Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 21, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-31567 | |
Entity Registrant Name | CENTRAL PACIFIC FINANCIAL CORP | |
Entity Incorporation, State or Country Code | HI | |
Entity Tax Identification Number | 99-0212597 | |
Entity Address, Address Line One | 220 South King Street | |
Entity Address, City or Town | Honolulu | |
Entity Address, State or Province | HI | |
Entity Address, Postal Zip Code | 96813 | |
City Area Code | 808 | |
Local Phone Number | 544-0500 | |
Title of 12(b) Security | Common stock, No Par Value | |
Trading Symbol | CPF | |
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 | 28,218,860 | |
Entity Central Index Key | 0000701347 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 116,009 | $ 97,546 |
Interest-bearing deposits in other banks | 224,469 | 6,521 |
Investment securities: | ||
Available-for-sale debt securities, at fair value | 1,407,340 | 1,182,609 |
Equity securities, at fair value | 1,578 | 1,351 |
Total investment securities | 1,408,918 | 1,183,960 |
Loans held for sale | 5,361 | 16,687 |
Loans | 5,077,318 | 4,964,113 |
Allowance for credit losses | (77,781) | (83,269) |
Loans, net of allowance for credit losses | 4,999,537 | 4,880,844 |
Premises and equipment, net | 76,740 | 65,278 |
Accrued interest receivable | 19,014 | 20,224 |
Investment in unconsolidated subsidiaries | 31,052 | 29,968 |
Mortgage servicing rights | 10,500 | 11,865 |
Bank-owned life insurance | 167,289 | 163,161 |
Federal Home Loan Bank stock | 8,149 | 8,237 |
Right-of-use lease asset | 41,890 | 45,857 |
Other assets | 69,553 | 64,435 |
Total assets | 7,178,481 | 6,594,583 |
Deposits: | ||
Noninterest-bearing demand | 2,203,806 | 1,790,269 |
Interest-bearing demand | 1,341,280 | 1,174,888 |
Savings and money market | 2,048,945 | 1,932,043 |
Time | 803,128 | 898,918 |
Total deposits | 6,397,159 | 5,796,118 |
Short-term borrowings | 0 | 22,000 |
Long-term debt | 105,495 | 105,385 |
Lease liability | 43,112 | 47,191 |
Other liabilities | 79,874 | 77,156 |
Total liabilities | 6,625,640 | 6,047,850 |
Equity | ||
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at June 30, 2021 and December 31, 2020 | 0 | 0 |
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 28,218,860 at June 30, 2021 and 28,183,340 at December 31, 2020 | 440,854 | 442,635 |
Additional paid-in capital | 96,182 | 94,842 |
Retained earnings (Accumulated deficit) | 10,831 | (10,920) |
Accumulated other comprehensive income | 4,926 | 20,128 |
Total shareholders' equity | 552,793 | 546,685 |
Stockholders' Equity Attributable to Noncontrolling Interest | 48 | 48 |
Total equity | 552,841 | 546,733 |
Total liabilities and equity | $ 7,178,481 | $ 6,594,583 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, authorized shares | 1,000,000 | 1,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized shares | 185,000,000 | 185,000,000 |
Common stock, issued shares | 28,218,860 | 28,183,340 |
Common stock, outstanding shares | 28,218,860 | 28,183,340 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest income: | ||||
Interest and fees on loans | $ 49,024 | $ 45,915 | $ 95,098 | $ 92,119 |
Interest and dividends on investment securities: | ||||
Taxable interest | 4,447 | 6,310 | 9,553 | 13,067 |
Tax-exempt interest | 346 | 599 | 860 | 1,267 |
Dividends | 18 | 17 | 36 | 34 |
Interest on deposits in other banks | 61 | 3 | 71 | 39 |
Dividends on Federal Home Loan Bank stock | 63 | 106 | 122 | 238 |
Total interest income | 53,959 | 52,950 | 105,740 | 106,764 |
Interest on deposits: | ||||
Demand | 93 | 114 | 179 | 290 |
Savings and money market | 282 | 567 | 556 | 1,685 |
Time | 498 | 2,124 | 1,086 | 5,392 |
Interest on short-term borrowings | 0 | 74 | 2 | 582 |
Interest on long-term debt | 1,025 | 812 | 2,052 | 1,726 |
Total interest expense | 1,898 | 3,691 | 3,875 | 9,675 |
Net interest income | 52,061 | 49,259 | 101,865 | 97,089 |
(Credit) provision for credit losses | (3,443) | 11,213 | (4,264) | 22,340 |
Net interest income after provision for credit losses | 55,504 | 38,046 | 106,129 | 74,749 |
Other operating income: | ||||
Mortgage banking income | 1,533 | 3,566 | 4,503 | 3,903 |
Service charges on deposit accounts | 1,443 | 1,149 | 2,921 | 3,199 |
Other service charges and fees | 4,619 | 2,916 | 8,409 | 7,813 |
Income from fiduciary activities | 1,269 | 1,270 | 2,500 | 2,567 |
Investment securities gains (losses) | 50 | 0 | 50 | 0 |
Income from bank-owned life insurance | 1,210 | 1,424 | 2,007 | 1,405 |
Other | 406 | 367 | 851 | 691 |
Total other operating income | 10,530 | 10,692 | 21,241 | 19,578 |
Other operating expense: | ||||
Salaries and employee benefits | 23,790 | 20,329 | 43,617 | 40,383 |
Net occupancy | 4,055 | 3,645 | 7,819 | 7,317 |
Equipment | 1,048 | 1,043 | 2,048 | 2,140 |
Communication expense | 756 | 774 | 1,525 | 1,611 |
Legal and professional services | 2,572 | 2,238 | 4,949 | 4,266 |
Computer software expense | 3,398 | 3,035 | 7,181 | 5,978 |
Advertising expense | 1,329 | 923 | 2,987 | 2,015 |
Other | 4,485 | 3,867 | 9,153 | 6,586 |
Total other operating expense | 41,433 | 35,854 | 79,279 | 70,296 |
Income before income taxes | 24,601 | 12,884 | 48,091 | 24,031 |
Income tax expense | 5,887 | 2,967 | 11,339 | 5,788 |
Net income | $ 18,714 | $ 9,917 | $ 36,752 | $ 18,243 |
Per common share data: | ||||
Basic earnings per common share (in dollars per share) | $ 0.66 | $ 0.35 | $ 1.31 | $ 0.65 |
Diluted earnings per common share (in dollars per share) | 0.66 | 0.35 | 1.29 | 0.65 |
Cash dividends declared (in dollars per share) | $ 0.24 | $ 0.23 | $ 0.47 | $ 0.46 |
Weighted average common shares outstanding used in computation: | ||||
Basic shares (in shares) | 28,173,710 | 28,040,802 | 28,141,360 | 28,083,602 |
Diluted shares (in shares) | 28,456,624 | 28,095,230 | 28,407,479 | 28,190,132 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 18,714 | $ 9,917 | $ 36,752 | $ 18,243 |
Other comprehensive income, net of tax: | ||||
Net change in unrealized gain (loss) on investment securities | 1,727 | 6,275 | (15,574) | 16,422 |
Defined benefit plans | 188 | 204 | 372 | 720 |
Total other comprehensive income (loss), net of tax | 1,915 | 6,479 | (15,202) | 17,142 |
Comprehensive income | $ 20,629 | $ 16,396 | $ 21,550 | $ 35,385 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Impact of the adoption of new accounting standards | Adjusted balance at beginning of period | Common Shares Outstanding | Common Shares OutstandingAdjusted balance at beginning of period | Common Stock | Common StockAdjusted balance at beginning of period | Additional Paid-In Capital | Additional Paid-In CapitalAdjusted balance at beginning of period | Retained Earnings (Accum. Deficit) | Retained Earnings (Accum. Deficit)Impact of the adoption of new accounting standards | Retained Earnings (Accum. Deficit)Adjusted balance at beginning of period | Accum. Other Comp. Income (Loss) | Accum. Other Comp. Income (Loss)Adjusted balance at beginning of period | Non- Controlling Interest | Non- Controlling InterestAdjusted balance at beginning of period |
Increase (Decrease) in Shareholders' Equity | ||||||||||||||||
Adjusted balance (in shares) | 28,289,257 | |||||||||||||||
Balance (in shares) at Dec. 31, 2019 | 28,289,257 | |||||||||||||||
Balance at beginning of period at Dec. 31, 2019 | $ 528,520 | $ (3,156) | $ 525,364 | $ 447,602 | $ 447,602 | $ 91,611 | $ 91,611 | $ (19,102) | $ (3,156) | $ (22,258) | $ 8,409 | $ 8,409 | $ 0 | $ 0 | ||
Increase (Decrease) in Shareholders' Equity | ||||||||||||||||
Net income | 8,326 | 8,326 | ||||||||||||||
Other comprehensive loss | 10,663 | 10,663 | ||||||||||||||
Cash dividends declared | (6,496) | (6,496) | ||||||||||||||
Shares of common stock repurchased and other related costs (in shares) | (206,802) | |||||||||||||||
Common stock repurchased and retired and other related costs | (4,749) | (4,749) | ||||||||||||||
Share-based compensation (in shares) | 32,898 | |||||||||||||||
Share-based compensation | 673 | 673 | ||||||||||||||
Non-controlling interest | 49 | 49 | ||||||||||||||
Balance (in shares) at Mar. 31, 2020 | 28,115,353 | |||||||||||||||
Balance at end of period at Mar. 31, 2020 | 533,830 | 442,853 | 92,284 | (20,428) | 19,072 | 49 | ||||||||||
Balance (in shares) at Dec. 31, 2019 | 28,289,257 | |||||||||||||||
Balance at beginning of period at Dec. 31, 2019 | 528,520 | $ (3,156) | $ 525,364 | 447,602 | $ 447,602 | 91,611 | $ 91,611 | (19,102) | $ (3,156) | $ (22,258) | 8,409 | $ 8,409 | 0 | $ 0 | ||
Increase (Decrease) in Shareholders' Equity | ||||||||||||||||
Net income | 18,243 | |||||||||||||||
Other comprehensive loss | 17,142 | 17,142 | ||||||||||||||
Balance (in shares) at Jun. 30, 2020 | 28,154,159 | |||||||||||||||
Balance at end of period at Jun. 30, 2020 | 544,306 | 442,699 | 93,007 | (16,986) | 25,551 | 35 | ||||||||||
Balance (in shares) at Mar. 31, 2020 | 28,115,353 | |||||||||||||||
Balance at beginning of period at Mar. 31, 2020 | 533,830 | 442,853 | 92,284 | (20,428) | 19,072 | 49 | ||||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||||||||
Net income | 9,917 | 9,917 | ||||||||||||||
Other comprehensive loss | 6,479 | 6,479 | ||||||||||||||
Cash dividends declared | (6,475) | (6,475) | ||||||||||||||
Common stock purchased by directors' deferred compensation plan (net shares) | (154) | (154) | ||||||||||||||
Common stock repurchased and retired and other related costs | 0 | 0 | ||||||||||||||
Share-based compensation (in shares) | 38,806 | |||||||||||||||
Share-based compensation | 723 | 723 | 0 | |||||||||||||
Non-controlling interest | (14) | (14) | ||||||||||||||
Balance (in shares) at Jun. 30, 2020 | 28,154,159 | |||||||||||||||
Balance at end of period at Jun. 30, 2020 | $ 544,306 | 442,699 | 93,007 | (16,986) | 25,551 | 35 | ||||||||||
Balance (in shares) at Dec. 31, 2020 | 28,183,340 | 28,183,340 | ||||||||||||||
Balance at beginning of period at Dec. 31, 2020 | $ 546,733 | 442,635 | 94,842 | (10,920) | 20,128 | 48 | ||||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||||||||
Net income | 18,038 | 18,038 | ||||||||||||||
Other comprehensive loss | (17,117) | (17,117) | ||||||||||||||
Cash dividends declared | (6,490) | (6,490) | ||||||||||||||
Share-based compensation (in shares) | 99,190 | |||||||||||||||
Share-based compensation | 1,749 | 870 | 879 | |||||||||||||
Balance (in shares) at Mar. 31, 2021 | 28,282,530 | |||||||||||||||
Balance at end of period at Mar. 31, 2021 | $ 542,913 | 443,505 | 95,721 | 628 | 3,011 | 48 | ||||||||||
Balance (in shares) at Dec. 31, 2020 | 28,183,340 | 28,183,340 | ||||||||||||||
Balance at beginning of period at Dec. 31, 2020 | $ 546,733 | 442,635 | 94,842 | (10,920) | 20,128 | 48 | ||||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||||||||
Net income | 36,752 | |||||||||||||||
Other comprehensive loss | $ (15,202) | (15,202) | ||||||||||||||
Balance (in shares) at Jun. 30, 2021 | 28,218,860 | 28,218,860 | ||||||||||||||
Balance at end of period at Jun. 30, 2021 | $ 552,841 | 440,854 | 96,182 | 10,831 | 4,926 | 48 | ||||||||||
Balance (in shares) at Mar. 31, 2021 | 28,282,530 | |||||||||||||||
Balance at beginning of period at Mar. 31, 2021 | 542,913 | 443,505 | 95,721 | 628 | 3,011 | 48 | ||||||||||
Increase (Decrease) in Shareholders' Equity | ||||||||||||||||
Net income | 18,714 | 18,714 | ||||||||||||||
Other comprehensive loss | 1,915 | 1,915 | ||||||||||||||
Cash dividends declared | (6,787) | (6,787) | ||||||||||||||
Common stock purchased by directors' deferred compensation plan (net shares) | (191) | (191) | ||||||||||||||
Shares of common stock repurchased and other related costs (in shares) | (156,600) | |||||||||||||||
Common stock repurchased and retired and other related costs | (4,327) | (2,603) | (1,724) | |||||||||||||
Share-based compensation (in shares) | 92,930 | |||||||||||||||
Share-based compensation | $ 604 | 143 | 461 | |||||||||||||
Balance (in shares) at Jun. 30, 2021 | 28,218,860 | 28,218,860 | ||||||||||||||
Balance at end of period at Jun. 30, 2021 | $ 552,841 | $ 440,854 | $ 96,182 | $ 10,831 | $ 4,926 | $ 48 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.24 | $ 0.23 |
Common stock purchased by directors' deferred compensation plan, net shares (in shares) | 6,900 | 8,800 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 36,752 | $ 18,243 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
(Credit) provision for credit losses | (4,264) | 22,340 |
Depreciation and amortization of premises and equipment | 3,293 | 3,010 |
Non-cash lease (benefit) expense | (34) | 117 |
Cash flows from operating leases | (3,325) | (3,189) |
Loss on disposal of fixed assets | 37 | 0 |
Loss on sale of other real estate, net of write-downs | 0 | 70 |
Amortization of mortgage servicing rights | 2,082 | 3,217 |
Net amortization and accretion of premium/discounts on investment securities | 5,715 | 4,327 |
Share-based compensation expense | 1,340 | 1,396 |
Investment securities gains (losses) | (50) | 0 |
Net gain on sales of residential mortgage loans | (3,654) | (5,273) |
Proceeds from sales of loans held for sale | 89,016 | 167,643 |
Originations of loans held for sale | (74,036) | (163,730) |
Equity in earnings of unconsolidated subsidiaries | (187) | (130) |
Distributions from unconsolidated subsidiaries | 288 | 121 |
Net increase in cash surrender value of bank-owned life insurance | (2,685) | (2,268) |
Deferred income taxes | (8,612) | (2,129) |
Net tax benefit (expense) from share-based compensation | 252 | (134) |
Net change in other assets and liabilities | 17,212 | 13,427 |
Net cash provided by operating activities | 59,140 | 57,058 |
Cash flows from investing activities: | ||
Proceeds from maturities of and calls on investment securities available-for-sale | 169,385 | 123,720 |
Proceeds from sales of investment securities available-for-sale | 174,971 | 0 |
Purchases of investment securities available-for-sale | (596,140) | (147,359) |
Net loan repayments (originations) | 3,765 | (524,869) |
Purchases of loan portfolios | (118,194) | (33,196) |
Proceeds from sale of foreclosed loans/other real estate owned | 0 | 94 |
Purchases of bank-owned life insurance | (3,550) | 0 |
Proceeds from bank-owned life insurance | 2,107 | 166 |
Net purchases of premises, equipment and land | (14,792) | (11,699) |
Contributions to unconsolidated subsidiaries | (2,819) | (2,194) |
Net proceeds from redemption of FHLB stock | 88 | 5,754 |
Net cash used in investing activities | (385,179) | (589,583) |
Cash flows from financing activities: | ||
Net increase in deposits | 601,041 | 674,662 |
Proceeds from long-term debt | 0 | 65,944 |
Net decrease in short-term borrowings | (22,000) | (150,000) |
Cash dividends paid on common stock | (13,277) | (12,971) |
Repurchases of common stock and other related costs | (4,327) | (4,749) |
Net proceeds from issuance of common stock and stock option exercises | 1,013 | 0 |
Net cash provided by financing activities | 562,450 | 572,886 |
Net increase in cash and cash equivalents | 236,411 | 40,361 |
Cash and cash equivalents at beginning of period | 104,067 | 102,972 |
Cash and cash equivalents at end of period | 340,478 | 143,333 |
Cash paid during the period for: | ||
Interest | 4,460 | 11,069 |
Income taxes | 14,358 | 185 |
Supplemental disclosure of non-cash information: | ||
Net change in common stock held by directors’ deferred compensation plan | $ 191 | $ 154 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements of Central Pacific Financial Corp. and Subsidiaries (herein referred to as the "Company," "we," "us" or "our") have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements and notes should be read in conjunction with the Company's consolidated financial statements and notes thereto filed on Form 10-K for the fiscal year ended December 31, 2020. In the opinion of management, all adjustments necessary for a fair presentation have been made and include all normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year. Reclassifications Certain amounts reported in prior years in the financial statements have been reclassified to conform to the current year’s presentation. These reclassifications did not impact net income, the consolidated balance sheets and the consolidated statements of cash flows. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In January 2020, we acquired a 50% ownership interest in a mortgage loan origination and brokerage company, Oahu HomeLoans, LLC. The bank concluded that the investment meets the consolidation requirements under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, "Consolidation." The bank concluded that the entity meets the definition of a variable interest entity and that we are the primary beneficiary of the variable interest entity. Accordingly, the investment has been consolidated into our financial statements. We also have non-controlling equity investments in affiliates that are accounted for under the cost method and are included in investment in unconsolidated subsidiaries. Our investments in unconsolidated subsidiaries accounted for under the equity, proportional amortization and cost methods were $0.2 million, $27.3 million and $3.6 million, respectively, at June 30, 2021 and $0.3 million, $28.1 million and $1.6 million, respectively, at December 31, 2020. Our policy for determining impairment of these investments includes an evaluation of whether a loss in value of an investment is other than temporary. Evidence of a loss in value includes absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment. We perform impairment tests whenever indicators of impairment are present. If the value of an investment declines and it is considered other than temporary, the investment is written down to its respective fair value in the period in which this determination is made. The Company sponsors the Central Pacific Bank Foundation, which is not consolidated in the Company's financial statements. Risks and Uncertainties COVID-19 Pandemic In December 2019, a novel strain of coronavirus (“COVID-19”) was reported to have surfaced in Wuhan, China, and has since spread across the globe. In March 2020, the World Health Organization declared COVID-19 a global pandemic and the United States declared a National Public Health Emergency. The COVID-19 pandemic has severely impacted the level of economic activity in the local, national and global economies and financial markets. The pandemic has resulted in temporary closures of many businesses and the institution of social distancing and sheltering in place requirements in many states and communities. The Company and its customers have been adversely affected by the COVID-19 pandemic. The full extent to which the COVID - 19 pandemic negatively impacts the Company's business, results of operations, and financial condition, as well as its regulatory capital and liquidity ratios, remains uncertain and will depend on future developments, including the scope and duration of the pandemic, the success of the continued COVID-19 vaccine rollout, and other actions taken by governmental authorities and other third parties in response to the pandemic. If the pandemic continues to be sustained, it may further adversely impact the Company and the State of Hawaii and impair the ability of the Company's customers to fulfill their contractual obligations to the Company. This could cause the Company to experience a material adverse effect on its business operations, asset valuations, financial condition, and results of operations. Material adverse effects may include all or a combination of losses in operations, loan defaults, higher provisions for credit losses and valuation impairments on the Company's investments, loans, mortgage servicing rights, deferred tax assets, or counter-party risk derivatives. Investment Securities Investments in debt securities are designated as trading, available-for-sale ("AFS"), or held-to-maturity ("HTM"). Investments in debt securities are designated as HTM only if we have the positive intent and ability to hold these securities to maturity. HTM securities are reported at amortized cost in the consolidated balance sheets. Trading securities are reported at fair value, with changes in fair value included in net income. Debt securities not classified as HTM or trading are classified as AFS and are reported at fair value, with net unrealized gains and losses, net of applicable taxes, excluded from net income and included in accumulated other comprehensive income (loss) ("AOCI"). Equity securities with readily determinable fair values are carried at fair value, with changes in fair value included in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. The Company classifies its investment securities portfolio into the following major security types: mortgage-backed securities ("MBS"), other debt securities and equity securities. The Company’s MBS portfolio is comprised primarily of residential MBS issued by United States of America ("U.S.") government entities and agencies. These securities are either explicitly or implicitly guaranteed by an agency of the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The remainder of the MBS portfolio are commercial MBS issued by U.S government entities and agencies (which there is no minimum credit rating), non-agency residential MBS (which shall meet a minimum credit rating of AAA) and non-agency commercial MBS (which shall meet a minimum credit rating of BBB and meet minimum internal credit guidelines). The Company’s other debt securities portfolio is comprised of obligations issued by U.S. government entities and agencies, obligations issued by states and political subdivisions (which shall meet a minimum credit rating of BBB), and corporate bonds (which shall meet a minimum credit rating of BBB-). Interest income on investment securities includes amortization of premiums and accretion of discounts. We amortize premiums and accrete discounts using the effective interest method over the life of the respective security instrument. Gains and losses on the sale of investment securities are recorded on the trade date and determined using the specific identification method. A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on non-accrual status is reversed against current period interest income. There were no investment securities on nonaccrual status as of June 30, 2021 and the Company did not reverse any accrued interest against interest income during the three and six months ended June 30, 2021. Allowance for Credit Losses (“ACL”) for AFS Debt Securities AFS debt securities in an unrealized loss position are evaluated for impairment at least quarterly. For AFS debt securities in an unrealized loss position, the Company first assesses whether or not it intends to sell, or 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 the criteria regarding intent or requirement to sell is met, the investment security’s amortized cost basis is written down to fair value through net income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In conducting this assessment for debt securities in an unrealized loss position, management evaluates the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the investment security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in AOCI. Changes in the ACL are recorded as a provision for (or reversal of) credit losses. Losses are charged against the ACL when management believes the uncollectibility of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. As of June 30, 2021, the declines in market values of our AFS debt securities were primarily attributable to changes in interest rates and volatility in the financial markets. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, we do not believe a credit loss exists and an ACL was not recorded. The Company has made a policy election to exclude accrued interest receivable from the amortized cost basis of debt securities and report accrued interest receivable together with accrued interest on loans in the consolidated balance sheets. Accrued interest receivable on AFS debt securities totaled $4.2 million as of June 30, 2021. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses. ACL for HTM Debt Securities Management measures expected credit losses on HTM debt securities on a collective basis by major security type. For pools of such securities with common risk characteristics, the historical lifetime probability of default and severity of loss in the event of default is derived or obtained from external sources. Expected credit losses for these securities are estimated using a loss rate methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Expected credit loss on each security in the HTM portfolio that do not share common risk characteristics with any of the pools of debt securities is individually measured based on net realizable value, or the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the recorded amortized cost basis of the security. Accrued interest on HTM debt securities is reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses. The Company did not have any HTM debt securities as of June 30, 2021. Federal Home Loan Bank Stock We are a member of the Federal Home Loan Bank of Des Moines (the "FHLB"). The bank is required to obtain and hold a specific number of shares of capital stock of the FHLB equal to the sum of a membership investment requirement and an activity-based investment requirement. The securities are reported at cost and are presented separately in the consolidated balance sheets. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost, net of the ACL. Amortized cost is the unpaid principal amount outstanding, net of unamortized purchase premiums and discounts, unamortized deferred loan origination fees and costs and cumulative principal charge-offs. Purchase premiums and discounts are generally amortized into interest income over the contractual terms of the underlying loans using the effective interest method. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the life of the related loan as an adjustment to yield and are typically amortized using the interest method over the contractual term of the loan, adjusted for actual prepayments. Deferred loan fees and costs on loans paid in full are recognized as a component of interest income on loans. Interest income on loans is accrued at the contractual rate of interest on the unpaid principal balance. Accrued interest receivable on loans totaled $14.8 million at June 30, 2021 and is reported together with accrued interest on AFS debt securities on the consolidated balance sheets. Upon adoption of ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” the Company made the accounting policy election to not measure an estimate of credit losses on accrued interest receivable as the Company writes off any uncollectible accrued interest receivable in a timely manner. The Company believes COVID-19 modified loans have distinct risk characteristics that cause them to be monitored and assessed for credit risk differently than their unmodified counterparts. Thus, in the third quarter of 2020, the Company elected to measure a reserve on the accrued interest receivable for loans on active payment forbearance or deferral of $0.2 million, with the offset recorded to provision for credit losses. Due to the significant decline in loans on active forbearance or deferral, the Company reversed the $0.2 million reserve during the second quarter of 2021 and no longer has a reserve on accrued interest receivable as of June 30, 2021. Nonaccrual Loans The Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. Loans are generally placed on nonaccrual status when principal and/or interest payments are 90 days past due, or earlier should management determine that the borrowers will be unable to meet contractual principal and/or interest obligations, unless the loans are well-secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income should management determine that the collectability of such accrued interest is doubtful. All subsequent receipts are applied to principal outstanding and no interest income is recognized unless the financial condition and payment record of the borrowers warrant such recognition and the loan is restored to accrual status. A nonaccrual loan may be restored to an accrual basis when principal and interest payments are current for a predetermined period, normally at least six months, and full payment of principal and interest is reasonably assured. Troubled Debt Restructuring (“TDR”) A loan is accounted for and reported as a TDR when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) the Company grants a concession to the borrower experiencing financial difficulty that it would not otherwise consider for a borrower or transaction with similar credit risk characteristics. A restructuring that results in only an insignificant delay in payment is not considered a concession. A delay may be considered insignificant if the payments subject to the delay are insignificant relative to the unpaid principal or collateral value and the contractual amount due, or the delay in timing of the restructured payment period is insignificant relative to the frequency of payments, the debt’s original contractual maturity or original expected duration. TDRs that are performing and on accrual status as of the date of the modification remain on accrual status. TDRs that are nonperforming as of the date of modification generally remain as nonaccrual until the prospect of future payments in accordance with the modified loan agreement is reasonably assured, generally demonstrated when the borrower maintains compliance with the restructured terms for a predetermined period, normally at least six months. TDRs with temporary below-market concessions remain designated as a TDR regardless of the accrual or performance status until the loan is paid off. Expected credit losses are estimated on a collective (pool) basis when they share similar risk characteristics. If a TDR financial asset shares similar risk characteristics with other financial assets, it is evaluated with those other financial assets on a collective basis. If it does not share similar risk characteristics with other financial assets, it is evaluated individually. The Company’s ACL reflects all effects of a TDR when an individual asset is specifically identified as a reasonably expected TDR. The Company has determined that a TDR is reasonably expected no later than the point when the lender concludes that modification is the best course of action and it is at least reasonably possible that the troubled borrower will accept some form of concession from the lender to avoid a default. Reasonably expected TDRs and executed TDRs are evaluated to determine the required ACL using the same method as all other loans held for investment, except when the value of a concession cannot be measured using a method other than the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the ACL is determined by discounting the expected future cash flows at the original interest rate of the loan. Based on the underlying risk characteristics, TDRs performing in accordance with their modified contractual terms may be collectively evaluated. In April 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued a revised interagency statement encouraging financial institutions to work with customers affected by the COVID-19 pandemic and providing additional information regarding loan modifications. The revised interagency statement clarifies the interaction between the interagency statement issued on March 22, 2020 and the temporary relief provided by Section 4013 of the Coronavirus Aid, Relief and Economic Security ("CARES") Act. Section 4013 allows financial institutions to suspend the requirements to classify certain loan modifications as TDRs. The revised statement also provides supervisory interpretations on past due and nonaccrual regulatory reporting of loan modification programs and regulatory capital. Section 4013 and the interagency guidance are being applied by the Company to loan modifications made related to the COVID-19 pandemic as eligible and appropriate. The application of the guidance reduced the number of TDRs that were reported. In December 2020, the Consolidated Appropriations Act, 2021 was signed into law. Section 541 of this legislation, “Extension of Temporary Relief From Troubled Debt Restructurings and Insurer Clarification,” extends Section 4013 of the CARES Act to the earlier of January 1, 2022 or 60 days after the termination of the national emergency declared relating to COVID-19. Future TDRs are indeterminable and will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic, the success of the continued COVID-19 vaccine rollout, and other actions taken by governmental authorities and other third parties in response to the pandemic . ACL for Loans Under the current expected credit loss methodology, the ACL for loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Our policy is to charge off a loan in the period in which the loan is deemed to be uncollectible and all interest previously accrued but not collected is reversed against current period interest income. We consider a loan to be uncollectible when it is probable that a loss has been incurred and the Company can make a reasonable estimate of the loss. In these instances, the likelihood of and/or timeframe for recovery of the amount due is uncertain, weak, or protracted. Subsequent receipts, if any, are credited first to the remaining principal, then to the ACL for loans as recoveries, and finally to unaccrued interest. The ACL for loans represents management's estimate of all expected credit losses over the expected life of our existing loan portfolio. Management estimates the ACL balance using relevant available information about the collectability of cash flows, from internal and external sources, including historical information relating to past events, current conditions, and reasonable and supportable forecasts of future economic conditions. When the Company is unable to forecast future economic events, management may revert to historical information. The Company's methodologies incorporate a reasonable and supportable forecast period of one year and revert to historical loss information on a straight-line basis over a one year reversion period. The Company maintains an ACL at an appropriate level as of a given balance sheet date to absorb management’s best estimate of expected life of loan credit losses. Historical credit loss experience provides the basis for the Company’s expected credit loss estimate. Adjustments to historical loss information may be made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated. The ACL methodology may also consider other adjustments to address changes in conditions, trends, and circumstances such as local industry changes that could have a significant impact on the risk profile of the loan portfolio and provide for losses in the loan portfolio that may not be reflected and/or captured in the historical loss data. These factors include: lending policies, imprecision in forecasting future economic conditions, loan profile, lending staff, problem loan trends, loan review, collateral, credit concentration and other internal and external factors. The Company uses the Moody’s Analytics Baseline forecast service for its economic forecast assumption. The Moody’s Analytics Baseline forecast includes both National and Hawaii specific economic indicators. The Moody’s Analytics forecast service is widely used in the industry and is reasonable and supportable. It is updated at least monthly and includes a variety of upside and downside economic scenarios from the Baseline. Generally the Company will use the most recent Baseline forecast from Moody’s as of the balance sheet date. During times of economic and market volatility or instability, the Company may include a qualitative factor for forecast imprecision that factors in other potential economic scenarios available by Moody’s Analytics or may apply overrides to its statistical models to enhance the reasonableness of its loss estimates. The ACL is measured on a collective or pool basis when similar risk characteristics exist. The Company segments its portfolio generally by Federal Financial Institutions Examination Council ("FFIEC") Call Report codes. Loan pools are further segmented by risk utilizing risk ratings or bands of payment delinquency (including TDR or non-accrual status), depending on what is most appropriate for each segment. Additional sub-segmentation may be utilized to identify groups of loans with unique risk characteristics relative to the rest of the portfolio. The Company relies on a third-party platform which offers multiple methodologies to measure historical life-of-loan losses. The Company has also developed statistical models internally to incorporate future economic conditions and forecast expected credit losses based on various macro-economic indicators such as unemployment and income levels. The Company has identified the following portfolio segments to measure the allowance for credit losses: Loan Segment Historical Lifetime Loss Method Historical Economic Reversion Method Construction Probability of Default/Loss Given Default ("PD/LGD") 2008-Present One Year One Year (straight-line basis) Commercial real estate PD/LGD 2008-Present Multi-family mortgage PD/LGD 2008-Present Commercial, financial and agricultural PD/LGD 2008-Present Home equity lines of credit Loss-Rate Migration 2008-Present Residential mortgage Loss-Rate Migration 2008-Present Consumer - other revolving Loss-Rate Migration 2008-Present Consumer - non-revolving Loss-Rate Migration 2008-Present Purchased Mainland portfolios (Dealer, Other consumer) Weighted-Average Remaining Maturity ("WARM") 2008-Present Below is a description and the risk characteristics of each segment: Construction loans Construction loans include both residential and commercial development projects. Each construction project is evaluated for economic viability and construction loans pose higher credit risks than typical secured loans. Financial strength of the borrower, completion risk (the risk that the project will not be completed on time and within budget) and geographic location are the predominant risk characteristics of this segment. Commercial real estate loans Commercial real estate loans are secured by commercial properties. The predominant risk characteristic of this segment is operating risk, which is the risk that the borrower will be unable to generate sufficient cash flows from the operation of the property. Interest rate conditions and the commercial real estate market through economic cycles also impact risk levels. Multi-family mortgage loans Multi-family mortgage loans can comprise multi-building properties with extensive amenities to a single building with no amenities. The primary risk characteristic of this segment is operating risk or the ability to generate sufficient rental cash flows from the operation of the property within the owner’s strategy and resources. Commercial, financial and agricultural loans Loans in this category consist primarily of term loans and lines of credit to small and middle-market businesses and professionals. The predominant risk characteristics of this segment are the cash flows of the business we lend to, global cash flows including guarantor liquidity, as well as economic and market conditions. The borrower’s business is typically regarded as the principal source of repayment, though our underwriting policy and practice generally requires secondary sources of support or collateral to mitigate risk. Paycheck Protection Program (“PPP”) loans are also in this category and are considered lower risk as they are guaranteed by the Small Business Administration (“SBA”) and may be forgivable in whole or in part in accordance with the requirements of the PPP. Home equity lines of credit Home equity lines of credit include fixed or floating interest rate loans and are secured by single-family owner-occupied primary residences in Hawaii. They are underwritten based on a minimum FICO score, maximum debt-to-income ratio, and maximum combined loan-to-value ratio. Home equity lines of credit are monitored based on credit score, delinquency, end of draw period and maturity. Residential mortgage loans Residential mortgage loans include fixed-rate and adjustable-rate loans primarily secured by single-family owner-occupied primary residences in Hawaii. Economic conditions such as unemployment levels, future changes in interest rates and other market factors impact the level of credit risk inherent in the portfolio. Consumer loans - other revolving This segment consists of consumer unsecured lines of credit. Its predominant risk characteristics relate to current and projected economic conditions as well as employment and income levels attributed to the borrower. Consumer loans - non-revolving This segment consists of consumer non-revolving (term) loans, including auto dealer loans. Its predominant risk characteristics relate to current and projected economic conditions as well as employment and income levels attributed to the borrower. Purchased consumer portfolios Credit risk for purchased consumer loans is managed on a pooled basis. The predominant risk characteristics of purchased consumer loans include current and projected economic conditions, employment and income levels, and the quality of purchased consumer loans. Below is a description of the methodologies mentioned above: Probability of Default/Loss Given Default ("PD/LGD") The PD/LGD calculation is based on a cohort methodology whereby loans in the same cohort are tracked over time to identify defaults and corresponding losses. PD/LGD analysis requires a portfolio segmented into pools, and we elected to then further sub-segment by risk characteristics such as Risk Rating, days past due, delinquency counters, TDR status and Nonaccrual status to measure losses accurately. PD measures the count or dollar amount of loans that defaulted in a given cohort. LGD measures the losses related to the loans that defaulted. Total expected loss rate is calculated using the formula 'PD times LGD'. Loss-Rate Migration Loss-rate migration analysis is a cohort-based approach that measures cumulative net charge-offs over a defined time-horizon to calculate a loss rate that will be applied to the loan pool. Loss-rate migration analysis requires the portfolio to be segmented into pools then further sub-segmented by risk characteristics such as risk rating, days past due, delinquency counters, TDR status and Nonaccrual status to measure loss rates accurately. The key inputs to run a loss-rate migration analysis are the length and frequency of the migration period, the dates for the migration periods to start and the number of migration periods used for the analysis. For each migration period, the analysis will determine the outstanding balance in each segment and/or sub-segment at the start of each period. These loans will then be followed for the length of the migration period to identify the amount of associated charge-offs and recoveries. A loss rate for each migration period is calculated using the formula 'net charge-offs over the period divided by beginning loan balance'. Weighted-Average Remaining Maturity ("WARM") Under the WARM methodology, lifetime losses are calculated by determining the remaining life of the loan pool and then applying a loss rate which includes a forecast component over this remaining life. The methodology considers historical loss experience as well as a loss forecast expectation to estimate credit losses for the remaining balance of the loan pool. The calculated loss rate is applied to the contractual term (adjusted for prepayments) to determine the loan pool’s current expected credit losses. Other If a loan ceases to share similar risk characteristics with other loans in its segment, it will be moved to a different pool sharing similar risk characteristics. Loans that do not share risk characteristics are evaluated on an individual basis based on the fair value of the collateral or other approaches such as discounted cash flow (“DCF”) techniques. Loans evaluated individually are not included in the collective evaluation. Determining the Term Expected credit losses are estimated over the contractual term of the loans and are adjusted for expected prepayments when appropriate. The |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Adopted in 2021 In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740)." This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. It also improves consistent application of GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The Company adopted ASU 2019-12 effective January 1, 2021 and it did not have a material impact on our consolidated financial statements. In October 2020, the FASB issued ASU 2020-10, "Codification Improvements." This ASU issues improvements to the codification by ensuring that all guidance that requires or provides an option for an entity to provide information in the notes to the financial statements is codified, reducing the likelihood that disclosure requirements would be missed. The Company adopted ASU 2020-10 effective January 1, 2021 and it did not have a material impact on our consolidated financial statements. Impact of Other Recently Issued Accounting Pronouncements on Future Filings In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848)." This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. Entities can (1) elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can also (2) elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. Finally, entities can (3) make a one-time election to sell and/or reclassify held-to-maturity (“HTM”) debt securities that reference an interest rate affected by reference rate reform. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company will elect (1) above for all contract modifications that meet the stated criteria. As the Company currently does not utilize hedge accounting, (2) above is currently not applicable. The Company currently does not have HTM debt securities and therefore, (3) above is currently not applicable. In May 2021, the FASB issued ASU No. 2021-04, "Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options" . ASU 2021-04 addresses issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options. ASU 2021-04 is effective for fiscal years beginning after December 15, 2021 and interim periods within those fiscal years, with early adoption permitted. We do not expect adoption of the new guidance to have a significant impact on our financial statements. In July 2021, the FASB issued ASU No. 2021-05, "Leases (Topic 842), Lessors—Certain Leases with Variable Lease Payments" |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | 3. INVESTMENT SECURITIES The amortized cost, gross unrealized gains and losses, fair value and related ACL on AFS debt securities are as follows: (dollars in thousands) Amortized Gross Gross Fair ACL June 30, 2021 Available-for-sale: Debt securities: States and political subdivisions $ 193,919 $ 3,833 $ (988) $ 196,764 $ — Corporate securities 46,999 194 (515) 46,678 — U.S. Treasury obligations and direct obligations of U.S Government agencies 39,977 134 (377) 39,734 — Mortgage-backed securities: Residential - U.S. Government-sponsored entities 984,750 8,613 (8,685) 984,678 — Commercial - U.S. Government agencies and sponsored entities 79,970 2,094 (598) 81,466 — Residential - Non-government agencies 15,091 428 (73) 15,446 — Commercial - Non-government agencies 41,318 1,256 — 42,574 — Total available-for-sale securities $ 1,402,024 $ 16,552 $ (11,236) $ 1,407,340 $ — (dollars in thousands) Amortized Gross Gross Fair ACL December 31, 2020 Available-for-sale: Debt securities: States and political subdivisions $ 163,573 $ 5,370 $ (177) $ 168,766 $ — Corporate securities 47,351 788 (131) 48,008 — U.S. Treasury obligations and direct obligations of U.S Government agencies 33,413 18 (286) 33,145 — Mortgage-backed securities: Residential - U.S. Government-sponsored entities 762,309 16,816 (299) 778,826 — Commercial - U.S. Government agencies and sponsored entities 85,405 2,564 (500) 87,469 — Residential - Non-government agencies 22,671 786 (34) 23,423 — Commercial - Non-government agencies 41,309 1,663 — 42,972 — Total available-for-sale securities $ 1,156,031 $ 28,005 $ (1,427) $ 1,182,609 $ — The amortized cost and fair value of our equity investment securities is as follows: (dollars in thousands) Amortized Cost Fair Value June 30, 2021 Equity securities $ 1,194 $ 1,578 December 31, 2020 Equity securities 1,068 1,351 The amortized cost and estimated fair value of our AFS debt securities at June 30, 2021 are shown below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. June 30, 2021 (dollars in thousands) Amortized Cost Fair Value Available-for-sale: Due in one year or less $ 23,390 $ 23,497 Due after one year through five years 27,513 28,430 Due after five years through ten years 90,757 91,326 Due after ten years 139,235 139,923 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 984,750 984,678 Commercial - U.S. Government agencies and sponsored entities 79,970 81,466 Residential - Non-government agencies 15,091 15,446 Commercial - Non-government agencies 41,318 42,574 Total available-for-sale securities $ 1,402,024 $ 1,407,340 Fo r three and six months ended June 30, 2021, proceeds from the sale of available-for-sale investment securities were $175.0 million and resulted in a gross realized gain of $50 thousand. We did not sell any available-for-sale securities during the three and six months ended June 30, 2020. Investment securities with fair value of $518.6 million and $483.6 million at June 30, 2021 and December 31, 2020, respectively, were pledged to secure public funds on deposit and other short-term borrowings. At June 30, 2021 and December 31, 2020, there were no holdings of investment securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders' equity. There were a total of 100 and 37 AFS debt securities which were in an unrealized loss position, without an ACL, at June 30, 2021 and December 31, 2020, respectively. Th e following tables summarize AFS debt securities which were in an unrealized loss position at June 30, 2021 and December 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position. Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2021 Debt securities: States and political subdivisions $ 48,529 $ (988) $ — $ — $ 48,529 $ (988) Corporate securities 31,376 (515) — — 31,376 (515) U.S. Treasury obligations and direct obligations of U.S Government agencies 16,694 (236) 12,858 (141) 29,552 (377) Mortgage-backed securities: Residential - U.S. Government-sponsored entities 666,130 (8,685) — — 666,130 (8,685) Residential - Non-government agencies 521 (41) 419 (32) 940 (73) Commercial - U.S. Government agencies and sponsored entities 23,336 (598) — — 23,336 (598) Total temporarily impaired securities $ 786,586 $ (11,063) $ 13,277 $ (173) $ 799,863 $ (11,236) Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2020 Debt securities: States and political subdivisions $ 21,313 $ (177) $ — $ — $ 21,313 $ (177) Corporate securities 4,869 (131) — — 4,869 (131) U.S. Treasury obligations and direct obligations of U.S Government agencies 5,980 (24) 20,925 (262) 26,905 (286) Mortgage-backed securities: Residential - U.S. Government-sponsored entities 76,402 (299) — — 76,402 (299) Residential - Non-government agencies 989 (34) — — 989 (34) Commercial - U.S. Government-sponsored entities 16,977 (500) — — 16,977 (500) Total temporarily impaired securities $ 126,530 $ (1,165) $ 20,925 $ (262) $ 147,455 $ (1,427) The Company has evaluated its AFS investment securities that are in an unrealized loss position and has determined that the unrealized losses on the Company's investment securities are unrelated to credit quality and are primarily attributable to changes in interest rates and volatility in the financial markets since purchase. Investment securities in an unrealized loss position are evaluated on at least a quarterly basis, and include evaluating the changes in the investment securities' ratings issued by rating agencies and changes in the financial condition of the issuer. For mortgage-related securities, delinquency and loss information with respect to the underlying collateral, changes in levels of subordination for the Company's particular position within the repayment structure, and remaining credit enhancement as compared to projected credit losses of the security are also evaluated. All of the investment securities in an unrealized loss position continue to be rated investment grade by one or more major rating agencies. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, the Company has not recorded an ACL and unrealized losses on these securities and have not been recognized into income. Visa Class B Common Stock As of June 30, 2021, the Company owns 34,631 shares of Class B common stock of Visa, Inc. ("Visa"). These shares were received in 2008 as part of Visa's initial public offering ("IPO"). These shares are transferable only under limited circumstances until they can be converted into shares of the publicly traded Class A common stock. This conversion will not occur until the |
LOANS AND CREDIT QUALITY
LOANS AND CREDIT QUALITY | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
LOANS AND CREDIT QUALITY | 4. LOANS AND CREDIT QUALITY Loans, excluding loans held for sale, net of ACL under ASC 326 as of June 30, 2021 and December 31, 2020 consisted of the following: (dollars in thousands) June 30, 2021 December 31, 2020 Commercial, financial and agricultural: Small Business Administration Paycheck Protection Program $ 450,471 $ 425,993 Other 486,331 545,136 Real estate: Construction 133,808 125,625 Residential mortgage 1,709,885 1,687,251 Home equity 582,143 550,216 Commercial mortgage 1,188,244 1,158,203 Consumer 541,491 479,580 Gross loans 5,092,373 4,972,004 Net deferred fees (15,055) (7,891) Total loans, net of deferred fees and costs 5,077,318 4,964,113 Allowance for credit losses (77,781) (83,269) Total loans, net of allowance for credit losses $ 4,999,537 $ 4,880,844 The bank is a Small Business Administration ("SBA") approved lender and actively participated in assisting customers with loan applications for the SBA’s Paycheck Protection Program, or PPP, which was part of the CARES Act. PPP loans have a two he SBA began accepting submissions for the initial round of PPP loans on April 3, 2020. In April 2020, the Paycheck Protection Program and Health Care Enhancement Act added an additional round of funding for the PPP. In June 2020, the Paycheck Protection Program Flexibility Act of 2020 was enacted, which among other things, gave borrowers additional time and flexibility to use PPP loan proceeds. Through the end of the second round in August 2020, the Company funded over 7,200 PPP loans totaling over $558 million and received gross processing fees of over $21.2 million. In December 2020, the Consolidated Appropriations Act, 2021 was passed which among other things, included a third round of funding and a new simplified forgiveness procedure for PPP loans of $150,000 or less. During the six months ended June 30, 2021, the Company funded over 4,600 loans totaling over $320.9 million in the third round, earning additional gross processing fees of over $18.4 million. The Company developed a PPP forgiveness portal and with assistance from a third party vendor has assisted its customers with applying for forgiveness from the SBA. We have received forgiveness payments and repayments from borrowers totaling over $416.3 million as of June 30, 2021. A total outstanding balance of $450.5 million and net deferred fees of $15.9 million remain as of June 30, 2021. The Company did not transfer any loans to the held-for-sale category during the six months ended June 30, 2021 and 2020. The Company did not sell any loans originally held for investment during the six months ended June 30, 2021 and 2020. The Company has purchased loan portfolios, none of which were credit deteriorated since origination at the time of purchase. The following table presents loans purchased by class for the periods presented: (dollars in thousands) U.S. Mainland Consumer - Unsecured U.S. Mainland Consumer - Automobile Total Three Months Ended June 30, 2021 Purchases: Outstanding balance $ 45,482 $ 36,381 $ 81,863 Purchase (discount) premium (2,632) 3,063 431 Purchase price $ 42,850 $ 39,444 $ 82,294 Six Months Ended June 30, 2021 Purchases: Outstanding balance $ 68,016 $ 49,371 $ 117,387 Purchase (discount) premium (2,763) 3,729 966 Purchase price $ 65,253 $ 53,100 $ 118,353 Three Months Ended June 30, 2020 Purchases: Outstanding balance $ 11,359 $ — $ 11,359 Purchase discount (503) — (503) Purchase price $ 10,856 $ — $ 10,856 Six Months Ended June 30, 2020 Purchases: Outstanding balance $ 34,312 $ — $ 34,312 Purchase discount (1,116) — (1,116) Purchase price $ 33,196 $ — $ 33,196 Collateral-Dependent Loans In accordance with ASC 326, a loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table presents the amortized cost basis of collateral-dependent loans by class, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of June 30, 2021 and December 31, 2020: (dollars in thousands) Secured by Secured by Secured by Total Allocated June 30, 2021 Commercial, financial and agricultural $ — $ — $ 558 $ 558 $ 68 Real estate: Residential mortgage 9,784 — — 9,784 — Home equity 434 — — 434 — Commercial mortgage — 543 — 543 — Total $ 10,218 $ 543 $ 558 $ 11,319 $ 68 (dollars in thousands) Secured by Secured by Secured by Total Allocated December 31, 2020 Commercial, financial and agricultural $ — $ — $ 676 $ 676 $ 209 Real estate: Residential mortgage 9,833 — — 9,833 — Home equity 524 — — 524 — Commercial mortgage — 626 — 626 — Total $ 10,357 $ 626 $ 676 $ 11,659 $ 209 Foreclosure Proceedings The Company had $1.0 million and $1.6 million of residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure at June 30, 2021 and December 31, 2020, respectively. The Company foreclosed on one loan totaling $0.2 million during the three and six months ended June 30, 2021. The Company did not foreclose on any loans during the three and six months ended June 30, 2020. The Company did not sell any foreclosed properties during the six months ended June 30, 2021. During the three and six months ended June 30, 2020, the Company received proceeds of $0.1 million on the sale of one foreclosed property at a loss of $6 thousand. Nonaccrual and Past Due Loans For all loan types, the Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. The following tables present by class, the aging of the recorded investment in past due loans as of June 30, 2021 and December 31, 2020. The following tables also present the amortized cost of loans on nonaccrual status for which there was no related ACL under ASC 326 as of June 30, 2021 and December 31, 2020. (dollars in thousands) Accruing Accruing Accruing Nonaccrual Total Loans and Total Nonaccrual June 30, 2021 Commercial, financial and agricultural: SBA PPP $ — $ — $ — $ — $ — $ 434,610 $ 434,610 $ — Other 517 67 29 699 1,312 484,913 486,225 220 Real estate: Construction — — — — — 133,457 133,457 — Residential mortgage — 1,003 1,438 5,280 7,721 1,704,080 1,711,801 5,284 Home equity 331 73 — 434 838 582,592 583,430 434 Commercial mortgage — — — — — 1,186,430 1,186,430 — Consumer 1,345 501 100 332 2,278 539,087 541,365 — Total $ 2,193 $ 1,644 $ 1,567 $ 6,745 $ 12,149 $ 5,065,169 $ 5,077,318 $ 5,938 (dollars in thousands) Accruing Accruing Accruing Nonaccrual Total Loans and Total Nonaccrual December 31, 2020 Commercial, financial and agricultural: SBA PPP $ — $ — $ — $ — $ — $ 416,375 $ 416,375 $ — Other 613 350 — 1,461 2,424 542,667 545,091 — Real estate: Construction — — — — — 125,407 125,407 — Residential mortgage 2,832 689 567 4,115 8,203 1,682,009 1,690,212 4,115 Home equity 273 3 — 524 800 550,466 551,266 524 Commercial mortgage — — — — — 1,156,328 1,156,328 — Consumer 2,725 906 240 92 3,963 475,471 479,434 — Total $ 6,443 $ 1,948 $ 807 $ 6,192 $ 15,390 $ 4,948,723 $ 4,964,113 $ 4,639 In accordance with the " Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised)" issued in April 2020, loans with deferrals granted because of COVID-19 are not considered past due and/or reported as nonaccrual if deemed collectible during the deferral period. Troubled Debt Restructurings Troubled debt restructurings ("TDRs") included in nonperforming assets at June 30, 2021 consisted of three Hawaii residential mortgage loans with a principal balance of $0.4 million. There were $6.3 million of TDRs still accruing interest at June 30, 2021, of which two loans totaling $0.2 million were more than 90 days delinquent. At December 31, 2020, there were $7.8 million of TDRs still accruing interest, of which one loan totaling $0.7 million was more than 90 days delinquent. The Company offers various types of concessions when modifying a loan. Concessions made to the original contractual terms of the loan typically consists of the deferral of interest and/or principal payments due to deterioration in the borrowers' financial condition. In these cases, the principal balance on the TDR had matured and/or was in default at the time of restructure, and there were no commitments to lend additional funds to the borrower during the three and six months ended June 30, 2021 and 2020. As discussed in Note 1 to these financial statements, Section 4013 of CARES Act and the " Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised)" provided banks an optional TDR election for certain loan modifications related to COVID-19 as long as the borrowers were not more than 30 days past due as of December 31, 2019 or at the time of modification program implementation, respectively, and meets other applicable criteria. The Company did not identify any loans in the first half of 2021 that were modified and did not meet the criteria under Section 4013 of CARES Act or the " Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised)". The Company had active loan deferrals with outstanding balances of approximately $3.5 million and $120.2 million resulting from the COVID-19 pandemic as of June 30, 2021 and December 31, 2020, respectively, of which $2.8 million and $119.3 million were not classified as a TDR at June 30, 2021 and December 31, 2020, respectively, under Section 4013 of CARES Act or the "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised)". No loans were modified during the three months ended June 30, 2021. The Company modified one loan totaling $0.6 million during the three months ended March 31,2021. The loan was paid off during the three months ended June 30, 2021. The following table presents by class, information related to loans modified in a TDR during the three and six months ended June 30, 2020: (dollars in thousands) Number of Recorded Increase in the Three Months Ended June 30, 2020 Real estate: Commercial mortgage 1 $ 285 $ — Consumer 9 145 — Total 10 $ 430 $ — Six Months Ended June 30, 2020 Real estate: Commercial mortgage 1 $ 285 $ — Consumer 9 145 — Total 10 $ 430 $ — No loans were modified as a TDR within the previous twelve months that subsequently defaulted during the three and six months ended June 30, 2021 and 2020. Credit Quality Indicators 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, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans by credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk rating of loans. Loans not meeting the following criteria that are analyzed individually as part of the described process are considered to be pass-rated loans. Special Mention. Loans classified as special mention, while still adequately protected by the borrower's capital adequacy and payment capability, exhibit distinct weakening trends and/or elevated levels of exposure to external conditions. If left unchecked or uncorrected, these potential weaknesses may result in deteriorated prospects of repayment. These exposures require management's close attention so as to avoid becoming undue or unwarranted credit exposures. Substandard. Loans classified as substandard are inadequately protected by the borrower's current financial condition and payment capability or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the orderly repayment of debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimated loss is deferred until its more exact status may be determined. Loss. Loans classified as loss are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Losses are taken in the period in which they surface as uncollectible. The following table presents the amortized cost basis of the Company's loans by class, credit quality indicator and origination year as of June 30, 2021 and December 31, 2020. Revolving loans converted to term as of and during the three and six months ended June 30, 2021 and 2020 were not material to the total loan portfolio. Amortized Cost of Term Loans by Origination Year (dollars in thousands) 2021 2020 2019 2018 2017 Prior Amortized Cost of Revolving Loans Total June 30, 2021 Commercial, financial and agricultural - SBA PPP: Risk Rating Pass $ 274,947 $ 159,663 $ — $ — $ — $ — $ — $ 434,610 Subtotal 274,947 159,663 — — — — — 434,610 Commercial, financial and agricultural - Other: Risk Rating Pass 42,540 65,657 51,256 59,386 44,416 110,922 65,432 439,609 Special Mention 946 6,466 11,638 3,344 11,442 7,744 — 41,580 Substandard 200 89 739 974 347 2,687 — 5,036 Subtotal 43,686 72,212 63,633 63,704 56,205 121,353 65,432 486,225 Construction: Risk Rating Pass 6,806 26,915 33,143 34,288 6,262 20,765 4,349 132,528 Special Mention — — — 929 — — — 929 Subtotal 6,806 26,915 33,143 35,217 6,262 20,765 4,349 133,457 Residential mortgage: Risk Rating Pass 300,519 521,905 215,065 97,573 114,308 454,665 — 1,704,035 Special Mention — 985 — — — — — 985 Substandard — — 698 1,110 753 4,220 — 6,781 Subtotal 300,519 522,890 215,763 98,683 115,061 458,885 — 1,711,801 Home equity: Risk Rating Pass 11,579 15,258 12,325 13,048 502 27,637 502,011 582,360 Special Mention — 250 — — — — 386 636 Substandard — — — — — 434 — 434 Subtotal 11,579 15,508 12,325 13,048 502 28,071 502,397 583,430 Commercial mortgage: Risk Rating Pass 46,626 143,824 149,049 136,564 161,017 448,019 15,071 1,100,170 Special Mention — — 7,627 20,552 4,007 24,586 — 56,772 Substandard — — 1,771 11,500 1,809 14,408 — 29,488 Subtotal 46,626 143,824 158,447 168,616 166,833 487,013 15,071 1,186,430 Consumer: Risk Rating Pass 112,023 121,960 122,660 59,031 31,465 19,816 73,976 540,931 Substandard — 75 123 72 19 142 — 431 Loss — — — — — 3 — 3 Subtotal 112,023 122,035 122,783 59,103 31,484 19,961 73,976 541,365 Total $ 796,186 $ 1,063,047 $ 606,094 $ 438,371 $ 376,347 $ 1,136,048 $ 661,225 $ 5,077,318 Amortized Cost of Term Loans by Origination Year (dollars in thousands) 2020 2019 2018 2017 2016 Prior Amortized Cost of Revolving Loans Total December 31, 2020 Commercial, financial and agricultural - SBA PPP: Risk Rating Pass $ 416,375 $ — $ — $ — $ — $ — $ — $ 416,375 Subtotal 416,375 — — — — — — 416,375 Commercial, financial and agricultural - Other: Risk Rating Pass $ 86,456 $ 55,660 $ 61,314 $ 47,672 $ 39,337 $ 98,136 $ 82,465 $ 471,040 Special Mention 9,690 16,120 6,293 26,109 1,556 6,989 420 67,177 Substandard 200 839 1,043 1,045 2,570 1,177 — 6,874 Subtotal 96,346 72,619 68,650 74,826 43,463 106,302 82,885 545,091 Construction: Risk Rating Pass 22,491 29,518 36,790 9,365 2,163 19,138 3,099 122,564 Special Mention — — 2,843 — — — — 2,843 Subtotal 22,491 29,518 39,633 9,365 2,163 19,138 3,099 125,407 Residential mortgage: Risk Rating Pass 556,479 276,645 127,490 136,307 180,782 406,020 — 1,683,723 Special Mention 997 — — 597 142 — — 1,736 Substandard — — 537 785 1,381 2,050 — 4,753 Subtotal 557,476 276,645 128,027 137,689 182,305 408,070 — 1,690,212 Home equity: Risk Rating Pass 17,582 15,851 15,567 679 1,023 4,592 494,741 550,035 Special Mention — — — — — — 707 707 Substandard — — — — 200 324 — 524 Subtotal 17,582 15,851 15,567 679 1,223 4,916 495,448 551,266 Commercial mortgage: Risk Rating Pass 130,448 144,244 123,519 166,618 104,381 363,837 16,200 1,049,247 Special Mention — 2,021 31,647 2,919 13,546 19,653 — 69,786 Substandard — 1,791 19,000 1,934 — 14,570 — 37,295 Subtotal 130,448 148,056 174,166 171,471 117,927 398,060 16,200 1,156,328 Consumer: Risk Rating Pass 112,955 147,940 78,486 44,571 17,445 4,032 73,423 478,852 Special Mention — — — — — — 250 250 Substandard — 138 102 22 — 22 — 284 Loss — 16 — 26 2 4 — 48 Subtotal 112,955 148,094 78,588 44,619 17,447 4,058 73,673 479,434 Total $ 1,353,673 $ 690,783 $ 504,631 $ 438,649 $ 364,528 $ 940,544 $ 671,305 $ 4,964,113 The following tables present the Company's loans by class and credit quality indicator as of June 30, 2021 and December 31, 2020: (dollars in thousands) Pass Special Mention Substandard Loss Subtotal Net Total June 30, 2021 Commercial, financial and agricultural: SBA PPP $ 450,471 $ — $ — $ — $ 450,471 $ (15,861) $ 434,610 Commercial, financial and agricultural: Other 439,715 41,580 5,036 — 486,331 (106) 486,225 Real estate: Construction 132,879 929 — — 133,808 (351) 133,457 Residential mortgage 1,702,119 985 6,781 — 1,709,885 1,916 1,711,801 Home equity 581,073 636 434 — 582,143 1,287 583,430 Commercial mortgage 1,101,984 56,772 29,488 — 1,188,244 (1,814) 1,186,430 Consumer 541,057 — 431 3 541,491 (126) 541,365 Total $ 4,949,298 $ 100,902 $ 42,170 $ 3 $ 5,092,373 $ (15,055) $ 5,077,318 (dollars in thousands) Pass Special Mention Substandard Loss Subtotal Net Total December 31, 2020 Commercial, financial and agricultural: SBA PPP $ 425,993 $ — $ — $ — $ 425,993 $ (9,618) $ 416,375 Commercial, financial and agricultural: Other 471,085 67,177 6,874 — 545,136 (45) 545,091 Real estate: Construction 122,782 2,843 — — 125,625 (218) 125,407 Residential mortgage 1,680,762 1,736 4,753 — 1,687,251 2,961 1,690,212 Home equity 548,985 707 524 — 550,216 1,050 551,266 Commercial mortgage 1,051,122 69,786 37,295 — 1,158,203 (1,875) 1,156,328 Consumer 478,998 250 284 48 479,580 (146) 479,434 Total $ 4,779,727 $ 142,499 $ 49,730 $ 48 $ 4,972,004 $ (7,891) $ 4,964,113 |
ALLOWANCE FOR CREDIT LOSSES AND
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURE | 6 Months Ended |
Jun. 30, 2021 | |
ALLOWANCE FOR LOAN AND LEASE LOSSES | |
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURE | 5. ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURES The following table presents by class, the activity in the ACL for loans under ASC 326 during the three and six months ended June 30, 2021 and June 30, 2020: Commercial, Financial and Agricultural Real Estate (dollars in thousands) SBA PPP Other Construction Residential Mortgage Home Equity Commercial Mortgage Consumer Total Three Months Ended June 30, 2021 Beginning balance $ 489 $ 15,464 $ 5,047 $ 15,357 $ 5,251 $ 22,734 $ 17,211 $ 81,553 (Credit) provision for credit losses on loans (133) (1,925) (354) 1,368 1,058 (3,265) 288 (2,963) 356 13,539 4,693 16,725 6,309 19,469 17,499 78,590 Charge-offs — 401 — — — — 1,523 1,924 Recoveries — 276 — 186 — 65 588 1,115 Net charge-offs (recoveries) — 125 — (186) — (65) 935 809 Ending balance $ 356 $ 13,414 $ 4,693 $ 16,911 $ 6,309 $ 19,534 $ 16,564 $ 77,781 Three Months Ended June 30, 2020 Beginning balance $ — $ 8,645 $ 3,057 $ 13,181 $ 2,309 $ 19,518 $ 12,935 $ 59,645 (Credit) provision for credit losses on loans 388 7,660 217 1,876 1,342 (3,371) 2,528 10,640 388 16,305 3,274 15,057 3,651 16,147 15,463 70,285 Charge-offs — 1,103 — 52 — — 2,626 3,781 Recoveries — 305 — 20 — 1 509 835 Net charge-offs (recoveries) — 798 — 32 — (1) 2,117 2,946 Ending balance $ 388 $ 15,507 $ 3,274 $ 15,025 $ 3,651 $ 16,148 $ 13,346 $ 67,339 Commercial, Financial and Agricultural Real Estate (dollars in thousands) SBA PPP Other Construction Residential Mortgage Home Equity Commercial Mortgage Consumer Total Six Months Ended June 30, 2021 Beginning balance $ 304 $ 18,717 $ 4,277 $ 16,484 $ 5,449 $ 22,163 $ 15,875 $ 83,269 (Credit) provision for credit losses on loans [1] 52 (4,658) 416 135 851 (2,702) 1,969 (3,937) 356 14,059 4,693 16,619 6,300 19,461 17,844 79,332 Charge-offs — 1,010 — — — — 2,621 3,631 Recoveries — 365 — 292 9 73 1,341 2,080 Net charge-offs (recoveries) — 645 — (292) (9) (73) 1,280 1,551 Ending balance $ 356 $ 13,414 $ 4,693 $ 16,911 $ 6,309 $ 19,534 $ 16,564 $ 77,781 Six Months Ended June 30, 2020 Beginning balance prior to ASC 326 $ — $ 8,136 $ 1,792 $ 13,327 $ 4,206 $ 11,113 $ 9,397 $ 47,971 Impact of adoption of ASC 326 — (627) 479 608 (1,614) 2,624 2,096 3,566 Balance after adoption of ASC 326 — 7,509 2,271 13,935 2,592 13,737 11,493 51,537 (Credit) provision for credit losses on loans 388 8,891 872 941 1,028 2,408 5,441 19,969 388 16,400 3,143 14,876 3,620 16,145 16,934 71,506 Charge-offs — 1,540 — 52 — — 4,843 6,435 Recoveries — 647 131 201 31 3 1,255 2,268 Net charge-offs (recoveries) — 893 (131) (149) (31) (3) 3,588 4,167 Ending balance $ 388 $ 15,507 $ 3,274 $ 15,025 $ 3,651 $ 16,148 $ 13,346 $ 67,339 [1] The Company recorded a reserve on accrued interest receivable for loans on active payment forbearance or deferral, which were granted to borrowers impacted by the COVID-19 pandemic. This reserve was recorded as a contra-asset against accrued interest receivable with the offset to provision for credit losses. The provision for credit losses presented in this table excludes the provision for credit losses on accrued interest receivable of $0.2 million. The following table presents the activity in the reserve for off-balance sheet credit exposures, included in other liabilities, during the three and six months ended June 30, 2021 and June 30, 2020. (dollars in thousands) Three Months Ended June 30, 2021 Beginning balance $ 5,037 Provision for off-balance sheet credit exposures (293) Ending balance $ 4,744 Three Months Ended June 30, 2020 Beginning balance prior to ASC 326 $ 3,810 Impact of adoption of ASC 326 — Balance after adoption of ASC 326 3,810 Provision for off-balance sheet credit exposures 573 Ending balance $ 4,383 Six Months Ended June 30, 2021 Beginning balance $ 4,884 Provision for off-balance sheet credit exposures (140) Ending balance $ 4,744 Six Months Ended June 30, 2020 Beginning balance prior to ASC 326 $ 1,272 Impact of adoption of ASC 326 740 Balance after adoption of ASC 326 2,012 Provision for off-balance sheet credit exposures 2,371 Ending balance $ 4,383 In accordance with GAAP, other real estate assets are not included in our assessment of the ACL. In the three months ended June 30, 2021, our provision for credit losses was a credit of $3.4 million, which consisted of a credit to the provision for credit losses on loans of $3.0 million, a credit to the provision for credit losses on off-balance sheet credit exposures of $0.2 million, and a credit to the provision for credit losses on accrued interest receivable of $0.2 million. In the six months ended June 30, 2021, our provision for credit losses was a credit of $4.3 million, which consisted of a credit to the provision for credit losses on loans of $3.9 million, a credit to the provision for credit losses on off-balance sheet credit exposures of $0.1 million, and a credit to the provision for credit losses on accrued interest receivable of $0.3 million. In the three months ended June 30, 2020, our provision for credit loss was a debit of $11.2 million, which consisted of a debit to the provision for credit losses on loans of $10.6 million and a debit to the provision for credit losses on off-balance sheet credit exposures of $0.6 million. In the six months ended June 30, 2020, our provision for credit loss was a debit of $22.3 million, which consisted of a debit to the provision for credit losses on loans of $20.0 million and a debit to the provision for credit losses on off-balance sheet credit exposures of $2.4 million. |
INVESTMENTS IN UNCONSOLIDATED S
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES | 6 Months Ended |
Jun. 30, 2021 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES | 6. INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES The components of the Company's investments in unconsolidated subsidiaries were as follows: (dollars in thousands) June 30, 2021 December 31, 2020 Investments in low income housing tax credit partnerships $ 27,276 $ 28,090 Investments in common securities of statutory trusts 1,547 1,547 Investments in affiliates 176 277 Other 2,053 54 Total $ 31,052 $ 29,968 The Company invests in low-income housing tax credit ("LIHTC") and other partnerships. As of June 30, 2021 and December 31, 2020, the Company had $14.4 million a nd $17.2 million, respectively, in unfunded commitments related to the LIHTC partnerships of $1.9 million and none, respectively, related to other partnerships. The expected payments for the unfunded commitments as of June 30, 2021 for the remainder of fiscal year 2021, the next five succeeding fiscal years and all years thereafter are as follows: (dollars in thousands) Year Ending December 31, LIHTC partnerships Other partnerships Total 2021 (remainder) $ 8,299 $ 1,920 $ 10,219 2022 5,980 — 5,980 2023 10 — 10 2024 26 — 26 2025 6 — 6 2026 6 — 6 Thereafter 37 — 37 Total unfunded commitments $ 14,364 $ 1,920 $ 16,284 The following table presents amortization and tax credits recognized associated with our investments in LIHTC partnerships for the three and six months ended June 30, 2021 and June 30, 2020: (dollars in thousands) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Proportional amortization method: Amortization expense recognized in income tax expense $ 407 $ 348 $ 814 $ 696 Tax credits recognized in income tax expense 474 400 948 800 |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 6 Months Ended |
Jun. 30, 2021 | |
OTHER INTANGIBLE ASSETS | |
MORTGAGE SERVICING RIGHTS | 7. MORTGAGE SERVICING RIGHTS The following table presents changes in mortgage servicing rights for the periods presented: (dollars in thousands) Mortgage Balance, January 1, 2021 $ 11,865 Additions 717 Amortization (2,082) Balance, June 30, 2021 $ 10,500 Balance, January 1, 2020 $ 14,718 Additions 1,270 Amortization (3,217) Balance, June 30, 2020 $ 12,771 Income generated as the result of new mortgage servicing rights is reported as gains on sales of loans and totaled $0.3 million and $0.7 million for the three and six months ended June 30, 2021, respectively, compared to $1.1 million and $1.3 million for the three and six months ended June 30, 2020, respectively. Amortization of mortgage servicing rights totaled $0.9 million and $2.1 million f or the three and six months ended June 30, 2021, respectively, compared to $1.7 million and $3.2 million for the three and six months ended June 30, 2020, respectively. The following tables present the fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights: Six Months Ended Six Months Ended (dollars in thousands) June 30, 2021 June 30, 2020 Fair market value, beginning of period $ 12,003 $ 15,820 Fair market value, end of period 10,755 13,060 Weighted average discount rate 9.6 % 9.6 % Weighted average prepayment speed assumption 18.0 % 21.7 % The gross carrying value and accumulated amortization related to our mortgage servicing rights are presented below: June 30, 2021 December 31, 2020 (dollars in thousands) Gross Accumulated Net Gross Accumulated Net Mortgage servicing rights $ 71,626 $ (61,126) $ 10,500 $ 70,909 $ (59,044) $ 11,865 Based on the mortgage servicing rights held as of June 30, 2021, estimated amortization expense for the remainder of fiscal year 2021, the next five succeeding fiscal years and all years thereafter are as follows: (dollars in thousands) Year Ending December 31, 2021 (remainder) $ 1,432 2022 2,446 2023 1,974 2024 1,596 2025 1,316 2026 1,092 Thereafter 644 Total $ 10,500 |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | 8. DERIVATIVES We utilize various designated and undesignated derivative financial instruments to reduce our exposure to movements in interest rates including interest rate lock commitments and forward sale commitments. We measure all derivatives at fair value on our consolidated balance sheet. In each reporting period, we record the derivative instruments in other assets or other liabilities depending on whether the derivatives are in an asset or liability position. For derivative instruments that are designated as cash flow hedging instruments, we record the effective portion of the changes in the fair value of the derivative in AOCI, net of tax, until earnings are affected by the variability of cash flows of the hedged transaction. We immediately recognize the portion of the gain or loss in the fair value of the derivative that represents hedge ineffectiveness in current period earnings. For derivative instruments that are not designated as hedging instruments, changes in the fair value of the derivative are included in current period earnings. At June 30, 2021 and December 31, 2020, we were not party to any derivatives designated as part of a fair value or cash flow hedge. Interest Rate Lock and Forward Sale Commitments We enter into interest rate lock commitments on certain mortgage loans that are intended to be sold. To manage interest rate risk on interest rate lock commitments, we also enter into forward loan sale commitments. The interest rate locks and forward loan sale commitments are accounted for as undesignated derivatives and are recorded at their respective fair values in other assets or other liabilities, with changes in fair value recorded in current period earnings. These instruments serve to reduce our exposure to movements in interest rates. At June 30, 2021, we were a party to interest rate lock and forward sale commitments on $0.8 million and $4.9 million of mortgage loans, respectively. Risk Participation Agreements In the first and fourth quarters of 2020, the Company entered into credit risk participation agreements ("RPA") with financial institution counterparties for interest rate swaps related to loans in which we participate. The risk participation agreements entered into by us and a participant bank provide credit protection to the financial institution counterparties should the borrowers fail to perform on their interest rate derivative contracts with the financial institutions. The following table presents the location of all assets and liabilities associated with our derivative instruments within the consolidated balance sheets: Derivatives Financial Instruments Not Designated as Hedging Instruments Asset Derivatives Liability Derivatives Fair Value at Fair Value at (dollars in thousands) Balance Sheet Location June 30, December 31, June 30, December 31, Interest rate lock, forward sale commitments and risk participation agreements Other assets / other liabilities $ 14 $ 18 $ 36 $ 163 The following table presents the impact of derivative instruments and their location within the consolidated statements of income: Derivatives Financial Instruments Location of Gain (Loss) Amount of Gain (Loss) (dollars in thousands) Three Months Ended June 30, 2021 Interest rate lock and forward sale commitments Mortgage banking income $ (84) Risk participation agreements Other service charges and fees (4) Three Months Ended June 30, 2020 Interest rate lock and forward sale commitments Mortgage banking income (149) Risk participation agreements Other service charges and fees — Six Months Ended June 30, 2021 Interest rate lock and forward sale commitments Mortgage banking income 96 Risk participation agreements Other service charges and fees 27 Six Months Ended June 30, 2020 Interest rate lock and forward sale commitments Mortgage banking income (50) Risk participation agreements Other service charges and fees 1,288 |
SHORT-TERM BORROWINGS AND LONG-
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 9. SHORT-TERM BORROWINGS AND LONG-TERM DEBT Federal Home Loan Bank Advances and Other Borrowings The bank is a member of the Federal Home Loan Bank of Des Moines (the "FHLB") and maintained a $1.81 billion line of credit as of June 30, 2021, compared to $1.81 billion at December 31, 2020. At June 30, 2021, $1.58 billion was undrawn under this arrangement, compared to $1.52 billion at December 31, 2020. There were no short-term borrowings under this arrangement at June 30, 2021, compared to $22.0 million at December 31, 2020. Letters of credit under this arrangement that are used to collateralize certain government deposits totaled $230.8 million at June 30, 2021, compared to $268.0 million at December 31, 2020. There were no long-term borrowings under this arrangement at June 30, 2021 and December 31, 2020. FHLB advances and standby letters of credit available at June 30, 2021 were secured by certain real estate loans with a carrying value of $2.67 billion in accordance with the collateral provisions of the Advances, Security and Deposit Agreement with the FHLB. At June 30, 2021 and December 31, 2020, our bank had additional unused borrowings available at the Federal Reserve discount window of $64.4 million and $64.5 million, respectively. As of June 30, 2021 and December 31, 2020, certain commercial and commercial real estate loans with a carrying value totaling $130.6 million and $136.9 million, respectively, were pledged as collateral on our line of credit with the Federal Reserve discount window. The Federal Reserve does not have the right to sell or repledge these loans. To bolster the effectiveness of the SBA's PPP, the Federal Reserve is supplying liquidity to participating financial institutions through term financing backed by PPP loans to small businesses. The Paycheck Protection Program Liquidity Facility ("PPPLF") will extend credit to eligible financial institutions that originate PPP loans, taking the loans as collateral at face value. At June 30, 2021 and December 31, 2020, there were no funds drawn from the Federal Reserve Bank under the PPPLF and no PPP loans were pledged to the Federal Reserve Bank. The PPPLF expires on July 30, 2021. Subordinated Debentures In October 2003, we created two wholly-owned statutory trusts, CPB Capital Trust II ("Trust II") and CPB Statutory Trust III ("Trust III"). We completed the redemption of $20 million of floating rate trust preferred securities issued by Trust II in January 2019 and $20 million of floating rate trust preferred securities issued by Trust III in December 2018. In September 2004, we created a wholly-owned statutory trust, CPB Capital Trust IV ("Trust IV"). Trust IV issued $30.0 million in floating rate trust preferred securities bearing an interest rate of three-month LIBOR plus 2.45% and maturing on December 15, 2034. The principal assets of Trust IV are $30.9 million of the Company's junior subordinated debentures with an identical interest rate and maturity as the Trust IV trust preferred securities. Trust IV issued $0.9 million of common securities to the Company. In December 2004, we created a wholly-owned statutory trust, CPB Statutory Trust V ("Trust V"). Trust V issued $20.0 million in floating rate trust preferred securities bearing an interest rate of three-month LIBOR plus 1.87% and maturing on December 15, 2034. The principal assets of Trust V are $20.6 million of the Company's junior subordinated debentures with an identical interest rate and maturity as the Trust V trust preferred securities. Trust V issued $0.6 million of common securities to the Company. At June 30, 2021 and December 31, 2020, the Company had the following junior subordinated debentures outstanding, which is recorded in long-term debt on the Company's consolidated balance sheets: (dollars in thousands) June 30, 2021 Name of Trust Subordinated Debentures Interest Rate Trust IV $ 30,928 Three month LIBOR + 2.45% Trust V 20,619 Three month LIBOR + 1.87% Total $ 51,547 December 31, 2020 Name of Trust Subordinated Debentures Interest Rate Trust IV $ 30,928 Three month LIBOR + 2.45% Trust V 20,619 Three month LIBOR + 1.87% Total $ 51,547 The floating trust preferred securities, the junior subordinated debentures that are the assets of Trusts IV and V and the common securities issued by Trusts IV and V are redeemable in whole or in part on any interest payment date on or after December 15, 2009 for Trust IV and V, or at any time in whole but not in part within 90 days following the occurrence of certain events. Our obligations with respect to the issuance of the trust preferred securities constitute a full and unconditional guarantee by the Company of each trust's obligations with respect to its trust preferred securities. Subject to certain exceptions and limitations, we may elect from time to time to defer interest payments on the subordinated debentures, which would result in a deferral of distribution payments on the related trust preferred securities, for up to 20 consecutive quarterly periods without default or penalty. The subordinated debentures may be included in Tier 1 capital, with certain limitations applicable, under current regulatory guidelines and interpretations. Subordinated Notes As of June 30, 2021 and December 31, 2020, the Company had the following subordinated notes outstanding: (Dollars in thousands) June 30, 2021 Name Amount of Subordinated Notes Interest Rate October 2020 Private Placement $ 55,000 4.75% for the first five years. Resets quarterly thereafter to the then current three-month SOFR plus 456 basis points. (Dollars in thousands) December 31, 2020 Name of Trust Amount of Subordinated Debentures Interest Rate October 2020 Private Placement $ 55,000 4.75% for the first five years. Resets quarterly thereafter to the then current three-month SOFR plus 456 basis points. On October 20, 2020, the Company completed a $55.0 million private placement of ten-year fixed-to-floating rate subordinated notes, which will be used to support regulatory capital ratios and for general corporate purposes. The Company exchanged the privately placed notes for registered notes with the same terms and in the same aggregate principal amount at the end of the fourth quarter of 2020. The Notes bear a fixed interest rate of 4.75% for the first five years and will reset quarterly thereafter for the remaining five years to the then current three-month Secured Overnight Financing Rate ("SOFR"), as published by the Federal Reserve Bank of New York, plus 456 basis points. The subordinated notes may be included in Tier 2 capital, with certain limitations applicable, under current regulatory guidelines and interpretations. The subordinated notes had a carrying value of $53.9 million, net of unamortized debt issuance costs of $1.1 million, at June 30, 2021. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 10. REVENUE FROM CONTRACTS WITH CUSTOMERS The following presents the Company's other operating income, segregated by revenue streams that are in-scope and out-of-scope of ASC 606, "Revenue from Contracts with Customers" for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended (dollars in thousands) 2021 2020 2021 2020 Other operating income: In-scope of ASC 606 Mortgage banking income $ 522 $ 189 $ 1,360 $ 418 Service charges on deposit accounts 1,443 1,149 2,921 3,199 Other service charges and fees 3,925 2,589 7,103 5,585 Income on fiduciary activities 1,269 1,270 2,500 2,567 Net loss on sales of foreclosed assets — (6) — (6) In-scope other operating income 7,159 5,191 13,884 11,763 Out-of-scope other operating income 3,371 5,501 7,357 7,815 Total other operating income $ 10,530 $ 10,692 $ 21,241 $ 19,578 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 11. SHARE-BASED COMPENSATION Restricted Stock Units The table below presents the activity of restricted stock units for the six months ended June 30, 2021: Shares Weighted Average Grant Date Fair Value Non-vested restricted stock units, beginning of period 532,374 $ 22.49 Changes during the period: Granted 210,566 21.67 Vested (121,922) 25.40 Forfeited (9,443) 17.03 Non-vested restricted stock units, end of period 611,575 21.71 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
LEASES | 12. LEASES We lease certain land and buildings for our bank branches and ATMs. In some instances, a lease may contain renewal options to extend the term of the lease. All renewal options are likely to be exercised and therefore have been recognized as part of our right-of-use assets and lease liabilities in accordance with ASC 842, "Leases" . Certain leases also contain variable payments that are primarily determined based on common area maintenance costs and Hawaii state tax rates. All leases are operating leases and we do not include any short term leases in the calculation of the right-of-use assets and lease liabilities. The most significant assumption related to the Company’s application of ASC 842 was the discount rate assumption. As most of the Company’s lease agreements do not provide for an implicit interest rate, the Company uses the collateralized interest rate that the Company would have to pay to borrow over a similar term to estimate the Company’s lease liability. Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated: Three Months Ended Six Months Ended (dollars in thousands) 2021 2020 2021 2020 Lease cost: Operating lease cost $ 1,720 $ 1,653 $ 3,291 $ 3,306 Variable lease cost 470 688 1,190 1,366 Less: sublease income — (3) — (15) Total lease cost $ 2,190 $ 2,338 $ 4,481 $ 4,657 Other information: Operating cash flows from operating leases $ (1,726) $ (1,595) $ (3,325) $ (3,189) Weighted-average remaining lease term - operating leases 11.80 years 13.23 years 11.80 years 13.23 years Weighted-average discount rate - operating leases 3.91 % 3.93 % 3.91 % 3.93 % The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2021, the next five succeeding fiscal years and all years thereafter: (dollars in thousands) Year Ending December 31, Undiscounted Cash Flows Lease Liability Expense Lease Liability Reduction 2021 (remainder) $ 3,208 $ 818 $ 2,390 2022 5,925 1,497 4,428 2023 5,183 1,343 3,840 2024 4,508 1,214 3,294 2025 4,195 1,088 3,107 2026 4,133 968 3,165 Thereafter 27,350 4,462 22,888 Total $ 54,502 $ 11,390 $ 43,112 In addition, the Company, as lessor, leases certain properties that it owns. All of these leases are operating leases. The following represents lease income related to these leases that was recognized for the period indicated: Three Months Ended Six Months Ended (dollars in thousands) 2021 2020 2021 2020 Total rental income recognized $ 521 $ 534 $ 1,041 $ 1,067 Based on the Company's leases as lessor as of June 30, 2021, estimated lease payments for the remainder of fiscal year 2021, the next five succeeding fiscal years and all years thereafter are as follows: (dollars in thousands) Year Ending December 31, 2021 (remainder) $ 1,062 2022 1,756 2023 777 2024 253 2025 137 2026 73 Thereafter 117 Total $ 4,175 |
LEASES | 12. LEASES We lease certain land and buildings for our bank branches and ATMs. In some instances, a lease may contain renewal options to extend the term of the lease. All renewal options are likely to be exercised and therefore have been recognized as part of our right-of-use assets and lease liabilities in accordance with ASC 842, "Leases" . Certain leases also contain variable payments that are primarily determined based on common area maintenance costs and Hawaii state tax rates. All leases are operating leases and we do not include any short term leases in the calculation of the right-of-use assets and lease liabilities. The most significant assumption related to the Company’s application of ASC 842 was the discount rate assumption. As most of the Company’s lease agreements do not provide for an implicit interest rate, the Company uses the collateralized interest rate that the Company would have to pay to borrow over a similar term to estimate the Company’s lease liability. Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated: Three Months Ended Six Months Ended (dollars in thousands) 2021 2020 2021 2020 Lease cost: Operating lease cost $ 1,720 $ 1,653 $ 3,291 $ 3,306 Variable lease cost 470 688 1,190 1,366 Less: sublease income — (3) — (15) Total lease cost $ 2,190 $ 2,338 $ 4,481 $ 4,657 Other information: Operating cash flows from operating leases $ (1,726) $ (1,595) $ (3,325) $ (3,189) Weighted-average remaining lease term - operating leases 11.80 years 13.23 years 11.80 years 13.23 years Weighted-average discount rate - operating leases 3.91 % 3.93 % 3.91 % 3.93 % The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2021, the next five succeeding fiscal years and all years thereafter: (dollars in thousands) Year Ending December 31, Undiscounted Cash Flows Lease Liability Expense Lease Liability Reduction 2021 (remainder) $ 3,208 $ 818 $ 2,390 2022 5,925 1,497 4,428 2023 5,183 1,343 3,840 2024 4,508 1,214 3,294 2025 4,195 1,088 3,107 2026 4,133 968 3,165 Thereafter 27,350 4,462 22,888 Total $ 54,502 $ 11,390 $ 43,112 In addition, the Company, as lessor, leases certain properties that it owns. All of these leases are operating leases. The following represents lease income related to these leases that was recognized for the period indicated: Three Months Ended Six Months Ended (dollars in thousands) 2021 2020 2021 2020 Total rental income recognized $ 521 $ 534 $ 1,041 $ 1,067 Based on the Company's leases as lessor as of June 30, 2021, estimated lease payments for the remainder of fiscal year 2021, the next five succeeding fiscal years and all years thereafter are as follows: (dollars in thousands) Year Ending December 31, 2021 (remainder) $ 1,062 2022 1,756 2023 777 2024 253 2025 137 2026 73 Thereafter 117 Total $ 4,175 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables present the components of other comprehensive income for the three and six months ended June 30, 2021 and 2020, by component: (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2021 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 2,407 $ 643 $ 1,764 Less: Reclassification adjustments from AOCI realized in net income (50) (13) (37) Net unrealized gains on investment securities 2,357 630 1,727 Defined benefit plans: Amortization of net actuarial loss 272 87 185 Amortization of net transition obligation 4 1 3 Defined benefit plans, net 276 88 188 Other comprehensive income $ 2,633 $ 718 $ 1,915 (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2020 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 8,570 $ 2,295 $ 6,275 Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized gains on investment securities 8,570 2,295 6,275 Defined benefit plans: Amortization of net actuarial loss 269 70 199 Amortization of net transition obligation 4 1 3 Amortization of prior service cost 3 1 2 Defined benefit plans, net 276 72 204 Other comprehensive income $ 8,846 $ 2,367 $ 6,479 (dollars in thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2021 Net unrealized losses on investment securities: Net unrealized losses arising during the period $ (21,212) $ (5,675) $ (15,537) Less: Reclassification adjustments from AOCI realized in net income (50) (13) (37) Net unrealized losses on investment securities (21,262) (5,688) (15,574) Defined benefit plans: Amortization of net actuarial loss 518 153 365 Amortization of net transition obligation 9 2 7 Defined benefit plans, net 527 155 372 Other comprehensive loss $ (20,735) $ (5,533) $ (15,202) (dollars in thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2020 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 22,428 $ 6,006 $ 16,422 Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized gains on investment securities 22,428 6,006 16,422 Defined benefit plans: Net actuarial gains arising during the period 427 114 313 Amortization of net actuarial loss 537 142 395 Amortization of net transition obligation 9 2 7 Amortization of prior service cost 7 2 5 Defined benefit plans, net 980 260 720 Other comprehensive income $ 23,408 $ 6,266 $ 17,142 The following tables present the changes in each component of AOCI, net of tax, for the three and six months ended June 30, 2021 and 2020: (dollars in thousands) Investment Defined AOCI Three Months Ended June 30, 2021 Balance at beginning of period $ 9,350 $ (6,339) $ 3,011 Other comprehensive income before reclassifications 1,764 — 1,764 Reclassification adjustments from AOCI (37) 188 151 Total other comprehensive income 1,727 188 1,915 Balance at end of period $ 11,077 $ (6,151) $ 4,926 (dollars in thousands) Investment Defined AOCI Three Months Ended June 30, 2020 Balance at beginning of period $ 24,972 $ (5,900) $ 19,072 Other comprehensive income before reclassifications 6,275 — 6,275 Reclassification adjustments from AOCI — 204 204 Total other comprehensive income 6,275 204 6,479 Balance at end of period $ 31,247 $ (5,696) $ 25,551 (dollars in thousands) Investment Defined AOCI Six Months Ended June 30, 2021 Balance at beginning of period $ 26,651 $ (6,523) $ 20,128 Other comprehensive income before reclassifications (15,537) — (15,537) Reclassification adjustments from AOCI (37) 372 335 Total other comprehensive income (loss) (15,574) 372 (15,202) Balance at end of period $ 11,077 $ (6,151) $ 4,926 (dollars in thousands) Investment Defined AOCI Six Months Ended June 30, 2020 Balance at beginning of period $ 14,825 $ (6,416) $ 8,409 Other comprehensive loss before reclassifications 16,422 313 16,735 Reclassification adjustments from AOCI — 407 407 Total other comprehensive income (loss) 16,422 720 17,142 Balance at end of period $ 31,247 $ (5,696) $ 25,551 The following table presents the amounts reclassified out of each component of AOCI for the three and six months ended June 30, 2021 and 2020: Amount Reclassified from AOCI Affected Line Item in the Statement Where Net Income is Presented Details about AOCI Components Three months ended June 30, (dollars in thousands) 2021 2020 Defined benefit retirement and supplemental executive retirement plan items: Amortization of net actuarial loss $ (272) $ (269) Other operating expense - other Amortization of net transition obligation (4) (4) Other operating expense - other Amortization of prior service cost — (3) Other operating expense - other Total before tax (276) (276) Tax effect 88 72 Income tax benefit (expense) Net of tax $ (188) $ (204) Total reclassification adjustments from AOCI for the period, net of tax $ (151) $ (204) Amount Reclassified from AOCI Affected Line Item in the Statement Where Net Income is Presented Details about AOCI Components Six months ended June 30, (dollars in thousands) 2021 2020 Defined benefit retirement and supplemental executive retirement plan items: Amortization of net actuarial loss $ (518) $ (537) Other operating expense - other Amortization of net transition obligation (9) (9) Other operating expense - other Amortization of prior service cost — (7) Other operating expense - other Total before tax (527) (553) Tax effect 155 146 Income tax benefit (expense) Net of tax $ (372) $ (407) Total reclassification adjustments from AOCI for the period, net of tax $ (335) $ (407) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 14. EARNINGS PER SHARE The following table presents the information used to compute basic and diluted earnings per common share for the periods indicated: Three Months Ended Six Months Ended (dollars in thousands, except per share data) 2021 2020 2021 2020 Net income $ 18,714 $ 9,917 $ 36,752 $ 18,243 Weighted average common shares outstanding - basic 28,173,710 28,040,802 28,141,360 28,083,602 Dilutive effect of employee stock options and awards 282,914 54,428 266,119 106,530 Weighted average common shares outstanding - diluted 28,456,624 28,095,230 28,407,479 28,190,132 Basic earnings per common share $ 0.66 $ 0.35 $ 1.31 $ 0.65 Diluted earnings per common share $ 0.66 $ 0.35 $ 1.29 $ 0.65 |
FAIR VALUE OF FINANCIAL ASSETS
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 15. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Disclosures about Fair Value of Financial Instruments Fair value estimates, methods and assumptions are set forth below for our financial instruments. Short-Term Financial Instruments The carrying values of short-term financial instruments are deemed to approximate fair values. Such instruments are considered readily convertible to cash and include cash and due from financial institutions, interest-bearing deposits in other financial institutions, accrued interest receivable, the majority of Federal Home Loan Bank advances and other short-term borrowings, and accrued interest payable. Investment Securities The fair value of investment securities is based on market price quotations received from third-party pricing services. The third-party pricing services utilize pricing models supported with timely market data information. Where quoted market prices are not available, fair values are based on quoted market prices of comparable securities. Loans Fair values of loans are estimated based on discounted cash flows of portfolios of loans with similar financial characteristics including the type of loan, interest terms and repayment history. Fair values are calculated by discounting scheduled cash flows through estimated maturities using estimated market discount rates. Estimated market discount rates are reflective of credit and interest rate risks inherent in the Company's various loan types and are derived from available market information, as well as specific borrower information. As of June 30, 2021, the weighted average discount rate used in the valuation of loans was 4.53%. In accordance with ASU 2016-01, the fair value of loans are measured based on the notion of exit price. Loans Held for Sale The fair value of loans classified as held for sale are generally based upon quoted prices for similar assets in active markets, acceptance of firm offer letters with agreed upon purchase prices, discounted cash flow models that take into account market observable assumptions, or independent appraisals of the underlying collateral securing the loans. We report the fair values of Hawaii and U.S. Mainland construction and commercial real estate loans, if any, net of applicable selling costs on our consolidated balance sheets. Deposit Liabilities The fair values of deposits with no stated maturity, such as noninterest-bearing demand deposits and interest-bearing demand and savings accounts, are equal to the amount payable on demand. The fair value of time deposits is estimated using discounted cash flow analyses. As of June 30, 2021, the weighted average discount rate used in the valuation of time deposits was 0.31%. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Long-Term Debt The fair value of our long-term debt is estimated by discounting scheduled cash flows over the contractual borrowing period at the estimated market rate for similar borrowing arrangements. As of June 30, 2021, the weighted average discount rate used in the valuation of long-term debt was 5.82%. Derivatives The fair values of derivative financial instruments are based upon current market values, if available. If there are no relevant comparables, fair values are based on pricing models using current assumptions for interest rate swaps and options. Off-Balance Sheet Financial Instruments The fair values of off-balance sheet financial instruments are estimated based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties, current settlement values or quoted market prices of comparable instruments. Limitations Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of future business and the value of assets and liabilities that are not considered financial instruments. For example, significant assets and liabilities that are not considered financial assets or liabilities include deferred tax assets, premises and equipment and intangible assets. Fair Value Measurement Using (dollars in thousands) Carrying Estimated Quoted Prices Significant Significant June 30, 2021 Financial assets: Cash and due from banks $ 116,009 $ 116,009 $ 116,009 $ — $ — Interest-bearing deposits in other banks 224,469 224,469 224,469 — — Investment securities 1,408,918 1,408,918 1,578 1,398,430 8,910 Loans held for sale 5,361 5,361 — 5,361 — Net loans 4,999,537 4,882,130 — — 4,882,130 Accrued interest receivable 19,014 19,014 19,014 — — Financial liabilities: Deposits: Noninterest-bearing demand 2,203,806 2,203,806 2,203,806 — — Interest-bearing demand and savings and money market 3,390,225 3,390,225 3,390,225 — — Time 803,128 802,904 — — 802,904 Long-term debt 105,495 90,309 — — 90,309 Accrued interest payable (included in other liabilities) 1,142 1,142 1,142 — — Fair Value Measurement Using (dollars in thousands) Notional Carrying Estimated Quoted Prices Significant Significant June 30, 2021 Derivatives: Interest rate lock commitments $ 779 $ 14 $ 14 $ — $ 14 $ — Forward sale commitments 4,945 (14) (14) — (14) — Risk participation agreement 37,647 (22) (22) — — (22) Off-balance sheet financial instruments: Commitments to extend credit 1,308,203 — 1,620 — 1,620 — Standby letters of credit and financial guarantees written 11,456 — 172 — 172 — Fair Value Measurement Using (dollars in thousands) Carrying Estimated Quoted Prices Significant Significant December 31, 2020 Financial assets: Cash and due from banks $ 97,546 $ 97,546 $ 97,546 $ — $ — Interest-bearing deposits in other banks 6,521 6,521 6,521 — — Investment securities 1,183,960 1,183,960 1,351 1,170,283 12,326 Loans held for sale 16,687 16,687 — 16,687 — Net loans 4,880,844 4,795,776 — — 4,795,776 Accrued interest receivable 20,224 20,224 20,224 — — Financial liabilities: Deposits: Noninterest-bearing demand 1,790,269 1,790,269 1,790,269 — — Interest-bearing demand and savings and money market 3,106,931 3,106,931 3,106,931 — — Time 898,918 899,562 — — 899,562 Short-term borrowings 22,000 22,000 — 22,000 — Long-term debt 105,385 92,488 — — 92,488 Accrued interest payable (included in other liabilities) 1,727 1,727 1,727 — — Fair Value Measurement Using (dollars in thousands) Notional Carrying Estimated Quoted Prices Significant Significant December 31, 2020 Derivatives: Interest rate lock commitments $ 714 $ 18 $ 18 $ — $ 18 $ — Forward sale commitments 16,603 (115) (115) — (115) — Risk participation agreements 37,762 (48) (48) — — (48) Off-balance sheet financial instruments: Commitments to extend credit 1,176,065 — 1,313 — 1,313 — Standby letters of credit and financial guarantees written 10,544 — 158 — 158 — Fair Value Measurements We group our financial assets and liabilities at fair value into three levels based on the markets in which the financial assets and liabilities are traded and the reliability of the assumptions used to determine fair value as follows: • Level 1 — Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities traded in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. • Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of discounted cash flow models and similar techniques that requires the use of significant judgment or estimation. We base our fair values on the price that we would expect to receive if an asset were sold, or the price that we would expect to pay to transfer a liability in an orderly transaction between market participants at the measurement date. We also maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. We use fair value measurements to record adjustments to certain financial assets and liabilities and to determine fair value disclosures. Available-for-sale and equity securities and derivatives are recorded at fair value on a recurring basis. From time to time, we may be required to record other financial assets at fair value on a nonrecurring basis such as loans held for sale, impaired loans, mortgage servicing rights, and other real estate owned. These nonrecurring fair value adjustments typically involve application of the lower of cost or fair value accounting or write-downs of individual assets. There were no transfers of financial assets and liabilities into or out of Level 3 of the fair value hierarchy during the three and six months ended June 30, 2021. The following tables present the fair value of assets and liabilities measured on a recurring basis as of June 30, 2021 and December 31, 2020: Fair Value at Reporting Date Using (dollars in thousands) Fair Value Quoted Prices Significant Significant June 30, 2021 Available-for-sale securities: Debt securities: States and political subdivisions $ 196,764 $ — $ 188,794 $ 7,970 Corporate securities 46,678 — 46,678 — U.S. Treasury obligations and direct obligations of U.S Government agencies 39,734 — 39,734 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 984,678 — 984,678 — Commercial - U.S. Government agencies and sponsored entities 81,466 — 81,466 — Residential - Non-government agencies 15,446 — 14,506 940 Commercial - Non-government agencies 42,574 — 42,574 — Total available-for-sale securities 1,407,340 — 1,398,430 8,910 Equity securities 1,578 1,578 — — Derivatives: Interest rate lock, forward sale commitments and risk participation agreements (22) — — (22) Total $ 1,408,896 $ 1,578 $ 1,398,430 $ 8,888 Fair Value at Reporting Date Using (dollars in thousands) Fair Value Quoted Prices Significant Significant December 31, 2020 Available-for-sale securities: Debt securities: States and political subdivisions $ 168,766 $ — $ 157,429 $ 11,337 Corporate securities 48,008 — 48,008 — U.S. Treasury obligations and direct obligations of U.S Government agencies 33,145 — 33,145 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 778,826 — 778,826 — Commercial - U.S. Government agencies and sponsored entities 87,469 — 87,469 — Residential - Non-government agencies 23,423 — 22,434 989 Commercial - Non-government agencies 42,972 — 42,972 — Total available-for-sale securities 1,182,609 — 1,170,283 12,326 Equity securities 1,351 1,351 — — Derivatives: Interest rate lock, forward sale commitments and risk participation agreements (145) — (97) (48) Total $ 1,183,815 $ 1,351 $ 1,170,186 $ 12,278 For the six months ended June 30, 2021 and 2020, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows: Available-For-Sale Debt Securities: (dollars in thousands) States and Political Subdivisions Residential - Non-Government Agencies Total Balance at December 31, 2020 $ 11,337 $ 989 $ 12,326 Principal payments received (2,734) (11) (2,745) Unrealized net loss included in other comprehensive income (633) (38) (671) Balance at June 30, 2021 $ 7,970 $ 940 $ 8,910 Balance at December 31, 2019 $ 11,255 $ — $ 11,255 Principal payments received (212) — (212) Unrealized net gain included in other comprehensive income 628 — 628 Balance at June 30, 2020 $ 11,671 $ — $ 11,671 Within the states and political subdivisions available-for-sale debt securities category, the Company holds two mortgage revenue bonds issued by the City & County of Honolulu with an aggregate fair value of $8.0 million and $11.7 million at June 30, 2021 and June 30, 2020, respectively. Within the other MBS non-agency category, the Company holds two mortgage backed bonds issued by Habitat for Humanity with a fair value of $0.9 million at June 30, 2021. The Company estimates the aggregate fair value of $8.9 million by using a discounted cash flow model to calculate the present value of estimated future principal and interest payments. The significant unobservable input used in the fair value measurement of the Company's City & County of Honolulu mortgage revenue bonds and Habitat for Humanity mortgage backed bonds is the weighted average discount rate. As of June 30, 2021, the weighted average discount rate utilized wa s 3.19% compared to 2.82% at June 30, 2020 and 2.83% at December 31, 2020, which was derived by incorporating a credit spread over the FHLB Fixed-Rate Advance curve. Significant increases (decreases) in the weighted average discount rate could result in a significantly lower (higher) fair value measurement. The following table presents the fair value of assets measured on a nonrecurring basis and the level of valuation assumptions used to determine the respective fair values as of June 30, 2021 and December 31, 2020: Fair Value Measurements Using (dollars in thousands) Fair Value Quoted Prices Significant Significant June 30, 2021 Other real estate (1) $ — $ — $ — $ — December 31, 2020 Other real estate (1) $ — $ — $ — $ — (1) Represents other real estate that is carried at fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral. |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 6 Months Ended |
Jun. 30, 2021 | |
Legal Proceedings [Abstract] | |
LEGAL PROCEEDINGS | 16. LEGAL PROCEEDINGSWe are involved in legal actions, but do not believe the ultimate disposition of those actions will have a material adverse impact on our results of operations or consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited consolidated financial statements of Central Pacific Financial Corp. and Subsidiaries (herein referred to as the "Company," "we," "us" or "our") have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements and notes should be read in conjunction with the Company's consolidated financial statements and notes thereto filed on Form 10-K for the fiscal year ended December 31, 2020. In the opinion of management, all adjustments necessary for a fair presentation have been made and include all normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year. Reclassifications Certain amounts reported in prior years in the financial statements have been reclassified to conform to the current year’s presentation. These reclassifications did not impact net income, the consolidated balance sheets and the consolidated statements of cash flows. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In January 2020, we acquired a 50% ownership interest in a mortgage loan origination and brokerage company, Oahu HomeLoans, LLC. The bank concluded that the investment meets the consolidation requirements under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, "Consolidation." The bank concluded that the entity meets the definition of a variable interest entity and that we are the primary beneficiary of the variable interest entity. Accordingly, the investment has been consolidated into our financial statements. We also have non-controlling equity investments in affiliates that are accounted for under the cost method and are included in investment in unconsolidated subsidiaries. Our investments in unconsolidated subsidiaries accounted for under the equity, proportional amortization and cost methods were $0.2 million, $27.3 million and $3.6 million, respectively, at June 30, 2021 and $0.3 million, $28.1 million and $1.6 million, respectively, at December 31, 2020. Our policy for determining impairment of these investments includes an evaluation of whether a loss in value of an investment is other than temporary. Evidence of a loss in value includes absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment. We perform impairment tests whenever indicators of impairment are present. If the value of an investment declines and it is considered other than temporary, the investment is written down to its respective fair value in the period in which this determination is made. The Company sponsors the Central Pacific Bank Foundation, which is not consolidated in the Company's financial statements. |
Reclassification, Policy [Policy Text Block] | Investment Securities Investments in debt securities are designated as trading, available-for-sale ("AFS"), or held-to-maturity ("HTM"). Investments in debt securities are designated as HTM only if we have the positive intent and ability to hold these securities to maturity. HTM securities are reported at amortized cost in the consolidated balance sheets. Trading securities are reported at fair value, with changes in fair value included in net income. Debt securities not classified as HTM or trading are classified as AFS and are reported at fair value, with net unrealized gains and losses, net of applicable taxes, excluded from net income and included in accumulated other comprehensive income (loss) ("AOCI"). Equity securities with readily determinable fair values are carried at fair value, with changes in fair value included in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. The Company classifies its investment securities portfolio into the following major security types: mortgage-backed securities ("MBS"), other debt securities and equity securities. The Company’s MBS portfolio is comprised primarily of residential MBS issued by United States of America ("U.S.") government entities and agencies. These securities are either explicitly or implicitly guaranteed by an agency of the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The remainder of the MBS portfolio are commercial MBS issued by U.S government entities and agencies (which there is no minimum credit rating), non-agency residential MBS (which shall meet a minimum credit rating of AAA) and non-agency commercial MBS (which shall meet a minimum credit rating of BBB and meet minimum internal credit guidelines). The Company’s other debt securities portfolio is comprised of obligations issued by U.S. government entities and agencies, obligations issued by states and political subdivisions (which shall meet a minimum credit rating of BBB), and corporate bonds (which shall meet a minimum credit rating of BBB-). Interest income on investment securities includes amortization of premiums and accretion of discounts. We amortize premiums and accrete discounts using the effective interest method over the life of the respective security instrument. Gains and losses on the sale of investment securities are recorded on the trade date and determined using the specific identification method. A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on non-accrual status is reversed against current period interest income. There were no investment securities on nonaccrual status as of June 30, 2021 and the Company did not reverse any accrued interest against interest income during the three and six months ended June 30, 2021. Allowance for Credit Losses (“ACL”) for AFS Debt Securities AFS debt securities in an unrealized loss position are evaluated for impairment at least quarterly. For AFS debt securities in an unrealized loss position, the Company first assesses whether or not it intends to sell, or 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 the criteria regarding intent or requirement to sell is met, the investment security’s amortized cost basis is written down to fair value through net income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In conducting this assessment for debt securities in an unrealized loss position, management evaluates the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the investment security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in AOCI. Changes in the ACL are recorded as a provision for (or reversal of) credit losses. Losses are charged against the ACL when management believes the uncollectibility of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. As of June 30, 2021, the declines in market values of our AFS debt securities were primarily attributable to changes in interest rates and volatility in the financial markets. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, we do not believe a credit loss exists and an ACL was not recorded. The Company has made a policy election to exclude accrued interest receivable from the amortized cost basis of debt securities and report accrued interest receivable together with accrued interest on loans in the consolidated balance sheets. Accrued interest receivable on AFS debt securities totaled $4.2 million as of June 30, 2021. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses. ACL for HTM Debt Securities Management measures expected credit losses on HTM debt securities on a collective basis by major security type. For pools of such securities with common risk characteristics, the historical lifetime probability of default and severity of loss in the event of default is derived or obtained from external sources. Expected credit losses for these securities are estimated using a loss rate methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Expected credit loss on each security in the HTM portfolio that do not share common risk characteristics with any of the pools of debt securities is individually measured based on net realizable value, or the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the recorded amortized cost basis of the security. Accrued interest on HTM debt securities is reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses. The Company did not have any HTM debt securities as of June 30, 2021. Federal Home Loan Bank Stock We are a member of the Federal Home Loan Bank of Des Moines (the "FHLB"). The bank is required to obtain and hold a specific number of shares of capital stock of the FHLB equal to the sum of a membership investment requirement and an activity-based investment requirement. The securities are reported at cost and are presented separately in the consolidated balance sheets. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost, net of the ACL. Amortized cost is the unpaid principal amount outstanding, net of unamortized purchase premiums and discounts, unamortized deferred loan origination fees and costs and cumulative principal charge-offs. Purchase premiums and discounts are generally amortized into interest income over the contractual terms of the underlying loans using the effective interest method. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the life of the related loan as an adjustment to yield and are typically amortized using the interest method over the contractual term of the loan, adjusted for actual prepayments. Deferred loan fees and costs on loans paid in full are recognized as a component of interest income on loans. Interest income on loans is accrued at the contractual rate of interest on the unpaid principal balance. Accrued interest receivable on loans totaled $14.8 million at June 30, 2021 and is reported together with accrued interest on AFS debt securities on the consolidated balance sheets. Upon adoption of ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” the Company made the accounting policy election to not measure an estimate of credit losses on accrued interest receivable as the Company writes off any uncollectible accrued interest receivable in a timely manner. The Company believes COVID-19 modified loans have distinct risk characteristics that cause them to be monitored and assessed for credit risk differently than their unmodified counterparts. Thus, in the third quarter of 2020, the Company elected to measure a reserve on the accrued interest receivable for loans on active payment forbearance or deferral of $0.2 million, with the offset recorded to provision for credit losses. Due to the significant decline in loans on active forbearance or deferral, the Company reversed the $0.2 million reserve during the second quarter of 2021 and no longer has a reserve on accrued interest receivable as of June 30, 2021. Nonaccrual Loans The Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. Loans are generally placed on nonaccrual status when principal and/or interest payments are 90 days past due, or earlier should management determine that the borrowers will be unable to meet contractual principal and/or interest obligations, unless the loans are well-secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income should management determine that the collectability of such accrued interest is doubtful. All subsequent receipts are applied to principal outstanding and no interest income is recognized unless the financial condition and payment record of the borrowers warrant such recognition and the loan is restored to accrual status. A nonaccrual loan may be restored to an accrual basis when principal and interest payments are current for a predetermined period, normally at least six months, and full payment of principal and interest is reasonably assured. Troubled Debt Restructuring (“TDR”) A loan is accounted for and reported as a TDR when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) the Company grants a concession to the borrower experiencing financial difficulty that it would not otherwise consider for a borrower or transaction with similar credit risk characteristics. A restructuring that results in only an insignificant delay in payment is not considered a concession. A delay may be considered insignificant if the payments subject to the delay are insignificant relative to the unpaid principal or collateral value and the contractual amount due, or the delay in timing of the restructured payment period is insignificant relative to the frequency of payments, the debt’s original contractual maturity or original expected duration. TDRs that are performing and on accrual status as of the date of the modification remain on accrual status. TDRs that are nonperforming as of the date of modification generally remain as nonaccrual until the prospect of future payments in accordance with the modified loan agreement is reasonably assured, generally demonstrated when the borrower maintains compliance with the restructured terms for a predetermined period, normally at least six months. TDRs with temporary below-market concessions remain designated as a TDR regardless of the accrual or performance status until the loan is paid off. Expected credit losses are estimated on a collective (pool) basis when they share similar risk characteristics. If a TDR financial asset shares similar risk characteristics with other financial assets, it is evaluated with those other financial assets on a collective basis. If it does not share similar risk characteristics with other financial assets, it is evaluated individually. The Company’s ACL reflects all effects of a TDR when an individual asset is specifically identified as a reasonably expected TDR. The Company has determined that a TDR is reasonably expected no later than the point when the lender concludes that modification is the best course of action and it is at least reasonably possible that the troubled borrower will accept some form of concession from the lender to avoid a default. Reasonably expected TDRs and executed TDRs are evaluated to determine the required ACL using the same method as all other loans held for investment, except when the value of a concession cannot be measured using a method other than the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the ACL is determined by discounting the expected future cash flows at the original interest rate of the loan. Based on the underlying risk characteristics, TDRs performing in accordance with their modified contractual terms may be collectively evaluated. In April 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued a revised interagency statement encouraging financial institutions to work with customers affected by the COVID-19 pandemic and providing additional information regarding loan modifications. The revised interagency statement clarifies the interaction between the interagency statement issued on March 22, 2020 and the temporary relief provided by Section 4013 of the Coronavirus Aid, Relief and Economic Security ("CARES") Act. Section 4013 allows financial institutions to suspend the requirements to classify certain loan modifications as TDRs. The revised statement also provides supervisory interpretations on past due and nonaccrual regulatory reporting of loan modification programs and regulatory capital. Section 4013 and the interagency guidance are being applied by the Company to loan modifications made related to the COVID-19 pandemic as eligible and appropriate. The application of the guidance reduced the number of TDRs that were reported. In December 2020, the Consolidated Appropriations Act, 2021 was signed into law. Section 541 of this legislation, “Extension of Temporary Relief From Troubled Debt Restructurings and Insurer Clarification,” extends Section 4013 of the CARES Act to the earlier of January 1, 2022 or 60 days after the termination of the national emergency declared relating to COVID-19. Future TDRs are indeterminable and will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic, the success of the continued COVID-19 vaccine rollout, and other actions taken by governmental authorities and other third parties in response to the pandemic . ACL for Loans Under the current expected credit loss methodology, the ACL for loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Our policy is to charge off a loan in the period in which the loan is deemed to be uncollectible and all interest previously accrued but not collected is reversed against current period interest income. We consider a loan to be uncollectible when it is probable that a loss has been incurred and the Company can make a reasonable estimate of the loss. In these instances, the likelihood of and/or timeframe for recovery of the amount due is uncertain, weak, or protracted. Subsequent receipts, if any, are credited first to the remaining principal, then to the ACL for loans as recoveries, and finally to unaccrued interest. The ACL for loans represents management's estimate of all expected credit losses over the expected life of our existing loan portfolio. Management estimates the ACL balance using relevant available information about the collectability of cash flows, from internal and external sources, including historical information relating to past events, current conditions, and reasonable and supportable forecasts of future economic conditions. When the Company is unable to forecast future economic events, management may revert to historical information. The Company's methodologies incorporate a reasonable and supportable forecast period of one year and revert to historical loss information on a straight-line basis over a one year reversion period. The Company maintains an ACL at an appropriate level as of a given balance sheet date to absorb management’s best estimate of expected life of loan credit losses. Historical credit loss experience provides the basis for the Company’s expected credit loss estimate. Adjustments to historical loss information may be made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated. The ACL methodology may also consider other adjustments to address changes in conditions, trends, and circumstances such as local industry changes that could have a significant impact on the risk profile of the loan portfolio and provide for losses in the loan portfolio that may not be reflected and/or captured in the historical loss data. These factors include: lending policies, imprecision in forecasting future economic conditions, loan profile, lending staff, problem loan trends, loan review, collateral, credit concentration and other internal and external factors. The Company uses the Moody’s Analytics Baseline forecast service for its economic forecast assumption. The Moody’s Analytics Baseline forecast includes both National and Hawaii specific economic indicators. The Moody’s Analytics forecast service is widely used in the industry and is reasonable and supportable. It is updated at least monthly and includes a variety of upside and downside economic scenarios from the Baseline. Generally the Company will use the most recent Baseline forecast from Moody’s as of the balance sheet date. During times of economic and market volatility or instability, the Company may include a qualitative factor for forecast imprecision that factors in other potential economic scenarios available by Moody’s Analytics or may apply overrides to its statistical models to enhance the reasonableness of its loss estimates. The ACL is measured on a collective or pool basis when similar risk characteristics exist. The Company segments its portfolio generally by Federal Financial Institutions Examination Council ("FFIEC") Call Report codes. Loan pools are further segmented by risk utilizing risk ratings or bands of payment delinquency (including TDR or non-accrual status), depending on what is most appropriate for each segment. Additional sub-segmentation may be utilized to identify groups of loans with unique risk characteristics relative to the rest of the portfolio. The Company relies on a third-party platform which offers multiple methodologies to measure historical life-of-loan losses. The Company has also developed statistical models internally to incorporate future economic conditions and forecast expected credit losses based on various macro-economic indicators such as unemployment and income levels. The Company has identified the following portfolio segments to measure the allowance for credit losses: Loan Segment Historical Lifetime Loss Method Historical Economic Reversion Method Construction Probability of Default/Loss Given Default ("PD/LGD") 2008-Present One Year One Year (straight-line basis) Commercial real estate PD/LGD 2008-Present Multi-family mortgage PD/LGD 2008-Present Commercial, financial and agricultural PD/LGD 2008-Present Home equity lines of credit Loss-Rate Migration 2008-Present Residential mortgage Loss-Rate Migration 2008-Present Consumer - other revolving Loss-Rate Migration 2008-Present Consumer - non-revolving Loss-Rate Migration 2008-Present Purchased Mainland portfolios (Dealer, Other consumer) Weighted-Average Remaining Maturity ("WARM") 2008-Present Below is a description and the risk characteristics of each segment: Construction loans Construction loans include both residential and commercial development projects. Each construction project is evaluated for economic viability and construction loans pose higher credit risks than typical secured loans. Financial strength of the borrower, completion risk (the risk that the project will not be completed on time and within budget) and geographic location are the predominant risk characteristics of this segment. Commercial real estate loans Commercial real estate loans are secured by commercial properties. The predominant risk characteristic of this segment is operating risk, which is the risk that the borrower will be unable to generate sufficient cash flows from the operation of the property. Interest rate conditions and the commercial real estate market through economic cycles also impact risk levels. Multi-family mortgage loans Multi-family mortgage loans can comprise multi-building properties with extensive amenities to a single building with no amenities. The primary risk characteristic of this segment is operating risk or the ability to generate sufficient rental cash flows from the operation of the property within the owner’s strategy and resources. Commercial, financial and agricultural loans Loans in this category consist primarily of term loans and lines of credit to small and middle-market businesses and professionals. The predominant risk characteristics of this segment are the cash flows of the business we lend to, global cash flows including guarantor liquidity, as well as economic and market conditions. The borrower’s business is typically regarded as the principal source of repayment, though our underwriting policy and practice generally requires secondary sources of support or collateral to mitigate risk. Paycheck Protection Program (“PPP”) loans are also in this category and are considered lower risk as they are guaranteed by the Small Business Administration (“SBA”) and may be forgivable in whole or in part in accordance with the requirements of the PPP. Home equity lines of credit Home equity lines of credit include fixed or floating interest rate loans and are secured by single-family owner-occupied primary residences in Hawaii. They are underwritten based on a minimum FICO score, maximum debt-to-income ratio, and maximum combined loan-to-value ratio. Home equity lines of credit are monitored based on credit score, delinquency, end of draw period and maturity. Residential mortgage loans Residential mortgage loans include fixed-rate and adjustable-rate loans primarily secured by single-family owner-occupied primary residences in Hawaii. Economic conditions such as unemployment levels, future changes in interest rates and other market factors impact the level of credit risk inherent in the portfolio. Consumer loans - other revolving This segment consists of consumer unsecured lines of credit. Its predominant risk characteristics relate to current and projected economic conditions as well as employment and income levels attributed to the borrower. Consumer loans - non-revolving This segment consists of consumer non-revolving (term) loans, including auto dealer loans. Its predominant risk characteristics relate to current and projected economic conditions as well as employment and income levels attributed to the borrower. Purchased consumer portfolios Credit risk for purchased consumer loans is managed on a pooled basis. The predominant risk characteristics of purchased consumer loans include current and projected economic conditions, employment and income levels, and the quality of purchased consumer loans. Below is a description of the methodologies mentioned above: Probability of Default/Loss Given Default ("PD/LGD") The PD/LGD calculation is based on a cohort methodology whereby loans in the same cohort are tracked over time to identify defaults and corresponding losses. PD/LGD analysis requires a portfolio segmented into pools, and we elected to then further sub-segment by risk characteristics such as Risk Rating, days past due, delinquency counters, TDR status and Nonaccrual status to measure losses accurately. PD measures the count or dollar amount of loans that defaulted in a given cohort. LGD measures the losses related to the loans that defaulted. Total expected loss rate is calculated using the formula 'PD times LGD'. Loss-Rate Migration Loss-rate migration analysis is a cohort-based approach that measures cumulative net charge-offs over a defined time-horizon to calculate a loss rate that will be applied to the loan pool. Loss-rate migration analysis requires the portfolio to be segmented into pools then further sub-segmented by risk characteristics such as risk rating, days past due, delinquency counters, TDR status and Nonaccrual status to measure loss rates accurately. The key inputs to run a loss-rate migration analysis are the length and frequency of the migration period, the dates for the migration periods to start and the number of migration periods used for the analysis. For each migration period, the analysis will determine the outstanding balance in each segment and/or sub-segment at the start of each period. These loans will then be followed for the length of the migration period to identify the amount of associated charge-offs and recoveries. A loss rate for each migration period is calculated using the formula 'net charge-offs over the period divided by beginning loan balance'. Weighted-Average Remaining Maturity ("WARM") Under the WARM methodology, lifetime losses are calculated by determining the remaining life of the loan pool and then applying a loss rate which includes a forecast component over this remaining life. The methodology considers historical loss experience as well as a loss forecast expectation to estimate credit losses for the remaining balance of the loan pool. The calculated loss rate is applied to the contractual term (adjusted for prepayments) to determine the loan pool’s current expected credit losses. Other If a loan ceases to share similar risk characteristics with other loans in its segment, it will be moved to a different pool sharing similar risk characteristics. Loans that do not share risk characteristics are evaluated on an individual basis based on the fair value of the collateral or other approaches such as discounted cash flow (“DCF”) techniques. Loans evaluated individually are not included in the collective evaluation. Determining the Term Expected credit losses are estimated over the contractual term of the loans and are adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. If such renewal options or extensions are present, these options are evaluated in determining the contractual term. Reserve for Off-Balance Sheet Credit Exposures The Company maintains a separate and distinct reserve for off-balance-sheet credit exposures which is included in other liabilities on the Company’s consolidated balance sheets. The Company estimates the amount of expected losses by calculating a commitment usage factor for letters of credit, non-revolving lines of credit, and revolving lines of credit over the remaining life during which the Company is exposed to credit risk via a contractual obligation to extend credit. Letters of credit are generally unlikely to advance since they are typically in place only to ensure various forms of performance of the borrowers. Many of the letters of credit are cash secured. Non-revolving lines of credit are determined to be likely to advance as these are typically construction lines. Meanwhile, the likelihood of revolving lines of credit advancing varies with each individual borrower. Therefore, the future usage of each line was estimated based on the average line utilization of the revolving line of credit portfolio as a whole. The reserve for off-balance-sheet credit exposures also applies the loss factors for each loan type used in the ACL for loans methodology, which is based on historical losses, economic conditions and reasonable and supportable forecasts. The reserve for off-balance sheet credit exposures is recorded as a provision for credit losses on off-balance sheet credit exposures in the provision for credit losses. Purchased Credit Deteriorated (“PCD”) Financial Assets The Company has purchased financial assets, none of which were credit deteriorated since origination at the time of purchase. The Company does not purchase any financial assets that are greater than 30 days delinquent at the time of purchase. PCD financial assets, if any, are recorded at the amount paid. An ACL for PCD financial assets will be determined using the same methodology as other financial assets. The initial ACL determined on a collective basis is allocated to individual financial assets. The sum of the financial asset’s purchase price and the ACL becomes its initial amortized cost. The difference between the initial amortized costs basis and the par value of the financial asset is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL are recorded through the provision for credit losses. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Accounting Standards Adopted in 2021 In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740)." This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. It also improves consistent application of GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The Company adopted ASU 2019-12 effective January 1, 2021 and it did not have a material impact on our consolidated financial statements. In October 2020, the FASB issued ASU 2020-10, "Codification Improvements." This ASU issues improvements to the codification by ensuring that all guidance that requires or provides an option for an entity to provide information in the notes to the financial statements is codified, reducing the likelihood that disclosure requirements would be missed. The Company adopted ASU 2020-10 effective January 1, 2021 and it did not have a material impact on our consolidated financial statements. Impact of Other Recently Issued Accounting Pronouncements on Future Filings In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848)." This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. Entities can (1) elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can also (2) elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. Finally, entities can (3) make a one-time election to sell and/or reclassify held-to-maturity (“HTM”) debt securities that reference an interest rate affected by reference rate reform. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company will elect (1) above for all contract modifications that meet the stated criteria. As the Company currently does not utilize hedge accounting, (2) above is currently not applicable. The Company currently does not have HTM debt securities and therefore, (3) above is currently not applicable. In May 2021, the FASB issued ASU No. 2021-04, "Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options" . ASU 2021-04 addresses issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options. ASU 2021-04 is effective for fiscal years beginning after December 15, 2021 and interim periods within those fiscal years, with early adoption permitted. We do not expect adoption of the new guidance to have a significant impact on our financial statements. In July 2021, the FASB issued ASU No. 2021-05, "Leases (Topic 842), Lessors—Certain Leases with Variable Lease Payments" |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of available for sale and held to maturity investment securities | are as follows: (dollars in thousands) Amortized Gross Gross Fair ACL June 30, 2021 Available-for-sale: Debt securities: States and political subdivisions $ 193,919 $ 3,833 $ (988) $ 196,764 $ — Corporate securities 46,999 194 (515) 46,678 — U.S. Treasury obligations and direct obligations of U.S Government agencies 39,977 134 (377) 39,734 — Mortgage-backed securities: Residential - U.S. Government-sponsored entities 984,750 8,613 (8,685) 984,678 — Commercial - U.S. Government agencies and sponsored entities 79,970 2,094 (598) 81,466 — Residential - Non-government agencies 15,091 428 (73) 15,446 — Commercial - Non-government agencies 41,318 1,256 — 42,574 — Total available-for-sale securities $ 1,402,024 $ 16,552 $ (11,236) $ 1,407,340 $ — (dollars in thousands) Amortized Gross Gross Fair ACL December 31, 2020 Available-for-sale: Debt securities: States and political subdivisions $ 163,573 $ 5,370 $ (177) $ 168,766 $ — Corporate securities 47,351 788 (131) 48,008 — U.S. Treasury obligations and direct obligations of U.S Government agencies 33,413 18 (286) 33,145 — Mortgage-backed securities: Residential - U.S. Government-sponsored entities 762,309 16,816 (299) 778,826 — Commercial - U.S. Government agencies and sponsored entities 85,405 2,564 (500) 87,469 — Residential - Non-government agencies 22,671 786 (34) 23,423 — Commercial - Non-government agencies 41,309 1,663 — 42,972 — Total available-for-sale securities $ 1,156,031 $ 28,005 $ (1,427) $ 1,182,609 $ — The amortized cost and fair value of our equity investment securities is as follows: (dollars in thousands) Amortized Cost Fair Value June 30, 2021 Equity securities $ 1,194 $ 1,578 December 31, 2020 Equity securities 1,068 1,351 |
Schedule of amortized cost and estimated fair value of investment securities by contractual maturity | The amortized cost and estimated fair value of our AFS debt securities at June 30, 2021 are shown below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. June 30, 2021 (dollars in thousands) Amortized Cost Fair Value Available-for-sale: Due in one year or less $ 23,390 $ 23,497 Due after one year through five years 27,513 28,430 Due after five years through ten years 90,757 91,326 Due after ten years 139,235 139,923 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 984,750 984,678 Commercial - U.S. Government agencies and sponsored entities 79,970 81,466 Residential - Non-government agencies 15,091 15,446 Commercial - Non-government agencies 41,318 42,574 Total available-for-sale securities $ 1,402,024 $ 1,407,340 |
Schedule of investment securities in an unrealized loss position | There were a total of 100 and 37 AFS debt securities which were in an unrealized loss position, without an ACL, at June 30, 2021 and December 31, 2020, respectively. Th e following tables summarize AFS debt securities which were in an unrealized loss position at June 30, 2021 and December 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position. Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2021 Debt securities: States and political subdivisions $ 48,529 $ (988) $ — $ — $ 48,529 $ (988) Corporate securities 31,376 (515) — — 31,376 (515) U.S. Treasury obligations and direct obligations of U.S Government agencies 16,694 (236) 12,858 (141) 29,552 (377) Mortgage-backed securities: Residential - U.S. Government-sponsored entities 666,130 (8,685) — — 666,130 (8,685) Residential - Non-government agencies 521 (41) 419 (32) 940 (73) Commercial - U.S. Government agencies and sponsored entities 23,336 (598) — — 23,336 (598) Total temporarily impaired securities $ 786,586 $ (11,063) $ 13,277 $ (173) $ 799,863 $ (11,236) Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2020 Debt securities: States and political subdivisions $ 21,313 $ (177) $ — $ — $ 21,313 $ (177) Corporate securities 4,869 (131) — — 4,869 (131) U.S. Treasury obligations and direct obligations of U.S Government agencies 5,980 (24) 20,925 (262) 26,905 (286) Mortgage-backed securities: Residential - U.S. Government-sponsored entities 76,402 (299) — — 76,402 (299) Residential - Non-government agencies 989 (34) — — 989 (34) Commercial - U.S. Government-sponsored entities 16,977 (500) — — 16,977 (500) Total temporarily impaired securities $ 126,530 $ (1,165) $ 20,925 $ (262) $ 147,455 $ (1,427) |
LOANS AND CREDIT QUALITY (Table
LOANS AND CREDIT QUALITY (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Schedule of loans and leases, excluding loans held for sale | Loans, excluding loans held for sale, net of ACL under ASC 326 as of June 30, 2021 and December 31, 2020 consisted of the following: (dollars in thousands) June 30, 2021 December 31, 2020 Commercial, financial and agricultural: Small Business Administration Paycheck Protection Program $ 450,471 $ 425,993 Other 486,331 545,136 Real estate: Construction 133,808 125,625 Residential mortgage 1,709,885 1,687,251 Home equity 582,143 550,216 Commercial mortgage 1,188,244 1,158,203 Consumer 541,491 479,580 Gross loans 5,092,373 4,972,004 Net deferred fees (15,055) (7,891) Total loans, net of deferred fees and costs 5,077,318 4,964,113 Allowance for credit losses (77,781) (83,269) Total loans, net of allowance for credit losses $ 4,999,537 $ 4,880,844 |
Financing Receivable, Purchased With Credit Deterioration | The following table presents loans purchased by class for the periods presented: (dollars in thousands) U.S. Mainland Consumer - Unsecured U.S. Mainland Consumer - Automobile Total Three Months Ended June 30, 2021 Purchases: Outstanding balance $ 45,482 $ 36,381 $ 81,863 Purchase (discount) premium (2,632) 3,063 431 Purchase price $ 42,850 $ 39,444 $ 82,294 Six Months Ended June 30, 2021 Purchases: Outstanding balance $ 68,016 $ 49,371 $ 117,387 Purchase (discount) premium (2,763) 3,729 966 Purchase price $ 65,253 $ 53,100 $ 118,353 Three Months Ended June 30, 2020 Purchases: Outstanding balance $ 11,359 $ — $ 11,359 Purchase discount (503) — (503) Purchase price $ 10,856 $ — $ 10,856 Six Months Ended June 30, 2020 Purchases: Outstanding balance $ 34,312 $ — $ 34,312 Purchase discount (1,116) — (1,116) Purchase price $ 33,196 $ — $ 33,196 |
Financing Receivable, Collateral-Dependent | The following table presents the amortized cost basis of collateral-dependent loans by class, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of June 30, 2021 and December 31, 2020: (dollars in thousands) Secured by Secured by Secured by Total Allocated June 30, 2021 Commercial, financial and agricultural $ — $ — $ 558 $ 558 $ 68 Real estate: Residential mortgage 9,784 — — 9,784 — Home equity 434 — — 434 — Commercial mortgage — 543 — 543 — Total $ 10,218 $ 543 $ 558 $ 11,319 $ 68 (dollars in thousands) Secured by Secured by Secured by Total Allocated December 31, 2020 Commercial, financial and agricultural $ — $ — $ 676 $ 676 $ 209 Real estate: Residential mortgage 9,833 — — 9,833 — Home equity 524 — — 524 — Commercial mortgage — 626 — 626 — Total $ 10,357 $ 626 $ 676 $ 11,659 $ 209 |
Schedule of aging of the recorded investment in past due loans and leases, by class | The following tables present by class, the aging of the recorded investment in past due loans as of June 30, 2021 and December 31, 2020. The following tables also present the amortized cost of loans on nonaccrual status for which there was no related ACL under ASC 326 as of June 30, 2021 and December 31, 2020. (dollars in thousands) Accruing Accruing Accruing Nonaccrual Total Loans and Total Nonaccrual June 30, 2021 Commercial, financial and agricultural: SBA PPP $ — $ — $ — $ — $ — $ 434,610 $ 434,610 $ — Other 517 67 29 699 1,312 484,913 486,225 220 Real estate: Construction — — — — — 133,457 133,457 — Residential mortgage — 1,003 1,438 5,280 7,721 1,704,080 1,711,801 5,284 Home equity 331 73 — 434 838 582,592 583,430 434 Commercial mortgage — — — — — 1,186,430 1,186,430 — Consumer 1,345 501 100 332 2,278 539,087 541,365 — Total $ 2,193 $ 1,644 $ 1,567 $ 6,745 $ 12,149 $ 5,065,169 $ 5,077,318 $ 5,938 (dollars in thousands) Accruing Accruing Accruing Nonaccrual Total Loans and Total Nonaccrual December 31, 2020 Commercial, financial and agricultural: SBA PPP $ — $ — $ — $ — $ — $ 416,375 $ 416,375 $ — Other 613 350 — 1,461 2,424 542,667 545,091 — Real estate: Construction — — — — — 125,407 125,407 — Residential mortgage 2,832 689 567 4,115 8,203 1,682,009 1,690,212 4,115 Home equity 273 3 — 524 800 550,466 551,266 524 Commercial mortgage — — — — — 1,156,328 1,156,328 — Consumer 2,725 906 240 92 3,963 475,471 479,434 — Total $ 6,443 $ 1,948 $ 807 $ 6,192 $ 15,390 $ 4,948,723 $ 4,964,113 $ 4,639 |
Schedule Of Debt Instrument, Deferrals | |
Schedule of information related to loans modified in a TDR, by class | The following table presents by class, information related to loans modified in a TDR during the three and six months ended June 30, 2020: (dollars in thousands) Number of Recorded Increase in the Three Months Ended June 30, 2020 Real estate: Commercial mortgage 1 $ 285 $ — Consumer 9 145 — Total 10 $ 430 $ — Six Months Ended June 30, 2020 Real estate: Commercial mortgage 1 $ 285 $ — Consumer 9 145 — Total 10 $ 430 $ — |
Schedule of recorded investment in loans and leases, by class and credit indicator | The following table presents the amortized cost basis of the Company's loans by class, credit quality indicator and origination year as of June 30, 2021 and December 31, 2020. Revolving loans converted to term as of and during the three and six months ended June 30, 2021 and 2020 were not material to the total loan portfolio. Amortized Cost of Term Loans by Origination Year (dollars in thousands) 2021 2020 2019 2018 2017 Prior Amortized Cost of Revolving Loans Total June 30, 2021 Commercial, financial and agricultural - SBA PPP: Risk Rating Pass $ 274,947 $ 159,663 $ — $ — $ — $ — $ — $ 434,610 Subtotal 274,947 159,663 — — — — — 434,610 Commercial, financial and agricultural - Other: Risk Rating Pass 42,540 65,657 51,256 59,386 44,416 110,922 65,432 439,609 Special Mention 946 6,466 11,638 3,344 11,442 7,744 — 41,580 Substandard 200 89 739 974 347 2,687 — 5,036 Subtotal 43,686 72,212 63,633 63,704 56,205 121,353 65,432 486,225 Construction: Risk Rating Pass 6,806 26,915 33,143 34,288 6,262 20,765 4,349 132,528 Special Mention — — — 929 — — — 929 Subtotal 6,806 26,915 33,143 35,217 6,262 20,765 4,349 133,457 Residential mortgage: Risk Rating Pass 300,519 521,905 215,065 97,573 114,308 454,665 — 1,704,035 Special Mention — 985 — — — — — 985 Substandard — — 698 1,110 753 4,220 — 6,781 Subtotal 300,519 522,890 215,763 98,683 115,061 458,885 — 1,711,801 Home equity: Risk Rating Pass 11,579 15,258 12,325 13,048 502 27,637 502,011 582,360 Special Mention — 250 — — — — 386 636 Substandard — — — — — 434 — 434 Subtotal 11,579 15,508 12,325 13,048 502 28,071 502,397 583,430 Commercial mortgage: Risk Rating Pass 46,626 143,824 149,049 136,564 161,017 448,019 15,071 1,100,170 Special Mention — — 7,627 20,552 4,007 24,586 — 56,772 Substandard — — 1,771 11,500 1,809 14,408 — 29,488 Subtotal 46,626 143,824 158,447 168,616 166,833 487,013 15,071 1,186,430 Consumer: Risk Rating Pass 112,023 121,960 122,660 59,031 31,465 19,816 73,976 540,931 Substandard — 75 123 72 19 142 — 431 Loss — — — — — 3 — 3 Subtotal 112,023 122,035 122,783 59,103 31,484 19,961 73,976 541,365 Total $ 796,186 $ 1,063,047 $ 606,094 $ 438,371 $ 376,347 $ 1,136,048 $ 661,225 $ 5,077,318 Amortized Cost of Term Loans by Origination Year (dollars in thousands) 2020 2019 2018 2017 2016 Prior Amortized Cost of Revolving Loans Total December 31, 2020 Commercial, financial and agricultural - SBA PPP: Risk Rating Pass $ 416,375 $ — $ — $ — $ — $ — $ — $ 416,375 Subtotal 416,375 — — — — — — 416,375 Commercial, financial and agricultural - Other: Risk Rating Pass $ 86,456 $ 55,660 $ 61,314 $ 47,672 $ 39,337 $ 98,136 $ 82,465 $ 471,040 Special Mention 9,690 16,120 6,293 26,109 1,556 6,989 420 67,177 Substandard 200 839 1,043 1,045 2,570 1,177 — 6,874 Subtotal 96,346 72,619 68,650 74,826 43,463 106,302 82,885 545,091 Construction: Risk Rating Pass 22,491 29,518 36,790 9,365 2,163 19,138 3,099 122,564 Special Mention — — 2,843 — — — — 2,843 Subtotal 22,491 29,518 39,633 9,365 2,163 19,138 3,099 125,407 Residential mortgage: Risk Rating Pass 556,479 276,645 127,490 136,307 180,782 406,020 — 1,683,723 Special Mention 997 — — 597 142 — — 1,736 Substandard — — 537 785 1,381 2,050 — 4,753 Subtotal 557,476 276,645 128,027 137,689 182,305 408,070 — 1,690,212 Home equity: Risk Rating Pass 17,582 15,851 15,567 679 1,023 4,592 494,741 550,035 Special Mention — — — — — — 707 707 Substandard — — — — 200 324 — 524 Subtotal 17,582 15,851 15,567 679 1,223 4,916 495,448 551,266 Commercial mortgage: Risk Rating Pass 130,448 144,244 123,519 166,618 104,381 363,837 16,200 1,049,247 Special Mention — 2,021 31,647 2,919 13,546 19,653 — 69,786 Substandard — 1,791 19,000 1,934 — 14,570 — 37,295 Subtotal 130,448 148,056 174,166 171,471 117,927 398,060 16,200 1,156,328 Consumer: Risk Rating Pass 112,955 147,940 78,486 44,571 17,445 4,032 73,423 478,852 Special Mention — — — — — — 250 250 Substandard — 138 102 22 — 22 — 284 Loss — 16 — 26 2 4 — 48 Subtotal 112,955 148,094 78,588 44,619 17,447 4,058 73,673 479,434 Total $ 1,353,673 $ 690,783 $ 504,631 $ 438,649 $ 364,528 $ 940,544 $ 671,305 $ 4,964,113 The following tables present the Company's loans by class and credit quality indicator as of June 30, 2021 and December 31, 2020: (dollars in thousands) Pass Special Mention Substandard Loss Subtotal Net Total June 30, 2021 Commercial, financial and agricultural: SBA PPP $ 450,471 $ — $ — $ — $ 450,471 $ (15,861) $ 434,610 Commercial, financial and agricultural: Other 439,715 41,580 5,036 — 486,331 (106) 486,225 Real estate: Construction 132,879 929 — — 133,808 (351) 133,457 Residential mortgage 1,702,119 985 6,781 — 1,709,885 1,916 1,711,801 Home equity 581,073 636 434 — 582,143 1,287 583,430 Commercial mortgage 1,101,984 56,772 29,488 — 1,188,244 (1,814) 1,186,430 Consumer 541,057 — 431 3 541,491 (126) 541,365 Total $ 4,949,298 $ 100,902 $ 42,170 $ 3 $ 5,092,373 $ (15,055) $ 5,077,318 (dollars in thousands) Pass Special Mention Substandard Loss Subtotal Net Total December 31, 2020 Commercial, financial and agricultural: SBA PPP $ 425,993 $ — $ — $ — $ 425,993 $ (9,618) $ 416,375 Commercial, financial and agricultural: Other 471,085 67,177 6,874 — 545,136 (45) 545,091 Real estate: Construction 122,782 2,843 — — 125,625 (218) 125,407 Residential mortgage 1,680,762 1,736 4,753 — 1,687,251 2,961 1,690,212 Home equity 548,985 707 524 — 550,216 1,050 551,266 Commercial mortgage 1,051,122 69,786 37,295 — 1,158,203 (1,875) 1,156,328 Consumer 478,998 250 284 48 479,580 (146) 479,434 Total $ 4,779,727 $ 142,499 $ 49,730 $ 48 $ 4,972,004 $ (7,891) $ 4,964,113 |
ALLOWANCE FOR CREDIT LOSSES A_2
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
ALLOWANCE FOR LOAN AND LEASE LOSSES | |
Schedule of activity in the allowance, by class | The following table presents by class, the activity in the ACL for loans under ASC 326 during the three and six months ended June 30, 2021 and June 30, 2020: Commercial, Financial and Agricultural Real Estate (dollars in thousands) SBA PPP Other Construction Residential Mortgage Home Equity Commercial Mortgage Consumer Total Three Months Ended June 30, 2021 Beginning balance $ 489 $ 15,464 $ 5,047 $ 15,357 $ 5,251 $ 22,734 $ 17,211 $ 81,553 (Credit) provision for credit losses on loans (133) (1,925) (354) 1,368 1,058 (3,265) 288 (2,963) 356 13,539 4,693 16,725 6,309 19,469 17,499 78,590 Charge-offs — 401 — — — — 1,523 1,924 Recoveries — 276 — 186 — 65 588 1,115 Net charge-offs (recoveries) — 125 — (186) — (65) 935 809 Ending balance $ 356 $ 13,414 $ 4,693 $ 16,911 $ 6,309 $ 19,534 $ 16,564 $ 77,781 Three Months Ended June 30, 2020 Beginning balance $ — $ 8,645 $ 3,057 $ 13,181 $ 2,309 $ 19,518 $ 12,935 $ 59,645 (Credit) provision for credit losses on loans 388 7,660 217 1,876 1,342 (3,371) 2,528 10,640 388 16,305 3,274 15,057 3,651 16,147 15,463 70,285 Charge-offs — 1,103 — 52 — — 2,626 3,781 Recoveries — 305 — 20 — 1 509 835 Net charge-offs (recoveries) — 798 — 32 — (1) 2,117 2,946 Ending balance $ 388 $ 15,507 $ 3,274 $ 15,025 $ 3,651 $ 16,148 $ 13,346 $ 67,339 Commercial, Financial and Agricultural Real Estate (dollars in thousands) SBA PPP Other Construction Residential Mortgage Home Equity Commercial Mortgage Consumer Total Six Months Ended June 30, 2021 Beginning balance $ 304 $ 18,717 $ 4,277 $ 16,484 $ 5,449 $ 22,163 $ 15,875 $ 83,269 (Credit) provision for credit losses on loans [1] 52 (4,658) 416 135 851 (2,702) 1,969 (3,937) 356 14,059 4,693 16,619 6,300 19,461 17,844 79,332 Charge-offs — 1,010 — — — — 2,621 3,631 Recoveries — 365 — 292 9 73 1,341 2,080 Net charge-offs (recoveries) — 645 — (292) (9) (73) 1,280 1,551 Ending balance $ 356 $ 13,414 $ 4,693 $ 16,911 $ 6,309 $ 19,534 $ 16,564 $ 77,781 Six Months Ended June 30, 2020 Beginning balance prior to ASC 326 $ — $ 8,136 $ 1,792 $ 13,327 $ 4,206 $ 11,113 $ 9,397 $ 47,971 Impact of adoption of ASC 326 — (627) 479 608 (1,614) 2,624 2,096 3,566 Balance after adoption of ASC 326 — 7,509 2,271 13,935 2,592 13,737 11,493 51,537 (Credit) provision for credit losses on loans 388 8,891 872 941 1,028 2,408 5,441 19,969 388 16,400 3,143 14,876 3,620 16,145 16,934 71,506 Charge-offs — 1,540 — 52 — — 4,843 6,435 Recoveries — 647 131 201 31 3 1,255 2,268 Net charge-offs (recoveries) — 893 (131) (149) (31) (3) 3,588 4,167 Ending balance $ 388 $ 15,507 $ 3,274 $ 15,025 $ 3,651 $ 16,148 $ 13,346 $ 67,339 [1] The Company recorded a reserve on accrued interest receivable for loans on active payment forbearance or deferral, which were granted to borrowers impacted by the COVID-19 pandemic. This reserve was recorded as a contra-asset against accrued interest receivable with the offset to provision for credit losses. The provision for credit losses presented in this table excludes the provision for credit losses on accrued interest receivable of $0.2 million. The following table presents the activity in the reserve for off-balance sheet credit exposures, included in other liabilities, during the three and six months ended June 30, 2021 and June 30, 2020. (dollars in thousands) Three Months Ended June 30, 2021 Beginning balance $ 5,037 Provision for off-balance sheet credit exposures (293) Ending balance $ 4,744 Three Months Ended June 30, 2020 Beginning balance prior to ASC 326 $ 3,810 Impact of adoption of ASC 326 — Balance after adoption of ASC 326 3,810 Provision for off-balance sheet credit exposures 573 Ending balance $ 4,383 Six Months Ended June 30, 2021 Beginning balance $ 4,884 Provision for off-balance sheet credit exposures (140) Ending balance $ 4,744 Six Months Ended June 30, 2020 Beginning balance prior to ASC 326 $ 1,272 Impact of adoption of ASC 326 740 Balance after adoption of ASC 326 2,012 Provision for off-balance sheet credit exposures 2,371 Ending balance $ 4,383 |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Schedule of investment in unconsolidated subsidiaries | The components of the Company's investments in unconsolidated subsidiaries were as follows: (dollars in thousands) June 30, 2021 December 31, 2020 Investments in low income housing tax credit partnerships $ 27,276 $ 28,090 Investments in common securities of statutory trusts 1,547 1,547 Investments in affiliates 176 277 Other 2,053 54 Total $ 31,052 $ 29,968 The following table presents amortization and tax credits recognized associated with our investments in LIHTC partnerships for the three and six months ended June 30, 2021 and June 30, 2020: (dollars in thousands) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Proportional amortization method: Amortization expense recognized in income tax expense $ 407 $ 348 $ 814 $ 696 Tax credits recognized in income tax expense 474 400 948 800 |
Other Commitments | The expected payments for the unfunded commitments as of June 30, 2021 for the remainder of fiscal year 2021, the next five succeeding fiscal years and all years thereafter are as follows: (dollars in thousands) Year Ending December 31, LIHTC partnerships Other partnerships Total 2021 (remainder) $ 8,299 $ 1,920 $ 10,219 2022 5,980 — 5,980 2023 10 — 10 2024 26 — 26 2025 6 — 6 2026 6 — 6 Thereafter 37 — 37 Total unfunded commitments $ 14,364 $ 1,920 $ 16,284 |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
OTHER INTANGIBLE ASSETS | |
Schedule of gross carrying value and accumulated amortization related to intangible assets | The following table presents changes in mortgage servicing rights for the periods presented: (dollars in thousands) Mortgage Balance, January 1, 2021 $ 11,865 Additions 717 Amortization (2,082) Balance, June 30, 2021 $ 10,500 Balance, January 1, 2020 $ 14,718 Additions 1,270 Amortization (3,217) Balance, June 30, 2020 $ 12,771 The gross carrying value and accumulated amortization related to our mortgage servicing rights are presented below: June 30, 2021 December 31, 2020 (dollars in thousands) Gross Accumulated Net Gross Accumulated Net Mortgage servicing rights $ 71,626 $ (61,126) $ 10,500 $ 70,909 $ (59,044) $ 11,865 |
Schedule of fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights | The following tables present the fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights: Six Months Ended Six Months Ended (dollars in thousands) June 30, 2021 June 30, 2020 Fair market value, beginning of period $ 12,003 $ 15,820 Fair market value, end of period 10,755 13,060 Weighted average discount rate 9.6 % 9.6 % Weighted average prepayment speed assumption 18.0 % 21.7 % |
Schedule of estimated amortization expense | Based on the mortgage servicing rights held as of June 30, 2021, estimated amortization expense for the remainder of fiscal year 2021, the next five succeeding fiscal years and all years thereafter are as follows: (dollars in thousands) Year Ending December 31, 2021 (remainder) $ 1,432 2022 2,446 2023 1,974 2024 1,596 2025 1,316 2026 1,092 Thereafter 644 Total $ 10,500 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of the location of all assets and liabilities associated with derivative instruments within the consolidated balance sheets | The following table presents the location of all assets and liabilities associated with our derivative instruments within the consolidated balance sheets: Derivatives Financial Instruments Not Designated as Hedging Instruments Asset Derivatives Liability Derivatives Fair Value at Fair Value at (dollars in thousands) Balance Sheet Location June 30, December 31, June 30, December 31, Interest rate lock, forward sale commitments and risk participation agreements Other assets / other liabilities $ 14 $ 18 $ 36 $ 163 |
Schedule of the impact of derivative instruments and their location within the consolidated statements of income | The following table presents the impact of derivative instruments and their location within the consolidated statements of income: Derivatives Financial Instruments Location of Gain (Loss) Amount of Gain (Loss) (dollars in thousands) Three Months Ended June 30, 2021 Interest rate lock and forward sale commitments Mortgage banking income $ (84) Risk participation agreements Other service charges and fees (4) Three Months Ended June 30, 2020 Interest rate lock and forward sale commitments Mortgage banking income (149) Risk participation agreements Other service charges and fees — Six Months Ended June 30, 2021 Interest rate lock and forward sale commitments Mortgage banking income 96 Risk participation agreements Other service charges and fees 27 Six Months Ended June 30, 2020 Interest rate lock and forward sale commitments Mortgage banking income (50) Risk participation agreements Other service charges and fees 1,288 |
SHORT-TERM BORROWINGS AND LON_2
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Subordinated Borrowing | At June 30, 2021 and December 31, 2020, the Company had the following junior subordinated debentures outstanding, which is recorded in long-term debt on the Company's consolidated balance sheets: (dollars in thousands) June 30, 2021 Name of Trust Subordinated Debentures Interest Rate Trust IV $ 30,928 Three month LIBOR + 2.45% Trust V 20,619 Three month LIBOR + 1.87% Total $ 51,547 December 31, 2020 Name of Trust Subordinated Debentures Interest Rate Trust IV $ 30,928 Three month LIBOR + 2.45% Trust V 20,619 Three month LIBOR + 1.87% Total $ 51,547 |
Schedule of Long-term Debt Instruments | As of June 30, 2021 and December 31, 2020, the Company had the following subordinated notes outstanding: (Dollars in thousands) June 30, 2021 Name Amount of Subordinated Notes Interest Rate October 2020 Private Placement $ 55,000 4.75% for the first five years. Resets quarterly thereafter to the then current three-month SOFR plus 456 basis points. (Dollars in thousands) December 31, 2020 Name of Trust Amount of Subordinated Debentures Interest Rate October 2020 Private Placement $ 55,000 4.75% for the first five years. Resets quarterly thereafter to the then current three-month SOFR plus 456 basis points. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Other operating income segregated by revenue streams | The following presents the Company's other operating income, segregated by revenue streams that are in-scope and out-of-scope of ASC 606, "Revenue from Contracts with Customers" for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended (dollars in thousands) 2021 2020 2021 2020 Other operating income: In-scope of ASC 606 Mortgage banking income $ 522 $ 189 $ 1,360 $ 418 Service charges on deposit accounts 1,443 1,149 2,921 3,199 Other service charges and fees 3,925 2,589 7,103 5,585 Income on fiduciary activities 1,269 1,270 2,500 2,567 Net loss on sales of foreclosed assets — (6) — (6) In-scope other operating income 7,159 5,191 13,884 11,763 Out-of-scope other operating income 3,371 5,501 7,357 7,815 Total other operating income $ 10,530 $ 10,692 $ 21,241 $ 19,578 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of activity of restricted stock awards and units | The table below presents the activity of restricted stock units for the six months ended June 30, 2021: Shares Weighted Average Grant Date Fair Value Non-vested restricted stock units, beginning of period 532,374 $ 22.49 Changes during the period: Granted 210,566 21.67 Vested (121,922) 25.40 Forfeited (9,443) 17.03 Non-vested restricted stock units, end of period 611,575 21.71 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated: Three Months Ended Six Months Ended (dollars in thousands) 2021 2020 2021 2020 Lease cost: Operating lease cost $ 1,720 $ 1,653 $ 3,291 $ 3,306 Variable lease cost 470 688 1,190 1,366 Less: sublease income — (3) — (15) Total lease cost $ 2,190 $ 2,338 $ 4,481 $ 4,657 Other information: Operating cash flows from operating leases $ (1,726) $ (1,595) $ (3,325) $ (3,189) Weighted-average remaining lease term - operating leases 11.80 years 13.23 years 11.80 years 13.23 years Weighted-average discount rate - operating leases 3.91 % 3.93 % 3.91 % 3.93 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2021, the next five succeeding fiscal years and all years thereafter: (dollars in thousands) Year Ending December 31, Undiscounted Cash Flows Lease Liability Expense Lease Liability Reduction 2021 (remainder) $ 3,208 $ 818 $ 2,390 2022 5,925 1,497 4,428 2023 5,183 1,343 3,840 2024 4,508 1,214 3,294 2025 4,195 1,088 3,107 2026 4,133 968 3,165 Thereafter 27,350 4,462 22,888 Total $ 54,502 $ 11,390 $ 43,112 |
Operating Lease, Lease Income [Table Text Block] | The following represents lease income related to these leases that was recognized for the period indicated: Three Months Ended Six Months Ended (dollars in thousands) 2021 2020 2021 2020 Total rental income recognized $ 521 $ 534 $ 1,041 $ 1,067 |
Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | Based on the Company's leases as lessor as of June 30, 2021, estimated lease payments for the remainder of fiscal year 2021, the next five succeeding fiscal years and all years thereafter are as follows: (dollars in thousands) Year Ending December 31, 2021 (remainder) $ 1,062 2022 1,756 2023 777 2024 253 2025 137 2026 73 Thereafter 117 Total $ 4,175 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of components of other comprehensive income (loss) | The following tables present the components of other comprehensive income for the three and six months ended June 30, 2021 and 2020, by component: (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2021 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 2,407 $ 643 $ 1,764 Less: Reclassification adjustments from AOCI realized in net income (50) (13) (37) Net unrealized gains on investment securities 2,357 630 1,727 Defined benefit plans: Amortization of net actuarial loss 272 87 185 Amortization of net transition obligation 4 1 3 Defined benefit plans, net 276 88 188 Other comprehensive income $ 2,633 $ 718 $ 1,915 (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2020 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 8,570 $ 2,295 $ 6,275 Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized gains on investment securities 8,570 2,295 6,275 Defined benefit plans: Amortization of net actuarial loss 269 70 199 Amortization of net transition obligation 4 1 3 Amortization of prior service cost 3 1 2 Defined benefit plans, net 276 72 204 Other comprehensive income $ 8,846 $ 2,367 $ 6,479 (dollars in thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2021 Net unrealized losses on investment securities: Net unrealized losses arising during the period $ (21,212) $ (5,675) $ (15,537) Less: Reclassification adjustments from AOCI realized in net income (50) (13) (37) Net unrealized losses on investment securities (21,262) (5,688) (15,574) Defined benefit plans: Amortization of net actuarial loss 518 153 365 Amortization of net transition obligation 9 2 7 Defined benefit plans, net 527 155 372 Other comprehensive loss $ (20,735) $ (5,533) $ (15,202) (dollars in thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2020 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 22,428 $ 6,006 $ 16,422 Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized gains on investment securities 22,428 6,006 16,422 Defined benefit plans: Net actuarial gains arising during the period 427 114 313 Amortization of net actuarial loss 537 142 395 Amortization of net transition obligation 9 2 7 Amortization of prior service cost 7 2 5 Defined benefit plans, net 980 260 720 Other comprehensive income $ 23,408 $ 6,266 $ 17,142 |
Schedule of changes in each component of AOCI, net of tax | The following tables present the changes in each component of AOCI, net of tax, for the three and six months ended June 30, 2021 and 2020: (dollars in thousands) Investment Defined AOCI Three Months Ended June 30, 2021 Balance at beginning of period $ 9,350 $ (6,339) $ 3,011 Other comprehensive income before reclassifications 1,764 — 1,764 Reclassification adjustments from AOCI (37) 188 151 Total other comprehensive income 1,727 188 1,915 Balance at end of period $ 11,077 $ (6,151) $ 4,926 (dollars in thousands) Investment Defined AOCI Three Months Ended June 30, 2020 Balance at beginning of period $ 24,972 $ (5,900) $ 19,072 Other comprehensive income before reclassifications 6,275 — 6,275 Reclassification adjustments from AOCI — 204 204 Total other comprehensive income 6,275 204 6,479 Balance at end of period $ 31,247 $ (5,696) $ 25,551 (dollars in thousands) Investment Defined AOCI Six Months Ended June 30, 2021 Balance at beginning of period $ 26,651 $ (6,523) $ 20,128 Other comprehensive income before reclassifications (15,537) — (15,537) Reclassification adjustments from AOCI (37) 372 335 Total other comprehensive income (loss) (15,574) 372 (15,202) Balance at end of period $ 11,077 $ (6,151) $ 4,926 (dollars in thousands) Investment Defined AOCI Six Months Ended June 30, 2020 Balance at beginning of period $ 14,825 $ (6,416) $ 8,409 Other comprehensive loss before reclassifications 16,422 313 16,735 Reclassification adjustments from AOCI — 407 407 Total other comprehensive income (loss) 16,422 720 17,142 Balance at end of period $ 31,247 $ (5,696) $ 25,551 |
Schedule of amounts reclassified out of each component of AOCI | The following table presents the amounts reclassified out of each component of AOCI for the three and six months ended June 30, 2021 and 2020: Amount Reclassified from AOCI Affected Line Item in the Statement Where Net Income is Presented Details about AOCI Components Three months ended June 30, (dollars in thousands) 2021 2020 Defined benefit retirement and supplemental executive retirement plan items: Amortization of net actuarial loss $ (272) $ (269) Other operating expense - other Amortization of net transition obligation (4) (4) Other operating expense - other Amortization of prior service cost — (3) Other operating expense - other Total before tax (276) (276) Tax effect 88 72 Income tax benefit (expense) Net of tax $ (188) $ (204) Total reclassification adjustments from AOCI for the period, net of tax $ (151) $ (204) Amount Reclassified from AOCI Affected Line Item in the Statement Where Net Income is Presented Details about AOCI Components Six months ended June 30, (dollars in thousands) 2021 2020 Defined benefit retirement and supplemental executive retirement plan items: Amortization of net actuarial loss $ (518) $ (537) Other operating expense - other Amortization of net transition obligation (9) (9) Other operating expense - other Amortization of prior service cost — (7) Other operating expense - other Total before tax (527) (553) Tax effect 155 146 Income tax benefit (expense) Net of tax $ (372) $ (407) Total reclassification adjustments from AOCI for the period, net of tax $ (335) $ (407) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of information used to compute basic and diluted earnings per share | The following table presents the information used to compute basic and diluted earnings per common share for the periods indicated: Three Months Ended Six Months Ended (dollars in thousands, except per share data) 2021 2020 2021 2020 Net income $ 18,714 $ 9,917 $ 36,752 $ 18,243 Weighted average common shares outstanding - basic 28,173,710 28,040,802 28,141,360 28,083,602 Dilutive effect of employee stock options and awards 282,914 54,428 266,119 106,530 Weighted average common shares outstanding - diluted 28,456,624 28,095,230 28,407,479 28,190,132 Basic earnings per common share $ 0.66 $ 0.35 $ 1.31 $ 0.65 Diluted earnings per common share $ 0.66 $ 0.35 $ 1.29 $ 0.65 |
FAIR VALUE OF FINANCIAL ASSET_2
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amount and estimated fair value of financial instruments | Fair Value Measurement Using (dollars in thousands) Carrying Estimated Quoted Prices Significant Significant June 30, 2021 Financial assets: Cash and due from banks $ 116,009 $ 116,009 $ 116,009 $ — $ — Interest-bearing deposits in other banks 224,469 224,469 224,469 — — Investment securities 1,408,918 1,408,918 1,578 1,398,430 8,910 Loans held for sale 5,361 5,361 — 5,361 — Net loans 4,999,537 4,882,130 — — 4,882,130 Accrued interest receivable 19,014 19,014 19,014 — — Financial liabilities: Deposits: Noninterest-bearing demand 2,203,806 2,203,806 2,203,806 — — Interest-bearing demand and savings and money market 3,390,225 3,390,225 3,390,225 — — Time 803,128 802,904 — — 802,904 Long-term debt 105,495 90,309 — — 90,309 Accrued interest payable (included in other liabilities) 1,142 1,142 1,142 — — Fair Value Measurement Using (dollars in thousands) Notional Carrying Estimated Quoted Prices Significant Significant June 30, 2021 Derivatives: Interest rate lock commitments $ 779 $ 14 $ 14 $ — $ 14 $ — Forward sale commitments 4,945 (14) (14) — (14) — Risk participation agreement 37,647 (22) (22) — — (22) Off-balance sheet financial instruments: Commitments to extend credit 1,308,203 — 1,620 — 1,620 — Standby letters of credit and financial guarantees written 11,456 — 172 — 172 — Fair Value Measurement Using (dollars in thousands) Carrying Estimated Quoted Prices Significant Significant December 31, 2020 Financial assets: Cash and due from banks $ 97,546 $ 97,546 $ 97,546 $ — $ — Interest-bearing deposits in other banks 6,521 6,521 6,521 — — Investment securities 1,183,960 1,183,960 1,351 1,170,283 12,326 Loans held for sale 16,687 16,687 — 16,687 — Net loans 4,880,844 4,795,776 — — 4,795,776 Accrued interest receivable 20,224 20,224 20,224 — — Financial liabilities: Deposits: Noninterest-bearing demand 1,790,269 1,790,269 1,790,269 — — Interest-bearing demand and savings and money market 3,106,931 3,106,931 3,106,931 — — Time 898,918 899,562 — — 899,562 Short-term borrowings 22,000 22,000 — 22,000 — Long-term debt 105,385 92,488 — — 92,488 Accrued interest payable (included in other liabilities) 1,727 1,727 1,727 — — |
Schedule of balances of assets and liabilities measured at fair value on a recurring basis | The following tables present the fair value of assets and liabilities measured on a recurring basis as of June 30, 2021 and December 31, 2020: Fair Value at Reporting Date Using (dollars in thousands) Fair Value Quoted Prices Significant Significant June 30, 2021 Available-for-sale securities: Debt securities: States and political subdivisions $ 196,764 $ — $ 188,794 $ 7,970 Corporate securities 46,678 — 46,678 — U.S. Treasury obligations and direct obligations of U.S Government agencies 39,734 — 39,734 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 984,678 — 984,678 — Commercial - U.S. Government agencies and sponsored entities 81,466 — 81,466 — Residential - Non-government agencies 15,446 — 14,506 940 Commercial - Non-government agencies 42,574 — 42,574 — Total available-for-sale securities 1,407,340 — 1,398,430 8,910 Equity securities 1,578 1,578 — — Derivatives: Interest rate lock, forward sale commitments and risk participation agreements (22) — — (22) Total $ 1,408,896 $ 1,578 $ 1,398,430 $ 8,888 Fair Value at Reporting Date Using (dollars in thousands) Fair Value Quoted Prices Significant Significant December 31, 2020 Available-for-sale securities: Debt securities: States and political subdivisions $ 168,766 $ — $ 157,429 $ 11,337 Corporate securities 48,008 — 48,008 — U.S. Treasury obligations and direct obligations of U.S Government agencies 33,145 — 33,145 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 778,826 — 778,826 — Commercial - U.S. Government agencies and sponsored entities 87,469 — 87,469 — Residential - Non-government agencies 23,423 — 22,434 989 Commercial - Non-government agencies 42,972 — 42,972 — Total available-for-sale securities 1,182,609 — 1,170,283 12,326 Equity securities 1,351 1,351 — — Derivatives: Interest rate lock, forward sale commitments and risk participation agreements (145) — (97) (48) Total $ 1,183,815 $ 1,351 $ 1,170,186 $ 12,278 |
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | For the six months ended June 30, 2021 and 2020, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows: Available-For-Sale Debt Securities: (dollars in thousands) States and Political Subdivisions Residential - Non-Government Agencies Total Balance at December 31, 2020 $ 11,337 $ 989 $ 12,326 Principal payments received (2,734) (11) (2,745) Unrealized net loss included in other comprehensive income (633) (38) (671) Balance at June 30, 2021 $ 7,970 $ 940 $ 8,910 Balance at December 31, 2019 $ 11,255 $ — $ 11,255 Principal payments received (212) — (212) Unrealized net gain included in other comprehensive income 628 — 628 Balance at June 30, 2020 $ 11,671 $ — $ 11,671 |
Schedule of level of valuation assumptions used to determine the fair value of assets measured on a nonrecurring basis | the level of valuation assumptions used to determine the respective fair values as of June 30, 2021 and December 31, 2020: Fair Value Measurements Using (dollars in thousands) Fair Value Quoted Prices Significant Significant June 30, 2021 Other real estate (1) $ — $ — $ — $ — December 31, 2020 Other real estate (1) $ — $ — $ — $ — (1) Represents other real estate that is carried at fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2020USD ($) | Jun. 30, 2021USD ($)segment | Jan. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | $ 0.3 | $ 0.2 | |
Proportional Amortization Investments | 28.1 | 27.3 | |
Cost Method Investments | 1.6 | $ 3.6 | |
Number of operating segments | segment | 1 | ||
Available for sale accrued interest receivable | $ 4.2 | ||
Financing receivable accrued interest receivable | $ 14.8 | ||
Financing Receivable, Accrued Interest, Allowance for Credit Loss | 0.2 | ||
Provision for Loan, Lease, and Other Losses | $ 0.2 | ||
Oahu HomeLoans, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% |
INVESTMENT SECURITIES (Availabl
INVESTMENT SECURITIES (Available for Sale and Held to Maturity Investment Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Available for Sale | ||
Amortized cost | $ 1,402,024 | $ 1,156,031 |
Gross unrealized gains | 16,552 | 28,005 |
Gross unrealized losses | (11,236) | (1,427) |
Fair value | 1,407,340 | 1,182,609 |
Available-for-sale, allowance for credit loss | 0 | 0 |
States and political subdivisions | ||
Available for Sale | ||
Amortized cost | 193,919 | 163,573 |
Gross unrealized gains | 3,833 | 5,370 |
Gross unrealized losses | (988) | (177) |
Fair value | 196,764 | 168,766 |
Available-for-sale, allowance for credit loss | 0 | 0 |
Corporate securities | ||
Available for Sale | ||
Amortized cost | 46,999 | 47,351 |
Gross unrealized gains | 194 | 788 |
Gross unrealized losses | (515) | (131) |
Fair value | 46,678 | 48,008 |
Available-for-sale, allowance for credit loss | 0 | 0 |
U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Available for Sale | ||
Amortized cost | 39,977 | 33,413 |
Gross unrealized gains | 134 | 18 |
Gross unrealized losses | (377) | (286) |
Fair value | 39,734 | 33,145 |
Available-for-sale, allowance for credit loss | 0 | 0 |
Residential - U.S. Government-sponsored entities | ||
Available for Sale | ||
Amortized cost | 984,750 | 762,309 |
Gross unrealized gains | 8,613 | 16,816 |
Gross unrealized losses | (8,685) | (299) |
Fair value | 984,678 | 778,826 |
Available-for-sale, allowance for credit loss | 0 | 0 |
Commercial - U.S. Government agencies and sponsored entities | ||
Available for Sale | ||
Amortized cost | 79,970 | 85,405 |
Gross unrealized gains | 2,094 | 2,564 |
Gross unrealized losses | (598) | (500) |
Fair value | 81,466 | 87,469 |
Available-for-sale, allowance for credit loss | 0 | 0 |
Residential - Non-government agencies | ||
Available for Sale | ||
Amortized cost | 15,091 | 22,671 |
Gross unrealized gains | 428 | 786 |
Gross unrealized losses | (73) | (34) |
Fair value | 15,446 | 23,423 |
Available-for-sale, allowance for credit loss | 0 | 0 |
Commercial - Non-government agencies | ||
Available for Sale | ||
Amortized cost | 41,318 | 41,309 |
Gross unrealized gains | 1,256 | 1,663 |
Gross unrealized losses | 0 | 0 |
Fair value | 42,574 | 42,972 |
Available-for-sale, allowance for credit loss | $ 0 | $ 0 |
INVESTMENT SECURITIES (Amortize
INVESTMENT SECURITIES (Amortized Cost and Estimated Fair Value of Investment Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
INVESTMENT SECURITIES | ||
Equity securities, at fair value | $ 1,578 | $ 1,351 |
Available for Sale, Amortized Cost | ||
Due in one year or less | 23,390 | |
Due after one year through five years | 27,513 | |
Due after five years through ten years | 90,757 | |
Due after ten years | 139,235 | |
Total | 1,402,024 | |
Available for Sale, Estimated Fair Value | ||
Due in one year or less | 23,497 | |
Due after one year through five years | 28,430 | |
Due after five years through ten years | 91,326 | |
Due after ten years | 139,923 | |
Available-for-sale debt securities, at fair value | 1,407,340 | 1,182,609 |
Equity securities | ||
INVESTMENT SECURITIES | ||
Equity securities, at amortized cost | 1,194 | 1,068 |
Equity securities, at fair value | 1,578 | 1,351 |
Residential - U.S. Government-sponsored entities | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 984,750 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 984,678 | |
Available-for-sale debt securities, at fair value | 984,678 | 778,826 |
Commercial - U.S. Government agencies and sponsored entities | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 79,970 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 81,466 | |
Available-for-sale debt securities, at fair value | 81,466 | 87,469 |
Residential - Non-government agencies | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 15,091 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 15,446 | |
Available-for-sale debt securities, at fair value | 15,446 | 23,423 |
Commercial - Non-government agencies | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 41,318 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 42,574 | |
Available-for-sale debt securities, at fair value | $ 42,574 | $ 42,972 |
INVESTMENT SECURITIES (Narrativ
INVESTMENT SECURITIES (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)securityshares | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)securityshares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)security | |
Class of Stock [Line Items] | |||||
Proceeds from sales of investment securities available-for-sale | $ 175,000 | $ 0 | $ 174,971 | $ 0 | |
Investment securities pledged as collateral | $ 518,600 | $ 518,600 | $ 483,600 | ||
Number of investment securities in an unrealized loss position | security | 100 | 100 | 37 | ||
Common Class B | Visa | |||||
Class of Stock [Line Items] | |||||
Shares owned (in shares) | shares | 34,631 | 34,631 |
INVESTMENT SECURITIES (Investme
INVESTMENT SECURITIES (Investment Securities at an Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | $ 786,586 | $ 126,530 |
Less than 12 months, Unrealized Losses | (11,063) | (1,165) |
12 months or longer, Fair Value | 13,277 | 20,925 |
12 months or longer, Unrealized Losses | (173) | (262) |
Total, Fair Value | 799,863 | 147,455 |
Total, Unrealized Losses | (11,236) | (1,427) |
States and political subdivisions | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 48,529 | 21,313 |
Less than 12 months, Unrealized Losses | (988) | (177) |
12 months or longer, Fair Value | 0 | 0 |
12 months or longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 48,529 | 21,313 |
Total, Unrealized Losses | (988) | (177) |
Corporate securities | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 31,376 | 4,869 |
Less than 12 months, Unrealized Losses | (515) | (131) |
12 months or longer, Fair Value | 0 | 0 |
12 months or longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 31,376 | 4,869 |
Total, Unrealized Losses | (515) | (131) |
U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 16,694 | 5,980 |
Less than 12 months, Unrealized Losses | (236) | (24) |
12 months or longer, Fair Value | 12,858 | 20,925 |
12 months or longer, Unrealized Losses | (141) | (262) |
Total, Fair Value | 29,552 | 26,905 |
Total, Unrealized Losses | (377) | (286) |
Residential - U.S. Government-sponsored entities | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 666,130 | 76,402 |
Less than 12 months, Unrealized Losses | (8,685) | (299) |
12 months or longer, Fair Value | 0 | 0 |
12 months or longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 666,130 | 76,402 |
Total, Unrealized Losses | (8,685) | (299) |
Residential - Non-government agencies | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 521 | 989 |
Less than 12 months, Unrealized Losses | (41) | (34) |
12 months or longer, Fair Value | 419 | 0 |
12 months or longer, Unrealized Losses | (32) | 0 |
Total, Fair Value | 940 | 989 |
Total, Unrealized Losses | (73) | (34) |
Commercial - U.S. Government-sponsored entities | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 23,336 | 16,977 |
Less than 12 months, Unrealized Losses | (598) | (500) |
12 months or longer, Fair Value | 0 | 0 |
12 months or longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 23,336 | 16,977 |
Total, Unrealized Losses | $ (598) | $ (500) |
LOANS AND CREDIT QUALITY (Loans
LOANS AND CREDIT QUALITY (Loans and Leases) (Details) $ in Thousands | Mar. 27, 2020 | Jun. 30, 2020USD ($)segmentloan | Jun. 30, 2021USD ($)loansegmentproperty | Jun. 30, 2020USD ($)segmentloan | Dec. 31, 2020USD ($) | Aug. 31, 2020USD ($)segment |
LOANS AND LEASES | ||||||
Loans and leases, gross | $ 5,092,373 | $ 4,972,004 | ||||
Net deferred fees | (15,055) | (7,891) | ||||
Total loans, net of allowance for credit losses | 5,077,318 | 4,964,113 | ||||
Financing Receivable, Allowance for Credit Loss | (77,781) | (83,269) | ||||
Loans and Leases Receivable, Net Amount | $ 4,999,537 | 4,880,844 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |||||
Number Of Loans Issued By Financial Institutions Through The SBA | segment | 4,600 | 7,200 | ||||
Loans Issued By Financial Institutions Through The SBA | $ 320,900 | $ 558,000 | ||||
Processing fees from loans issued by financial institutions through the SBA | 18,400 | $ 21,200 | ||||
Payment for loans forgiven | 416,300 | |||||
Loans | $ 5,077,318 | 4,964,113 | ||||
Transfer of Portfolio Loans Transferred to Held For Sale Category Number of Nonperforming Loans | loan | 0 | |||||
Loans And Leases Receivable, Number Of Loans Sold | loan | 0 | 0 | ||||
Mortgage loans foreclosure, number sold | property | 0 | |||||
Mortgage loans foreclosure, number | loan | 0 | 1 | 0 | |||
Mortgage Loans Foreclosure, Amount | $ 200 | |||||
Number of TDRs included in nonperforming assets | segment | 10 | 10 | ||||
Recorded Investment (as of Period End) | $ 430 | $ 430 | ||||
Amount of TDRs still accruing interest | $ 0 | $ 0 | ||||
Minimum | ||||||
LOANS AND LEASES | ||||||
Debt instrument, term | 2 years | |||||
Debt Issuance Costs, Percent | 1.00% | |||||
Maximum | ||||||
LOANS AND LEASES | ||||||
Debt instrument, term | 5 years | |||||
Debt Issuance Costs, Percent | 5.00% | |||||
Real estate: Commercial mortgage | ||||||
LOANS AND LEASES | ||||||
Number of TDRs included in nonperforming assets | segment | 1 | 1 | ||||
Recorded Investment (as of Period End) | $ 285 | $ 285 | ||||
Amount of TDRs still accruing interest | $ 0 | $ 0 | ||||
Consumer | ||||||
LOANS AND LEASES | ||||||
Number of TDRs included in nonperforming assets | segment | 9 | 9 | ||||
Recorded Investment (as of Period End) | $ 145 | $ 145 | ||||
Amount of TDRs still accruing interest | $ 0 | $ 0 | ||||
Consumer | Consumer | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 541,491 | 479,580 | ||||
Net deferred fees | (126) | (146) | ||||
Total loans, net of allowance for credit losses | 541,365 | 479,434 | ||||
Loans | 541,365 | 479,434 | ||||
Commercial Financial And Agricultural | Small Business Administration Paycheck Protection Program | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 450,471 | 425,993 | ||||
Net deferred fees | (15,861) | (9,618) | ||||
Total loans, net of allowance for credit losses | 434,610 | 416,375 | ||||
Loans | 434,610 | 416,375 | ||||
Commercial Financial And Agricultural | Other | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 486,331 | 545,136 | ||||
Net deferred fees | (106) | (45) | ||||
Total loans, net of allowance for credit losses | 486,225 | 545,091 | ||||
Loans | 486,225 | 545,091 | ||||
Real Estate | Construction | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 133,808 | 125,625 | ||||
Net deferred fees | (351) | (218) | ||||
Total loans, net of allowance for credit losses | 133,457 | 125,407 | ||||
Loans | 133,457 | 125,407 | ||||
Real Estate | Residential Mortgage | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 1,709,885 | 1,687,251 | ||||
Net deferred fees | 1,916 | 2,961 | ||||
Total loans, net of allowance for credit losses | 1,711,801 | 1,690,212 | ||||
Loans | 1,711,801 | 1,690,212 | ||||
Loans in the process of foreclosure | 1,000 | 1,600 | ||||
Real Estate | Home Equity | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 582,143 | 550,216 | ||||
Net deferred fees | 1,287 | 1,050 | ||||
Total loans, net of allowance for credit losses | 583,430 | 551,266 | ||||
Loans | 583,430 | 551,266 | ||||
Real Estate | Commercial Mortgage | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 1,188,244 | 1,158,203 | ||||
Net deferred fees | (1,814) | (1,875) | ||||
Total loans, net of allowance for credit losses | 1,186,430 | 1,156,328 | ||||
Loans | 1,186,430 | 1,156,328 | ||||
Special Mention | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 100,902 | 142,499 | ||||
Special Mention | Consumer | Consumer | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 0 | 250 | ||||
Special Mention | Commercial Financial And Agricultural | Small Business Administration Paycheck Protection Program | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 0 | 0 | ||||
Special Mention | Commercial Financial And Agricultural | Other | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 41,580 | 67,177 | ||||
Special Mention | Real Estate | Construction | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 929 | 2,843 | ||||
Special Mention | Real Estate | Residential Mortgage | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 985 | 1,736 | ||||
Special Mention | Real Estate | Home Equity | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 636 | 707 | ||||
Special Mention | Real Estate | Commercial Mortgage | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 56,772 | 69,786 | ||||
Substandard | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 42,170 | 49,730 | ||||
Substandard | Consumer | Consumer | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 431 | 284 | ||||
Substandard | Commercial Financial And Agricultural | Small Business Administration Paycheck Protection Program | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 0 | 0 | ||||
Substandard | Commercial Financial And Agricultural | Other | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 5,036 | 6,874 | ||||
Substandard | Real Estate | Construction | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 0 | 0 | ||||
Substandard | Real Estate | Residential Mortgage | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 6,781 | 4,753 | ||||
Substandard | Real Estate | Home Equity | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 434 | 524 | ||||
Substandard | Real Estate | Commercial Mortgage | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 29,488 | 37,295 | ||||
Loss | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 3 | 48 | ||||
Loss | Consumer | Consumer | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 3 | 48 | ||||
Loss | Commercial Financial And Agricultural | Small Business Administration Paycheck Protection Program | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 0 | 0 | ||||
Loss | Commercial Financial And Agricultural | Other | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 0 | 0 | ||||
Loss | Real Estate | Construction | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 0 | 0 | ||||
Loss | Real Estate | Residential Mortgage | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 0 | 0 | ||||
Loss | Real Estate | Home Equity | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 0 | 0 | ||||
Loss | Real Estate | Commercial Mortgage | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 0 | 0 | ||||
Pass | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 4,949,298 | 4,779,727 | ||||
Pass | Consumer | Consumer | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 541,057 | 478,998 | ||||
Pass | Commercial Financial And Agricultural | Small Business Administration Paycheck Protection Program | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 450,471 | 425,993 | ||||
Pass | Commercial Financial And Agricultural | Other | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 439,715 | 471,085 | ||||
Pass | Real Estate | Construction | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 132,879 | 122,782 | ||||
Pass | Real Estate | Residential Mortgage | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 1,702,119 | 1,680,762 | ||||
Pass | Real Estate | Home Equity | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 581,073 | 548,985 | ||||
Pass | Real Estate | Commercial Mortgage | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | $ 1,101,984 | $ 1,051,122 |
LOANS AND CREDIT QUALITY (Purch
LOANS AND CREDIT QUALITY (Purchases) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Outstanding balance | $ 81,863 | $ 11,359 | $ 117,387 | $ 34,312 |
Purchase (discount) premium | 431 | (503) | 966 | (1,116) |
Purchase price | 82,294 | 10,856 | 118,353 | 33,196 |
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Outstanding balance | 45,482 | 11,359 | 68,016 | 34,312 |
Purchase (discount) premium | (2,632) | (503) | (2,763) | (1,116) |
Purchase price | 42,850 | 10,856 | 65,253 | 33,196 |
U.S. Mainland Consumer - Automobile | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Outstanding balance | 36,381 | 0 | 49,371 | 0 |
Purchase (discount) premium | 3,063 | 0 | 3,729 | 0 |
Purchase price | $ 39,444 | $ 0 | $ 53,100 | $ 0 |
LOANS AND CREDIT QUALITY (Colla
LOANS AND CREDIT QUALITY (Collateral-Dependent Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | $ 11,319 | $ 11,659 |
Allocated ACL | 68 | 209 |
Secured by 1-4 Family Residential Properties | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 10,218 | 10,357 |
Secured by Nonfarm Nonresidential Properties | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 543 | 626 |
Secured by Real Estate and Business Assets | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 558 | 676 |
Commercial, financial and agricultural | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 558 | 676 |
Allocated ACL | 68 | 209 |
Commercial, financial and agricultural | Secured by 1-4 Family Residential Properties | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 0 | 0 |
Commercial, financial and agricultural | Secured by Nonfarm Nonresidential Properties | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 0 | 0 |
Commercial, financial and agricultural | Secured by Real Estate and Business Assets | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 558 | 676 |
Real Estate | Residential Mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 9,784 | 9,833 |
Allocated ACL | 0 | 0 |
Real Estate | Residential Mortgage | Secured by 1-4 Family Residential Properties | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 9,784 | 9,833 |
Real Estate | Residential Mortgage | Secured by Nonfarm Nonresidential Properties | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 0 | 0 |
Real Estate | Residential Mortgage | Secured by Real Estate and Business Assets | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 0 | 0 |
Real Estate | Home Equity | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 434 | 524 |
Allocated ACL | 0 | 0 |
Real Estate | Home Equity | Secured by 1-4 Family Residential Properties | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 434 | 524 |
Real Estate | Home Equity | Secured by Nonfarm Nonresidential Properties | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 0 | 0 |
Real Estate | Home Equity | Secured by Real Estate and Business Assets | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 0 | 0 |
Real Estate | Commercial Mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 543 | 626 |
Allocated ACL | 0 | 0 |
Real Estate | Commercial Mortgage | Secured by 1-4 Family Residential Properties | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 0 | 0 |
Real Estate | Commercial Mortgage | Secured by Nonfarm Nonresidential Properties | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | 543 | 626 |
Real Estate | Commercial Mortgage | Secured by Real Estate and Business Assets | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Collateral-Dependent Financing Receivable | $ 0 | $ 0 |
LOANS AND CREDIT QUALITY (Impai
LOANS AND CREDIT QUALITY (Impaired Loans) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020loan | Jun. 30, 2021USD ($)loanproperty | Jun. 30, 2020USD ($)loan | Dec. 31, 2020USD ($) | |
Interest income recognized on impaired loans | ||||
Mortgage loans foreclosure, number | loan | 0 | 1 | 0 | |
Mortgage loans foreclosure, number sold | property | 0 | |||
Net gain (loss) on sales of foreclosed assets | $ 6 | |||
Residential Mortgage | Real Estate | ||||
Interest income recognized on impaired loans | ||||
Loans in the process of foreclosure | $ 1,000 | $ 1,600 |
LOANS AND CREDIT QUALITY (Aging
LOANS AND CREDIT QUALITY (Aging of Recorded Investment) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | $ 6,745 | $ 6,192 |
Total Past Due and Nonaccrual | 12,149 | 15,390 |
Loans and Leases Not Past Due | 5,065,169 | 4,948,723 |
Total loans, net of allowance for credit losses | 5,077,318 | 4,964,113 |
Nonaccrual Loans With No ACL | 5,938 | 4,639 |
Accruing Loans 30 - 59 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 2,193 | 6,443 |
Accruing Loans 60 - 89 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,644 | 1,948 |
Accruing Loans Greater Than 90 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,567 | 807 |
Small Business Administration Paycheck Protection Program | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 0 | 0 |
Total Past Due and Nonaccrual | 0 | 0 |
Loans and Leases Not Past Due | 434,610 | 416,375 |
Total loans, net of allowance for credit losses | 434,610 | 416,375 |
Nonaccrual Loans With No ACL | 0 | 0 |
Small Business Administration Paycheck Protection Program | Accruing Loans 30 - 59 Days Past Due | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Small Business Administration Paycheck Protection Program | Accruing Loans 60 - 89 Days Past Due | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Small Business Administration Paycheck Protection Program | Accruing Loans Greater Than 90 Days Past Due | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Other | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 699 | 1,461 |
Total Past Due and Nonaccrual | 1,312 | 2,424 |
Loans and Leases Not Past Due | 484,913 | 542,667 |
Total loans, net of allowance for credit losses | 486,225 | 545,091 |
Nonaccrual Loans With No ACL | 220 | 0 |
Other | Accruing Loans 30 - 59 Days Past Due | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 517 | 613 |
Other | Accruing Loans 60 - 89 Days Past Due | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 67 | 350 |
Other | Accruing Loans Greater Than 90 Days Past Due | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 29 | 0 |
Construction | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 0 | 0 |
Total Past Due and Nonaccrual | 0 | 0 |
Loans and Leases Not Past Due | 133,457 | 125,407 |
Total loans, net of allowance for credit losses | 133,457 | 125,407 |
Nonaccrual Loans With No ACL | 0 | 0 |
Construction | Accruing Loans 30 - 59 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Construction | Accruing Loans 60 - 89 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Construction | Accruing Loans Greater Than 90 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Residential Mortgage | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 5,280 | 4,115 |
Total Past Due and Nonaccrual | 7,721 | 8,203 |
Loans and Leases Not Past Due | 1,704,080 | 1,682,009 |
Total loans, net of allowance for credit losses | 1,711,801 | 1,690,212 |
Nonaccrual Loans With No ACL | 5,284 | 4,115 |
Residential Mortgage | Accruing Loans 30 - 59 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 2,832 |
Residential Mortgage | Accruing Loans 60 - 89 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,003 | 689 |
Residential Mortgage | Accruing Loans Greater Than 90 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,438 | 567 |
Home Equity | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 434 | 524 |
Total Past Due and Nonaccrual | 838 | 800 |
Loans and Leases Not Past Due | 582,592 | 550,466 |
Total loans, net of allowance for credit losses | 583,430 | 551,266 |
Nonaccrual Loans With No ACL | 434 | 524 |
Home Equity | Accruing Loans 30 - 59 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 331 | 273 |
Home Equity | Accruing Loans 60 - 89 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 73 | 3 |
Home Equity | Accruing Loans Greater Than 90 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Commercial Mortgage | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 0 | 0 |
Total Past Due and Nonaccrual | 0 | 0 |
Loans and Leases Not Past Due | 1,186,430 | 1,156,328 |
Total loans, net of allowance for credit losses | 1,186,430 | 1,156,328 |
Nonaccrual Loans With No ACL | 0 | 0 |
Commercial Mortgage | Accruing Loans 30 - 59 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Commercial Mortgage | Accruing Loans 60 - 89 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Commercial Mortgage | Accruing Loans Greater Than 90 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Consumer | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 332 | 92 |
Total Past Due and Nonaccrual | 2,278 | 3,963 |
Loans and Leases Not Past Due | 539,087 | 475,471 |
Total loans, net of allowance for credit losses | 541,365 | 479,434 |
Nonaccrual Loans With No ACL | 0 | 0 |
Consumer | Accruing Loans 30 - 59 Days Past Due | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,345 | 2,725 |
Consumer | Accruing Loans 60 - 89 Days Past Due | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 501 | 906 |
Consumer | Accruing Loans Greater Than 90 Days Past Due | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | $ 100 | $ 240 |
LOANS AND CREDIT QUALITY (Modif
LOANS AND CREDIT QUALITY (Modifications) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021USD ($)loan | Mar. 31, 2021loan | Jun. 30, 2020USD ($)segmentloan | Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)segmentloan | Dec. 31, 2020USD ($) | |
Information related to loans modified in a TDR | ||||||
Number of loan modifications | loan | 0 | 600,000 | ||||
Number of TDRs included in nonperforming assets | segment | 10 | 10 | ||||
Recorded Investment (as of Period End) | $ 430 | $ 430 | ||||
Amount of TDRs still accruing interest | $ 0 | $ 0 | ||||
Debt instrument, active loan deferrals outstanding | $ 3,500 | $ 3,500 | $ 120,200 | |||
Debt instrument, deferrals not classified as TDRs | $ 2,800 | $ 2,800 | 119,300 | |||
Number of loans were modified as a TDR within the previous twelve months that subsequently defaulted | loan | 0 | 0 | 0 | 0 | ||
Accruing Loans Greater Than 90 Days Past Due | ||||||
Information related to loans modified in a TDR | ||||||
Amount of TDRs still accruing interest | $ 2,000 | $ 2,000 | 1,000 | |||
Consumer | ||||||
Information related to loans modified in a TDR | ||||||
Number of TDRs included in nonperforming assets | segment | 9 | 9 | ||||
Recorded Investment (as of Period End) | $ 145 | $ 145 | ||||
Amount of TDRs still accruing interest | $ 0 | $ 0 | ||||
Nonperforming Financial Instruments | ||||||
Information related to loans modified in a TDR | ||||||
Amount of TDRs still accruing interest | 6,300 | 6,300 | 7,800 | |||
Nonperforming Financial Instruments | Accruing Loans Greater Than 90 Days Past Due | ||||||
Information related to loans modified in a TDR | ||||||
Amount of TDRs still accruing interest | 200 | $ 200 | $ 700 | |||
Nonperforming Financial Instruments | Resi Mortgage | HAWAII | ||||||
Information related to loans modified in a TDR | ||||||
Number of TDRs included in nonperforming assets | loan | 3 | |||||
Recorded Investment (as of Period End) | $ 400 | $ 400 |
LOANS AND CREDIT QUALITY (Class
LOANS AND CREDIT QUALITY (Class and Credit Indicator) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | $ 796,186 | $ 1,353,673 |
2020 | 1,063,047 | 690,783 |
2019 | 606,094 | 504,631 |
2018 | 438,371 | 438,649 |
2017 | 376,347 | 364,528 |
Prior | 1,136,048 | 940,544 |
Amortized Cost of Revolving Loans | 661,225 | 671,305 |
Total | 5,077,318 | 4,964,113 |
Loans and leases, gross | 5,092,373 | 4,972,004 |
Net deferred fees | (15,055) | (7,891) |
Total loans, net of allowance for credit losses | 5,077,318 | 4,964,113 |
Pass | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 4,949,298 | 4,779,727 |
Special Mention | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 100,902 | 142,499 |
Substandard | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 42,170 | 49,730 |
Loss | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 3 | 48 |
Small Business Administration Paycheck Protection Program | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 274,947 | 416,375 |
2020 | 159,663 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Amortized Cost of Revolving Loans | 0 | 0 |
Total | 434,610 | 416,375 |
Loans and leases, gross | 450,471 | 425,993 |
Net deferred fees | (15,861) | (9,618) |
Total loans, net of allowance for credit losses | 434,610 | 416,375 |
Small Business Administration Paycheck Protection Program | Pass | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 274,947 | 416,375 |
2020 | 159,663 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Amortized Cost of Revolving Loans | 0 | 0 |
Total | 434,610 | 416,375 |
Loans and leases, gross | 450,471 | 425,993 |
Small Business Administration Paycheck Protection Program | Special Mention | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Small Business Administration Paycheck Protection Program | Substandard | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Small Business Administration Paycheck Protection Program | Loss | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Other | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 43,686 | 96,346 |
2020 | 72,212 | 72,619 |
2019 | 63,633 | 68,650 |
2018 | 63,704 | 74,826 |
2017 | 56,205 | 43,463 |
Prior | 121,353 | 106,302 |
Amortized Cost of Revolving Loans | 65,432 | 82,885 |
Total | 486,225 | 545,091 |
Loans and leases, gross | 486,331 | 545,136 |
Net deferred fees | (106) | (45) |
Total loans, net of allowance for credit losses | 486,225 | 545,091 |
Other | Pass | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 42,540 | 86,456 |
2020 | 65,657 | 55,660 |
2019 | 51,256 | 61,314 |
2018 | 59,386 | 47,672 |
2017 | 44,416 | 39,337 |
Prior | 110,922 | 98,136 |
Amortized Cost of Revolving Loans | 65,432 | 82,465 |
Total | 439,609 | 471,040 |
Loans and leases, gross | 439,715 | 471,085 |
Other | Special Mention | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 946 | 9,690 |
2020 | 6,466 | 16,120 |
2019 | 11,638 | 6,293 |
2018 | 3,344 | 26,109 |
2017 | 11,442 | 1,556 |
Prior | 7,744 | 6,989 |
Amortized Cost of Revolving Loans | 0 | 420 |
Total | 41,580 | 67,177 |
Loans and leases, gross | 41,580 | 67,177 |
Other | Substandard | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 200 | 200 |
2020 | 89 | 839 |
2019 | 739 | 1,043 |
2018 | 974 | 1,045 |
2017 | 347 | 2,570 |
Prior | 2,687 | 1,177 |
Amortized Cost of Revolving Loans | 0 | 0 |
Total | 5,036 | 6,874 |
Loans and leases, gross | 5,036 | 6,874 |
Other | Loss | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Construction | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 6,806 | 22,491 |
2020 | 26,915 | 29,518 |
2019 | 33,143 | 39,633 |
2018 | 35,217 | 9,365 |
2017 | 6,262 | 2,163 |
Prior | 20,765 | 19,138 |
Amortized Cost of Revolving Loans | 4,349 | 3,099 |
Total | 133,457 | 125,407 |
Loans and leases, gross | 133,808 | 125,625 |
Net deferred fees | (351) | (218) |
Total loans, net of allowance for credit losses | 133,457 | 125,407 |
Construction | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 6,806 | 22,491 |
2020 | 26,915 | 29,518 |
2019 | 33,143 | 36,790 |
2018 | 34,288 | 9,365 |
2017 | 6,262 | 2,163 |
Prior | 20,765 | 19,138 |
Amortized Cost of Revolving Loans | 4,349 | 3,099 |
Total | 132,528 | 122,564 |
Loans and leases, gross | 132,879 | 122,782 |
Construction | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 2,843 |
2018 | 929 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Amortized Cost of Revolving Loans | 0 | 0 |
Total | 929 | 2,843 |
Loans and leases, gross | 929 | 2,843 |
Construction | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Construction | Loss | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Residential Mortgage | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 300,519 | 557,476 |
2020 | 522,890 | 276,645 |
2019 | 215,763 | 128,027 |
2018 | 98,683 | 137,689 |
2017 | 115,061 | 182,305 |
Prior | 458,885 | 408,070 |
Amortized Cost of Revolving Loans | 0 | 0 |
Total | 1,711,801 | 1,690,212 |
Loans and leases, gross | 1,709,885 | 1,687,251 |
Net deferred fees | 1,916 | 2,961 |
Total loans, net of allowance for credit losses | 1,711,801 | 1,690,212 |
Residential Mortgage | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 300,519 | 556,479 |
2020 | 521,905 | 276,645 |
2019 | 215,065 | 127,490 |
2018 | 97,573 | 136,307 |
2017 | 114,308 | 180,782 |
Prior | 454,665 | 406,020 |
Amortized Cost of Revolving Loans | 0 | 0 |
Total | 1,704,035 | 1,683,723 |
Loans and leases, gross | 1,702,119 | 1,680,762 |
Residential Mortgage | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 0 | 997 |
2020 | 985 | 0 |
2019 | 0 | 0 |
2018 | 0 | 597 |
2017 | 0 | 142 |
Prior | 0 | 0 |
Amortized Cost of Revolving Loans | 0 | 0 |
Total | 985 | 1,736 |
Loans and leases, gross | 985 | 1,736 |
Residential Mortgage | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 698 | 537 |
2018 | 1,110 | 785 |
2017 | 753 | 1,381 |
Prior | 4,220 | 2,050 |
Amortized Cost of Revolving Loans | 0 | 0 |
Total | 6,781 | 4,753 |
Loans and leases, gross | 6,781 | 4,753 |
Residential Mortgage | Loss | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Home Equity | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 11,579 | 17,582 |
2020 | 15,508 | 15,851 |
2019 | 12,325 | 15,567 |
2018 | 13,048 | 679 |
2017 | 502 | 1,223 |
Prior | 28,071 | 4,916 |
Amortized Cost of Revolving Loans | 502,397 | 495,448 |
Total | 583,430 | 551,266 |
Loans and leases, gross | 582,143 | 550,216 |
Net deferred fees | 1,287 | 1,050 |
Total loans, net of allowance for credit losses | 583,430 | 551,266 |
Home Equity | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 11,579 | 17,582 |
2020 | 15,258 | 15,851 |
2019 | 12,325 | 15,567 |
2018 | 13,048 | 679 |
2017 | 502 | 1,023 |
Prior | 27,637 | 4,592 |
Amortized Cost of Revolving Loans | 502,011 | 494,741 |
Total | 582,360 | 550,035 |
Loans and leases, gross | 581,073 | 548,985 |
Home Equity | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 0 | 0 |
2020 | 250 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 0 |
Prior | 0 | 0 |
Amortized Cost of Revolving Loans | 386 | 707 |
Total | 636 | 707 |
Loans and leases, gross | 636 | 707 |
Home Equity | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
2017 | 0 | 200 |
Prior | 434 | 324 |
Amortized Cost of Revolving Loans | 0 | 0 |
Total | 434 | 524 |
Loans and leases, gross | 434 | 524 |
Home Equity | Loss | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Commercial Mortgage | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 46,626 | 130,448 |
2020 | 143,824 | 148,056 |
2019 | 158,447 | 174,166 |
2018 | 168,616 | 171,471 |
2017 | 166,833 | 117,927 |
Prior | 487,013 | 398,060 |
Amortized Cost of Revolving Loans | 15,071 | 16,200 |
Total | 1,186,430 | 1,156,328 |
Loans and leases, gross | 1,188,244 | 1,158,203 |
Net deferred fees | (1,814) | (1,875) |
Total loans, net of allowance for credit losses | 1,186,430 | 1,156,328 |
Commercial Mortgage | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 46,626 | 130,448 |
2020 | 143,824 | 144,244 |
2019 | 149,049 | 123,519 |
2018 | 136,564 | 166,618 |
2017 | 161,017 | 104,381 |
Prior | 448,019 | 363,837 |
Amortized Cost of Revolving Loans | 15,071 | 16,200 |
Total | 1,100,170 | 1,049,247 |
Loans and leases, gross | 1,101,984 | 1,051,122 |
Commercial Mortgage | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 0 | 0 |
2020 | 0 | 2,021 |
2019 | 7,627 | 31,647 |
2018 | 20,552 | 2,919 |
2017 | 4,007 | 13,546 |
Prior | 24,586 | 19,653 |
Amortized Cost of Revolving Loans | 0 | 0 |
Total | 56,772 | 69,786 |
Loans and leases, gross | 56,772 | 69,786 |
Commercial Mortgage | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 0 | 0 |
2020 | 0 | 1,791 |
2019 | 1,771 | 19,000 |
2018 | 11,500 | 1,934 |
2017 | 1,809 | 0 |
Prior | 14,408 | 14,570 |
Amortized Cost of Revolving Loans | 0 | 0 |
Total | 29,488 | 37,295 |
Loans and leases, gross | 29,488 | 37,295 |
Commercial Mortgage | Loss | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Consumer | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 112,023 | 112,955 |
2020 | 122,035 | 148,094 |
2019 | 122,783 | 78,588 |
2018 | 59,103 | 44,619 |
2017 | 31,484 | 17,447 |
Prior | 19,961 | 4,058 |
Amortized Cost of Revolving Loans | 73,976 | 73,673 |
Total | 541,365 | 479,434 |
Loans and leases, gross | 541,491 | 479,580 |
Net deferred fees | (126) | (146) |
Total loans, net of allowance for credit losses | 541,365 | 479,434 |
Consumer | Pass | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 112,023 | 112,955 |
2020 | 121,960 | 147,940 |
2019 | 122,660 | 78,486 |
2018 | 59,031 | 44,571 |
2017 | 31,465 | 17,445 |
Prior | 19,816 | 4,032 |
Amortized Cost of Revolving Loans | 73,976 | 73,423 |
Total | 540,931 | 478,852 |
Loans and leases, gross | 541,057 | 478,998 |
Consumer | Special Mention | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Amortized Cost of Revolving Loans | 250 | |
Total | 250 | |
Loans and leases, gross | 0 | 250 |
Consumer | Substandard | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 0 | 0 |
2020 | 75 | 138 |
2019 | 123 | 102 |
2018 | 72 | 22 |
2017 | 19 | 0 |
Prior | 142 | 22 |
Amortized Cost of Revolving Loans | 0 | 0 |
Total | 431 | 284 |
Loans and leases, gross | 431 | 284 |
Consumer | Loss | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2021 | 0 | 0 |
2020 | 0 | 16 |
2019 | 0 | 0 |
2018 | 0 | 26 |
2017 | 0 | 2 |
Prior | 3 | 4 |
Amortized Cost of Revolving Loans | 0 | 0 |
Total | 3 | 48 |
Loans and leases, gross | $ 3 | $ 48 |
ALLOWANCE FOR CREDIT LOSSES A_3
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Changes in the allowance | ||||
Beginning balance | $ 81,553 | $ 59,645 | $ 83,269 | $ 47,971 |
(Credit) provision for credit losses | (3,443) | 11,213 | (4,264) | 22,340 |
Subtotal | 78,590 | 70,285 | 79,332 | 71,506 |
Charge-offs | 1,924 | 3,781 | 3,631 | 6,435 |
Recoveries | 1,115 | 835 | 2,080 | 2,268 |
Net charge-offs (recoveries) | 809 | 2,946 | 1,551 | 4,167 |
Ending balance | 77,781 | 67,339 | 77,781 | 67,339 |
(Credit) provision for credit losses on loans | (2,963) | 10,640 | (3,937) | 19,969 |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Off-balance sheet, credit loss, liability, beginning balance | 3,810 | 1,272 | ||
Provision for off-balance sheet credit exposures | (200) | 573 | (100) | 2,371 |
Provision (credit) on accrued interest receivable | (200) | (300) | ||
Off-balance sheet, credit loss, liability, ending balance | 4,744 | 4,383 | 4,744 | 4,383 |
Commercial Financial And Agricultural | ||||
Changes in the allowance | ||||
Beginning balance | 489 | 0 | 304 | 0 |
Subtotal | 356 | 388 | 356 | 388 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net charge-offs (recoveries) | 0 | 0 | 0 | 0 |
Ending balance | 356 | 388 | 356 | 388 |
(Credit) provision for credit losses on loans | (133) | 388 | 52 | 388 |
Other | ||||
Changes in the allowance | ||||
Beginning balance | 15,464 | 8,645 | 18,717 | 8,136 |
Subtotal | 13,539 | 16,305 | 14,059 | 16,400 |
Charge-offs | 401 | 1,103 | 1,010 | 1,540 |
Recoveries | 276 | 305 | 365 | 647 |
Net charge-offs (recoveries) | 125 | 798 | 645 | 893 |
Ending balance | 13,414 | 15,507 | 13,414 | 15,507 |
(Credit) provision for credit losses on loans | (1,925) | 7,660 | (4,658) | 8,891 |
Construction | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 5,047 | 3,057 | 4,277 | 1,792 |
Subtotal | 4,693 | 3,274 | 4,693 | 3,143 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 131 |
Net charge-offs (recoveries) | 0 | 0 | 0 | (131) |
Ending balance | 4,693 | 3,274 | 4,693 | 3,274 |
(Credit) provision for credit losses on loans | (354) | 217 | 416 | 872 |
Residential Mortgage | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 15,357 | 13,181 | 16,484 | 13,327 |
Subtotal | 16,725 | 15,057 | 16,619 | 14,876 |
Charge-offs | 0 | 52 | 0 | 52 |
Recoveries | 186 | 20 | 292 | 201 |
Net charge-offs (recoveries) | (186) | 32 | (292) | (149) |
Ending balance | 16,911 | 15,025 | 16,911 | 15,025 |
(Credit) provision for credit losses on loans | 1,368 | 1,876 | 135 | 941 |
Home Equity | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 5,251 | 2,309 | 5,449 | 4,206 |
Subtotal | 6,309 | 3,651 | 6,300 | 3,620 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 9 | 31 |
Net charge-offs (recoveries) | 0 | 0 | (9) | (31) |
Ending balance | 6,309 | 3,651 | 6,309 | 3,651 |
(Credit) provision for credit losses on loans | 1,058 | 1,342 | 851 | 1,028 |
Commercial Mortgage | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 22,734 | 19,518 | 22,163 | 11,113 |
Subtotal | 19,469 | 16,147 | 19,461 | 16,145 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 65 | 1 | 73 | 3 |
Net charge-offs (recoveries) | (65) | (1) | (73) | (3) |
Ending balance | 19,534 | 16,148 | 19,534 | 16,148 |
(Credit) provision for credit losses on loans | (3,265) | (3,371) | (2,702) | 2,408 |
Consumer | Consumer | ||||
Changes in the allowance | ||||
Beginning balance | 17,211 | 12,935 | 15,875 | 9,397 |
Subtotal | 17,499 | 15,463 | 17,844 | 16,934 |
Charge-offs | 1,523 | 2,626 | 2,621 | 4,843 |
Recoveries | 588 | 509 | 1,341 | 1,255 |
Net charge-offs (recoveries) | 935 | 2,117 | 1,280 | 3,588 |
Ending balance | 16,564 | 13,346 | 16,564 | 13,346 |
(Credit) provision for credit losses on loans | 288 | 2,528 | 1,969 | 5,441 |
Impact of the adoption of new accounting standards | ||||
Changes in the allowance | ||||
Beginning balance | 3,566 | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Off-balance sheet, credit loss, liability, beginning balance | 0 | 740 | ||
Impact of the adoption of new accounting standards | Commercial Financial And Agricultural | ||||
Changes in the allowance | ||||
Beginning balance | 0 | |||
Impact of the adoption of new accounting standards | Other | ||||
Changes in the allowance | ||||
Beginning balance | (627) | |||
Impact of the adoption of new accounting standards | Construction | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 479 | |||
Impact of the adoption of new accounting standards | Residential Mortgage | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 608 | |||
Impact of the adoption of new accounting standards | Home Equity | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | (1,614) | |||
Impact of the adoption of new accounting standards | Commercial Mortgage | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 2,624 | |||
Impact of the adoption of new accounting standards | Consumer | Consumer | ||||
Changes in the allowance | ||||
Beginning balance | 2,096 | |||
Adjusted balance at beginning of period | ||||
Changes in the allowance | ||||
Beginning balance | 51,537 | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Off-balance sheet, credit loss, liability, beginning balance | 5,037 | $ 3,810 | 4,884 | 2,012 |
Provision for off-balance sheet credit exposures | $ (293) | $ (140) | ||
Adjusted balance at beginning of period | Commercial Financial And Agricultural | ||||
Changes in the allowance | ||||
Beginning balance | 0 | |||
Adjusted balance at beginning of period | Other | ||||
Changes in the allowance | ||||
Beginning balance | 7,509 | |||
Adjusted balance at beginning of period | Construction | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 2,271 | |||
Adjusted balance at beginning of period | Residential Mortgage | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 13,935 | |||
Adjusted balance at beginning of period | Home Equity | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 2,592 | |||
Adjusted balance at beginning of period | Commercial Mortgage | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 13,737 | |||
Adjusted balance at beginning of period | Consumer | Consumer | ||||
Changes in the allowance | ||||
Beginning balance | $ 11,493 |
INVESTMENTS IN UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Other Commitments [Line Items] | |||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Investments in Low Income Housing Tax Credit Partnerships | $ 27,276 | $ 27,276 | $ 28,090 | ||
Investments in common securities of statutory trusts | 1,547 | 1,547 | 1,547 | ||
Investments in affiliates | 176 | 176 | 277 | ||
Other | 2,053 | 2,053 | 54 | ||
Investment in unconsolidated subsidiaries | 31,052 | 31,052 | 29,968 | ||
Amortization expense in pretax income | 407 | $ 348 | 814 | $ 696 | |
Income tax credits and adjustments | 474 | $ 400 | 948 | $ 800 | |
Unfunded commitments, LIHTC | 14,400 | 14,400 | 17,200 | ||
