / shares |
Subsequent Events | |
Dividends payable, date declared | Apr. 25, 2024 |
Dividends payable, amount per share | $ 0.01 |
Dividends payable, date to be paid | May 16, 2024 |
Dividends payable, date of record | May 06, 2024 |
ALLOWANCE FOR CREDIT LOSSES -_2
ALLOWANCE FOR CREDIT LOSSES - Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
LOANS | ||
Loans pledged as collateral | $ 10,057,051 | $ 10,148,597 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 793 | $ 8,496 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |