10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                    to                  

Commission File Number: 001-15781

  

BERKSHIRE HILLS BANCORP, INC.

(Exact name of registrant as specified in its charter)

Delaware			04-3510455
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
60 State Street	Boston	Massachusetts	02109
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (800) 773-5601, ext. 133773

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	BHLB	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ý  No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý   No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer    ý    Accelerated filer        o     

Non-accelerated filer    o     Smaller reporting company    ☐

    Emerging growth company    ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐  No ☒

As of August 5, 2022, the Registrant had 45,670,565 shares of common stock, $0.01 par value per share, outstanding

BERKSHIRE HILLS BANCORP, INC.

FORM 10-Q

INDEX 

				Page
PART I.	FINANCIAL INFORMATION
Item 1.	Consolidated Financial Statements (unaudited)
	Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021			4
	Consolidated Statements of Income for the Three and Six Months Ended June 30, 2022 and 2021			5
	Consolidated Statements of Comprehensive (Loss)/Income for the Three and Six Months Ended June 30, 2022 and 2021			6
	Consolidated Statements of Changes in Shareholders’ Equity for the Three and Six Months Ended June 30, 2022 and 2021			7
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021			9
	Notes to Consolidated Financial Statements (Unaudited)
		Note 1	Basis of Presentation	11
		Note 2	Trading Security	12
		Note 3	Securities Available for Sale, Held to Maturity, and Marketable Equity Securities	13
		Note 4	Loans and Allowance for Credit Losses	18
		Note 5	Deposits	33
		Note 6	Borrowed Funds	33
		Note 7	Derivative Financial Instruments and Hedging Activities	35
		Note 8	Leases	41
		Note 9	Other Commitments, Contingencies, Off- Balance Sheet Activities, and Pandemic Impact	43
		Note 10	Capital Ratios and Shareholders' Equity	44
		Note 11	Earnings per Share	48
		Note 12	Stock-Based Compensation Plans	49
		Note 13	Fair Value Measurements	50
		Note 14	Net Interest Income after Provision for Credit Losses	59
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations			60
	Selected Financial Data			60
	Average Balances and Average Yields/Rates			62
	Non-GAAP Financial Measures			64
Item 3.	Quantitative and Qualitative Disclosures about Market Risk			78
Item 4.	Controls and Procedures			80

2

PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	81
Item 1A.	Risk Factors	82
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	83
Item 3.	Defaults Upon Senior Securities	83
Item 4.	Mine Safety Disclosures	83
Item 5.	Other Information	83
Item 6.	Exhibits	84
Signatures		85

3

PART I

ITEM 1.  CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

BERKSHIRE HILLS BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

	June 30, 2022		December 31, 2021
(In thousands, except share data)
Assets
Cash and due from banks	$	156,470	$	109,350
Short-term investments	714,547		1,518,457
Total cash and cash equivalents	871,017		1,627,807
Trading security, at fair value	7,040		8,354
Marketable equity securities, at fair value	14,154		15,453
Securities available for sale, at fair value	1,697,019		1,877,585
Securities held to maturity (fair values of $544,065 and $647,236)	602,611		636,503
Federal Home Loan Bank stock and other restricted securities	9,365		10,800
Total securities	2,330,189		2,548,695
Less: Allowance for credit losses on held to maturity securities	(94)		(105)
Net securities	2,330,095		2,548,590
Loans held for sale	1,062		6,110
Total loans	7,803,451		6,825,847
Less: Allowance for credit losses on loans	(99,021)		(106,094)
Net loans	7,704,430		6,719,753
Premises and equipment, net	89,657		94,383
Other intangible assets	27,046		29,619
Cash surrender value of bank-owned life insurance policies	237,545		235,690
Other assets	312,730		288,384
Assets held for sale	5,386		4,577
Total assets	$	11,578,968	$	11,554,913
Liabilities
Demand deposits	$	2,921,347	$	3,008,461
NOW and other deposits	2,247,544		976,401
Money market deposits	2,327,004		3,293,526
Savings deposits	1,143,352		1,111,625
Time deposits	1,475,417		1,678,940
Total deposits	10,114,664		10,068,953
Short-term debt	50,000		—
Long-term Federal Home Loan Bank advances and other	8,542		13,331
Subordinated borrowings	195,659		97,513
Total borrowings	254,201		110,844
Other liabilities	196,053		192,681
Total liabilities	$	10,564,918	$	10,372,478
(continued)
	June 30, 2022		December 31, 2021
Shareholders’ equity
Common stock ($0.01 par value; 100,000,000 shares authorized and 51,903,190 shares issued and 45,787,618 shares outstanding in 2022; 51,903,190 shares issued and 48,667,110 shares outstanding in 2021)	528		528
Additional paid-in capital - common stock	1,424,081		1,423,445
Unearned compensation	(12,824)		(9,056)
Retained (deficit)	(106,997)		(139,383)
Accumulated other comprehensive (loss)	(122,999)		(3,243)
Treasury stock, at cost (6,115,572 shares in 2022 and 3,236,080 shares in 2021)	(167,739)		(89,856)
Total shareholders’ equity	1,014,050		1,182,435
Total liabilities and shareholders’ equity	$	11,578,968	$	11,554,913

The accompanying notes are an integral part of these consolidated financial statements.

4

BERKSHIRE HILLS BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended June 30,				Six Months Ended June 30
(In thousands, except per share data)	2022		2021		2022		2021
Interest and dividend income
Loans	$	74,843	$	73,921	$	137,317	$	149,854
Securities and other	12,536		11,443		24,885		23,663
Total interest and dividend income	87,379		85,364		162,202		173,517
Interest expense
Deposits	4,170		6,981		8,344		16,564
Borrowings	1,851		2,990		3,437		6,467
Total interest expense	6,021		9,971		11,781		23,031
Net interest income	81,358		75,393		150,421		150,486
Non-interest income
Deposit related fees	8,005		7,508		15,356		14,634
Loan fees and revenue	4,623		7,431		12,888		17,677
Insurance commissions and fees	—		2,292		—		5,422
Wealth management fees	2,775		2,519		5,400		5,291
Mortgage banking originations	109		534		128		1,336
Total fee income	15,512		20,284		33,772		44,360
Other, net	1,812		2,211		4,978		4,359
(Loss) on securities, net	(973)		(484)		(1,718)		(515)
Total non-interest income	16,351		22,011		37,032		48,204
Total net revenue	97,709		97,404		187,453		198,690
(Benefit)/provision for credit losses	—		—		(4,000)		6,500
Non-interest expense
Compensation and benefits	37,830		36,970		75,351		75,705
Occupancy and equipment	9,438		10,599		19,505		21,623
Technology and communications	8,611		8,214		17,138		16,807
Marketing and promotion	1,472		518		2,583		1,113
Professional services	2,913		3,701		5,605		10,315
FDIC premiums and assessments	658		927		1,645		2,047
Other real estate owned and foreclosures	23		(26)		23		(24)
Amortization of intangible assets	1,286		1,297		2,572		2,616
Acquisition, restructuring, and other expenses	35		6		53		3,492
Other	6,209		6,666		12,550		13,332
Total non-interest expense	68,475		68,872		137,025		147,026
Income before income taxes	$	29,234	$	28,532	$	54,428	$	45,164
Income tax expense	6,119		6,896		11,117		10,497
Net income	$	23,115	$	21,636	$	43,311	$	34,667
Basic earnings per common share	$	0.50	$	0.43	$	0.93	$	0.69
Diluted earnings per common share	$	0.50	$	0.43	$	0.92	$	0.69
Weighted average shares outstanding:
Basic	45,818		50,321		46,733		50,327
Diluted	46,102		50,608		47,074		50,588

The accompanying notes are an integral part of these consolidated financial statements.

5

BERKSHIRE HILLS BANCORP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2022		2021		2022		2021
Net income	$	23,115	$	21,636	$	43,311	$	34,667
Other comprehensive (loss)/income, before tax:
Changes in unrealized (loss)//gain on debt securities available-for-sale	(60,487)		5,394		(161,860)		(21,619)
Income taxes related to other comprehensive (loss)/income:
Changes in unrealized (loss)/gain on debt securities available-for-sale	15,725		(1,343)		42,104		5,520
Total other comprehensive (loss)/income	(44,762)		4,051		(119,756)		(16,099)
Total comprehensive (loss)/income	$	(21,647)	$	25,687	$	(76,445)	$	18,568

The accompanying notes are an integral part of these consolidated financial statements.

6

BERKSHIRE HILLS BANCORP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

	Common stock			Additional paid-in capital		Unearned compensation		Retained earnings (deficit)		Accumulated other comprehensive income/(loss)		Treasury stock
(In thousands)	Shares	Amount												Total
Balance at March 31, 2021	50,988	$	528	$	1,424,349	$	(7,722)	$	(226,516)	$	10,721	$	(26,221)	$	1,175,139
Comprehensive income:
Net income	—	—		—		—		21,636		—		—		21,636
Other comprehensive income	—	—		—		—		—		4,051		—		4,051
Total comprehensive income	—	—		—		—		21,636		4,051		—		25,687
Cash dividends declared on common shares ($0.12 per share)	—	—		—		—		(6,100)		—		—		(6,100)
Treasury shares repurchased	(745)	—		—		—		—		—		(20,750)		(20,750)
Forfeited shares	(11)	—		45		238		—		—		(283)		—
Exercise of stock options	2	—		—		—		(14)		—		69		55
Restricted stock grants	229	—		(1,314)		(5,127)		—		—		6,441		—
Stock-based compensation	—	—		—		1,605		—		—		—		1,605
Other, net	(10)	—		3		—		—		—		(250)		(247)
Balance at June 30, 2021	50,453	$	528	$	1,423,083	$	(11,006)	$	(210,994)	$	14,772	$	(40,994)	$	1,175,389
Balance at March 31, 2022	47,792	$	528	$	1,423,679	$	(10,284)	$	(125,343)	$	(78,237)	$	(116,482)	$	1,093,861
Comprehensive (loss):
Net income	—	—		—		—		23,115		—		—		23,115
Other comprehensive (loss)	—	—		—		—		—		(44,762)		—		(44,762)
Total comprehensive (loss)	—	—		—		—		23,115		(44,762)		—		(21,647)
Cash dividends declared on common shares ($0.12 per share)	—	—		—		—		(4,769)		—		—		(4,769)
Treasury shares repurchased	(2,147)	—		—		—		—		—		(55,040)		(55,040)
Forfeited shares	(15)	—		9		375		—		—		(384)		—
Exercise of stock options	—	—		—		—		—		—		—		—
Restricted stock grants	175	—		391		(5,035)		—		—		4,644		—
Stock-based compensation	—	—		—		2,120		—		—		—		2,120
Other, net	(17)	—		2		—		—		—		(477)		(475)
Balance at June 30, 2022	45,788	$	528	$	1,424,081	$	(12,824)	$	(106,997)	$	(122,999)	$	(167,739)	$	1,014,050

7

	Common stock			Additional paid-in capital		Unearned compensation		Retained earnings (deficit)		Accumulated other comprehensive income/(loss)		Treasury stock
(In thousands)	Shares	Amount												Total
Balance at December 31, 2020	50,833	$	528	$	1,427,239	$	(6,245)	$	(233,344)	$	30,871	$	(31,276)	$	1,187,773
Comprehensive income:
Net income	—	—		—		—		34,667		—		—		34,667
Other comprehensive (loss)	—	—		—		—		—		(16,099)		—		(16,099)
Total comprehensive income	—	—		—		—		34,667		(16,099)		—		18,568
Cash dividends declared on common shares ($0.24 per share)	—	—		—		—		(12,224)		—		—		(12,224)
Treasury shares repurchased	(745)	—		—		—		—		—		(20,750)		(20,750)
Forfeited shares	(62)	—		(190)		1,570		—		—		(1,380)		—
Exercise of stock options	7	—		—		—		(93)		—		217		124
Restricted stock grants	439	—		(3,974)		(8,612)		—		—		12,586		—
Stock-based compensation	—	—		—		2,281		—		—		—		2,281
Other, net	(19)	—		8		—		—		—		(391)		(383)
Balance at June 30, 2021	50,453	$	528	$	1,423,083	$	(11,006)	$	(210,994)	$	14,772	$	(40,994)	$	1,175,389
Balance at December 31, 2021	48,667	$	528	$	1,423,445	$	(9,056)	$	(139,383)	$	(3,243)	$	(89,856)	$	1,182,435
Comprehensive (loss):
Net income	—	—		—		—		43,311		—		—		43,311
Other comprehensive (loss)	—	—		—		—		—		(119,756)		—		(119,756)
Total comprehensive (loss)	—	—		—		—		43,311		(119,756)		—		(76,445)
Cash dividends declared on common shares ($0.24 per share)	—	—		—		—		(10,921)		—		—		(10,921)
Treasury shares repurchased	(3,119)	—		—		—		—		—		(84,295)		(84,295)
Forfeited shares	(51)	—		79		1,358		—		—		(1,437)		—
Exercise of stock options	1	—		—		—		(4)		—		29		25
Restricted stock grants	314	—		552		(9,052)		—		—		8,500		—
Stock-based compensation	—	—		—		3,926		—		—		—		3,926
Other, net	(24)	—		5		—		—		—		(680)		(675)
Balance at June 30, 2022	45,788	$	528	$	1,424,081	$	(12,824)	$	(106,997)	$	(122,999)	$	(167,739)	$	1,014,050

The accompanying notes are an integral part of these consolidated financial statements.

8

BERKSHIRE HILLS BANCORP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30,
(In thousands)	2022		2021
Cash flows from operating activities:
Net income	$	43,311	$	34,667
Adjustments to reconcile net income to net cash provided by operating activities:
(Benefit)/provision for credit losses	(4,000)		6,500
Net amortization of securities	1,383		748
Change in unamortized net loan costs and premiums	2,471		(5,410)
Premises and equipment depreciation and amortization expense	4,907		5,636
Stock-based compensation expense	3,926		2,281
Accretion of purchase accounting entries, net	(1,464)		(3,555)
Amortization of other intangibles	2,572		2,616
Income from cash surrender value of bank-owned life insurance policies	(2,697)		(2,731)
Securities losses, net	1,718		515
Net change in loans held-for-sale	4,442		8,164
Loss on disposition of assets	—		2,811
Gain on sale of real estate	—		(33)
Amortization of interest in tax-advantaged projects	708		207
Net change in other	(42,990)		11,319
Net cash provided by operating activities	14,287		63,735
Cash flows from investing activities:
Net decrease in trading security	404		384
Proceeds from sales of marketable equity securities	—		2,849
Purchases of securities available for sale	(386,637)		(268,923)
Proceeds from sales of securities available for sale	149,994		—
Proceeds from maturities, calls, and prepayments of securities available for sale	255,045		305,361
Purchases of securities held to maturity	(575)		(219,004)
Proceeds from maturities, calls, and prepayments of securities held to maturity	33,514		17,320
Net change in loans	(981,062)		831,505
Net change in Mid-Atlantic region loans held for sale	—		47,131
Proceeds from surrender of bank-owned life insurance	842		—
Purchase of Federal Home Loan Bank stock	(32,466)		—
Proceeds from redemption of Federal Home Loan Bank stock	33,901		15,235
Net investment in limited partnership tax credits	(721)		—
Purchase of premises and equipment, net	(730)		(1,606)
Proceeds from sales of seasoned commercial loan portfolios	—		14,749
Proceeds from sale of other real estate	—		142
Net cash (used)/provided by investing activities	(928,491)		745,143
(continued)

9

BERKSHIRE HILLS BANCORP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONCLUDED)

	Six Months Ended June 30,
(In thousands)	2022		2021
Cash flows from financing activities:
Net increase/(decrease) in deposits	45,711		(301,908)
Net change in Mid-Atlantic region deposits held for sale	—		15,590
Proceeds from Federal Home Loan Bank advances and other borrowings	51,275		—
Repayments of Federal Home Loan Bank advances and other borrowings	(6,096)		(256,555)
Proceeds from issuance of subordinated debt	98,032		—
Purchase of treasury stock	(84,295)		(20,750)
Exercise of stock options	25		124
Common stock cash dividends paid	(10,921)		(6,124)
Settlement of derivative contracts with financial institution counterparties	63,683		29,551
Net cash provided/(used) by financing activities	157,414		(540,072)
Net change in cash and cash equivalents	(756,790)		268,806
Cash and cash equivalents at beginning of period	1,627,807		1,557,875
Cash and cash equivalents at end of period	$	871,017	$	1,826,681
Supplemental cash flow information:
Interest paid on deposits	$	8,810	$	18,515
Interest paid on borrowed funds	3,396		6,864
Income taxes (refunded) paid, net	12,590		(1,110)
Other non-cash changes:
Other net comprehensive income	$	(119,756)	$	(16,099)
Change in shareholder dividend payable	—		6,100
Reclass of seasoned loan portfolios to held-for-sale, net	—		11,660
Reclass of held-for-sale loans to held-for-investment, net	606		—

The accompanying notes are an integral part of these consolidated financial statements.

10

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1.           BASIS OF PRESENTATION

The Consolidated Financial Statements (the “financial statements”) of Berkshire Hills Bancorp, Inc. and its subsidiaries (the “Company” or “Berkshire”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company is a Delaware corporation, headquartered in Boston, Massachusetts, and the holding company for Berkshire Bank (the “Bank”), a Massachusetts-chartered trust company headquartered in Pittsfield, Massachusetts. These financial statements include the accounts of the Company, its wholly-owned subsidiaries and the Bank’s consolidated subsidiaries. In consolidation, all significant intercompany accounts and transactions are eliminated. The results of operations of companies or assets acquired are included only from the dates of acquisition. All material wholly-owned and majority-owned subsidiaries are consolidated unless GAAP requires otherwise.

The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these financial statements were issued.

These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X, and accordingly, certain information and footnote disclosures normally included in financial statements prepared according to GAAP have been omitted.

The results for any interim period are not necessarily indicative of results for the full year. These consolidated financial statements should be read in conjunction with the audited financial statements and disclosures Berkshire Hills Bancorp, Inc. previously filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In management’s opinion, all adjustments necessary for a fair statement are reflected in the interim periods.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates.

Refer to Note 9 – Other Commitments, Contingencies, Off-Balance Sheet Activities, and Pandemic Impact for pandemic related risks and uncertainties.

Recently Adopted Accounting Principles

There were no new applicable material accounting pronouncements adopted by the Company since December 31, 2021.

11

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Future Application of Accounting Pronouncements

In March 2022, the FASB issued ASU No. 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method.” The guidance expands the current last-of-layer method to allow multiple hedge layers of a single closed portfolio (renamed to portfolio layer method) and expands the portfolio layer method to include nonprepayable financial assets. The ASU specifies eligible hedging instruments in a single-layer hedge and provides additional guidance on accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method. Further, hedge basis adjustments should be considered when determining credit losses for assets included in the closed portfolio. The amendments in this ASU are effective for fiscal years ending after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The Company is still evaluating; however, the adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements.

In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The ASU eliminates the troubled debt restructuring (“TDR”) accounting model that was adopted with Topic 326, “Financial Instruments – Credit Losses” and enhances disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. The ASU requires prospective disclosure of current-period gross write-offs by year of origination. The amendments in this ASU are effective for fiscal years ending after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted and the Company can elect to adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company is still evaluating; however, the adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements.

NOTE 2.           TRADING SECURITY

The Company holds a tax-advantaged economic development bond accounted for at fair value. The security had an amortized cost of $7.5 million and $7.9 million, and a fair value of $7.0 million and $8.4 million, at June 30, 2022 and December 31, 2021, respectively. As discussed further in Note 7 - Derivative Financial Instruments and Hedging Activities, the Company entered into a swap contract to swap-out the fixed rate of the security in exchange for a variable rate. The Company does not purchase securities with the intent of selling them in the near term, and there were no other securities in the trading portfolio at June 30, 2022 or December 31, 2021.

12

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3. SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE

        EQUITY SECURITIES

The following is a summary of securities available for sale, held to maturity, and marketable equity securities:

(In thousands)	Amortized  Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance
June 30, 2022
Securities available for sale
U.S Treasuries	$	99,920	$	—	$	(71)	$	99,849
Municipal bonds and obligations	66,980		608		(2,425)		65,163		—
Agency collateralized mortgage obligations	692,079		3		(65,695)		626,387		—
Agency mortgage-backed securities	679,422		6		(72,651)		606,777		—
Agency commercial mortgage-backed securities	280,266		26		(23,828)		256,464		—
Corporate bonds	43,786		119		(1,526)		42,379		—
Total securities available for sale	1,862,453		762		(166,196)		1,697,019		—
Securities held to maturity
Municipal bonds and obligations	270,219		1,450		(21,929)		249,740		66
Agency collateralized mortgage obligations	137,778		18		(13,550)		124,246		—
Agency mortgage-backed securities	53,630		—		(7,872)		45,758		—
Agency commercial mortgage-backed securities	138,419		—		(16,633)		121,786		—
Tax advantaged economic development bonds	2,400		5		(35)		2,370		28
Other bonds and obligations	165		—		—		165		—
Total securities held to maturity	602,611		1,473		(60,019)		544,065		94
Marketable equity securities	15,690		66		(1,602)		14,154		—
Total	$	2,480,754	$	2,301	$	(227,817)	$	2,255,238	$	94

(In thousands)	Amortized  Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance
December 31, 2021
Securities available for sale
U.S Treasuries	$	59,972	$	1	$	—	$	59,973	$	—
Municipal bonds and obligations	71,822		5,355		—		77,177		—
Agency collateralized mortgage obligations	693,782		5,566		(11,012)		688,336		—
Agency mortgage-backed securities	711,154		2,347		(7,642)		705,859		—
Agency commercial mortgage-backed securities	300,259		3,949		(3,628)		300,580		—
Corporate bonds	44,824		950		(114)		45,660		—
Total securities available for sale	1,881,813		18,168		(22,396)		1,877,585		—
Securities held to maturity
Municipal bonds and obligations	281,515		16,151		(693)		296,973		70
Agency collateralized mortgage obligations	149,195		3,203		(3,513)		148,885		—
Agency mortgage-backed securities	57,327		95		(1,498)		55,924		—
Agency commercial mortgage-backed securities	145,573		266		(3,289)		142,550		—
Tax advantaged economic development bonds	2,728		26		(15)		2,739		35
Other bonds and obligations	165		—		—		165		—
Total securities held to maturity	636,503		19,741		(9,008)		647,236		105
Marketable equity securities	15,689		67		(303)		15,453		—
Total	$	2,534,005	$	37,976	$	(31,707)	$	2,540,274	$	105

13

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the activity in the allowance for credit losses for debt securities held to maturity by security type for the three and six months ended June 30, 2022 and 2021:

(In thousands)	Municipal bonds and obligations		Tax advantaged economic development bonds		Total
Balance at March 31, 2022	$	67	$	32	$	99
(Benefit)/provision for credit losses	(1)		(4)		(5)
Balance at June 30, 2022	$	66	$	28	$	94

(In thousands)	Municipal bonds and obligations		Tax advantaged economic development bonds		Total
Balance at March 31, 2021	$	71	$	40	$	111
(Benefit)/provision for credit losses	19		—		19
Balance at June 30, 2021	$	90	$	40	$	130

(In thousands)	Municipal bonds and obligations		Tax advantaged economic development bonds		Total
Balance at December 31, 2021	$	70	$	35	$	105
(Benefit)/provision for credit losses	(4)		(7)		(11)
Balance at June 30, 2022	$	66	$	28	$	94

(In thousands)	Municipal bonds and obligations		Tax advantaged economic development bonds		Total
Balance at December 31, 2020	$	64	$	40	$	104
(Benefit)/provision for credit losses	26		—		26
Balance at June 30, 2021	$	90	$	40	$	130

Credit Quality Information

The Company monitors the credit quality of held to maturity securities through credit ratings from various rating agencies. Credit ratings express opinions about the credit quality of a security and are utilized by the Company to make informed decisions. Investment grade securities are rated BBB-/Baa3 or higher and generally considered by the rating agencies and market participants to be of low credit risk. Conversely, securities rated below investment grade are considered to have distinctively higher credit risk than investment grade securities. For securities without credit ratings, the Company utilizes other financial information indicating the financial health of the underlying municipality, agency, or organization.

As of June 30, 2022, none of the Company's investment securities were delinquent or in non-accrual status.

The amortized cost and estimated fair value of available for sale (“AFS”) and held to maturity (“HTM”) securities segregated by contractual maturity at June 30, 2022 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable.

14

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	Available for sale				Held to maturity
	Amortized		Fair		Amortized		Fair
(In thousands)	Cost		Value		Cost		Value
Within 1 year	$	100,364	$	100,292	$	1,796	$	1,795
Over 1 year to 5 years	7,900		7,969		2,693		2,700
Over 5 years to 10 years	48,271		47,315		24,614		24,932
Over 10 years	54,151		51,815		243,681		222,848
Total bonds and obligations	210,686		207,391		272,784		252,275
Mortgage-backed securities	1,651,767		1,489,628		329,827		291,790
Total	$	1,862,453	$	1,697,019	$	602,611	$	544,065

During the three months ended June 30, 2022, there were no purchases of AFS securities. During the six months ended June 30, 2022, purchases of AFS securities totaled $386.6 million. During the three and six months ended June 30, 2022 sales of AFS securities totaled $150 million. During the three and six months ended June 30, 2021, purchases of AFS securities totaled $165.0 million and $268.9 million, respectively. During the three and six months ended June 30, 2021, there were no sales of AFS securities. During the three and six months ended June 30, 2022, gross gains totaled $6 thousand and there were no gross losses. During the three and six months ended June 30, 2021, there were no gross gains or losses on AFS securities. These gains and losses are included in gain/(loss) on securities, net on the consolidated statements of income.

15

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Securities available for sale and held to maturity with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows:

	Less Than Twelve Months				Over Twelve Months				Total
	Gross				Gross				Gross
	Unrealized		Fair		Unrealized		Fair		Unrealized		Fair
(In thousands)	Losses		Value		Losses		Value		Losses		Value
June 30, 2022
Securities available for sale
U.S Treasuries	$	71	$	99,849	$	—	$	—	$	71	$	99,849
Municipal bonds and obligations	2,425		31,835		—		—		2,425		31,835
Agency collateralized mortgage obligations	45,768		509,510		19,927		114,042		65,695		623,552
Agency mortgage-backed securities	36,357		384,388		36,294		221,502		72,651		605,890
Agency commercial mortgage-backed securities	13,730		180,796		10,098		71,060		23,828		251,856
Corporate bonds	1,415		31,437		111		1,969		1,526		33,406
Total securities available for sale	$	99,766	$	1,237,815	$	66,430	$	408,573	$	166,196	$	1,646,388
Securities held to maturity
Municipal bonds and obligations	$	11,356	$	129,839	$	10,573	$	23,320	$	21,929	$	153,159
Agency collateralized mortgage obligations	4,219		60,827		9,331		48,927		13,550		109,754
Agency mortgage-backed securities	185		2,625		7,687		43,132		7,872		45,757
Agency commercial mortgage-backed securities	8,368		73,652		8,265		48,134		16,633		121,786
Tax advantaged economic development bonds	—		—		35		1,164		35		1,164
Total securities held to maturity	24,128		266,943		35,891		164,677		60,019		431,620
Total	$	123,894	$	1,504,758	$	102,321	$	573,250	$	226,215	$	2,078,008
December 31, 2021
Securities available for sale
Agency collateralized mortgage obligations	$	9,626	$	375,132	$	1,386	$	27,025	$	11,012	$	402,157
Agency mortgage-backed securities	3,179		222,887		4,463		175,941		7,642		398,828
Agency commercial mortgage-backed securities	1,609		103,354		2,019		49,313		3,628		152,667
Corporate bonds	114		11,115		—		—		114		11,115
Total securities available for sale	$	14,528	$	712,488	$	7,868	$	252,279	$	22,396	$	964,767
Securities held to maturity
Municipal bonds and obligations	$	693	$	36,981	$	—	$	—	$	693	$	36,981
Agency collateralized mortgage obligations	1,808		49,308		1,705		36,212		3,513		85,520
Agency mortgage-backed securities	839		26,656		659		26,025		1,498		52,681
Agency commercial mortgage-backed securities	1,255		80,406		2,034		51,654		3,289		132,060
Tax advantaged economic development bonds	15		1,255		—		—		15		1,255
Total securities held to maturity	4,610		194,606		4,398		113,891		9,008		308,497
Total	$	19,138	$	907,094	$	12,266	$	366,170	$	31,404	$	1,273,264

16

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Debt Securities

The Company expects to recover its amortized cost basis on all debt securities in its AFS and HTM portfolios. Furthermore, the Company does not intend to sell nor does it anticipate that it will be required to sell any of its securities in an unrealized loss position as of June 30, 2022, prior to this recovery. The Company’s ability and intent to hold these securities until recovery is supported by the Company’s strong capital and liquidity positions as well as its historically low portfolio turnover.

The following summarizes, by investment security type, the basis for the conclusion that the debt securities in an unrealized loss position within the Company’s AFS and HTM portfolios were not other-than-temporarily impaired at June 30, 2022:

AFS U.S Treasuries

At June 30, 2022, 4 of the 4 securities in the Company’s portfolio of U.S Treasuries were in unrealized loss positions. Aggregate unrealized losses represented 0.1% of the amortized cost of securities in unrealized loss positions. The securities are all investment grade rated, and there were no material underlying credit downgrades during the quarter. All securities are performing.

AFS municipal bonds and obligations

At June 30, 2022, 32 of the 97 securities in the Company’s portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 7.1% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during the quarter. All securities are performing.

AFS collateralized mortgage obligations

At June 30, 2022, 240 of the 251 securities in the Company’s portfolio of AFS collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 9.5% of the amortized cost of securities in unrealized loss positions. The Federal National Mortgage Association (“FNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”), and Government National Mortgage Association (“GNMA”) guarantee the contractual cash flows of all of the Company’s collateralized mortgage obligations. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing.

AFS commercial and residential mortgage-backed securities

At June 30, 2022, 121 of the 139 securities in the Company’s portfolio of AFS mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 10.1% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of all of the Company’s mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing.

AFS corporate bonds

At June 30, 2022, 10 of the 14 securities in the Company’s portfolio of AFS corporate bonds were in an unrealized loss position. Aggregate unrealized losses represents 4.1% of the amortized cost of the bond in an unrealized loss position. The Company reviews the financial strength of all of these bonds and has concluded that the amortized cost remains supported by the expected future cash flows of these securities.

17

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

HTM municipal bonds and obligations

At June 30, 2022, 114 of the 197 securities in the Company’s portfolio of HTM municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 12.5% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during the quarter. All securities are performing.

HTM collateralized mortgage obligations

At June 30, 2022, 11 of the 13 securities in the Company’s portfolio of HTM collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 11.0% of the amortized cost of the securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of all of the Company's collateralized residential mortgage obligations. The securities are investment grade rated, and there were no material underlying credit downgrades during the quarter. All securities are performing.

HTM commercial and residential mortgage-backed securities

At June 30, 2022, 17 of the 17 securities in the Company’s portfolio of HTM mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 12.8% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of the Company’s mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing.

HTM tax-advantaged economic development bonds

At June 30, 2022, 1 of the 3 securities in the Company’s portfolio of tax-advantaged economic development bonds was in an unrealized loss position. Aggregate unrealized losses represented 2.9% of the amortized cost of the security in an unrealized loss position. The Company believes that more likely than not all the principal outstanding will be collected. All securities are performing.

18

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES

The following is a summary of total loans by regulatory call report code with sub-segmentation based on underlying collateral for certain loan types:

(In thousands)	June 30, 2022		December 31, 2021
Construction	$	323,969	$	324,282
Commercial multifamily	667,427		515,817
Commercial real estate owner occupied	624,869		606,477
Commercial real estate non-owner occupied	2,295,298		2,156,929
Commercial and industrial	1,435,739		1,284,429
Residential real estate	1,917,227		1,489,248
Home equity	240,874		252,366
Consumer other	298,048		196,299
Total loans	$	7,803,451	$	6,825,847
Allowance for credit losses	99,021		106,094
Net loans	$	7,704,430	$	6,719,753

As of June 30, 2022 and December 31, 2021, outstanding loans originated under the Small Business Administration ("SBA") Paycheck Protection Program ("PPP") totaled $13.9 million and $29.9 million, respectively. These loans are 100% guaranteed by the SBA and the full principal amount of the loan may qualify for forgiveness. These loans are included in commercial and industrial.

During the three and six months ended June 30, 2022, there were no loans reclassified to held for sale. During the three and six months ended June 30, 2021, the Company reclassified $2.2 million and $11.7 million of commercial loans to held for sale, reflecting its intent to sell these loans. Held for sale loans are not contained in the balances within this note and are accounted for at the lower of carrying value or fair market value within loans held for sale on the Consolidated Balance Sheet.

19

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Risk characteristics relevant to each portfolio segment are as follows:

Construction - Loans in this segment primarily include real estate development loans for which payment is derived from sale of the property or long term financing at completion. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions.

Commercial real estate multifamily, owner occupied and non-owner - Loans in these segments are primarily owner-occupied or income-producing properties throughout New England and Northeastern New York. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy, which in turn, will have an effect on the credit quality in this segment. Management monitors the cash flows of these loans.

Commercial and industrial loans - Loans in this segment are made to businesses and are generally secured by assets of the business such as accounts receivable, inventory, marketable securities, other liquid collateral, equipment and other business assets. Repayment is expected from the cash flows of the business. Loans in this segment include asset based loans which generally have no scheduled repayment and which are closely monitored against formula based collateral advance ratios. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment.

Residential real estate - All loans in this segment are collateralized by residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.

Home equity and other consumer loans - Loans in this segment are primarily home equity lines of credit, automobile loans and other consumer loans. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.

Allowance for Credit Losses for Loans

The Allowance for Credit Losses for Loans (“ACLL”) is comprised of the allowance for loan losses, and the allowance for unfunded commitments is accounted for as a separate liability in other liabilities on the balance sheet. The level of the ACLL represents management’s estimate of expected credit losses over the expected life of the loans at the balance sheet date. The Company uses a static pool migration analysis method, applying expected historical loss trend and observed economic metrics. The level of the ACLL is based on management’s ongoing review of all relevant information, from internal and external sources, relating to past and current events, utilizing a 7 quarter reasonable and supportable forecast period with a 1 year reversion period. The ACLL reserve is overlaid with qualitative factors based upon:

•the existence and growth of concentrations of credit;

•the volume and severity of past due financial assets, including nonaccrual assets;

•the institutions lending and credit review as well as the experience and ability of relevant management and staff and;

•the effect of other external factors such as regulatory, competition, regional market conditions, legal and technological environment and other events such as natural disasters;

•the effect of other economic factors such as economic stimulus and customer forbearance programs.

The allowance for unfunded commitments is maintained at a level by the Company to be sufficient to absorb expected lifetime losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit) and is included in other liabilities on the consolidated balance sheet.

20

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company’s activity in the allowance for credit losses for loans for the three and six months ended June 30, 2022 and June 30, 2021 was as follows:

(In thousands)	Balance at Beginning of Period		Charge-offs		Recoveries		Provision for Credit Losses		Balance at End of Period
Three months ended June 30, 2022
Construction	$	2,505	$	—	$	—	$	(795)	$	1,710
Commercial multifamily	5,771		—		—		(1,150)		4,621
Commercial real estate owner occupied	11,498		(298)		97		(609)		10,688
Commercial real estate non-owner occupied	25,814		—		46		305		26,165
Commercial and industrial	22,949		(752)		584		133		22,914
Residential real estate	17,816		(216)		199		(1,389)		16,410
Home equity	3,303		—		112		(587)		2,828
Consumer other	9,819		(332)		101		4,097		13,685
Total allowance for credit losses	$	99,475	$	(1,598)	$	1,139	$	5	$	99,021

(In thousands)	Balance at Beginning of Period		Charge-offs		Recoveries		Provision for Credit Losses		Balance at End of Period
Three months ended June 30, 2021
Construction	$	4,397	$	—	$	—	$	(478)	$	3,919
Commercial multifamily	6,351		(115)		95		866		7,197
Commercial real estate owner occupied	14,257		(227)		40		(828)		13,242
Commercial real estate non-owner occupied	34,561		(2,561)		178		(1,863)		30,315
Commercial and industrial	26,071		(3,585)		1,266		4,473		28,225
Residential real estate	25,800		(220)		667		(2,604)		23,643
Home equity	5,749		(164)		15		(168)		5,432
Consumer other	6,614		(375)		249		583		7,071
Total allowance for credit losses	$	123,800	$	(7,247)	$	2,510	$	(19)	$	119,044

(In thousands)	Balance at Beginning of Period		Charge-offs		Recoveries		Provision for Credit Losses		Balance at End of Period
Six months ended June 30, 2022
Construction	$	3,206	$	—	$	—	$	(1,496)	$	1,710
Commercial multifamily	6,120		—		—		(1,499)		4,621
Commercial real estate owner occupied	12,752		(428)		306		(1,942)		10,688
Commercial real estate non-owner occupied	32,106		(4,884)		1,312		(2,369)		26,165
Commercial and industrial	22,584		(1,405)		1,872		(137)		22,914
Residential real estate	22,406		(380)		587		(6,203)		16,410
Home equity	4,006		—		246		(1,424)		2,828
Consumer other	2,914		(548)		238		11,081		13,685
Total allowance for credit losses	$	106,094	$	(7,645)	$	4,561	$	(3,989)	$	99,021

21

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands)	Balance at Beginning of Period		Charge-offs		Recoveries		Provision for Credit Losses		Balance at End of Period
Six months ended June 30, 2021
Construction	$	5,111	$	—	$	—	$	(1,192)	$	3,919
Commercial multifamily	5,916		(239)		157		1,363		7,197
Commercial real estate owner occupied	12,380		(603)		52		1,413		13,242
Commercial real estate non-owner occupied	35,850		(9,220)		304		3,381		30,315
Commercial and industrial	25,013		(6,905)		1,911		8,206		28,225
Residential real estate	28,491		(598)		1,104		(5,354)		23,643
Home equity	6,482		(240)		39		(849)		5,432
Consumer other	8,059		(903)		409		(494)		7,071
Total allowance for credit losses	$	127,302	$	(18,708)	$	3,976	$	6,474	$	119,044

22

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company’s allowance for credit losses on unfunded commitments is recognized as a liability (other liability on consolidated balance sheet), with adjustments to the reserve recognized in other noninterest expense in the consolidated statement of income. The Company’s activity in the allowance for credit losses on unfunded commitments for the three and six months ended June 30, 2022 and 2021 was as follows:

	Three Months Ended June 30,
(In thousands)	2022		2021
Balance at beginning of period	$	7,043	$	7,829
Expense for credit losses	—		—
Balance at end of period	$	7,043	$	7,829

	Six Months Ended June 30,
(In thousands)	2022		2021
Balance at beginning of period	$	7,043	$	7,629
Expense for credit losses	—		200
Balance at end of period	$	7,043	$	7,829

Credit Quality Information

The Company monitors the credit quality of its portfolio by using internal risk ratings that are based on regulatory guidance. Loans that are given a Pass rating are not considered a problem credit. Loans that are classified as Special Mention loans are considered to have potential weaknesses and are evaluated closely by management. Substandard, including non-accruing loans, are loans for which a definitive weakness has been identified and which may make full collection of contractual cash flows questionable. Doubtful loans are those with identified weaknesses that make full collection of contractual cash flows, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

For commercial credits, the Company assigns an internal risk rating at origination and reviews the rating annual, semiannually, or quarterly depending on the risk rating. The rating is also reassessed at any point in time when management becomes aware of information that may affect the borrower’s ability to fulfill their obligations.

The Company risk rates its residential mortgages, including 1-4 family and residential construction loans, based on a three rating system: Pass, Special Mention, and Substandard. Loans that are current within 59 days are rated Pass. Residential mortgages that are 60-89 days delinquent are rated Special Mention. Loans delinquent for 90 days or greater are rated Substandard and generally placed on non-accrual status. 

23

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the Company’s loans by risk category:

	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of June 30, 2022
Construction
Risk rating
Pass	$	66,278	$	125,071	$	29,805	$	75,853	$	2,321	$	4,871	$	49	$	—	$	304,248
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		19,721		—		—		—		19,721
Total	$	66,278	$	125,071	$	29,805	$	75,853	$	22,042	$	4,871	$	49	$	—	$	323,969
Commercial multifamily:
Risk rating
Pass	$	182,663	$	61,261	$	27,878	$	117,448	$	71,908	$	195,751	$	756	$	—	$	657,665
Special Mention	—		—		2,664		—		5,554		—		—		—		8,218
Substandard	—		—		—		—		—		1,413		131		—		1,544
Total	$	182,663	$	61,261	$	30,542	$	117,448	$	77,462	$	197,164	$	887	$	—	$	667,427
Commercial real estate owner occupied:
Risk rating
Pass	$	75,279	$	144,338	$	48,354	$	85,734	$	76,968	$	181,968	$	1,615	$	—	$	614,256
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	1,053		—		35		554		1,432		7,539		—		—		10,613
Total	$	76,332	$	144,338	$	48,389	$	86,288	$	78,400	$	189,507	$	1,615	$	—	$	624,869
Commercial real estate non-owner occupied:
Risk rating
Pass	$	384,990	$	427,922	$	173,393	$	269,140	$	323,077	$	600,342	$	18,031	$	—	$	2,196,895
Special Mention	—		—		—		7,669		13,568		27,563		—		—		48,800
Substandard	—		—		7,421		—		2,911		39,175		96		—		49,603
Total	$	384,990	$	427,922	$	180,814	$	276,809	$	339,556	$	667,080	$	18,127	$	—	$	2,295,298
Commercial and industrial:
Risk rating
Pass	$	133,144	$	172,622	$	106,743	$	87,963	$	138,263	$	133,896	$	607,388	$	—	$	1,380,019
Special Mention	—		—		—		1,757		1,257		—		—		—		3,014
Substandard	6		353		2,207		8,989		2,770		3,639		34,623		—		52,587
Doubtful	—		—		—		—		—		21		98		—		119
Total	$	133,150	$	172,975	$	108,950	$	98,709	$	142,290	$	137,556	$	642,109	$	—	$	1,435,739
Residential real estate
Risk rating
Pass	$	503,499	$	290,620	$	103,521	$	75,910	$	159,577	$	767,805	$	288	$	—	$	1,901,220
Special Mention	—		—		—		345		—		823		—		—		1,168
Substandard	—		599		—		304		1,955		11,981		—		—		14,839
Total	$	503,499	$	291,219	$	103,521	$	76,559	$	161,532	$	780,609	$	288	$	—	$	1,917,227

24

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31, 2021
Construction
Risk rating
Pass	$	71,784	$	52,725	$	117,784	$	66,950	$	3,839	$	1,721	$	50	$	—	$	314,853
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		9,429		—		—		—		—		9,429
Total	$	71,784	$	52,725	$	117,784	$	76,379	$	3,839	$	1,721	$	50	$	—	$	324,282
Commercial multifamily:
Risk rating
Pass	$	63,630	$	28,172	$	98,455	$	59,720	$	76,699	$	176,020	$	457	$	—	$	503,153
Special Mention	—		2,700		—		5,598		—		—		—		—		8,298
Substandard	—		—		—		—		—		4,230		136		—		4,366
Total	$	63,630	$	30,872	$	98,455	$	65,318	$	76,699	$	180,250	$	593	$	—	$	515,817
Commercial real estate owner occupied:
Risk rating
Pass	$	154,434	$	50,236	$	85,687	$	91,316	$	45,995	$	157,346	$	3,206	$	—	$	588,220
Special Mention	—		525		869		1,668		1,405		1,157		—		—		5,624
Substandard	—		—		2,113		1,593		838		8,089		—		—		12,633
Total	$	154,434	$	50,761	$	88,669	$	94,577	$	48,238	$	166,592	$	3,206	$	—	$	606,477
Commercial real estate non-owner occupied:
Risk rating
Pass	$	426,086	$	176,172	$	296,985	$	349,947	$	204,043	$	585,044	$	19,511	$	—	$	2,057,788
Special Mention	—		221		3,472		7,632		2,302		27,268		—		—		40,895
Substandard	—		7,588		—		2,784		33,472		14,303		99		—		58,246
Total	$	426,086	$	183,981	$	300,457	$	360,363	$	239,817	$	626,615	$	19,610	$	—	$	2,156,929
Commercial and industrial:
Risk rating
Pass	$	187,257	$	130,520	$	114,153	$	156,443	$	54,190	$	136,837	$	424,393	$	—	$	1,203,793
Special Mention	661		1,691		10,824		5,092		1,433		488		22,468		—		42,657
Substandard	211		2,494		9,609		3,145		2,020		2,330		17,935		—		37,744
Doubtful	—		—		—		—		—		15		220		—		235
Total	$	188,129	$	134,705	$	134,586	$	164,680	$	57,643	$	139,670	$	465,016	$	—	$	1,284,429
Residential real estate
Risk rating
Pass	$	214,306	$	114,536	$	86,997	$	169,537	$	189,980	$	697,401	$	293	$	—	$	1,473,050
Special Mention	—		—		—		120		502		1,557		—		—		2,179
Substandard	1,239		—		142		1,849		2,161		8,628		—		—		14,019
Total	$	215,545	$	114,536	$	87,139	$	171,506	$	192,643	$	707,586	$	293	$	—	$	1,489,248

25

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For home equity and consumer other loan portfolio segments, Berkshire evaluates credit quality based on the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an ongoing basis dependent upon improvement and deterioration in credit quality. The following table presents the amortized cost based on payment activity:

	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of June 30, 2022
Home equity:
Payment performance
Performing	$	—	$	119	$	460	$	—	$	—	$	20	$	238,524	$	—	$	239,123
Nonperforming	—		—		—		—		—		—		1,751		—		1,751
Total	$	—	$	119	$	460	$	—	$	—	$	20	$	240,275	$	—	$	240,874
Consumer other:
Payment performance
Performing	$	150,411	$	33,080	$	9,563	$	16,460	$	40,622	$	38,197	$	7,864	$	—	$	296,197
Nonperforming	49		108		23		297		621		745		8		—		1,851
Total	$	150,460	$	33,188	$	9,586	$	16,757	$	41,243	$	38,942	$	7,872	$	—	$	298,048

	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31, 2021
Home equity:
Payment performance
Performing	$	125	$	469	$	—	$	—	$	—	$	24	$	249,590	$	—	$	250,208
Nonperforming	—		—		—		—		—		—		2,158		—		2,158
Total	$	125	$	469	$	—	$	—	$	—	$	24	$	251,748	$	—	$	252,366
Consumer other:
Payment performance
Performing	$	37,994	$	11,189	$	21,548	$	55,577	$	30,632	$	28,797	$	7,505	$	—	$	193,242
Nonperforming	8		46		290		797		746		1,139		31		—		3,057
Total	$	38,002	$	11,235	$	21,838	$	56,374	$	31,378	$	29,936	$	7,536	$	—	$	196,299

26

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following is a summary of loans by past due status at June 30, 2022 and December 31, 2021:

(In thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loans
June 30, 2022
Construction	$	—	$	—	$	—	$	—	$	323,969	$	323,969
Commercial multifamily	—		—		174		174		667,253		667,427
Commercial real estate owner occupied	58		53		3,963		4,074		620,795		624,869
Commercial real estate non-owner occupied	154		25,000		4,915		30,069		2,265,229		2,295,298
Commercial and industrial	1,314		165		6,841		8,320		1,427,419		1,435,739
Residential real estate	5,534		1,168		14,237		20,939		1,896,288		1,917,227
Home equity	520		545		1,751		2,816		238,058		240,874
Consumer other	1,351		322		1,762		3,435		294,613		298,048
Total	$	8,931	$	27,253	$	33,643	$	69,827	$	7,733,624	$	7,803,451

(In thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loans
December 31, 2021
Construction	$	—	$	—	$	—	$	—	$	324,282	$	324,282
Commercial multifamily	82		306		187		575		515,242		515,817
Commercial real estate owner occupied	—		400		4,221		4,621		601,856		606,477
Commercial real estate non-owner occupied	25,420		653		9,049		35,122		2,121,807		2,156,929
Commercial and industrial	2,700		709		6,836		10,245		1,274,184		1,284,429
Residential real estate	5,529		2,015		13,264		20,808		1,468,440		1,489,248
Home equity	258		108		2,158		2,524		249,842		252,366
Consumer other	1,363		320		2,882		4,565		191,734		196,299
Total	$	35,352	$	4,511	$	38,597	$	78,460	$	6,747,387	$	6,825,847

27

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following is a summary of loans on nonaccrual status and loans past due 90 days or more and still accruing as of June 30, 2022 and December 31, 2021:

(In thousands)	Nonaccrual Amortized Cost		Nonaccrual With No Related Allowance		Past Due 90 Days or Greater and Accruing		Interest Income Recognized on Nonaccrual
At or for the three months ended June 30, 2022
Construction	$	—	$	—	$	—	$	—
Commercial multifamily	174		174		—		—
Commercial real estate owner occupied	3,370		2,336		593		—
Commercial real estate non-owner occupied	4,444		4,184		471		—
Commercial and industrial	4,856		441		1,985		—
Residential real estate	10,889		6,413		3,348		—
Home equity	1,521		127		230		—
Consumer other	1,630		3		132		—
Total	$	26,884	$	13,678	$	6,759	$	—

The commercial and industrial loans nonaccrual amortized cost as of June 30, 2022 included medallion loans with a fair value of $1.0 million and a contractual balance of $20.6 million.

(In thousands)	Nonaccrual Amortized Cost		Nonaccrual With No Related Allowance		Past Due 90 Days or Greater and Accruing		Interest Income Recognized on Nonaccrual
At or for the three months ended December 31, 2021
Construction	$	—	$	—	$	—	$	—
Commercial multifamily	187		187		—		—
Commercial real estate owner occupied	4,221		2,413		—		—
Commercial real estate non-owner occupied	8,877		8,412		172		—
Commercial and industrial	6,747		1,506		89		—
Residential real estate	10,698		6,511		2,566		—
Home equity	1,901		141		257		—
Consumer other	2,695		4		187		—
Total	$	35,326	$	19,174	$	3,271	$	—

The commercial and industrial loans nonaccrual amortized cost as of December 31, 2021 included medallion loans with a fair value of $1.2 million and a contractual balance of $31.4 million.

The following table summarizes information about total loans rated Special Mention or lower at June 30, 2022 and December 31, 2021. The table below includes consumer loans that are Special Mention and Substandard accruing that are classified as performing based on payment activity.

(In thousands)	June 30, 2022		December 31, 2021
Non-Accrual	$	26,884	$	35,326
Substandard Accruing	125,307		106,560
Total Classified	152,191		141,886
Special Mention	62,060		100,071
Total Criticized	$	214,251	$	241,957

28

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Expected credit losses for collateral-dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table presents the amortized cost basis of individually analyzed collateral-dependent loans by loan portfolio segment:

	Type of Collateral
(In thousands)	Real Estate		Investment Securities/Cash		Other
June 30, 2022
Construction	$	—	$	—	$	—
Commercial multifamily	175		—		—
Commercial real estate owner occupied	3,472		—		—
Commercial real estate non-owner occupied	4,628		—		—
Commercial and industrial	290		—		2,528
Residential real estate	5,919		—		—
Home equity	247		—		—
Consumer other	5		—		—
Total loans	$	14,736	$	—	$	2,528
December 31, 2021
Construction	$	9,429	$	—	$	—
Commercial multifamily	188		—		—
Commercial real estate owner occupied	4,466		—		—
Commercial real estate non-owner occupied	9,501		—		—
Commercial and industrial	526		—		1,040
Residential real estate	7,035		—		—
Home equity	262		—		—
Consumer other	2		—		—
Total loans	$	31,409	$	—	$	1,040

29

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Troubled Debt Restructuring Loans

The Company’s loan portfolio also includes certain loans that have been modified in a Troubled Debt Restructuring ("TDR"), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. TDRs are evaluated individually for impairment and may result in a specific allowance amount allocated to an individual loan.

The following table presents activity in TDRs for the three and six months ended June 30, 2022 and June 30, 2021:

(In thousands)	Balance at Beginning of Period		Principal Payments		TDR Status Change		Other Additions/(Reductions)		Newly Identified TDRs		Balance at End of Period
Three months ended June 30, 2022
Construction	$	9,429	$	—	$	—	$	(9,429)	$	—	$	—
Commercial multifamily	694		(17)		—		—		—		677
Commercial real estate owner occupied	2,724		(23)		—		—		—		2,701
Commercial real estate non-owner occupied	998		(12)		—		—		—		986
Commercial and industrial	3,592		(290)		—		(137)		1,486		4,651
Residential real estate	1,109		(23)		—		(67)		—		1,019
Home equity	169		(7)		—		—		—		162
Consumer other	32		(2)		—		—		—		30
Total	$	18,747	$	(374)	$	—	$	(9,633)	$	1,486	$	10,226

(In thousands)	Balance at Beginning of Period		Principal Payments		TDR Status Change		Other Additions/(Reductions)		Newly Identified TDRs		Balance at End of Period
Three months ended June 30, 2021
Construction	$	—	$	—	$	—	$	—	$	—	$	—
Commercial multifamily	741		(13)		—		—		—		728
Commercial real estate owner occupied	1,725		(29)		—		—		1,266		2,962
Commercial real estate non-owner occupied	14,725		(81)		—		(590)		10,434		24,488
Commercial and industrial	2,633		(229)		—		(37)		4,443		6,810
Residential real estate	1,493		(14)		—		(174)		—		1,305
Home equity	130		(3)		—		—		—		127
Consumer other	34		(3)		—		6		—		37
Total	$	21,481	$	(372)	$	—	$	(795)	$	16,143	$	36,457

30

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands)	Balance at Beginning of Period		Principal Payments		TDR Status Change		Other Additions/(Reductions)		Newly Identified TDRs		Balance at End of Period
Six months ended June 30, 2022
Construction	$	9,429	$	—	$	—	$	(9,429)	$	—	$	—
Commercial multifamily	703		(26)		—		—		—		677
Commercial real estate owner occupied	2,733		(32)		—		—		—		2,701
Commercial real estate non-owner occupied	9,310		(13)		—		(8,311)		—		986
Commercial and industrial	3,656		(341)		—		(150)		1,486		4,651
Residential real estate	1,117		(31)		—		(67)		—		1,019
Home equity	121		(9)		—		—		50		162
Consumer other	33		(3)		—		—		—		30
Total	$	27,102	$	(455)	$	—	$	(17,957)	$	1,536	$	10,226

(In thousands)	Balance at Beginning of Period		Principal Payments		TDR Status Change		Other Additions/(Reductions)		Newly Identified TDRs		Balance at End of Period
Six months ended June 30, 2021
Construction	$	—	$	—	$	—	$	—	$	—	$	—
Commercial multifamily	754		(26)		—		—		—		728
Commercial real estate owner occupied	1,731		(35)		—		—		1,266		2,962
Commercial real estate non-owner occupied	13,684		(95)		—		(80)		10,979		24,488
Commercial and industrial	2,686		(428)		—		(37)		4,589		6,810
Residential real estate	1,524		(46)		—		(173)		—		1,305
Home equity	133		(6)		—		—		—		127
Consumer other	36		(5)		—		6		—		37
Total	$	20,548	$	(641)	$	—	$	(284)	$	16,834	$	36,457

31

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents loans modified as TDRs that occurred during the three and six months ended June 30, 2022 and 2021:

(dollars in thousands)	Total
Three months ended June 30, 2022
TDR:
Number of loans	1
Pre-modification outstanding recorded investment	$	1,486
Post-modification outstanding recorded investment	$	1,486
Three months ended June 30, 2021
TDR:
Number of loans	9
Pre-modification outstanding recorded investment	$	16,143
Post-modification outstanding recorded investment	$	16,143

(dollars in thousands)	Total
Six months ended June 30, 2022
TDR:
Number of loans	2
Pre-modification outstanding recorded investment	$	1,536
Post-modification outstanding recorded investment	$	1,536
Six months ended June 30, 2021
TDR:
Number of loans	13
Pre-modification outstanding recorded investment	$	16,834
Post-modification outstanding recorded investment	$	16,834

There were no TDRs for which there was a payment default within twelve months following the modification during the three months ending June 30, 2022. The following table presents loans by portfolio segment modified as TDRs for which there was a payment default within twelve months following the modification during the six months ended June 30, 2022:

(in thousands)	Number of Loans	Recorded Investment
Six months ended June 30, 2022
Commercial and industrial	1	$	105
Total	1	$	105

There were no TDRs for which there was a payment default within twelve months following the modification during the three and six months ended June 30, 2021.

Beginning in March 2020, the Company has offered three-month payment deferrals for customers with a current payment status who were negatively impacted by economic disruption caused by the COVID-19 pandemic. Refer to Note 9 - Other Commitments, Contingencies, and Off-Balance Sheet Activities, and Pandemic Impact for more information regarding these modifications.

32

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 5.               DEPOSITS

A summary of time deposits is as follows:

(In thousands)	June 30, 2022		December 31, 2021
Time less than $100,000	$	531,023	$	676,979
Time $100,000 through $250,000	573,967		610,174
Time more than $250,000	370,427		391,787
Total time deposits	$	1,475,417	$	1,678,940

Included in total deposits were brokered deposits of $112.9 million and $228.1 million at June 30, 2022 and December 31, 2021, respectively. Included in total deposits were reciprocal deposits of $79.9 million and $89.2 million at June 30, 2022 and December 31, 2021, respectively.

NOTE 6.               BORROWED FUNDS

Borrowed funds at June 30, 2022 and December 31, 2021 are summarized as follows:

	June 30, 2022				December 31, 2021
			Weighted				Weighted
			Average				Average
(Dollars in thousands)	Principal		Rate		Principal		Rate
Short-term borrowings:
Advances from the FHLB	$	50,000	1.28	%	$	—	—	%
Total short-term borrowings:	50,000		1.28		—		—
Long-term borrowings:
Advances from the FHLB and other borrowings	8,542		1.33		13,331		1.75
Subordinated borrowings	172,711		6.15		74,590		7.00
Junior subordinated borrowing - Trust I	15,464		3.35		15,464		2.01
Junior subordinated borrowing - Trust II	7,484		3.53		7,459		1.90
Total long-term borrowings:	204,201		5.64		110,844		5.33
Total	$	254,201	4.78	%	$	110,844	5.33	%

Short-term debt includes Federal Home Loan Bank (“FHLB”) advances with an original maturity of less than one year. The Bank also maintains a $3.0 million secured line of credit with the FHLB that bears a daily adjustable rate calculated by the FHLB. There was no outstanding balance on the FHLB line of credit for the periods ended June 30, 2022 and December 31, 2021. The Bank's available borrowing capacity with the FHLB was $1.3 billion and $1.5 billion for the periods ended June 30, 2022 and December 31, 2021.

The Bank is approved to borrow on a short-term basis from the Federal Reserve Bank of Boston as a non-member bank. The Bank has pledged certain loans and securities to the Federal Reserve Bank to support this arrangement. No borrowings with the Federal Reserve Bank under this arrangement took place for the periods ended June 30, 2022 and December 31, 2021. As a participant in the SBA Paycheck Protection Program ("PPP"), the Bank may pledge originated loans as collateral at face value to the Federal Reserve Bank of Boston for term financings. As of June 30, 2022 and December 31, 2021, the Bank had no pledged PPP loans. The Bank's available borrowing capacity with the Federal Reserve Bank was $590.5 million and $511.0 million for the periods ended June 30, 2022 and December 31, 2021, respectively.

33

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Long-term FHLB advances consist of advances with an original maturity of more than one year and are subject to prepayment penalties. The advances outstanding at June 30, 2022 included callable advances totaling $4.0 million and amortizing advances totaling $4.5 million. The advances outstanding at December 31, 2021 included callable advances totaling $10.0 million and amortizing advances totaling $3.4 million. All FHLB borrowings, including the line of credit, are secured by a blanket security agreement on certain qualified collateral, principally all residential first mortgage loans and certain securities.

A summary of maturities of FHLB advances as of June 30, 2022 is as follows:

	June 30, 2022
			Weighted Average
(In thousands, except rates)	Principal		Rate
Fixed rate advances maturing:
2022	$	53,998	1.34	%
2023	—		—
2024	32		—
2025	—		—
2025 and beyond	4,512		0.72
Total FHLB advances	$	58,542	1.29	%

The Company did not have variable-rate FHLB advances for the periods ended June 30, 2022 and December 31, 2021, respectively.

In June 2022, the Company issued ten year subordinated notes in the amount of $100.0 million. The interest rate is fixed at 5.50% for the first five years. After five years, the notes become callable and will bear interest at a floating rate per annum equal to the Benchmark rate (which is expected to be Three-Month Term SOFR), plus 249 basis points. The subordinated note includes reduction to the note principal balance of $2.0 million for unamortized debt issuance costs as of June 30, 2022.

In September 2012, the Company issued fifteen year subordinated notes in the amount of $75.0 million at a discount of 1.15%. The interest rate is fixed at 6.875% for the first ten years. After ten years, the notes become callable and convert to an interest rate of three-month LIBOR rate plus 5.113%. The subordinated note includes reduction to the note principal balance of $31 thousand and $92 thousand for unamortized debt issuance costs as of June 30, 2022 and December 31, 2021, respectively.

The Company holds 100% of the common stock of Berkshire Hills Capital Trust I (“Trust I”) which is included in other assets at a cost of $0.5 million. The sole asset of Trust I is $15.5 million of the Company’s junior subordinated debentures due in 2035. These debentures bear interest at a variable rate equal to LIBOR plus 1.85% and had a rate of 3.35% and 2.01% at June 30, 2022 and December 31, 2021, respectively. The Company has the right to defer payments of interest for up to five years on the debentures at any time, or from time to time, with certain limitations, including a restriction on the payment of dividends to shareholders while such interest payments on the debentures have been deferred. The Company has not exercised this right to defer payments. The Company has the right to redeem the debentures at par value. Trust I is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, Trust I is not consolidated into the Company’s financial statements.

The Company holds 100% of the common stock of SI Capital Trust II (“Trust II”) which is included in other assets at a cost of $0.2 million. The sole asset of Trust II is $8.2 million of the Company’s junior subordinated debentures due in 2036. These debentures bear interest at a variable rate equal to LIBOR plus 1.70% and had a rate of 3.53% and 1.90% at June 30, 2022 and December 31, 2021, respectively. The Company has the right to defer payments of interest for up to five years on the debentures at any time, or from time to time, with certain limitations, including a restriction on the payment of dividends to shareholders while such interest payments on the debentures have been deferred. The Company has not exercised this right to defer payments. The Company has the right to redeem the debentures at par value. Trust II is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, Trust II is not consolidated into the Company’s financial statements.

34

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

As of June 30, 2022, the Company held derivatives with a total notional amount of $3.8 billion. The Company had economic hedges totaling $3.8 billion and $3.0 million non-hedging derivatives, which are not designated as hedges for accounting purposes with changes in fair value recorded directly through earnings. Economic hedges included interest rate swaps totaling $3.4 billion, risk participation agreements with dealer banks of $0.3 billion, and $1.0 million in forward commitment contracts.

As part of the Company’s risk management strategy, the Company enters into interest rate swap agreements to mitigate the interest rate risk inherent in certain of the Company’s assets and liabilities. Interest rate swap agreements involve the risk of dealing with both Bank customers and institutional derivative counterparties and their ability to meet contractual terms. The agreements are entered into with counterparties that meet established credit standards and contain master netting and collateral provisions protecting the at-risk party. The derivatives program is overseen by the Risk Management and Capital Committee of the Company’s Board of Directors. Based on adherence to the Company’s credit standards and the presence of the netting and collateral provisions, the Company believes that the credit risk inherent in these contracts was not significant at June 30, 2022.

The Company pledged collateral to derivative counterparties in the form of cash totaling $11.1 million and securities with an amortized cost of $37.6 million and a fair value of $37.5 million as of June 30, 2022. The Company does not typically require its commercial customers to post cash or securities as collateral on its program of back-to-back economic hedges. However certain language is written into the International Swaps Dealers Association, Inc. (“ISDA”) and loan documents where, in default situations, the Bank is allowed to access collateral supporting the loan relationship to recover any losses suffered on the derivative asset or liability. The Company may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions.

Information about derivative assets and liabilities at June 30, 2022, follows:

			Weighted	Weighted Average Rate				Estimated
	Notional		Average			Contract		Fair Value
	Amount		Maturity	Received		pay rate		Asset (Liability)
	(In thousands)		(In years)					(In thousands)
Economic hedges:
Interest rate swap on tax advantaged economic development bond	$	7,475	7.4	5.09	%	3.22	%	$	(509)
Interest rate swaps on loans with commercial loan customers	1,714,537		5.8	3.98	%	2.88	%	(47,467)
Offsetting interest rate swaps on loans with commercial loan customers (1)	1,714,537		5.8	2.88	%	3.98	%	29,488
Risk participation agreements with dealer banks	326,765		5.7					32
Forward sale commitments	984		0.2					18
Total economic hedges	3,764,298							(18,438)
Non-hedging derivatives:
Commitments to lend	2,957		0.2					26
Total non-hedging derivatives	2,957							26
Total	$	3,767,255						$	(18,412)

(1) Fair value estimates include the impact of $18.0 million settled to market contract agreements.

35

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Information about derivative assets and liabilities at December 31, 2021, follows:

			Weighted	Weighted Average Rate				Estimated
	Notional		Average			Contract		Fair Value
	Amount		Maturity	Received		pay rate		Asset (Liability)
	(In thousands)		(In years)					(In thousands)
Economic hedges:
Interest rate swap on tax advantaged economic development bond	$	7,879	7.9	0.47	%	5.09	%	$	(1,158)
Interest rate swaps on loans with commercial loan customers	1,684,238		5.8	3.99	%	1.91	%	74,348
Offsetting interest rate swaps on loans with commercial loan customers (1)	1,684,238		5.8	1.91	%	3.99	%	(30,454)
Risk participation agreements with dealer banks	320,981		5.8					432
Forward sale commitments	6,377		0.2					134
Total economic hedges	3,703,713							43,302
Non-hedging derivatives:
Commitments to lend	8,192		0.2					124
Total non-hedging derivatives	8,192							124
Total	$	3,711,905						$	43,426

(1) Fair value estimates include the impact of $45.7 million settled to market contract agreements.

36

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Economic hedges

As of June 30, 2022, the Company has an interest rate swap with a $7.5 million notional amount to swap out the fixed rate of interest on an economic development bond bearing a fixed rate of 5.09%, currently within the Company’s trading portfolio under the fair value option, in exchange for a LIBOR-based floating rate. The intent of the economic hedge is to improve the Company’s asset sensitivity to changing interest rates in anticipation of favorable average floating rates of interest over the 21-year life of the bond. The fair value changes of the economic development bond are mostly offset by fair value changes of the related interest rate swap.

The Company also offers certain derivative products directly to qualified commercial borrowers. The Company economically hedges derivative transactions executed with commercial borrowers by entering into mirror-image, offsetting derivatives with third-party financial institutions. The transaction allows the Company’s customer to convert a variable-rate loan to a fixed rate loan. Because the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts mostly offset each other in earnings. There was no credit valuation loss adjustment arising from the difference in credit worthiness of the commercial loan and financial institution counterparties as of June 30, 2022. The interest income and expense on these mirror image swaps exactly offset each other.

The Company has risk participation agreements with dealer banks. Risk participation agreements occur when the Company participates on a loan and a swap where another bank is the lead. The Company gets paid a fee to take on the risk associated with having to make the lead bank whole on Berkshire’s portion of the pro-rated swap should the borrower default. Changes in fair value are recorded in current period earnings.

The Company utilizes forward sale commitments to hedge interest rate risk and the associated effects on the fair value of interest rate lock commitments and loans originated for sale. The forward sale commitments are accounted for as derivatives with changes in fair value recorded in current period earnings.

The Company uses the following types of forward sale commitments contracts:

•Best efforts loan sales,

•Mandatory delivery loan sales, and

•To Be Announced (“TBA”) mortgage-backed securities sales.

A best efforts contract refers to a loan sale agreement where the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. The Company may enter into a best efforts contract once the price is known, which is shortly after the potential borrower’s interest rate is locked.

A mandatory delivery contract is a loan sale agreement where the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. Generally, the Company may enter into mandatory delivery contracts shortly after the loan closes with a customer.

The Company may sell TBA mortgage-backed securities to hedge the changes in fair value of interest rate lock commitments and held for sale loans, which do not have corresponding best efforts or mandatory delivery contracts. These security sales transactions are closed once mandatory contracts are written. On the closing date the price of the security is locked-in, and the sale is paired-off with a purchase of the same security. Settlement of the security purchase/sale transaction is done with cash on a net-basis.

37

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Non-hedging derivatives

The Company enters into interest rate lock commitments (“IRLCs”), or commitments to lend, for residential mortgage loans, which commit the Company to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs that relate to the origination of mortgage loans that will be held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose the Company to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. The IRLCs are free-standing derivatives which are carried at fair value with changes recorded in non-interest income in the Company’s consolidated statements of operations. Changes in the fair value of IRLCs subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time.

Amounts included in the Consolidated Statements of Income related to economic hedges and non-hedging derivatives were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2022		2021		2022		2021
Economic hedges
Interest rate swap on industrial revenue bond:
Unrealized gain recognized in other non-interest income	$	217	$	10	$	649	$	355
Interest rate swaps on loans with commercial loan customers:
Unrealized (loss) recognized in other non-interest income	(44,927)		10,516		(123,625)		(49,785)
Favorable change in credit valuation adjustment recognized in other non-interest income	—		(982)		1,809		1,520
Offsetting interest rate swaps on loans with commercial loan customers:
Unrealized gain recognized in other non-interest income	44,927		(10,516)		123,625		49,785
Risk participation agreements:
Unrealized (loss) recognized in other non-interest income	(292)		150		(400)		(179)
Forward commitments:
Unrealized (loss)/gain recognized in other non-interest income	11		(234)		(116)		(228)
Non-hedging derivatives
Commitments to lend
Unrealized (loss) recognized in other non-interest income	$	8	$	76	$	(98)	$	(474)
Realized gain in other non-interest income	90		457		342		1,810

38

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Assets and Liabilities Subject to Enforceable Master Netting Arrangements

Interest Rate Swap Agreements (“Swap Agreements”)

The Company enters into swap agreements to facilitate the risk management strategies for commercial banking customers. The Company mitigates this risk by entering into equal and offsetting swap agreements with highly rated third party financial institutions. The swap agreements are free-standing derivatives and are recorded at fair value in the Company’s consolidated statements of condition. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral generally in the form of marketable securities is received or posted by the counterparty with net liability positions, respectively, in accordance with contract thresholds.

The Company had net asset positions with its financial institution counterparties totaling $54.1 million and $2.2 million as of June 30, 2022 and December 31, 2021, respectively. The Company had net asset positions with its commercial banking counterparties totaling $4.4 million and $76.8 million as of June 30, 2022 and December 31, 2021, respectively. The Company had net liability positions with its financial institution counterparties totaling $24.9 million and $33.3 million as of June 30, 2022 and December 31, 2021, respectively. The Company had net liability positions with its commercial banking counterparties totaling $51.9 million and $2.5 million as of June 30, 2022 and December 31, 2021. The Company has collateral pledged to cover this liability.

The following table presents the assets and liabilities subject to an enforceable master netting arrangement as of June 30, 2022 and December 31, 2021:

Offsetting of Financial Assets and Derivative Assets

	Gross Amounts of		Gross Amounts Offset in the		Net Amounts of Assets Presented in the		Gross Amounts Not Offset in the Statements of Condition
	Recognized		Statements of		Statements of		Financial		Cash
(In thousands)	Assets		Condition		Condition		Instruments		Collateral Received		Net Amount
June 30, 2022
Interest Rate Swap Agreements:
Institutional counterparties	$	54,445	$	(370)	$	54,075	$	—	$	—	$	54,075
Commercial counterparties	4,434		—		4,434		—		—		4,434
Total	$	58,879	$	(370)	$	58,509	$	—	$	—	$	58,509

Offsetting of Financial Liabilities and Derivative Liabilities

	Gross Amounts of		Gross Amounts Offset in the		Net Amounts of Liabilities Presented in the		Gross Amounts Not Offset in the Statements of Condition
	Recognized		Statements of		Statements of		Financial		Cash
(In thousands)	Liabilities		Condition		Condition		Instruments		Collateral Pledged		Net Amount
June 30, 2022
Interest Rate Swap Agreements:
Institutional counterparties	$	(7,010)	$	(17,930)	$	(24,940)	$	37,453	$	11,079	$	23,592
Commercial counterparties	(51,901)		—		(51,901)		—		—		(51,901)
Total	$	(58,911)	$	(17,930)	$	(76,841)	$	37,453	$	11,079	$	(28,309)

39

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Offsetting of Financial Assets and Derivative Assets

	Gross Amounts of		Gross Amounts Offset in the		Net Amounts of Assets Presented in the		Gross Amounts Not Offset in the Statements of Condition
	Recognized		Statements of		Statements of		Financial		Cash
(In thousands)	Assets		Condition		Condition		Instruments		Collateral Received		Net Amount
December 31, 2021
Interest Rate Swap Agreements:
Institutional counterparties	$	2,223	$	(75)	$	2,148	$	—	$	—	$	2,148
Commercial counterparties	76,809		—		76,809		—		—		76,809
Total	$	79,032	$	(75)	$	78,957	$	—	$	—	$	78,957

Offsetting of Financial Liabilities and Derivative Liabilities

	Gross Amounts of		Gross Amounts Offset in the		Net Amounts of Liabilities Presented in the		Gross Amounts Not Offset in the Statements of Condition
	Recognized		Statements of		Statements of		Financial		Cash
(In thousands)	Liabilities		Condition		Condition		Instruments		Collateral Pledged		Net Amount
December 31, 2021
Interest Rate Swap Agreements:
Institutional counterparties	$	(78,146)	$	44,814	$	(33,332)	$	34,896	$	43,694	$	45,258
Commercial counterparties	(2,461)		—		(2,461)		—		—		(2,461)
Total	$	(80,607)	$	44,814	$	(35,793)	$	34,896	$	43,694	$	42,797

40

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8. LEASES

Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches, ATM locations, and office space. Most of the Company’s leases are classified as operating leases. At June 30, 2022, lease expiration dates ranged from 1 month to 18 years.

The following table represents the Consolidated Balance Sheets classification of the Company’s right-of-use (“ROU”) assets and lease liabilities:

(In thousands)		June 30, 2022		December 31, 2021
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other assets	$	52,594	$	52,180
Finance lease right-of-use assets	Premises and equipment, net	6,413		6,674
Total Lease Right-of-Use Assets		$	59,007	$	58,854
Lease Liabilities
Operating lease liabilities	Other liabilities	$	55,988	$	55,674
Finance lease liabilities	Other liabilities	9,587		9,862
Total Lease Liabilities		$	65,575	$	65,536

Supplemental information related to leases was as follows:

	June 30, 2022		December 31, 2021
Weighted-Average Remaining Lease Term (in years)
Operating leases	9.3		9.5
Finance leases	12.3		12.8
Weighted-Average Discount Rate
Operating leases	2.60	%	2.77	%
Finance leases	5.00	%	5.00	%

The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated.

The Company does not have any material sub-lease agreements.

Lease expense for operating leases for the three months ended June 30, 2022 was $2.6 million. Lease expense for operating leases for the six months ended June 30, 2022 was $5.1 million. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities.

Lease expense for operating leases for the three months ended June 30, 2021 was $2.9 million. Lease expense for operating leases for the six months ended June 30, 2021 was $5.7 million. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities.

41

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Supplemental cash flow information related to leases was as follows:

	Three Months Ended
(In thousands)	June 30, 2022		June 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,533	$	2,668
Operating cash flows from finance leases	120		126
Financing cash flows from finance leases	138		131

	Six Months Ended
(In thousands)	June 30, 2022		June 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,149	$	5,911
Operating cash flows from finance leases	240		253
Financing cash flows from finance leases	276		263

The following table presents a maturity analysis of the Company’s lease liability by lease classification at June 30, 2022:

(In thousands)	Operating Leases		Finance Leases
2022	$	5,002	$	514
2023	9,825		1,037
2024	8,243		1,037
2025	6,271		1,037
2026	5,046		1,037
Thereafter	28,796		8,187
Total undiscounted lease payments	63,183		12,849
Less amounts representing interest	(7,195)		(3,262)
Lease liability	$	55,988	$	9,587

42

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 9. OTHER COMMITMENTS, CONTINGENCIES, OFF-BALANCE SHEET ACTIVITIES, AND PANDEMIC IMPACT

In March 2020, the World Health Organization declared a novel strain of coronavirus ("COVID-19") a global pandemic and the United States declared a National Public Health Emergency. The impact of the COVID-19 pandemic is fluid and continues to evolve, which is adversely affecting some of the Company’s clients. The COVID-19 pandemic and its associated impacts on trade (including supply chains and export levels), travel, employee productivity, unemployment, consumer spending, and other economic activities has resulted in less economic activity, lower equity market valuations and significant volatility and disruption in financial markets and has had an adverse effect on the Company’s business, financial condition and results of operations. The ultimate extent of the continuing impact of the COVID-19 pandemic on the Company’s business, financial condition and results of operations is currently uncertain and will depend on various developments and other factors, including, among others, the duration and scope of the pandemic, as well as governmental, regulatory and private sector responses to the pandemic, and the associated impacts on the economy, financial markets, and our clients, employees, and vendors.

The Company’s business, financial condition and results of operations generally rely upon the ability of the Company’s borrowers to repay their loans, the value of collateral underlying the Company’s secured loans, and demand for loans and other products and services the Company offers, which are highly dependent on the business environment in the Company’s primary markets where it operates and in the United States as a whole.

These circumstances could cause the Company to experience a material adverse effect on our business operations, asset valuations, financial condition, results of operations and prospects. Material adverse impacts may include all or a combination of valuation impairments on the Company’s intangible assets, investments, loans, loan servicing rights, deferred tax assets, lease right-of-use assets, or counter-party risk derivatives.

Beginning in March 2020, the Company offered three-month payment deferrals for customers with a current payment status who were negatively impacted by economic disruption caused by the COVID-19 pandemic. As of June 30, 2022, the Company had 7 active modified loans outstanding with a carrying value of $13.4 million. As of December 31, 2021, the Company had 19 active modified loans outstanding with a carrying value of $14.4 million, which excluded loans returning to payment or awaiting evaluation for further deferral. The Company continues to accrue interest on these loans during the deferral period. In accordance with interagency guidance issued in March 2020 and Section 4013 (Temporary Relief from Troubled Debt Restructurings) of the CARES Act, these short-term deferrals are not considered troubled debt restructurings (“TDRs”) unless the borrower was previously experiencing financial difficulty. In addition, the risk-ratings on COVID-19 modified loans did not automatically change as a result of payment deferrals, and these loans will not be considered past due until after the deferral period is over and scheduled payments resume. Section 4013 (Temporary Relief from Troubled Debt Restructurings) of the CARES Act expired on December 31, 2021.

43

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 10.           CAPITAL RATIOS AND SHAREHOLDERS’ EQUITY

The actual and required capital ratios were as follows:

	June 30, 2022		December 31, 2021		Minimum Capital Requirement
Company (consolidated)
Total capital to risk-weighted assets	16.1	%	17.3	%	8.0	%
Common equity tier 1 capital to risk-weighted assets	12.9		15.0		4.5
Tier 1 capital to risk-weighted assets	13.2		15.3		6.0
Tier 1 capital to average assets	10.2		10.5		4.0

	June 30, 2022		December 31, 2021		Regulatory Minimum to be Adequately Capitalized		Regulatory Minimum to be Well Capitalized
Bank
Total capital to risk-weighted assets	14.1	%	15.9	%	8.0	%	10.0	%
Common equity tier 1 capital to risk-weighted assets	13.1		14.8		4.5		6.5
Tier 1 capital to risk-weighted assets	13.1		14.8		6.0		8.0
Tier 1 capital to average assets	10.2		10.1		4.0		5.0

The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Failure to meet capital requirements can initiate regulatory action. At each date shown, the Company met the minimum capital requirements and the Bank met the conditions to be classified as “well capitalized” under the relevant regulatory framework. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table above.