2021 (remainder) | 10,219 | 10,219 | |||
2021 | 5,980 | 5,980 | |||
2022 | 10 | 10 | |||
2023 | 26 | 26 | |||
2024 | 6 | 6 | |||
2025 | 6 | 6 | |||
Thereafter | 37 | 37 | |||
Total unfunded commitments | 16,284 | 16,284 | |||
LIHTC partnerships | |||||
Other Commitments [Line Items] | |||||
2021 (remainder) | 8,299 | 8,299 | |||
2021 | 5,980 | 5,980 | |||
2022 | 10 | 10 | |||
2023 | 26 | 26 | |||
2024 | 6 | 6 | |||
2025 | 6 | 6 | |||
Thereafter | 37 | 37 | |||
Total unfunded commitments | 14,364 | 14,364 | |||
Other partnerships | |||||
Other Commitments [Line Items] | |||||
2021 (remainder) | 1,920 | 1,920 | |||
2021 | 0 | 0 | |||
2022 | 0 | 0 | |||
2023 | 0 | 0 | |||
2024 | 0 | 0 | |||
2025 | 0 | 0 | |||
Thereafter | 0 | 0 | |||
Total unfunded commitments | $ 1,920 | $ 1,920 | $ 0 |
MORTGAGE SERVICING RIGHTS (Deta
MORTGAGE SERVICING RIGHTS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
OTHER INTANGIBLE ASSETS | |||||
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans | $ 3,654 | $ 5,273 | |||
Mortgage Servicing Rights | |||||
OTHER INTANGIBLE ASSETS | |||||
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans | $ 300 | $ 1,100 | 700 | 1,300 | |
Changes in other intangible assets | |||||
Balance, beginning of period | 11,865 | 14,718 | |||
Additions | 717 | 1,270 | |||
Amortization | (900) | (1,700) | (2,082) | (3,217) | |
Balance, end of period | 10,500 | 12,771 | 10,500 | 12,771 | |
Fair market value and key assumptions used in determining the fair market value | |||||
Fair market value, beginning of period | 12,003 | 15,820 | |||
Fair market value, end of period | 10,755 | 13,060 | 10,755 | 13,060 | |
Gross carrying value, accumulated amortization and net carrying value related to intangible assets | |||||
Gross Carrying Value | 71,626 | 71,626 | $ 70,909 | ||
Accumulated Amortization | (61,126) | (61,126) | (59,044) | ||
Other intangible assets | 10,500 | 12,771 | 10,500 | 12,771 | 11,865 |
Estimated Amortization Expense | |||||
2021 (remainder) | 1,432 | 1,432 | |||
2021 | 2,446 | 2,446 | |||
2022 | 1,974 | 1,974 | |||
2023 | 1,596 | 1,596 | |||
2024 | 1,316 | 1,316 | |||
2025 | 1,092 | 1,092 | |||
Thereafter | 644 | 644 | |||
Other intangible assets | $ 10,500 | $ 12,771 | $ 10,500 | $ 12,771 | $ 11,865 |
Measurement Input, Discount Rate | Mortgage Servicing Rights | |||||
Fair market value and key assumptions used in determining the fair market value | |||||
Weighted average prepayment speed assumption | 0.096 | 0.096 | 0.096 | 0.096 | |
Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights | |||||
Fair market value and key assumptions used in determining the fair market value | |||||
Weighted average prepayment speed assumption | 0.180 | 0.217 | 0.180 | 0.217 |
DERIVATIVES (Details)
DERIVATIVES (Details) - Derivatives Not Designated as Hedging Instruments $ in Millions | Jun. 30, 2021USD ($) |
Interest rate lock commitments | |
DERIVATIVES | |
Mortgage loans hedged | $ 0.8 |
Forward sale commitments | |
DERIVATIVES | |
Mortgage loans hedged | $ 4.9 |
DERIVATIVES (Balance Sheet) (De
DERIVATIVES (Balance Sheet) (Details) - Derivatives Not Designated as Hedging Instruments - Interest rate lock, forward sale commitments and risk participation agreements - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Asset Derivatives | ||
Fair Value | $ 14 | $ 18 |
Liability Derivatives | ||
Fair Value | $ 36 | $ 163 |
DERIVATIVES (Income Statement)
DERIVATIVES (Income Statement) (Details) - Derivatives Not Designated as Hedging Instruments - Derivatives Not in Cash Flow Hedging Relationship - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Mortgage banking income | Interest rate lock, forward sale commitments and risk participation agreements | ||||
DERIVATIVES | ||||
Unrealized gain (loss) on interest rate locks | $ (84) | $ (149) | $ 96 | $ (50) |
Other service charges and fees | Risk participation agreements | ||||
DERIVATIVES | ||||
Unrealized gain (loss) on interest rate locks | $ (4) | $ 0 | $ 27 | $ 1,288 |
SHORT-TERM BORROWINGS AND LON_3
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Narrative (Details) | 1 Months Ended | 6 Months Ended | |||||
Dec. 31, 2004USD ($) | Sep. 30, 2004USD ($) | Oct. 31, 2003trust | Jun. 30, 2021USD ($)period | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||||||
Short-term borrowings | $ 0 | $ 22,000,000 | |||||
Long term borrowings | 105,495,000 | 105,385,000 | |||||
Number of wholly owned statutory trusts created | trust | 2 | ||||||
Federal Home Loan Bank Borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit, maximum borrowing capacity | 1,810,000,000 | 1,810,000,000 | |||||
Unused borrowings available | 1,580,000,000 | 1,520,000,000 | |||||
Short-term borrowings | 22,000,000 | ||||||
Letters of Credit, outstanding | 230,800,000 | 268,000,000 | |||||
Commercial real estate and commercial loans pledged as collateral | 2,670,000,000 | ||||||
Federal Reserve discount window line of credit | |||||||
Debt Instrument [Line Items] | |||||||
Unused borrowings available | 64,400,000 | 64,500,000 | |||||
Commercial real estate and commercial loans pledged as collateral | $ 130,600,000 | $ 136,900,000 | |||||
C P B Capital Trust I I [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Trust preferred securities, redemption amount | $ 20,000,000 | ||||||
C P B Capital Trust I I I [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Trust preferred securities, redemption amount | $ 20,000,000 | ||||||
C P B Capital Trust I V [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Trust preferred securities issued value | $ 30,000,000 | ||||||
Trust preferred securities, variable rate basis | three-month LIBOR | ||||||
Trust preferred securities, basis spread on variable rate | 2.45% | ||||||
Common securities issued | $ 900,000 | ||||||
C P B Capital Trust V [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Trust preferred securities issued value | $ 20,000,000 | ||||||
Trust preferred securities, variable rate basis | three-month LIBOR | ||||||
Trust preferred securities, basis spread on variable rate | 1.87% | ||||||
Common securities issued | $ 600,000 | ||||||
Subordinated Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of periods interest can be deferred | period | 20 | ||||||
Subordinated Debt [Member] | C P B Capital Trust I V [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long term borrowings | $ 30,900,000 | ||||||
Subordinated Debt [Member] | C P B Capital Trust V [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long term borrowings | $ 20,600,000 | ||||||
Maximum | Subordinated Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Redemption period | 90 days |
SHORT-TERM BORROWINGS AND LON_4
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Subordinated Debentures (Details) - Junior Subordinated Debt - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Subordinated Debentures | $ 51,547 | $ 51,547 |
Trust IV | ||
Debt Instrument [Line Items] | ||
Subordinated Debentures | 30,928 | 30,928 |
Trust V | ||
Debt Instrument [Line Items] | ||
Subordinated Debentures | $ 20,619 | $ 20,619 |
SHORT-TERM BORROWINGS AND LON_5
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Subordinated Notes (Details) - USD ($) | Oct. 20, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 105,495,000 | $ 105,385,000 | |
Subordinated notes | Notes | |||
Debt Instrument [Line Items] | |||
Subordinated notes | $ 55,000,000 | $ 55,000,000 | |
Stated interest rate, first five years | 4.75% | 0.0475% | |
Debt face amount | $ 55,000,000 | ||
Debt instrument, term | 10 years | ||
Long-term debt | $ 53,900,000 | ||
Unamortized debt issuance costs | $ 1,100,000 | ||
Subordinated notes | Notes | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 4.56% |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | $ 7,159 | $ 5,191 | $ 13,884 | $ 11,763 |
Out-of-scope other operating income | 3,371 | 5,501 | 7,357 | 7,815 |
Total other operating income | 10,530 | 10,692 | 21,241 | 19,578 |
Loan placement fees | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 522 | 189 | 1,360 | 418 |
Service charges on deposit accounts | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 1,443 | 1,149 | 2,921 | 3,199 |
Other service charges and fees | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 3,925 | 2,589 | 7,103 | 5,585 |
Income from fiduciary activities | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 1,269 | 1,270 | 2,500 | 2,567 |
Net loss on sales of foreclosed assets | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | $ 0 | $ (6) | $ 0 | $ (6) |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - Restricted Stock Awards and Units | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Activity of nonvested shares | |
Nonvested restricted stock awards and units, beginning of period (in shares) | shares | 532,374 |
Changes during the period: | |
Granted (in shares) | shares | 210,566 |
Vested (in shares) | shares | (121,922) |
Forfeited (in shares) | shares | (9,443) |
Nonvested restricted stock awards and units, end of period (in shares) | shares | 611,575 |
Weighted Average Grant Date Fair Value | |
Nonvested restricted stock awards and units, beginning of period (in dollars per share) | $ / shares | $ 22.49 |
Changes during the period: | |
Granted (in dollars per share) | $ / shares | 21.67 |
Vested (in dollars per share) | $ / shares | 25.40 |
Forfeited (in dollars per share) | $ / shares | 17.03 |
Nonvested restricted stock awards and units, end of period (in dollars per share) | $ / shares | $ 21.71 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Operating Lease, Cost | $ 1,720 | $ 1,653 | $ 3,291 | $ 3,306 |
Variable Lease, Cost | 470 | 688 | 1,190 | 1,366 |
Sublease Income | 0 | (3) | 0 | (15) |
Lease, Cost | 2,190 | 2,338 | 4,481 | 4,657 |
Cash flows from operating leases | $ (1,726) | $ (1,595) | $ (3,325) | $ (3,189) |
Operating Lease, Weighted Average Remaining Lease Term | 11 years 9 months 18 days | 13 years 2 months 23 days | 11 years 9 months 18 days | 13 years 2 months 23 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.91% | 3.93% | 3.91% | 3.93% |
LEASES - Lessee, Operating Leas
LEASES - Lessee, Operating Lease Maturities (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Undiscounted Cash Flows | |
2021 (remainder) | $ 3,208 |
2021 | 5,925 |
2022 | 5,183 |
2023 | 4,508 |
2024 | 4,195 |
2025 | 4,133 |
Thereafter | 27,350 |
Total | 54,502 |
Lease Liability Expense | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Remainder Of The Year | 818 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Two | 1,497 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Three | 1,343 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Four | 1,214 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Five | 1,088 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Six | 968 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due After Year Six | 4,462 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 11,390 |
Lease Liability Reduction | |
Lessee, Operating Lease, Lease Liability Reduction, Due Remainder Of The Year | 2,390 |
Lessee, Operating Lease, Lease Liability Reduction, Year Two | 4,428 |
Lessee, Operating Lease, Lease Liability Reduction, Year Three | 3,840 |
Lessee, Operating Lease, Lease Liability Reduction, Year Four | 3,294 |
Lessee, Operating Lease, Lease Liability Reduction, Year Five | 3,107 |
Lessee, Operating Lease, Lease Liability Reduction, Year Six | 3,165 |
Lessee, Operating Lease, Lease Liability Reduction, After Year Six | 22,888 |
Lessee, Operating Lease, Lease Liability Reduction | $ 43,112 |
LEASES - Rental Income (Details
LEASES - Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Total rental income recognized | $ 521 | $ 534 | $ 1,041 | $ 1,067 |
LEASES - Lessor, Operating Leas
LEASES - Lessor, Operating Lease Maturities (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
2021 (remainder) | $ 1,062 |
2021 | 1,756 |
2022 | 777 |
2023 | 253 |
2024 | 137 |
2025 | 73 |
Thereafter | 117 |
Total | $ 4,175 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Before Tax | ||||||
Other comprehensive income (loss), before tax | $ 2,633 | $ 8,846 | $ (20,735) | $ 23,408 | ||
Tax Effect | ||||||
Other comprehensive income, tax | 718 | 2,367 | (5,533) | 6,266 | ||
Net of Tax | ||||||
Total other comprehensive income (loss), net of tax | 1,915 | $ (17,117) | 6,479 | $ 10,663 | (15,202) | 17,142 |
Net unrealized gains on investment securities | ||||||
Before Tax | ||||||
Other comprehensive income (loss) before reclassification, before tax | 2,407 | 8,570 | (21,212) | 22,428 | ||
Reclassification from AOCI, before tax | (50) | 0 | (50) | 0 | ||
Other comprehensive income (loss), before tax | 2,357 | 8,570 | (21,262) | 22,428 | ||
Tax Effect | ||||||
Other comprehensive income (loss) before reclassifications, tax | 643 | 2,295 | (5,675) | 6,006 | ||
Reclassification from AOCI, tax | (13) | 0 | (13) | 0 | ||
Other comprehensive income, tax | 630 | 2,295 | (5,688) | 6,006 | ||
Net of Tax | ||||||
Other comprehensive income (loss), before reclassifications, net of tax | 1,764 | 6,275 | (15,537) | 16,422 | ||
Reclassification from AOCI, net of tax | (37) | 0 | (37) | 0 | ||
Total other comprehensive income (loss), net of tax | 1,727 | 6,275 | (15,574) | 16,422 | ||
Net actuarial losses arising during the period | ||||||
Before Tax | ||||||
Reclassification from AOCI, before tax | (427) | |||||
Tax Effect | ||||||
Reclassification from AOCI, tax | (114) | |||||
Net of Tax | ||||||
Reclassification from AOCI, net of tax | (313) | |||||
Amortization of net actuarial loss | ||||||
Before Tax | ||||||
Reclassification from AOCI, before tax | 272 | 269 | 518 | 537 | ||
Tax Effect | ||||||
Reclassification from AOCI, tax | 87 | 70 | 153 | 142 | ||
Net of Tax | ||||||
Reclassification from AOCI, net of tax | 185 | 199 | 365 | 395 | ||
Amortization of net transition obligation | ||||||
Before Tax | ||||||
Reclassification from AOCI, before tax | 4 | 4 | 9 | 9 | ||
Tax Effect | ||||||
Reclassification from AOCI, tax | 1 | 1 | 2 | 2 | ||
Net of Tax | ||||||
Reclassification from AOCI, net of tax | 3 | 3 | 7 | 7 | ||
Amortization of prior service cost | ||||||
Before Tax | ||||||
Reclassification from AOCI, before tax | 3 | 7 | ||||
Tax Effect | ||||||
Reclassification from AOCI, tax | 1 | 2 | ||||
Net of Tax | ||||||
Reclassification from AOCI, net of tax | 2 | 5 | ||||
Defined benefit plans, net | ||||||
Before Tax | ||||||
Other comprehensive income (loss), before tax | (276) | (276) | (527) | (980) | ||
Tax Effect | ||||||
Other comprehensive income, tax | (88) | (72) | (155) | (260) | ||
Net of Tax | ||||||
Other comprehensive income (loss), before reclassifications, net of tax | 0 | 0 | 0 | 313 | ||
Reclassification from AOCI, net of tax | 188 | 204 | 372 | 407 | ||
Total other comprehensive income (loss), net of tax | $ 188 | $ 204 | $ 372 | $ 720 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Components of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Changes in each component of AOCI, net of tax | ||||||
Balance at beginning of period | $ 546,685 | $ 546,685 | ||||
Total other comprehensive income (loss), net of tax | $ 1,915 | (17,117) | $ 6,479 | $ 10,663 | (15,202) | $ 17,142 |
Balance at end of period | 552,793 | 552,793 | ||||
Investment Securities | ||||||
Changes in each component of AOCI, net of tax | ||||||
Balance at beginning of period | 9,350 | 26,651 | 24,972 | 14,825 | 26,651 | 14,825 |
Other comprehensive income before reclassifications | 1,764 | 6,275 | (15,537) | 16,422 | ||
Reclassification adjustments from AOCI | (37) | 0 | (37) | 0 | ||
Total other comprehensive income (loss), net of tax | 1,727 | 6,275 | (15,574) | 16,422 | ||
Balance at end of period | 11,077 | 9,350 | 31,247 | 24,972 | 11,077 | 31,247 |
Defined Benefit Plans | ||||||
Changes in each component of AOCI, net of tax | ||||||
Balance at beginning of period | (6,339) | (6,523) | (5,900) | (6,416) | (6,523) | (6,416) |
Other comprehensive income before reclassifications | 0 | 0 | 0 | 313 | ||
Reclassification adjustments from AOCI | 188 | 204 | 372 | 407 | ||
Total other comprehensive income (loss), net of tax | 188 | 204 | 372 | 720 | ||
Balance at end of period | (6,151) | (6,339) | (5,696) | (5,900) | (6,151) | (5,696) |
Accum. Other Comp. Income (Loss) | ||||||
Changes in each component of AOCI, net of tax | ||||||
Balance at beginning of period | 3,011 | 20,128 | 19,072 | 8,409 | 20,128 | 8,409 |
Other comprehensive income before reclassifications | 1,764 | 6,275 | (15,537) | 16,735 | ||
Reclassification adjustments from AOCI | 151 | 204 | 335 | 407 | ||
Total other comprehensive income (loss), net of tax | 1,915 | (17,117) | 6,479 | 10,663 | (15,202) | 17,142 |
Balance at end of period | $ 4,926 | $ 3,011 | $ 25,551 | $ 19,072 | $ 4,926 | $ 25,551 |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassified out of AOCI) (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Total reclassification adjustments from AOCI for the period, net of tax | $ 18,714 | $ 18,038 | $ 9,917 | $ 8,326 | $ 36,752 | $ 18,243 |
Amount Reclassified from AOCI | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Total reclassification adjustments from AOCI for the period, net of tax | (151) | (204) | (335) | (407) | ||
Investment Securities | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Reclassification from AOCI, net of tax | 37 | 0 | 37 | 0 | ||
Defined Benefit Plans | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Reclassification from AOCI, net of tax | (188) | (204) | (372) | (407) | ||
Defined Benefit Plans | Amount Reclassified from AOCI | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Amortization of defined benefit plan items, before tax | (276) | (276) | (527) | (553) | ||
Amortization of defined benefit plan items, tax | 88 | 72 | 155 | 146 | ||
Reclassification from AOCI, net of tax | (188) | (204) | (372) | (407) | ||
Amortization of net actuarial loss | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Amortization of defined benefit plan items, before tax | (272) | (269) | (518) | (537) | ||
Amortization of defined benefit plan items, tax | 87 | 70 | 153 | 142 | ||
Reclassification from AOCI, net of tax | (185) | (199) | (365) | (395) | ||
Amortization of net actuarial loss | Amount Reclassified from AOCI | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Amortization of defined benefit plan items, before tax | (272) | (269) | (518) | (537) | ||
Amortization of net transition obligation | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Amortization of defined benefit plan items, before tax | (4) | (4) | (9) | (9) | ||
Amortization of defined benefit plan items, tax | 1 | 1 | 2 | 2 | ||
Reclassification from AOCI, net of tax | (3) | (3) | (7) | (7) | ||
Amortization of net transition obligation | Amount Reclassified from AOCI | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Amortization of defined benefit plan items, before tax | (4) | (4) | (9) | (9) | ||
Amortization of prior service cost | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Amortization of defined benefit plan items, before tax | (3) | (7) | ||||
Amortization of defined benefit plan items, tax | 1 | 2 | ||||
Reclassification from AOCI, net of tax | (2) | (5) | ||||
Amortization of prior service cost | Amount Reclassified from AOCI | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Amortization of defined benefit plan items, before tax | $ 0 | $ (3) | $ 0 | $ (7) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
SHARE-BASED COMPENSATION | ||||||
Net income | $ 18,714 | $ 18,038 | $ 9,917 | $ 8,326 | $ 36,752 | $ 18,243 |
Weighted average shares outstanding - basic | 28,173,710 | 28,040,802 | 28,141,360 | 28,083,602 | ||
Weighted average shares outstanding - diluted | 28,456,624 | 28,095,230 | 28,407,479 | 28,190,132 | ||
Basic earnings per common share (in dollars per share) | $ 0.66 | $ 0.35 | $ 1.31 | $ 0.65 | ||
Diluted earnings per common share (in dollars per share) | $ 0.66 | $ 0.35 | $ 1.29 | $ 0.65 | ||
Stock Option | ||||||
SHARE-BASED COMPENSATION | ||||||
Dilutive effect of share-based compensation arrangements | 282,914 | 54,428 | 266,119 | 106,530 |
FAIR VALUE OF FINANCIAL ASSET_3
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |||
Loans, weighted average discount rate, percent | 4.53% | 4.53% | |
Time deposits, weighted average discount rate, percent | 0.31% | 0.31% | |
Long-term debt, weighted average interest rate | 5.82% | 5.82% | |
Financial assets | |||
Cash and due from banks | $ 116,009,000 | $ 116,009,000 | $ 97,546,000 |
Interest-bearing deposits in other banks | 224,469,000 | 224,469,000 | 6,521,000 |
Loans held for sale | 5,361,000 | 5,361,000 | 16,687,000 |
Accrued interest receivable | 19,014,000 | 19,014,000 | 20,224,000 |
Deposits: | |||
Noninterest-bearing deposits | 2,203,806,000 | 2,203,806,000 | 1,790,269,000 |
Time deposits | 803,128,000 | 803,128,000 | 898,918,000 |
Transfers of financial assets (liability) out of Level 3 | 0 | 0 | |
Interest rate lock commitments | |||
Deposits: | |||
Derivatives, Notional Amount | 779,000 | 779,000 | 714,000 |
Forward sale commitments | |||
Deposits: | |||
Derivatives, Notional Amount | 4,945,000 | 4,945,000 | 16,603,000 |
Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments, Notional Amount | 1,308,203,000 | 1,308,203,000 | 1,176,065,000 |
Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments, Notional Amount | 11,456,000 | 11,456,000 | 10,544,000 |
Risk participation agreements | |||
Deposits: | |||
Derivatives, Notional Amount | 37,647,000 | 37,647,000 | 37,762,000 |
Carrying Amount | |||
Financial assets | |||
Cash and due from banks | 116,009,000 | 116,009,000 | 97,546,000 |
Interest-bearing deposits in other banks | 224,469,000 | 224,469,000 | 6,521,000 |
Investment securities | 1,408,918,000 | 1,408,918,000 | 1,183,960,000 |
Loans held for sale | 5,361,000 | 5,361,000 | 16,687,000 |
Net loans and leases | 4,999,537,000 | 4,999,537,000 | 4,880,844,000 |
Accrued interest receivable | 19,014,000 | 19,014,000 | 20,224,000 |
Deposits: | |||
Noninterest-bearing deposits | 2,203,806,000 | 2,203,806,000 | 1,790,269,000 |
Interest-bearing demand and savings deposits | 3,390,225,000 | 3,390,225,000 | 3,106,931,000 |
Time deposits | 803,128,000 | 803,128,000 | 898,918,000 |
Short-term debt | 22,000,000 | ||
Long-term debt | 105,495,000 | 105,495,000 | 105,385,000 |
Interest Payable | 1,142,000 | 1,142,000 | 1,727,000 |
Carrying Amount | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 14,000 | 14,000 | 18,000 |
Carrying Amount | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 0 | 0 | 0 |
Carrying Amount | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 0 | 0 | 0 |
Carrying Amount | Risk participation agreements | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (22,000) | (22,000) | (48,000) |
Estimated Fair Value | |||
Financial assets | |||
Cash and due from banks | 116,009,000 | 116,009,000 | 97,546,000 |
Interest-bearing deposits in other banks | 224,469,000 | 224,469,000 | 6,521,000 |
Investment securities | 1,408,918,000 | 1,408,918,000 | 1,183,960,000 |
Loans held for sale | 5,361,000 | 5,361,000 | 16,687,000 |
Net loans and leases | 4,882,130,000 | 4,882,130,000 | 4,795,776,000 |
Accrued interest receivable | 19,014,000 | 19,014,000 | 20,224,000 |
Deposits: | |||
Noninterest-bearing deposits | 2,203,806,000 | 2,203,806,000 | 1,790,269,000 |
Interest-bearing demand and savings deposits | 3,390,225,000 | 3,390,225,000 | 3,106,931,000 |
Time deposits | 802,904,000 | 802,904,000 | 899,562,000 |
Short-term debt | 22,000,000 | ||
Long-term debt | 90,309,000 | 90,309,000 | 92,488,000 |
Interest Payable | 1,142,000 | 1,142,000 | 1,727,000 |
Estimated Fair Value | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 14,000 | 14,000 | 18,000 |
Estimated Fair Value | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 1,620,000 | 1,620,000 | 1,313,000 |
Estimated Fair Value | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 172,000 | 172,000 | 158,000 |
Estimated Fair Value | Risk participation agreements | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (22,000) | (22,000) | (48,000) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Financial assets | |||
Cash and due from banks | 116,009,000 | 116,009,000 | 97,546,000 |
Interest-bearing deposits in other banks | 224,469,000 | 224,469,000 | 6,521,000 |
Investment securities | 1,578,000 | 1,578,000 | 1,351,000 |
Loans held for sale | 0 | 0 | 0 |
Net loans and leases | 0 | 0 | 0 |
Accrued interest receivable | 19,014,000 | 19,014,000 | 20,224,000 |
Deposits: | |||
Noninterest-bearing deposits | 2,203,806,000 | 2,203,806,000 | 1,790,269,000 |
Interest-bearing demand and savings deposits | 3,390,225,000 | 3,390,225,000 | 3,106,931,000 |
Time deposits | 0 | 0 | 0 |
Short-term debt | 0 | ||
Long-term debt | 0 | 0 | 0 |
Interest Payable | 1,142,000 | 1,142,000 | 1,727,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Risk participation agreements | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) | |||
Financial assets | |||
Cash and due from banks | 0 | 0 | 0 |
Interest-bearing deposits in other banks | 0 | 0 | 0 |
Investment securities | 1,398,430,000 | 1,398,430,000 | 1,170,283,000 |
Loans held for sale | 5,361,000 | 5,361,000 | 16,687,000 |
Net loans and leases | 0 | 0 | 0 |
Accrued interest receivable | 0 | 0 | 0 |
Deposits: | |||
Noninterest-bearing deposits | 0 | 0 | 0 |
Interest-bearing demand and savings deposits | 0 | 0 | 0 |
Time deposits | 0 | 0 | 0 |
Short-term debt | 22,000,000 | ||
Long-term debt | 0 | 0 | 0 |
Interest Payable | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 14,000 | 14,000 | 18,000 |
Significant Other Observable Inputs (Level 2) | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 1,620,000 | 1,620,000 | 1,313,000 |
Significant Other Observable Inputs (Level 2) | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 172,000 | 172,000 | 158,000 |
Significant Other Observable Inputs (Level 2) | Risk participation agreements | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | |||
Financial assets | |||
Cash and due from banks | 0 | 0 | 0 |
Interest-bearing deposits in other banks | 0 | 0 | 0 |
Investment securities | 8,910,000 | 8,910,000 | 12,326,000 |
Loans held for sale | 0 | 0 | 0 |
Net loans and leases | 4,882,130,000 | 4,882,130,000 | 4,795,776,000 |
Accrued interest receivable | 0 | 0 | 0 |
Deposits: | |||
Noninterest-bearing deposits | 0 | 0 | 0 |
Interest-bearing demand and savings deposits | 0 | 0 | 0 |
Time deposits | 802,904,000 | 802,904,000 | 899,562,000 |
Short-term debt | 0 | ||
Long-term debt | 90,309,000 | 90,309,000 | 92,488,000 |
Interest Payable | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Risk participation agreements | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (22,000) | (22,000) | (48,000) |
Recurring basis | Carrying Amount | Forward sale commitments | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (14,000) | (14,000) | (115,000) |
Recurring basis | Estimated Fair Value | Forward sale commitments | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (14,000) | (14,000) | (115,000) |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward sale commitments | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | 0 | 0 | 0 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Forward sale commitments | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (14,000) | (14,000) | (115,000) |
Recurring basis | Significant Unobservable Inputs (Level 3) | Forward sale commitments | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | $ 0 | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL ASSET_4
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | $ 1,407,340 | $ 1,182,609 |
Equity securities, at fair value | 1,578 | 1,351 |
States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 196,764 | 168,766 |
Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 46,678 | 48,008 |
U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 39,734 | 33,145 |
Residential - U.S. Government-sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 984,678 | 778,826 |
Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 81,466 | 87,469 |
Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 15,446 | 23,423 |
Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 42,574 | 42,972 |
Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 1,578 | 1,351 |
Recurring basis | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 1,407,340 | 1,182,609 |
Total | 1,408,896 | 1,183,815 |
Recurring basis | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | (22) | (145) |
Recurring basis | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 196,764 | 168,766 |
Recurring basis | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 46,678 | 48,008 |
Recurring basis | U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 39,734 | 33,145 |
Recurring basis | Residential - U.S. Government-sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 984,678 | 778,826 |
Recurring basis | Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 81,466 | 87,469 |
Recurring basis | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 15,446 | 23,423 |
Recurring basis | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 42,574 | 42,972 |
Recurring basis | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 1,578 | 1,351 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Total | 1,578 | 1,351 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential - U.S. Government-sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 1,578 | 1,351 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 1,398,430 | 1,170,283 |
Total | 1,398,430 | 1,170,186 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | 0 | (97) |
Recurring basis | Significant Other Observable Inputs (Level 2) | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 188,794 | 157,429 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 46,678 | 48,008 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 39,734 | 33,145 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential - U.S. Government-sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 984,678 | 778,826 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 81,466 | 87,469 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 14,506 | 22,434 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 42,574 | 42,972 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 8,910 | 12,326 |
Total | 8,888 | 12,278 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | (22) | (48) |
Recurring basis | Significant Unobservable Inputs (Level 3) | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 7,970 | 11,337 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Residential - U.S. Government-sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 940 | 989 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL ASSET_5
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Change in Level 3 Assets and Liabilities) (Details 3) - Mortgage revenue bonds $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021USD ($)security | Jun. 30, 2020USD ($) | Dec. 31, 2020 | |
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||
Aggregate fair value / Balance at the beginning of the period | $ 12,326 | $ 11,255 | |
Principal payments received | (2,745) | (212) | |
Unrealized net loss included in other comprehensive income | (671) | 628 | |
Aggregate fair value / Balance at the end of the period | 8,910 | 11,671 | |
States and political subdivisions | |||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||
Aggregate fair value / Balance at the beginning of the period | 11,337 | 11,255 | |
Principal payments received | (2,734) | (212) | |
Unrealized net loss included in other comprehensive income | (633) | 628 | |
Aggregate fair value / Balance at the end of the period | $ 7,970 | 11,671 | |
Additional disclosures | |||
Number of investment securities held | security | 2 | ||
Residential - Non-government agencies | |||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||
Aggregate fair value / Balance at the beginning of the period | $ 989 | 0 | |
Principal payments received | (11) | 0 | |
Unrealized net loss included in other comprehensive income | (38) | 0 | |
Aggregate fair value / Balance at the end of the period | $ 940 | $ 0 | |
Additional disclosures | |||
Number of investment securities held | security | 2 | ||
Measurement Input, Discount Rate | Weighted average | |||
Additional disclosures | |||
Weighted average prepayment speed assumption | 0.0319 | 0.0282 | 0.0283 |
FAIR VALUE OF FINANCIAL ASSET_6
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets measured at fair value on a nonrecurring basis | ||
Other real estate owned | $ 0 | $ 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Nonrecurring basis | ||
Assets measured at fair value on a nonrecurring basis | ||
Other real estate owned | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Nonrecurring basis | ||
Assets measured at fair value on a nonrecurring basis | ||
Other real estate owned | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Nonrecurring basis | ||
Assets measured at fair value on a nonrecurring basis | ||
Other real estate owned | $ 0 | $ 0 |
Uncategorized Items - cpf-20210
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201613Member |
Proceeds from Sale of Foreclosed Assets | us-gaap_ProceedsFromSaleOfForeclosedAssets | $ 100,000 |