Effective January 1, 2015, the Company and the Bank became subject to the Basel III rule that requires the Company and the Bank to assess their Common equity Tier 1 capital to risk weighted assets. The Bank's Common equity Tier 1 capital to risk weighted assets exceeds the minimum to be well capitalized. In addition, the final capital rules added a requirement to maintain a minimum conservation buffer, composed of Common equity Tier 1 capital, of 2.5% of risk-weighted assets, to be phased in over three years and applied to the Common equity Tier 1 risk-based capital ratio, the Tier 1 risk-based capital ratio, and the Total risk-based capital ratio. As of January 1, 2019, banking organizations must maintain a minimum Common equity Tier 1 risk-based capital ratio of 7.0%, a minimum Tier 1 risk-based capital ratio of 8.5%, and a minimum Total risk-based capital ratio of 10.5%. The final capital rules impose restrictions on capital distributions and certain discretionary cash bonus payments if the minimum capital conservation buffer is not met.

At June 30, 2022, the capital levels of both the Company and the Bank exceeded all regulatory capital requirements and the Bank's regulatory capital ratios were above the minimum levels required to be considered well capitalized for regulatory purposes. The capital levels of both the Company and the Bank at June 30, 2022 also exceeded the minimum capital requirements including the currently applicable capital conservation buffer of 2.5%.

44

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Accumulated other comprehensive (loss)

Components of accumulated other comprehensive (loss) is as follows:

(In thousands)	June 30, 2022		December 31, 2021
Other accumulated comprehensive income, before tax:
Net unrealized holding loss on AFS securities	$	(163,666)	$	(1,806)
Net unrealized holding (loss) on pension plans	(2,518)		(2,518)
Income taxes related to items of accumulated other comprehensive income:
Net unrealized tax benefit on AFS securities	42,511		407
Net unrealized tax benefit on pension plans	674		674
Accumulated other comprehensive loss	$	(122,999)	$	(3,243)

The following table presents the components of other comprehensive (loss) for the three and six months ended June 30, 2022 and 2021:

(In thousands)	Before Tax		Tax Effect		Net of Tax
Three Months Ended June 30, 2022
Net unrealized holding loss on AFS securities:	x
Net unrealized (losses) arising during the period	$	(60,481)	$	15,723	$	(44,758)
Less: reclassification adjustment for gains realized in net income	6		(2)		4
Net unrealized holding (loss) on AFS securities	(60,487)		15,725		(44,762)
Other comprehensive (loss)	$	(60,487)	$	15,725	$	(44,762)
Three Months Ended June 30, 2021
Net unrealized holding loss on AFS securities:
Net unrealized gains arising during the period	$	5,394	$	(1,343)	$	4,051
Less: reclassification adjustment for gains realized in net income	—		—		—
Net unrealized holding gain on AFS securities	5,394		(1,343)		4,051
Other comprehensive income	$	5,394	$	(1,343)	$	4,051

(In thousands)	Before Tax		Tax Effect		Net of Tax
Six Months Ended June 30, 2022
Net unrealized holding loss on AFS securities:
Net unrealized (losses) arising during the period	$	(161,854)	$	42,102	$	(119,752)
Less: reclassification adjustment for gains realized in net income	6		(2)		4
Net unrealized holding (loss) on AFS securities	(161,860)		42,104		(119,756)
Other comprehensive (loss)	$	(161,860)	$	42,104	$	(119,756)
Six Months Ended June 30, 2021
Net unrealized holding loss on AFS securities:
Net unrealized (losses) arising during the period	$	(21,619)	$	5,520	$	(16,099)
Less: reclassification adjustment for gains realized in net income	—		—		—
Net unrealized holding (loss) on AFS securities	(21,619)		5,520		(16,099)
Other comprehensive (loss)	$	(21,619)	$	5,520	$	(16,099)

45

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the changes in each component of accumulated other comprehensive (loss), for the three and six months ended June 30, 2022 and 2021:

(In thousands)	Net unrealized holding loss on AFS Securities		Net unrealized holding loss on pension plans		Total
Three Months Ended June 30, 2022
Balance at Beginning of Period	$	(76,392)	$	(1,845)	$	(78,237)
Other comprehensive loss before reclassifications	(44,758)		—		(44,758)
Less: amounts reclassified from accumulated other comprehensive (loss)	4		—		4
Total other comprehensive (loss)	(44,762)		—		(44,762)
Balance at End of Period	$	(121,154)	$	(1,845)	$	(122,999)
Three Months Ended June 30, 2021
Balance at Beginning of Period	$	13,308	$	(2,587)	$	10,721
Other comprehensive gain before reclassifications	4,051		—		4,051
Less: amounts reclassified from accumulated other comprehensive (loss)	—		—		—
Total other comprehensive income	4,051		—		4,051
Balance at End of Period	$	17,359	$	(2,587)	$	14,772
Six Months Ended June 30, 2022
Balance at Beginning of Period	$	(1,398)	$	(1,845)	$	(3,243)
Other comprehensive loss before reclassifications	(119,752)		—		(119,752)
Less: amounts reclassified from accumulated other comprehensive income	4		—		4
Total other comprehensive (loss)	(119,756)		—		(119,756)
Balance at End of Period	$	(121,154)	$	(1,845)	$	(122,999)
Six Months Ended June 30, 2021
Balance at Beginning of Period	$	33,458	$	(2,587)	$	30,871
Other comprehensive loss before reclassifications	(16,099)				(16,099)
Less: amounts reclassified from accumulated other comprehensive income	—		—		—
Total other comprehensive (loss)	(16,099)		—		(16,099)
Balance at End of Period	$	17,359	$	(2,587)	$	14,772

46

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the amounts reclassified out of each component of accumulated other comprehensive

income for the three and six months ended June 30, 2022 and 2021:

					Affected Line Item in the
	Three Months Ended June 30,				Statement where Net Income
(In thousands)	2022		2021		is Presented
Realized gains on AFS securities:
	$	6	$	—	Non-interest income
	—		—		Retained earnings
	(2)		—		Tax expense
	4		—		Net of tax
Total reclassifications for the period	$	4	$	—	Net of tax

					Affected Line Item in the
	Six Months Ended June 30,				Statement where Net Income
(In thousands)	2022		2021		is Presented
Realized gains on AFS securities:
	$	6			Non-interest income
	(2)		—		Tax expense
	4		—		Net of tax
Total reclassifications for the period	$	4	$	—	Net of tax

47

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 11. EARNINGS PER SHARE

Earnings per share have been computed based on the following (average diluted shares outstanding are calculated using the treasury stock method):

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands, except per share data)	2022		2021		2022		2021
Net income	$	23,115	$	21,636	$	43,311	$	34,667
Average number of common shares issued	51,903		51,903		51,903		51,903
Less: average number of treasury shares	5,247		822		4,375		885
Less: average number of unvested stock award shares	838		760		795		691
Average number of basic shares outstanding	45,818		50,321		46,733		50,327
Plus: dilutive effect of unvested stock award shares	283		280		337		257
Plus: dilutive effect of stock options outstanding	1		7		4		4
Average number of diluted shares outstanding	46,102		50,608		47,074		50,588
Basic earnings per common share:	$	0.50	$	0.43	$	0.93	$	0.69
Diluted earnings per common share:	$	0.50	$	0.43	$	0.92	$	0.69

For the three months ended June 30, 2022, 555 thousand shares of unvested restricted stock and 74 thousand options outstanding were anti-dilutive and therefore excluded from the earnings per share calculation. For the six months ended June 30, 2022, 445 thousand shares of unvested restricted stock and 75 thousand options outstanding were anti-dilutive and therefore excluded from the earnings per share calculation. For the three months ended June 30, 2021, 480 thousand shares of unvested restricted stock and 96 thousand options outstanding were anti-dilutive and therefore excluded from the earnings per share calculation. For the six months ended June 30, 2021, 434 thousand shares of unvested restricted stock and 94 thousand options outstanding were anti-dilutive and therefore excluded from the earnings per share calculation.

48

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 12. STOCK-BASED COMPENSATION PLANS

A combined summary of activity in the Company’s stock award and stock option plans for the six months ended June 30, 2022 is presented in the following table:

	Non-Vested Stock Awards Outstanding			Stock Options Outstanding
(Shares in thousands)	Number of Shares	Weighted-Average Grant Date Fair Value		Number of Shares	Weighted-Average Exercise Price
December 31, 2021	710	$	20.16	80	$	25.21
Granted	314	28.86		—	—
Acquired	—	—		—	—
Stock options exercised	—	—		(1)	23.30
Stock awards vested	(111)	22.22		—	—
Forfeited	(51)	26.43		—	—
Expired	—	—		(6)	24.30
June 30, 2022	862	$	23.07	73	$	25.31

During the three and six months ended June 30, 2022, proceeds from stock option exercises totaled $25 thousand. During the three and six months ended June 30, 2021, proceeds from stock option exercises totaled $55 thousand and $124 thousand, respectively. During the three and six months ended June 30, 2022, there were 63 thousand and 111 thousand shares vested in connection with stock awards, respectively. During the three and six months ended June 30, 2021, there were 35 thousand and 79 thousand shares vested in connection with stock awards, respectively. All of these shares were issued from available treasury stock. Stock-based compensation expense totaled $2.1 million and $1.6 million during the three months ended June 30, 2022 and 2021, respectively. Stock-based compensation expense totaled $3.9 million and $2.3 million during the six months ended June 30, 2022 and 2021, respectively. Stock-based compensation expense is recognized over the requisite service period for all awards.

49

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 13. FAIR VALUE MEASUREMENTS

A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities that are carried at fair value.

Recurring Fair Value Measurements

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value.

	June 30, 2022
	Level 1		Level 2		Level 3		Total
(In thousands)	Inputs		Inputs		Inputs		Fair Value
Trading security	$	—	$	—	$	7,040	$	7,040
Securities available for sale:
U.S Treasuries	—		99,849		—		99,849
Municipal bonds and obligations	—		65,163		—		65,163
Agency collateralized mortgage obligations	—		626,387		—		626,387
Agency residential mortgage-backed securities	—		606,777		—		606,777
Agency commercial mortgage-backed securities	—		256,464		—		256,464
Corporate bonds	—		38,359		4,020		42,379
Marketable equity securities	13,499		655		—		14,154
Loans held for investment at fair value	—		—		1,049		1,049
Loans held for sale	—		1,062		—		1,062
Derivative assets	—		58,616		44		58,660
Capitalized servicing rights	—		—		1,906		1,906
Derivative liabilities	—		77,073		—		77,073

	December 31, 2021
	Level 1		Level 2		Level 3		Total
(In thousands)	Inputs		Inputs		Inputs		Fair Value
Trading security	$	—	$	—	$	8,354	$	8,354
Securities available for sale:
U.S Treasuries	—		59,973		—		59,973
Municipal bonds and obligations	—		77,177		—		77,177
Agency collateralized mortgage obligations	—		688,336		—		688,336
Agency residential mortgage-backed securities	—		705,859		—		705,859
Agency commercial mortgage-backed securities	—		300,580		—		300,580
Corporate bonds	—		41,630		4,030		45,660
Marketable equity securities	14,798		655		—		15,453
Loans held for investment at fair value	—		—		1,200		1,200
Loans held for sale	—		6,110		—		6,110
Derivative assets	—		79,270		258		79,528
Capitalized servicing rights	—		—		1,966		1,966
Derivative liabilities	—		35,194		—		35,194

There were no transfers between levels during the three and six months ended June 30, 2022.

50

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Trading Security at Fair Value. The Company holds one security designated as a trading security. It is a tax-advantaged economic development bond issued to the Company by a local nonprofit which provides wellness and health programs. The fair value of this security is determined based on a discounted cash flow methodology. Certain inputs to the fair value calculation are unobservable and there is little to no market activity in the security; therefore, the security meets the definition of a Level 3 security. The discount rate used in the valuation of the security is sensitive to movements in the 3-month LIBOR rate.

Securities Available for Sale and Marketable Equity Securities. Marketable equity securities classified as Level 1 consist of publicly-traded equity securities for which the fair values can be obtained through quoted market prices in active exchange markets. Marketable equity securities classified as Level 2 consist of securities with infrequent trades in active exchange markets, and pricing is primarily sourced from third party pricing services. AFS securities classified as Level 2 include most of the Company’s debt securities. The pricing on Level 2 and Level 3 was primarily sourced from third party pricing services, overseen by management, and is based on models that consider standard input factors such as dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and condition, among other things. Level 3 pricing includes inputs unobservable to market participants.

Loans Held for Investment. The Company’s held for investment loan portfolio includes loans originated by Company and loans acquired through business combinations. The Company intends to hold these assets until maturity as a part of its business operations. For one acquired portfolio subset, the Company previously accounted for these purchased-credit impaired loans as a pool under ASC 310, as they were determined to have common risk characteristics. These loans were recorded at fair value on acquisition date and subsequently evaluated for impairment collectively. Upon adoption of ASC 326, the Company elected the fair value option on this portfolio, recognizing an $11.2 million fair value write-down charged to retained earnings, net of deferred tax impact, as of January 1, 2020. The fair value of this loan portfolio is determined based on a discounted cash flow methodology. Certain inputs to the fair value calculation are unobservable; therefore, the loans meet the definition of Level 3 assets. The discount rate used in the valuation is consistent with assets that have significant credit deterioration. The cash flow assumptions include payment schedules for loans with current payment histories and estimated collateral value for delinquent loans. All of these loans were nonperforming as of June 30, 2022.

					Aggregate Fair Value
June 30, 2022	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		Unpaid Principal
Loans held for investment at fair value	$	1,049	$	20,603	$	(19,554)

					Aggregate Fair Value
December 31, 2021	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		Unpaid Principal
Loans held for investment at fair value	$	1,200	$	31,430	$	(30,230)

Loans Held for Sale. The Company elected the fair value option for all loans held for sale (HFS) originated for sale on or after May 1, 2012. Loans HFS are classified as Level 2 as the fair value is based on input factors such as quoted prices for similar loans in active markets.

					Aggregate Fair Value
June 30, 2022	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		Unpaid Principal
Loans held for sale	$	1,062	$	1,039	$	23

					Aggregate Fair Value
December 31, 2021	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		Unpaid Principal
Loans held for sale	$	6,110	$	5,926	$	184

51

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The changes in fair value of loans held for sale for the three and six months ended June 30, 2022, were gains of $14 thousand and losses of $161 thousand, respectively. During the three and six months ended June 30, 2022, originations of loans held for sale totaled $2.7 million and $10.1 million, respectively. During the three and six months ended June 30, 2022, sales of loans originated for sale totaled $2.0 million and $15.1 million, respectively.

The changes in fair value of loans held for sale for the three and six months ended June 30, 2021, were losses of $240 thousand and $234 thousand, respectively. During the three and six months ended June 30, 2021, originations of loans held for sale totaled $16.3 million and $60.4 million, respectively. During the three and six months ended June 30, 2021, sales of loans originated for sale totaled $20.3 million and $68.3 million, respectively.

Interest Rate Swaps. The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings.

Although the Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2022, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

Commitments to Lend. The Company enters into commitments to lend for residential mortgage loans intended for sale, which commit the Company to lend funds to a potential borrower at a specific interest rate and within a specified period of time. The estimated fair value of commitments to originate residential mortgage loans for sale is based on quoted prices for similar loans in active markets. However, this value is adjusted by a factor which considers the likelihood that the loan in a lock position will ultimately close, and by the non-refundable costs of originating the loan. The closing ratio is derived from the Bank’s internal data and is adjusted using significant management judgment. The costs to originate are primarily based on the Company’s internal commission rates that are not observable. As such, these commitments are classified as Level 3 measurements.

Forward Sale Commitments. The Company utilizes forward sale commitments as economic hedges against potential changes in the values of the commitments to lend and loans originated for sale. To Be Announced (“TBA”) mortgage-backed securities forward commitment sales are used as the hedging instrument, are classified as Level 1, and consist of publicly-traded debt securities for which identical fair values can be obtained through quoted market prices in active exchange markets. The fair values of the Company’s best efforts and mandatory delivery loan sale commitments are determined similarly to the commitments to lend using quoted prices in the market place that are observable. However, costs to originate and closing ratios included in the calculation are internally generated and are based on management’s judgment and prior experience, which are considered factors that are not observable. As such, best efforts and mandatory forward commitments are classified as Level 3 measurements.

Capitalized Servicing Rights. The Company accounts for certain capitalized servicing rights at fair value in its Consolidated Financial Statements, as the Company is permitted to elect the fair value option for each specific instrument. A loan servicing right asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans exceed adequate compensation for performing the servicing. The fair value of servicing rights is estimated using a present value cash flow model. The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates. Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy.

52

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis for the three and six months ended June 30, 2022 and 2021.

	Assets (Liabilities)
			Securities		Loans						Capitalized
	Trading		Available		Held for		Commitments		Forward		Servicing
(In thousands)	Security		for Sale		Investment		to Lend		Commitments		Rights
Three Months Ended June 30, 2022
March 31, 2022	$	7,798	$	4,020	$	1,197	$	18	$	7	$	1,786
Unrealized (loss)/gain, net recognized in other non-interest income	(556)		—		259		60		11		120
Unrealized gain included in accumulated other comprehensive income	—		—		—		—		—		—
Paydown of asset	(202)		—		(407)		—		—		—
Transfers to held for sale loans	—		—		—		(52)		—		—
June 30, 2022	$	7,040	$	4,020	$	1,049	$	26	$	18	$	1,906
Six Months Ended June 30, 2022
December 31, 2021	$	8,354	$	4,030	$	1,200	$	124	$	134	$	1,966
Unrealized (loss)/gain, net recognized in other non-interest income	(910)		—		468		130		(116)		(60)
Unrealized (loss) included in accumulated other comprehensive income	—		(10)		—		—		—		—
Paydown of asset	(404)		—		(619)		—		—		—
Transfers to held for sale loans	—		—		—		(228)		—		—
June 30, 2022	$	7,040	$	4,020	$	1,049	$	26	$	18	$	1,906
Unrealized gain relating to instruments still held at June 30, 2022	$	(436)	$	20	$	—	$	26	$	18	$	—

53

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

			Securities		Loans						Capitalized
	Trading		Available		Held for		Commitments		Forward		Servicing
(In thousands)	Security		for Sale		Investment		to Lend		Commitments		Rights
Three Months Ended June 30, 2021
March 31, 2021	$	9,350	$	—	$	1,448	$	185	$	326	$	2,968
Unrealized (loss)/gain, net recognized in other non-interest income	(305)		—		187		430		(234)		(612)
Paydown of asset	(192)		—		(375)		—		—		—
Transfers to held for sale loans	—		—		—		(354)		—		—
June 30, 2021	$	8,853	$	—	$	1,260	$	261	$	92	$	2,356
Six Months Ended June 30, 2021
December 31, 2020	$	9,708	$	15,000	$	2,265	$	735	$	320	$	3,033
Maturity of AFS security	—		(15,000)		—		—		—		—
Unrealized gain, net recognized in other non-interest income	(471)		—		601		—		(228)		—
Unrealized gain/(loss), net recognized in other non-interest income	—		—		—		1,248		—		(677)
Paydown of asset	(384)		—		(1,606)		—		—		—
Transfers to held for sale loans	—		—		—		(1,722)		—		—
June 30, 2021	$	8,853	$	—	$	1,260	$	261	$	92	$	2,356
Unrealized gains relating to instruments still held at June 30,2021	$	581	$	—	$	—	$	261	$	92	$	—

54

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows:

	Fair Value				Significant Unobservable Input
(In thousands)	June 30, 2022		Valuation Techniques	Unobservable Inputs	Value
Assets (Liabilities)
Trading security	$	7,040	Discounted Cash Flow	Discount Rate	4.32		%
AFS Securities	4,020		Indication from Market Maker	Price	101.00%
Loans held for investment	1,049		Discounted Cash Flow	Discount Rate	25.00		%
				Collateral Value	$6.3 - $22.2
Commitments to lend	26		Historical Trend	Closing Ratio	83.49		%
			Pricing Model	Origination Costs, per loan	$	3
Forward commitments	18		Historical Trend	Closing Ratio	83.49		%
			Pricing Model	Origination Costs, per loan	$	3
Capitalized servicing rights	1,906		Discounted cash flow	Constant Prepayment Rate (CPR)	12.26		%
				Discount Rate	9.04		%
Total	$	14,059

	Fair Value				Significant Unobservable Input
(In thousands)	December 31, 2021		Valuation Techniques	Unobservable Inputs	Value
Assets (Liabilities)
Trading security	$	8,354	Discounted Cash Flow	Discount Rate	3.35		%
AFS Securities	4,030		Indication from Market Maker	Price	101.00		%
Loans held for investment	1,200		Discounted Cash Flow	Discount Rate	25.00		%
				Collateral Value	$6.3- $19.8
Commitments to lend	124		Historical Trend	Closing Ratio	82.09		%
			Pricing Model	Origination Costs, per loan	$	3
Forward commitments	134		Historical Trend	Closing Ratio	82.09		%
			Pricing Model	Origination Costs, per loan	$	3
Capitalized servicing rights	1,966		Discounted Cash Flow	Constant Prepayment Rate (CPR)	19.41		%
				Discount Rate	9.50		%
Total	$	15,808

55

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Non-Recurring Fair Value Measurements

The Company is required, on a non-recurring basis, to adjust the carrying value or provide valuation allowances for certain assets using fair value measurements in accordance with GAAP. The following is a summary of applicable non-recurring fair value measurements. There are no liabilities measured at fair value on a non-recurring basis.

	June 30, 2022		December 31, 2021		Fair Value Measurement Date as of June 30, 2022
	Level 3		Level 3		Level 3
(In thousands)	Inputs		Inputs		Inputs
Assets
Individually evaluated	$	3,026	$	12,482	June 2022
Capitalized servicing rights	12,510		14,056		June 2022
Total	$	15,536	$	26,538

Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is as follows:

	Fair Value
(In thousands)	June 30, 2022		Valuation Techniques	Unobservable Inputs	Range (Weighted Average) (1)
Assets
Individually evaluated	$	3,026	Fair Value of Collateral	Discounted Cash Flow - Loss Severity	(100.00)% to 15.31% ((49.34)%)
				Appraised Value	$0 to $734 ($485)
Capitalized servicing rights	12,510		Discounted Cash Flow	Constant Prepayment Rate (CPR)	5.90% to 13.24% (10.99%)
				Discount Rate	9.09% to 11.74% (10.80%)
Total	$	15,536

(1)     Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.

	Fair Value
(In thousands)	December 31, 2021		Valuation Techniques	Unobservable Inputs	Range (Weighted Average) (1)
Assets
Individually evaluated	$	12,482	Fair Value of Collateral	Discounted Cash Flow - loss severity	(35.96)% to 133.09% ((49.14)%)
				Appraised Value	$0 to $405 ($256)
Capitalized servicing rights	14,056		Discounted Cash Flow	Constant Prepayment Rate (CPR)	6.24% to 17.73% (13.29%)
				Discount Rate	9.59% to 13.11% (11.97%)
Total	$	26,538

(1)     Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.

There were no Level 1 or Level 2 nonrecurring fair value measurements for the periods ended June 30, 2022 and December 31, 2021.

56

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Individually evaluated loans. Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records non-recurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Non-recurring adjustments can also include certain impairment amounts for collateral-dependent loans calculated when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace. However, the choice of observable data is subject to significant judgment, and there are often adjustments based on judgment in order to make observable data comparable and to consider the impact of time, the condition of properties, interest rates, and other market factors on current values. Additionally, commercial real estate appraisals frequently involve discounting of projected cash flows, which relies inherently on unobservable data. Therefore, nonrecurring fair value measurement adjustments that relate to real estate collateral have generally been classified as Level 3. Estimates of fair value for other collateral that supports commercial loans are generally based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. 

Capitalized loan servicing rights. A loan servicing right asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans exceed adequate compensation for performing the servicing. The fair value of servicing rights is estimated using a present value cash flow model. The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates. Adjustments are only recorded when the discounted cash flows derived from the valuation model are less than the carrying value of the asset. Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy.

57

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Summary of Estimated Fair Values of Financial Instruments

The following tables summarize the estimated fair values (represents exit price), and related carrying amounts, of the Company’s financial instruments. Certain financial instruments and all non-financial instruments are excluded. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

	June 30, 2022
	Carrying		Fair
(In thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	871,017	$	871,017	$	871,017	$	—	$	—
Trading security	7,040		7,040		—		—		7,040
Marketable equity securities	14,154		14,154		13,499		655		—
Securities available for sale	1,697,019		1,697,019		—		1,692,999		4,020
Securities held to maturity	602,611		544,065		—		541,695		2,370
FHLB bank stock and restricted securities	9,365		N/A		N/A		N/A		N/A
Net loans	7,704,430		7,708,139		—		—		7,708,139
Loans held for sale	1,062		1,062		—		1,062		—
Accrued interest receivable	36,203		36,203		—		36,203		—
Derivative assets	58,660		58,660		—		58,616		44
Financial Liabilities
Total deposits	$	10,114,664	$	10,087,181	$	—	$	10,087,181	$	—
Short-term debt	50,000		49,996		—		49,996		—
Long-term Federal Home Loan Bank advances and other	8,542		7,214		—		7,214		—
Subordinated borrowings	195,659		190,048		—		190,048		—
Derivative liabilities	77,073		77,073		—		77,073		—

	December 31, 2021
	Carrying		Fair
(In thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	1,627,807	$	1,627,807	$	1,627,807	$	—	$	—
Trading security	8,354		8,354		—		—		8,354
Marketable equity securities	15,453		15,453		14,798		655		—
Securities available for sale and other	1,877,585		1,877,585		—		1,873,555		4,030
Securities held to maturity	636,503		647,236		—		644,497		2,739
FHLB bank stock and restricted securities	10,800		N/A		N/A		N/A		N/A
Net loans	6,719,753		6,850,975		—		—		6,850,975
Loans held for sale	6,110		6,110		—		6,110		—
Accrued interest receivable	33,534		33,534		—		33,534		—
Derivative assets	79,528		79,528		—		79,270		258
Financial Liabilities
Total deposits	$	10,068,953	$	10,073,217	$	—	$	10,073,217	$	—
Short-term debt	—		—		—		—		—
Long-term Federal Home Loan Bank advances	13,331		13,053		—		13,053		—
Subordinated borrowings	97,513		95,006		—		95,006		—
Derivative liabilities	35,194		35,194		—		35,194		—

58

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 14. NET INTEREST INCOME AFTER BENEFIT/PROVISION FOR CREDIT LOSSES

Presented below is net interest income after provision for credit losses for the three and six months ended June 30, 2022 and 2021, respectively.

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2022		2021		2022		2021
Net interest income	$	81,358	$	75,393	$	150,421	$	150,486
(Benefit)/provision for credit losses	—		—		(4,000)		6,500
Net interest after provision for credit losses	$	81,358	$	75,393	$	154,421	$	143,986

59

ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

SELECTED FINANCIAL DATA

The following summary data is based in part on the consolidated financial statements and accompanying notes and other information appearing elsewhere in this or prior Forms 10-Q.

	At or for the						At or for the
	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
NOMINAL AND PER SHARE DATA
Net earnings per common share, diluted	$	0.50		$	0.43		$	0.92		$	0.69
Adjusted earnings per common share, diluted (1)(2)	0.51			0.44			0.94			0.75
Net income, (thousands)	23,115			21,636			43,311			34,667
Adjusted net income, (thousands) (1)(2)	23,562			22,104			44,351			38,119
Total common shares outstanding, (thousands)	45,788			50,453			45,788			50,453
Average diluted shares, (thousands)	46,102			50,608			47,074			50,588
Total book value per common share	22.15			23.30			22.15			23.30
Tangible book value per common share (2)	21.56			22.66			21.56			22.66
Dividends per common share	0.12			0.12			0.24			0.24
Full-time equivalent staff, continuing operations	1,322			1,417			1,322			1,417
PERFORMANCE RATIOS (3)
Return on equity	7.82		%	7.37		%	7.31		%	5.95		%
Adjusted return on equity (1)(2)	7.97			7.53			7.49			6.54
Return on tangible common equity (1)(2)	8.33			7.92			7.81			6.46
Adjusted return on tangible common equity (1)(2)	8.48			8.08			7.99			7.07
Return on assets	0.82			0.70			0.76			0.56
Adjusted return on assets (1)(2)	0.84			0.71			0.78			0.61
Net interest margin, fully taxable equivalent (FTE) (4)(5)	3.11			2.62			2.86			2.62
Efficiency ratio (1)(2)	66.60			67.82			69.48			69.60
FINANCIAL DATA (in millions, end of period)
Total assets	$	11,579		$	12,273		$	11,579		$	12,273
Total earning assets	10,849			11,571			10,849			11,571
Total loans	7,803			7,233			7,803			7,233
Total deposits	10,115			9,914			10,115			9,914
Loans/deposits (%)	77		%	73		%	77		%	73		%
ASSET QUALITY
Allowance for credit losses, (millions)	$	99		$	119		$	99		$	119
Net charge-offs, (millions)	—			(5)			(3)			(15)
Net charge-offs (QTD annualized)/average loans	0.02		%	0.26		%	0.08		%	0.39		%
Provision (benefit)/expense, (millions)	$	—		$	—		$	(4)		$	7
Non-accruing loans/total loans	0.34		%	0.66		%	0.34		%	0.66		%
Allowance for credit losses/non-accruing loans	368			250			368			250
Allowance for credit losses/total loans	1.27			1.65			1.27			1.65
CAPITAL RATIOS
Common equity tier 1 capital to risk-weighted assets	12.9		%	14.3		%	12.9		%	14.3		%
Tier 1 capital leverage ratio	10.2			9.5			10.2			9.5
Tangible common shareholders' equity/tangible assets (2)	8.5			9.3			8.5			9.3

60

	At or for the				At or for the
	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
FOR THE PERIOD: (In thousands)
Net interest income	$	81,358	$	75,393	$	150,421	$	150,486
Non-interest income	16,351		22,011		37,032		48,204
Net revenue	97,709		97,404		187,453		198,690
(Benefit)/provision for credit losses	—		—		(4,000)		6,500
Non-interest expense	68,475		68,872		137,025		147,026
Net income	23,115		21,636		43,311		34,667
Adjusted income (1)(2)	23,562		22,104		44,351		38,116

____________________________________________________________________________________________

(1)  Adjusted measurements are non-GAAP financial measures that are adjusted to exclude net non-operating charges primarily related to acquisitions and restructuring activities. Refer to "Reconciliation of Non-GAAP Financial Measures" for additional information.

(2)     Non-GAAP financial measure. Refer to "Reconciliation of Non-GAAP Financial Measures" for additional information.

(3)  All performance ratios are annualized and are based on average balance sheet amounts, where applicable.

(4) Fully taxable equivalent considers the impact of tax advantaged investment securities and loans.

(5)    The effect of purchase accounting accretion for loans, time deposits, and borrowings on the net interest margin was an increase in all periods presented. The increase for the three months ended June 30, 2022 and 2021 was 0.03% and 0.08%, respectively. The increase for the six months ended June 30, 2022 and 2021 was 0.03% and 0.06%, respectively.

61

AVERAGE BALANCES AND AVERAGE YIELDS/RATES

The following table presents average balances and an analysis of average rates and yields on an annualized fully taxable equivalent basis for the periods included:

	Three Months Ended June 30,								Six Months Ended June 30,
	2022				2021				2022				2021
(Dollars in millions)	Average Balance		Yield/Rate (FTE basis)		Average Balance		Yield/Rate (FTE basis)		Average Balance		Yield/Rate (FTE basis)		Average Balance		Yield/Rate (FTE basis)
Assets
Loans:
Commercial real estate	$	3,831	3.79	%	$	3,625	3.46	%	$	3,741	3.57	%	$	3,628	3.37	%
Commercial and industrial loans	1,447		4.46		1,605		4.74		1,410		4.30		1,735		4.68
Residential mortgages	1,652		3.57		1,604		3.79		1,545		3.57		1,672		3.75
Consumer loans	562		5.41		582		3.80		538		4.82		608		3.80
Total loans (1)	7,492		3.99		7,416		3.84		7,234		3.80		7,643		3.78
Investment securities (2)	2,621		1.97		2,259		2.17		2,635		1.96		2,227		2.27
Short-term investments & loans held for sale (3)	476		0.57		1,750		0.10		837		0.37		1,551		0.11
Mid-Atlantic region loans held for sale (4)	—		—		269		3.96		—		—		282		4.03
Total interest-earning assets	10,589		3.34		11,694		2.96		10,706		3.08		11,703		3.01
Intangible assets	27				33				28				33
Other non-interest earning assets	644				690				642				707
Total assets	$	11,260			$	12,417			$	11,376			$	12,443
Liabilities and shareholders’ equity
Deposits:
NOW and other	$	1,454	0.12	%	$	1,389	0.07	%	$	1,455	0.08	%	$	1,357	0.11	%
Money market	2,811		0.19		2,751		0.18		2,841		0.17		2,776		0.23
Savings	1,127		0.03		1,054		0.05		1,122		0.03		1,029		0.06
Time	1,460		0.64		2,013		0.94		1,542		0.67		2,140		1.03
Total interest-bearing deposits	6,852		0.24		7,207		0.35		6,960		0.24		7,302		0.42
Borrowings and notes (5)	160		4.61		381		3.12		132		4.91		441		2.95
Mid-Atlantic region interest-bearing deposits (4)	—		—		517		0.51		—		—		517		0.56
Total interest-bearing liabilities	7,012		0.34		8,105		0.49		7,092		0.33		8,260		0.56
Non-interest-bearing demand deposits	2,903				2,787				2,935				2,662
Other non-interest earning liabilities	163				351				164				355
Liabilities from discontinued operations	—				—				—				—
Total liabilities	10,078				11,243				10,191				11,277
Total common shareholders' equity	1,182				1,174				1,185				1,166
Total shareholders’ equity (2)	1,182				1,174				1,185				1,166
Total liabilities and stockholders’ equity	$	11,260			$	12,417			$	11,376			$	12,443

62

	Three Months Ended June 30,								Six Months Ended June 30,
	2022				2021				2022				2021
	Average Balance		Yield/Rate (FTE basis)		Average Balance		Yield/Rate (FTE basis)		Average Balance		Yield/Rate (FTE basis)		Average Balance		Yield/Rate (FTE basis)
Net interest spread			3.00	%			2.47	%			2.75	%			2.45	%
Net interest margin (6)			3.11				2.62				2.86				2.62
Cost of funds			0.24				0.36				0.23				0.42
Cost of deposits			0.17				0.25				0.17				0.31
Supplementary data
Total deposits (In millions)	$	9,755			$	9,994			$	9,895			$	9,964
Fully taxable equivalent income adj. (In thousands) (7)	1,560				1,660				3,084				3,154

____________________________________

(1)     The average balances of loans include nonaccrual loans and deferred fees and costs. As of June 30, 2022, deferred fees related to PPP loans was not considered material. As of June 30, 2021, deferred fees related to PPP loans totaled $0.2 million.

(2)     The average balance for securities available for sale is based on amortized cost. The average balance of equity also reflects this adjustment.

(3)     Interest income on loans held for sale is included in loan interest income on the income statement.

(4)    The Bank sold its Mid-Atlantic branch operations and insurance operations in the third quarter of 2021. The Mid-Atlantic region loans are not included in the loan yields; however they are included in the total earning assets yield and the net interest margin. The Mid-Atlantic region deposits are not included in the deposit costs; however, they are included in the total interest-bearing liabilities cost and the net interest margin.

(5)     The average balances of borrowings include the capital lease obligation presented under other liabilities on the consolidated balance sheet.

(6)     Purchase accounting accretion totaled $0.7 million and $2.2 million for the three months ended June 30, 2022 and 2021, respectively. Purchase accounting accretion totaled $1.5 million and $3.5 million for the three months ended June 30, 2022 and 2021, respectively.

(7)    Fully taxable equivalent considers the impact of tax advantaged investment securities and loans. The yield on tax-exempt loans and securities is computed on a fully tax-equivalent basis using a tax rate of 27%.

63

NON-GAAP FINANCIAL MEASURES

This document contains certain non-GAAP financial measures in addition to results presented in accordance with Generally Accepted Accounting Principles (“GAAP”). These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. A reconciliation of non-GAAP financial measures to GAAP measures is provided below. In all cases, it should be understood that non-GAAP measures do not depict amounts that accrue directly to the benefit of shareholders. An item which management excludes when computing non-GAAP adjusted earnings can be of substantial importance to the Company’s results for any particular quarter or year. The Company’s non-GAAP adjusted earnings information set forth is not necessarily comparable to non- GAAP information which may be presented by other companies. Each non-GAAP measure used by the Company in this report as supplemental financial data should be considered in conjunction with the Company’s GAAP financial information.

The Company utilizes the non-GAAP measure of adjusted earnings in evaluating operating trends, including components for operating revenue and expense. These measures exclude amounts which the Company views as unrelated to its normalized operations. These items primarily include securities gains/losses, merger costs, restructuring costs, goodwill impairment, and discontinued operations. Merger costs consist primarily of severance/benefit related expenses, contract termination costs, systems conversion costs, variable compensation expenses, and professional fees. Restructuring costs generally consist of costs and losses associated with the disposition of assets and liabilities and lease terminations, including costs related to branch sales. Restructuring costs also include severance and consulting expenses related to the Company’s strategic review.

The Company also calculates adjusted earnings per share based on its measure of adjusted earnings and diluted common shares. The Company views these amounts as important to understanding its operating trends, particularly due to the impact of accounting standards related to merger and acquisition activity. Analysts also rely on these measures in estimating and evaluating the Company’s performance. Expense adjustments in 2021 were primarily related to branch consolidations. Net losses on securities in 2022 were primarily due to unrealized equity securities losses due to changes in market conditions.

Management believes that the computation of non-GAAP adjusted earnings and adjusted earnings per share may facilitate the comparison of the Company to other companies in the financial services industry. The Company also adjusts certain equity related measures to exclude intangible assets due to the importance of these measures to the investment community.

64

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

The following table summarizes the reconciliation of non-GAAP items recorded for the periods indicated:

		At or for the Three Months Ended June 30,						At or for the Six Months Ended June 30,
(In thousands)		2022			2021			2022			2021
GAAP Net income		$	23,115		$	21,636		$	43,311		$	34,667
Adj: Net losses on securities (1)		973			484			1,718			515
Adj: Restructuring and other expense		35			6			53			3,492
Adj: Income taxes		(561)			(22)			(731)			(555)
Total adjusted income/(loss) (non-GAAP) (2)	(A)	$	23,562		$	22,104		$	44,351		$	38,119
GAAP Total revenue		$	97,709		$	97,404		$	187,453		$	198,690
Adj: Losses on securities, net (1)		973			484			1,718			515
Total operating revenue (non-GAAP) (2)	(B)	$	98,682		$	97,888		$	189,171		$	199,205
GAAP Total non-interest expense		$	68,475		$	68,872		$	137,025		$	147,026
Less: Total non-operating expense (see above)		(35)			(6)			(53)			(3,492)
Operating non-interest expense (non-GAAP) (2)	(C)	$	68,440		$	68,866		$	136,972		$	143,534
(In millions, except per share data)
Total average assets	(D)	$	11,260		$	12,417		$	11,376		$	12,442
Total average shareholders’ equity	(E)	1,182			1,174			1,185			1,166
Total average tangible shareholders’ equity (2)	(F)	1,155			1,141			1,157			1,133
Total average tangible common shareholders' equity (2)	(G)	1,155			1,141			1,157			1,133
Total tangible shareholders’ equity, period-end (2)(3)	(H)	987			1,143			987			1,143
Total tangible common shareholders' equity, period-end (2)(3)	(I)	987			1,143			987			1,143
Total tangible assets, period-end (2)(3)	(J)	11,552			12,241			11,552			12,241
Total common shares outstanding, period-end (thousands)	(K)	45,788			50,453			45,788			50,453
Average diluted shares outstanding (thousands)	(L)	46,102			50,608			47,074			50,588
Earnings per common share, diluted		$	0.50		$	0.43		$	0.92		$	0.69
Adjusted earnings per common share, diluted (2)	(A/L)	0.51			0.44			0.94			0.75
Book value per common share, period-end		22.15			23.30			22.15			23.30
Tangible book value per common share, period-end (2)	(I/K)	21.56			22.66			21.56			22.66
Total shareholders' equity/total assets		8.76			9.57			8.76			9.57
Total tangible shareholder's equity/total tangible assets (2)	(H/J)	8.54			9.34			8.54			9.34
Performance ratios (4)
GAAP return on equity		7.82		%	7.37		%	7.31		%	5.95		%
Adjusted return on equity (2)	(A/E)	7.97			7.53			7.49			6.54
Return on tangible common equity (2)(5)		8.33			7.92			7.81			6.46
Adjusted return on tangible common equity (2)(5)	(A+O)/(G)	8.48			8.08			7.99			7.07
GAAP return on assets		0.82			0.70			0.76			0.56
Adjusted return on assets (2)	(A/D)	0.84			0.71			0.78			0.61
Efficiency ratio (2)	(C-O)/(B+M+P)	66.60			67.82			69.48			69.60

65

(in thousands)
Supplementary data (In thousands)
Tax benefit on tax-credit investments (6)	(M)	$	595	$	79	$	1,191	$	120
Non-interest income charge on tax-credit investments (7)	(N)	(351)		(175)		(708)		(207)
Net income on tax-credit investments	(M+N)	244		(96)		483		(87)
Intangible amortization	(O)	1,286		1,297		2,572		2,616
Fully taxable equivalent income adjustment	(P)	1,560		1,660		3,084		3,154

_________________________________________________________________________________________

(1)     Net securities losses for the periods ending June 30, 2022 and 2021 include the change in fair value of the Company's equity securities in compliance with the Company's adoption of ASU 2016-01.

(2)    Non-GAAP financial measure.

(3)    Total tangible shareholders’ equity is computed by taking total shareholders’ equity less the intangible assets at period-end. Total tangible assets is computed by taking total assets less the intangible assets at period-end.

(4)     Ratios are annualized and based on average balance sheet amounts, where applicable.

(5)     Adjusted return on tangible common equity is computed by dividing the total adjusted income adjusted for the tax-affected amortization of intangible assets, assuming a 27% marginal rate, by tangible equity.

(6)     The tax benefit is the direct reduction to the income tax provision due to tax credits and deductions generated from investments in historic rehabilitation and low-income housing.

(7)     The non-interest income charge is the reduction to the tax-advantaged commercial project investments, which are incurred as the tax credits are generated.

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GENERAL

Management’s discussion and analysis of financial condition and results of operations is intended to assist in understanding the financial condition and results of operations of the Company. The following discussion and analysis should be read in conjunction with the Company’s consolidated financial statements and the notes thereto appearing in Part I, Item 1 of this document and with the Company’s consolidated financial statements and the notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2021 Annual Report on Form 10-K. In the following discussion, income statement comparisons are against the same period of the previous year and balance sheet comparisons are against the previous fiscal year-end, unless otherwise noted. Operating results discussed herein are not necessarily indicative of the results for the year 2022 or any future period. In management’s discussion and analysis of financial condition and results of operations, certain reclassifications have been made to make prior periods comparable. References to loan categories in the financial statements are based on collateralization.

Tax-equivalent adjustments are the result of increasing income from tax-advantaged loans and securities by an amount equal to the taxes that would be paid if the income were fully taxable based on a 27% marginal rate (including state income taxes net of federal benefit). In the discussion, unless otherwise specified, references to earnings per share and "EPS" refer to diluted earnings per common share.

Berkshire Hills Bancorp, Inc. (“Berkshire” or “the Company”) is a Delaware corporation headquartered in Boston and the holding company for Berkshire Bank (“the Bank”). Established in 1846, the Bank operates as a commercial bank under a Massachusetts trust company charter. The Bank seeks to transform what it means to bank its neighbors socially, humanly, and digitally to empower the financial potential of people, families, and businesses in its communities as it pursues its vision of being a leading socially responsible omni-channel community bank in New England and beyond. Berkshire Bank provides business and consumer banking, mortgage, wealth management, and investment services. Headquartered in Boston, Berkshire has approximately $11.6 billion in assets and operates 105 branch offices in New England and New York.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (referred to as the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (referred to as the Securities Exchange Act), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our outlook for earnings, net interest margin, fees, expenses, tax rates, capital and liquidity levels and other matters regarding or affecting Berkshire and its future business or operations. You can identify these statements from the use of the words “may,” “will,” “should,” “could,” “would,” “outlook,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions. Such statements further include statements about expectations regarding inflation and interest rates, economic activity, supply chains, the Russian invasion of Ukraine, market conditions, and stock repurchases.

These forward-looking statements are subject to significant risks, assumptions and uncertainties, including among other things, changes in general economic and business conditions, increased competitive pressures, inflation and changes in the interest rate environment that reduce our margins and yields, reduce the fair value of financial instruments or reduce our volume of loan originations, or increase the level of defaults, losses and prepayments on loans we have made and make whether held in portfolio or sold in the secondary market, legislative and regulatory change, changes in the financial markets, the effects of the COVID-19 pandemic, including impacts on the Company, its customers, and the communities where it operates, international conflict in Europe and elsewhere, and other risks and uncertainties disclosed from time to time in documents that Berkshire Hills Bancorp files with the Securities and Exchange Commission, including the Risk Factors included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as updated by subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

In addition, Berkshire’s past results of operations do not necessarily indicate Berkshire’s combined future results. You should not place undue reliance on any of the forward-looking statements, which speak only as of the dates on which they were made. Berkshire is not undertaking an obligation to update forward-looking statements, even though its situation may change in the future, except as required under federal securities law. Berkshire qualifies all of its forward-looking statements by these cautionary statements.

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SUMMARY

Berkshire’s revenue and earnings advanced in the most recent quarter as the Company has begun to generate improved growth and profitability under its BEST strategic plan which was initiated at midyear 2021. Results have also benefited from a strong credit environment and from market interest rate increases which began after the start of 2022. The Company’s interest rate risk profile is positioned to benefit earnings from further interest rate increases expected by the markets through the rest of the year.

The BEST plan targeted getting better before getting bigger, and this was a primary focus in the second half of 2021 as various expense and profitability initiatives were undertaken and less strategic operations were ended, including the sale of Mid-Atlantic branch operations and insurance operations in the third quarter of 2021. The refocus on core markets and operations and the reinvestment of resources into frontline bankers and technology contributed to the resumption of loan growth in 2022. Share repurchases over the last year to return excess capital to shareholders produced a 9% decrease in outstanding shares over the last twelve months, which has further supported growth in per share earnings and return on equity.

Earnings per share (on a diluted basis) increased year-over-year by 16% to $0.50 in the second quarter and by 33% to $0.92 in the first half of the year. The key profitability metrics tracked by the Company under its BEST plan improved year-over-year in the second quarter. Second quarter 2022 return on assets measured 0.82% and return on tangible common equity measured 8.3%. The measure of pre-tax pre-provision net revenue increased year-over-year by 2% and totaled $117 million on an annualized basis in the most recent quarter.

Second quarter 2022 financial highlights are shown below. Comparisons are year-over-year unless otherwise noted:

•16% increase in EPS

•Broad-based increase in total loans since year-end 2021 based on both end-of-period and average balances

•3.11% net interest margin, increased from 2.62%

•8% increase in net interest income

•1% decrease in non-interest expense (generally stable over last five quarters)

•0.02% net charge-offs/average loans

•0.25% non-performing assets/assets – sixth sequential quarterly improvement

•$100 million investment grade subordinated debt issuance - first Sustainability Bond issued by a public U.S. community bank

•9% reduction in period-end shares outstanding year-over-year reflecting stock buybacks

Credit metrics remained strong and improving, and earnings benefited from a release of the credit loss allowance in the first quarter of 2022, and no provision expense in the most recent quarter. The allowance continues to provide comparatively strong coverage of the loan portfolio. The Company’s balance sheet positioning includes:

•Significant liquidity available through short and long term investments and off-balance sheet sources. Loans/deposits measured 77% at midyear

•Positive asset sensitivity to rising interest rates, with a 4% modeled benefit to first year net interest income compared to a static scenario in the event of a 100 basis point upward shock to net interest income

•Stock repurchase plan approved for up to $140 million in repurchases, with $84 million completed in the first half of 2022

•Strong regulatory capital metrics, with a 12.9% period-end common equity tier 1 capital ratio

During the second quarter of 2022, Moody’s Investors Service assigned first time issuer ratings with an investment grade rating of Baa3 to Berkshire Hills Bancorp and Berkshire Bank, with a positive outlook. Moody’s assigned an A3 long-term deposit rating to the Bank. Also, in the second quarter, KBRA (Kroll Bond Rating Agency) affirmed senior unsecured investment grade ratings of BBB for Berkshire Hills Bancorp and BBB+ for Berkshire Bank, with a stable outlook. KBRA affirmed a BBB+ deposit rating for the Bank. In conjunction with the issuance of its subordinated Sustainability Bond, the Company implemented its Sustainable Financing Framework, which received a favorable rating from Sustainalytics, a leading ESG ratings firm.

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In accordance with its BEST plan, Berkshire continued recruiting front line bankers and developing technology initiatives in the first half of 2022. The Company continues to promote employees from within the organization and to bring on board knowledgeable bankers to deepen long-term relationships with its customers. Berkshire Bank recently announced an expanded partnership with fintech Narmi to create a best-in-class digital banking experience for consumers and small businesses, which is targeted for implementation in 2023. For more information about the BEST plan, please see Item 7 "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in the Company’s most recent report on Form 10-K.

Since year-end 2021, inflation has continued to accelerate, reaching 9.1% for the twelve months ended June 2022. In response, the Federal Reserve Bank has embarked on monetary tightening policies, resulting in increased interest rates. The Federal Reserve has indicated that further tightening is anticipated.

As of July 28, 2022, GDP was reported as declining for the first two quarters of 2022. Business conditions remained relatively favorable through midyear 2022 in the Company’s markets. The Company is pursuing its plans for growth under its BEST plan based on its favorable niche in a consolidating regional market and its distinctive strategy based on its DigitouchSM approach to customer engagement and its community service message that where you bank matters.

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COMPARISON OF FINANCIAL CONDITION AT JUNE 30, 2022 AND DECEMBER 31, 2021

Summary: Total assets were unchanged at $11.6 billion at midyear 2022, compared to year-end 2021. A $1.0 billion increase in loans was funded by a $0.8 billion reduction in cash and equivalents and a $0.2 billion reduction in investment securities. Cash and cash equivalents decreased to 8% of assets from 14%. Major measures of asset quality continued to strengthen and generally were improved over pre-pandemic levels.

Total deposits were stable and the loan/deposit ratio increased to 77% from 68%.

Berkshire issued an investment grade rate $100 million subordinated note offering which was the first public community bank Sustainability Bond issued in the U.S. Shareholders’ equity decreased by $168 million including the impact of $120 million in after-tax unrealized bond losses and $84 million in common stock repurchases. The ratio of tangible common equity to tangible assets decreased to 8.5% from 10.0%. The ratio of common equity tier one capital to risk weighted assets decreased to 12.9% from 15.0%. The Company views its liquidity and capital, including the contribution of retained earnings, as well positioned to support ongoing organic growth and shareholder distributions.

Sustainability Bond Issuance: On June 30, 2022, Berkshire completed the sale at par of $100 million in subordinated notes bearing interest at a fixed rate of 5.5% for the first five years. The notes will then reset quarterly to a floating rate per annum equal to a benchmark rate which is expected to be the Three-Month Term SOFR, plus 249 basis points. The notes have a ten year final maturity and generally may be called at par after five years. The Company has $75 million in existing subordinated notes bearing interest at 6.875% which are callable at par on September 28, 2022, which the Company intends to call.

Berkshire is the first public U.S. community bank holding company with under $150 billion in total assets to issue a Sustainability Bond. The Company intends to use an amount equal to the net proceeds of its sustainability bond issuance to finance or refinance new or existing social and environmental projects consistent with its Sustainable Financing Framework. Sustainalytics, a Morningstar Company, and the global leader in high-quality ESG research, ratings, and data, has independently verified that Berkshire’s Sustainable Financing Framework" is credible and impactful and in alignment with” International Capital Market Association (ICMA) guidelines and principles.

Investments: The portfolio of investment securities decreased by $219 million, or 9%, to $2.33 billion during the first half of the year primarily due to the decrease in the fair value of available for sale securities resulting from interest rate increases in the first half of 2022. The unrealized loss on securities available for sale increased from $4 million, or 0.2% of book value, at year-end 2021 to $165 million, or 8.9% of book value, at midyear 2022. The average life of the bond portfolio increased to 6.5 years from 4.6 years due primarily to slower prepayments of mortgage related securities in the rising rate environment. The investment portfolio is viewed as a significant source of liquidity for the Bank, as 93% of the $1.7 billion available for sale portfolio consists of Agency mortgage related products and Treasury notes. The investment portfolio yield was 1.97% in the second quarter of 2022, which was down from 2.04% in the fourth quarter of 2021, including the impact of treasury securities held pending planned loan growth.

Loans: Total loans increased by $978 million, or 14%, to $7.8 billion in the first half of 2022, including 7% growth in each of the two quarters. This increase offset attrition in the second half of 2021, with the result that second quarter average loans increased by 1% year-over-year. Loans increased in all major categories as a result of the Company’s BEST initiatives in the second half of 2021 which included stronger production from frontline bankers, talent recruitment, and channel expansion. Prepayments slowed in the rising rate environment. The Company anticipates that loan growth may moderate in the second half of the year compared to the first half.

Commercial real estate loans increased in the first half by $322 million, or 9%, including a $116 million increase in multifamily loans and a $171 million increase in non-owner occupied property loans. Commercial and industrial loans grew by $141 million, or 11%, which was driven by increased asset-based lending which reflected both account growth and higher line usage. The Company continues to maintain its commercial underwriting standards and growth is managed within a detailed system of hold limits based on industry and loan type. Variable rate loan underwriting includes a test of debt service coverage for up to a 300 basis point upward interest rate shock, and many commercial borrowers use interest rate swaps to reduce the risk of rising interest rates. After the end of the most recent quarter, the Company announced that it will cease originating new loans in its Firestone Financial

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specialty lending operation and allow the portfolio to run-off. This was a strategic decision in the context of Berkshire’s BEST plan to focus on core markets and products. The Firestone portfolio stood at $165 million at midyear 2022 and continues to have strong credit performance in line with its long history.

Residential mortgage loans increased by $427 million, or 31%, in the first half of the year. In accordance with its BEST initiative, Berkshire invested in expanding its retail originations team and its correspondent platform. The Company also purchased residential mortgages from area lenders. Most mortgage originations were held for investment; the Company targets to expand the retail origination of loans held for sale in the second half of the year.

Consumer loans increased by $87 million, or 17%, in the first half of the year. Growth was driven by consumer unsecured loans originated through the Company’s partnership with the fintech Upstart. This portfolio totaled $152 million at midyear, and most of these loans were originated during the first half of the year and were generally subject to the Company’s prime underwriting standards. In July 2022 the Company announced that, due to the prevailing economic uncertainty, it will cease new originations through this partnership. Credit performance of this portfolio has exceeded the Company’s expectations.

The yield on the loan portfolio increased to 3.99% in the second quarter of 2022 from 3.76% in the fourth quarter of 2021 due primarily to the impact of rising interest rates on prime and LIBOR indexed loans. Loans repricing within three months totaled $3.3 billion, or 42% of total loans at midyear 2022. The Company anticipates that further increases in market interest rates will lead to higher loan yields in future periods.

Asset Quality and Credit Loss Allowance: Major asset quality metrics improved in the first half of 2022, with many metrics improving to better levels than pre-pandemic. Non-accruing loans decreased to 0.34% of total loans at midyear, totaling $27 million, of which $8 million was added in the first half of the year. Annualized net loan charge-offs declined to 0.02% of average loans in the most recent quarter. Accruing delinquent loans measured 0.55% of total loans at midyear, compared to 0.63% at year-end 2021. At midyear, accruing troubled debt restructurings totaled $9 million and accruing loans over 90 days delinquent totaled $7 million. Total criticized loans decreased to 2.7% of loans from 3.5% of loans, including classified loans which decreased to 2.0% of loans from 2.1% of loans. Classified loans include accruing substandard loans, which are regarded as potential problem loans and which remained unchanged at 1.6% of total loans.

The allowance for credit losses on loans decreased in the first half of 2022 to $99 million from $106 million. The ratio of the allowance to total loans decreased to 1.27% from 1.55%. This decline was primarily due to improvements in the qualitative factors of the allowance methodology mainly as a result of improved asset quality metrics. It also reflected a reduction in the potential losses from economic and social disruptions related to COVID-19 conditions. Considering loan and allowance balances, the magnitude of the improvement was most reflected in the allowances related to residential mortgages, commercial non-owner occupied property loans, multifamily loans, and construction loans. This was partially offset by higher consumer reserves related to the consumer unsecured lending during the period.

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Deposits and Borrowings: Total deposits of $10.1 billion were unchanged at midyear 2022 compared to year-end 2021. A mix shift between NOW and money market balances was primarily due to the timing of payroll cycles as they affect the Company’s payroll deposit business. Payroll deposits totaled $1.3 billion at midyear 2022 compared to $1.0 billion at year-end 2021. The Company has been reducing its brokered deposits, which decreased to $113 million from $228 million on these respective dates. The Company evaluates its total deposits adjusted to exclude payroll and brokered deposits in evaluating its market activities. These adjusted deposits totaled $8.7 billion at midyear 2022, which was a 1% decrease from $8.8 billion at year-end 2021. This includes the impact of increased customer spending rates as well as market competition from higher yielding investment instruments in the rising interest rate environment. The cost of deposits decreased to 0.17% in the second quarter of 2022 from 0.19% in the fourth quarter of 2021. This included the benefit of maturing higher cost time deposits, including brokered deposits. The Company anticipates that further increases in market interest rates will lead to higher deposit costs in future periods. Borrowings increased primarily due to the subordinated note offering previously described. This offering was completed on June 30, 2022, and the proceeds were held in cash and cash equivalents at that date. The Company has a $75 million subordinated debt obligation bearing interest at 6.875% which becomes callable in September 2022. The Company expects to call this instrument at par after it becomes callable.

Derivative Financial Instruments: There were no material changes in the portfolio of outstanding derivative financial instruments, which totaled $3.8 billion in notional amount at period-end. The estimated fair value of these instruments was a liability of $18 million at period-end, which decreased from an asset of $43 million at year-end 2021 due to the impact of changes in interest rates on the value of outstanding commercial loan interest rate swaps.

Please see the Company’s most recent report on Form 10-K for additional information regarding the LIBOR transition.

Shareholders' Equity: Total shareholders’ equity decreased by $168 million, or 14%, to $1.01 billion during the first half of 2022. This included the impact of $84 million in stock repurchases pursuant to the Company’s $140 million authorized repurchase program, leaving $56 million in remaining repurchases authorized by year-end 2022.

Shareholders’ equity also decreased due to the impact of fair market value discounts on the available for sale securities portfolio as previously described. The after-tax impact of these charges totaled $120 million for the first six months of 2022, which was recorded to the accumulated other comprehensive loss component of shareholders’ equity. Of note, the charge for bond discounts is accreted back into equity as the related securities amortize over the 6.5 year average life of the related securities.

The Company’s 7.3% return on equity in the first half of 2022 partially offset the reductions described above, net of $0.12 per share in quarterly common dividends, which represented a 25% payout of first half earnings.

The 2022 first half decrease to 8.5% from 10.0% in the ratio of tangible common equity to tangible assets reflected the reduction in equity compared to stable assets. The charge to equity related to bond value discounts is not included as a component of the calculation of regulatory equity, which is the Company’s primary focus in capital management. The increase in loans in 2022 had an impact of increasing the regulatory measure of risk weighted assets. Including this impact, together with stock repurchase impact, the ratio of common equity tier one capital to risk weighted assets decreased to 12.9% from 15.0%. The Company monitors the impacts of rising rates, credit stress scenarios, and organic growth in assessing its capital adequacy and plans. The Company’s capital ratios were viewed by management as strong at midyear 2022. At that date, book value per share totaled $22.15 and tangible book value per share totaled $21.56.

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COMPARISON OF OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 AND JUNE 30, 2021

Summary: Berkshire’s second quarter net income increased year-over-year by 7% to $23 million. Net interest income increased by 8% year-over-year reflecting the Company’s BEST strategy to reinvest resources into balance sheet growth which has also benefited from the rising interest rate environment.

First half net income increased year-over-year by 25% to $43 million due primarily to a $7 million year-over-year improvement in first quarter results. This reflected a benefit recorded to the first quarter 2022 credit loss provision as well as a decline in non-interest expense from elevated costs in the first quarter of 2021.

On a per share basis, second quarter net income increased by 16% to $0.50. First half per share results increased by 33% to $0.92 per diluted share. Per share earnings benefited from share repurchases over these periods, with average diluted shares decreasing year-over-year by 9% in the second quarter and by 7% for the first half of the year.

Non-GAAP financial measures are discussed above in the section of "Non-GAAP Financial Measures". Quarterly adjusted EPS was $0.01 higher than GAAP results in 2021 and 2022 except for the first quarter of 2021, which had elevated restructuring charges. First half adjusted EPS increased by 25% to $0.94 in 2022.

Total second quarter net revenue was unchanged year-over-year at approximately $97.5 million, and second quarter non-interest expense decreased by 1% to $68.5 million. For the first half of the year, total revenue decreased by 6%, to $187 million and non-interest expense decreased by 7% to $137 million. Year-over-year changes in revenue and expense include the impact of insurance and branch operations sold near the end of the third quarter of 2021. The second quarter efficiency ratio in 2022 measured 66.6%, compared to 67.8% in 2021. The Company’s overall strategy is to reinvest expense savings into bankers and technology to support higher future revenue in the context of its BEST plan.

Net Interest Income: Second quarter net interest income increased year-over-year by 8%, to $81 million. First half net interest income was unchanged at $150 million in both years. Due primarily to loan runoff, this income decreased sequentially in the quarters following the second quarter of 2021, declining to $69 million in the first quarter of 2022 before rebounding in the most recent quarter due primarily to 2022 loan growth and market interest rate increases.

The net interest margin increased to 3.11% in the second quarter of 2022, compared to 2.62% in the second quarter of 2021. This reflected a 38 basis point improvement in the earning asset yield and a 12 basis point reduction in the cost of funds. The earning asset yield improvement reflected a 15 basis point improvement in the loan yield due primarily to rising interest rates, as well as the reduction in low yielding short-term investments. The cost of funds improvement was primarily due to reductions of higher cost wholesale funds, along with a shift in retail deposits from higher cost time accounts into other lower cost deposit accounts.

Second quarter 2022 net interest income increased by 18% over the linked quarter, mirroring the 19% quarter-over-quarter change in the net interest margin to 3.11% from 2.61%. Net interest income responded rapidly to the market rate increases, while also benefiting from stable deposit costs and from loan growth. At midyear 2022, the Company remained asset sensitive and was positioned to benefit from further increases in market interest rates in 2022 based on market forecasts. This is discussed below in Item 3 “Quantitative and Qualitative Disclosures About Market Risk”.

Non-Interest Income: Non-interest income decreased year-over-year by 26% to $16 million in the second quarter and by 23% to $37 million for the year-to-date. This decrease included the elimination of insurance revenue in 2022 following the sale of these operations in the third quarter of 2021. The decrease was also impacted by a decline in loan fees and revenues from elevated levels in 2021. Higher loan related revenues in 2021 included elevated SBA related income which benefited from pandemic related SBA program changes. 2021 first quarter results also benefited from PPP referral fees earned during the second round of the PPP loan program that operated in the first half of last year.

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Despite the sale of the Mid-Atlantic branch operations in the third quarter of 2021, first half deposit related fees advanced year-over-year by 5%, and wealth management fees grew by 2%. Mortgage banking revenue declined as 2022 originations were mostly held for investment. Higher securities losses in 2022 primarily related to fair market value discounts on bond instruments held in mutual funds.

Provision for Credit Losses on Loans: There was no provision for credit losses on loans recorded in the second quarter of 2022 and 2021. As a result of first quarter activity, for six months the provision was a benefit of $4 million in 2022 and an expense of $6 million in 2021. The year-over-year improvement reflects the improved credit performance and outlook as previously discussed regarding the allowance for credit losses on loans. If

significant recession conditions emerge, under the current expected credit losses methodology, the potential emergent future losses could be reflected in future provision expense.

Non-Interest Expense and Tax Expense: Non-interest expense decreased year-over-year by 1% to $68.5 million in the second quarter and by 7% to $137 million in the first half. First quarter 2021 expenses included $3 million in non-operating related restructuring charges, and $3 million in elevated professional services expense for legal, financial, and other advisory services related to management and board matters in that period. Excluding the above items, first half non-interest expense decreased by 2% year-over-year.

Expense spending in 2022 has benefited from branch consolidations and restructuring activities, as well as the sale of the Mid-Atlantic branch operations and insurance operations in the third quarter of 2021. Second quarter spending changes illustrate disciplined growth in compensation and technology expense which was offset by lower occupancy expense. This is in alignment with the BEST plan to reinvest savings from efficiency initiatives into bankers and technology. The Company is in the process of consolidating 5 of the current 105 branch offices during the second half of 2022, and is moving forward with plans to reduce other real estate properties as part of its hybrid workforce initiative to reduce occupancy costs in conjunction with its work from home initiatives.

Full-time equivalent staff totaled 1,322 positions at period-end, compared to 1,319 positions at the start of the 2022 and 1,505 positions at the start of 2021.

The first half effective tax rate was 20% in 2022 compared to 23% in 2021 and compared to 20% for the full year 2021. The higher rate in the first half of 2021 reflected a delay in the initiation of tax credit investments which benefited the tax rate in the second half of the year. The full year rate in 2021 included the impact of the pre-tax income from the sale of business operations in the third quarter. In 2022, higher pre-tax income in the first half relates to organic growth in earnings.

Total Comprehensive Income: Total comprehensive income includes net income together with other comprehensive income, which primarily consists of unrealized gains/losses on debt securities available for sale, after tax. Total first half comprehensive income was a loss of $76 million in 2022, compared to income of $19 million in 2021, reflecting the impact in both periods of rising medium term interest rates on the bond portfolio.

Liquidity and Cash Flows: Please see ““Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations--Liquidity and Cash Flows” in the most recent report on Form10-K for a more expansive discussion of these topics.

For the first half of 2022, loan growth was the primary use of cash, which was primarily sourced from short-term investments and investment securities. The ratio of cash and cash equivalents decreased to 8% from 14% over this period. Cash included $100 million raised through the subordinated note offering at period-end. The Company expects to call its preexisting $75 million subordinated notes at par after they become callable.

Brokered deposits were reduced by $115 million in the first half, and had a $113 million remaining balance at midyear. The Company borrowed $50 million in FHLBB advances near the end of the period. Unused FHLBB borrowing availability stood at $1.3 billion at midyear. Cash at the parent company stood at $173 million at midyear 2022.

The Company continues to view itself as having sufficient liquidity with a high quality and liquid securities portfolio and well-positioned wholesale funding sources. The new Moody’s ratings introduced during the quarter, including the A3 long-term bank deposit rating, support Berkshire’s liquidity profile. The stability of deposit costs

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during the first half of the year has also been positive as an indicator of core funding stability in the Company’s markets.

Capital Resources: Please see the “Shareholders’ Equity” section of the Comparison of Financial Condition for a discussion of shareholders’ equity together with Note 10 – Capital Ratios and Shareholders' Equity in the notes to the consolidated financial statements. Additional information about capital resources and regulatory capital is contained in the notes to the consolidated financial statements and in the Company's most recent Form 10-K.

The Company’s BEST plan includes the optimization of capital, including reducing excess capital through organic growth and capital returns to shareholders. The operation of this plan was evidenced in the first half of the year through the 14% loan growth and $84 million in share repurchases. Capital optimization was also supported through the subordinated debt issuance, reducing the coupon compared to the present debt which is planned to be repaid later in 2022.

The Company primarily focuses on regulatory capital measures in assessing capital, including the common equity Tier 1 capital ratio. This ratio stood at 12.9% at midyear, compared to the general 11% target established in the BEST plan. Including its improved profitability, the Company continues to pursue its capital management goals within its BEST strategy. This also includes ongoing assessment of the shareholder cash dividend in relationship to earnings and to competitive practices.

In acting as a source of strength for the Bank, the Company relies in the long term on capital distributions from the Bank in order to provide operating and capital service for the Company, which in turn can access national financial markets to provide financial support to the Bank. Capital distributions from the Bank to the parent company presently require approval by the FDIC and the Massachusetts Division of Banking. Increased distributions from the Company to shareholders require notice to and nonobjection from the Federal Reserve Bank.

CORPORATE RESPONSIBILITY UPDATE

Our Commitment to Environmental, Social, Governance (ESG) & Corporate Responsibility

Berkshire is committed to purpose-driven, community-centered banking that enhances value for all stakeholders as it pursues its vision of being a high-performing, leading socially responsible community bank in New England and beyond. Berkshire provides an ecosystem of socially responsible financial solutions, actively engages with its communities, and harnesses the power of its business to support the economy, empower financial access and success, and invest in a low-carbon future.

ESG factors are integral to our vision, mission, risk management practices, and Berkshire’s Exciting Strategic Transformation (BEST). Because our vision is to be a high-performing, leading socially responsible community bank in New England and beyond, we were one of the first banks in the country to establish a dedicated committee of our Board of Directors to oversee ESG matters and the a leader among community banks in integrating ESG standards into our business strategy and operations.

We continue to engage directly with our stakeholders to share information about the progress we’ve made in our ESG performance, including through our Corporate Responsibility website, corporate annual report, and proxy statement. Additionally, our annual Corporate Responsibility Report, which is aligned with Sustainability Accounting Standards Board (“SASB”) commercial bank disclosure topics, details the Company's ESG efforts and programs.

Climate Change & Sustainability

Climate change poses unprecedented risks and opportunities to the world. Berkshire expects that its efforts to manage its environmental footprint, mitigate the risks and impacts associated with climate change, and finance the transition will allow it to strengthen its positioning as a high-performing, leading socially responsible community bank. The Company continues to evolve its practices to reflect its community bank mission as well as the size, scope, and complexity of its operations.

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Key ESG & Corporate Responsibility Quarterly Developments

•Sustainability Bond: Berkshire completed the public offering and sale of its inaugural $100 million Sustainability Bond becoming the first U.S. community bank holding company with under $150 billion in assets to issue a Sustainability Bond. The Company intends to use an amount equal to the amount of the offering to finance or refinance projects consistent with the Company’s Sustainable Financing Framework including renewable electricity generation; green buildings; renewable energy technology, storage and manufacturing; energy efficiency in commercial, residential and public buildings; affordable housing; workforce housing; and financial inclusion and access activities.

•BEST Community Comeback & Comeback Tour: Company executives completed visits to each of its markets across five states including every branch meeting with stakeholders to highlight its “BEST Community Comeback” commitment. The multi-year plan focuses on four key areas: fueling small businesses, community financing and philanthropy, financial access and empowerment, and funding environmental sustainability. As a result of the collective efforts of its employees, Berkshire is making steady progress towards the achievement of its goals. Additional information can be found at berkshirebank.com/comeback.

•Launch of the Center for Women, Wellness and Wealth: Berkshire launched the Center for Women, Wellness, and Wealth (CWWW) to provide tools that instill greater confidence and create a future for women enriched with financial stability, balance and growth. The Center, through partnerships with community organizations, specialized experts and thought leaders, will offer events on wellness and financial planning, philanthropic coaching and development support, and complimentary portfolio reviews through Berkshire Bank Wealth Management.

•Xtraordinary Day: The Company completed its signature Xtraordinary Day of service on June 8 during which the Bank closed its offices for the afternoon to give back to the community. This year, Berkshire Bank partnered with 39 non-profit organizations and over 1,000 Berkshire Bankers, 80% of the Company, invested the afternoon volunteering for 46 community projects across MA, NY, CT, RI, and VT. In total, employees contributed over 5,000 hours of service.

•Current ESG Performance: The Company maintained its top 22% performance in leading ESG indexes in the U.S. for its Environmental, Social and Governance (ESG) ratings. As of June 30, 2022 the Company has ratings of: MSCI ESG- BBB; ISS ESG Quality Score - Environment: 2, Social: 1, Governance: 2; and Bloomberg ESG Disclosure- 59.62. The Company is also rated by Sustainalytics. Berkshire’s increased score from Bloomberg moved it into the top ranking for U.S. banks.

76

APPLICATION OF CRITICAL ACCOUNTING POLICIES

The Company’s significant accounting policies are described in Note 1 to the consolidated financial statements

included in its most recent Annual Report on Form 10-K. Modifications to significant accounting policies made during the year are described in Note 1 to the consolidated financial statements included in Item 1 of this report. The preparation of the consolidated financial statements in accordance with GAAP and practices generally applicable to the financial services industry requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses, and to disclose contingent assets and liabilities. Actual results could differ from those estimates.

Management has identified the Company's most critical accounting policies as related to:

• Allowance for Credit Losses on Loans

• Fair Value Measurements

These policies are considered most critical in that they are important to the Company’s financial condition and results, and they require management’s subjective and complex judgment as a result of the need to make estimates about the effects of matters that are inherently uncertain. Both of these policies were significant in determining income and financial condition in the financial statements. There is further discussion of the application of these policies in the Form 10-K.

ENTERPRISE RISK MANAGEMENT

Following sections of this report on Form 10-Q include discussion of market risk and risk factors. Risk management is overseen by the Company’s Chief Risk Officer, who reports directly to the CEO. This position oversees risk

management policy, credit, loan review, and information security. Enterprise risk assessments are brought to the

Company’s Enterprise Risk Management Committee, and then are reported to the Board’s Risk Management, Capital, and Compliance Committee. The high level corporate risk assessment includes the following material business risks: credit risk, interest rate risk, price risk, liquidity risk, operational risk, compliance risk, strategic risk, and reputation risk, with the credit risk category having the highest weighting.

77

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For additional discussion about the Company’s Quantitative and Qualitative Aspects of Market Risk, please review Item 7A of the most recent report on Form 10-K which sets forth the methodologies employed by the Company and the various aspects of its analysis of its interest rate sensitivity. Berkshire’s objective is to maintain a neutral or asset sensitive interest rate risk profile, as measured by the sensitivity of net interest income to market interest rate changes.

As of June 30, 2022, Berkshire’s balance sheet remained well-positioned for the forecast rising rate environment. Shown below is a chart of the modeled change in net interest income from a static base case in the event of interest rate shocks for the scenarios illustrated.

CHANGE IN NET INTEREST INCOME
	1-12 Months	13-24 Months
Parallel Interest Rate Shock – Basis Points	% Change	% Change
At June 30, 2022
+200	8.2%	12.4%
+100	4.0%	5.9%
-100	(8.2)%	(9.6)%
At December 31, 2021
+200	13.1%	16.1%
+100	5.6%	6.5%
-100	(0.1)%	(1.2)%

The shock information above shows that the Company has become less asset sensitive in the first half of 2022 due primarily to the reinvestment of cash into loans, some of which are longer duration. The Company remained asset sensitive and therefore was positioned to further benefit from expected interest rate increases in the second half of 2022. The Company’s sensitivity to decreases in interest rates has become more pronounced as current higher levels of interest rates are reflected in current net interest income. The downward sensitivity has not been significant during the near-zero interest rate environment in recent years. The Company is monitoring its downward sensitivity and has interest rate risk management options available to limit downward sensitivity which can be assessed within the total context of its strategic management.

The Company also models net interest income sensitivity to twelve month interest rate ramps. At period-end, the year one sensitivity to a +100 basis point interest rate ramp was 2.1% and the year two sensitivity was 5.3%. The Company also models sensitivity to yield curve twists, and sensitivity remained positive for both widening and narrowing of the yield curve scenarios.

While the sensitivity of net interest income is the primary driver of the sensitivity of net income, the latter is more sensitive than the former since it is net of expenses. In the case of the first year of a +100 basis point scenario, the modeled shock sensitivity of net income is 9.6%.

Economic value of equity sensitivity to changes in market rates was positive at midyear 2022, measuring 3.3%

for a +200% basis point shock.

A critical component of modeling is the assumption of deposit interest rate sensitivity. The Company continues to model the non-maturity deposit beta of approximately 40% for purposes of interest rate risk simulations. Due to the low level of interest rates, the modeled sensitivity of a downward shift in interest rates is affected by assumptions related to market influences on spreads and floors. Prime, mortgage rates, and deposits are floored. All other rates are zero bound.

78

Modeled interest rate sensitivity depends on other material assumptions. Market risk exposure is affected by the level and shape of the yield curve in markets for financial instruments including U.S. Treasury obligations, forward interest rate derivatives, the U.S. prime interest rate, and LIBOR related rates. Also, the economic impact on customer and market behaviors of the COVID-19 pandemic remains uncertain and may cause actual events to differ from assumptions. The behavior of markets under the historically unusual conditions currently prevailing may be different from modeling assumptions, and the Company continues to monitor the markets and the assumptions in its model.

79

ITEM 4.           CONTROLS AND PROCEDURES

a)  Disclosure controls and procedures.

The principal executive officers, including the principal financial officer, based on their evaluation of disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this Quarterly Report on Form 10-Q, have concluded that the Company’s disclosure controls and procedures were effective.

b)  Changes in internal control over financial reporting.

There were no changes in the Company’s internal control over financial reporting that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

80

PART II

ITEM 1.            LEGAL PROCEEDINGS

As of June 30, 2022, neither the Company nor the Bank was involved in any pending legal proceedings believed by management to be material to the Company’s financial condition or results of operations. Periodically, there have been various claims and lawsuits involving the Bank, such as claims to enforce liens, condemnation proceedings on properties in which the Bank holds security interests, claims involving the making and servicing of real property loans, and other issues incident to the Bank’s business. A summary of certain legal matters involving unsettled litigation or pertaining to pending transactions are as follows:

On February 4, 2020, the Bank filed a complaint in the New York State Supreme Court for the County of Albany against Pioneer Bank (“Pioneer”) seeking damages of approximately $16.0 million. The complaint alleges that Pioneer is liable to the Bank for a credit loss of approximately $16.0 million suffered by the Bank in the third quarter of 2019 as a result of Pioneer’s breach of loan participation agreements in which it served as the lead bank, as well as constructive fraud, fraudulent concealment and/or negligent misrepresentation. Pioneer has filed a motion to dismiss aspects of the Bank’s complaint, which motion was allowed in part by the court to dismiss the Bank’s negligent misrepresentation claim, and denied in part by the court to allow all other claims by the Bank to proceed. Discovery is now underway in this action. The Company wrote down the underlying credit loss in its entirety in the third quarter of 2019, but recognized a partial recovery of $1.7 million early in the second quarter of 2020. The Company has not accrued for any additional anticipated recovery at this time.

On or about August 10, 2020, a former employee of the Bank’s subsidiary First Choice Loan Services Inc. (“FCLS”) filed a complaint in the Court of Common Pleas, Bucks County Pennsylvania against FCLS and two of its former senior corporate officers generally alleging wrongful termination as a result of purported whistleblower retaliation and other violations of New Jersey state employment law. The complaint also purports to name the Bank and the Company as additional defendants, even though neither entity ever employed, paid wages to or contracted with the plaintiff. On November 16, 2020, the plaintiff filed a First Amended Complaint reiterating the same claims against the same defendants. The Company's liability insurer has provided outside litigation counsel to defend the Company and the Bank in this matter, as well as FCLS and its former senior corporate officers. On December 7, 2020, defense counsel filed Preliminary Objections on behalf of the Company, the Bank, FCLS and FCLS’s former senior corporate officers denying the plaintiff’s claims and seeking dismissal of the case and an order that the plaintiff’s claims must proceed through arbitration in accordance with contractual obligations set forth in plaintiff’s previous employment agreement with FCLS. On June 30, 2021, the court dismissed the plaintiff’s complaint without prejudice in support of FCLS’s petition to compel arbitration. The parties have mutually agreed on an arbitrator to hear the case and are preparing for arbitration proceedings that are expected to occur in the fourth quarter of 2022.

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ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed herein and in Part I, “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K, which could materially affect the Company's business, financial condition, or future operating results. Please also see the earlier discussion in this report about Enterprise Risk Management. The risks described in this report and in the Annual Report on Form 10-K are not the only risks presently facing the Company. Additional risks and uncertainties not currently known to the Company, or currently deemed to be immaterial, also may materially adversely affect the Company's business, financial condition, and/or operating results. There have been no material changes in risk factors from those identified in the Form 10-K.

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ITEM 2.               UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a)                Recent Sales of Unregistered Securities

The Company occasionally engages in the practice of transferring unregistered securities for the purpose of completing business transactions. These shares are issued to vendors or other organizations as consideration for services performed in accordance with each contract. During the three months ended June 30, 2022 and 2021 there were no shares transferred.

(b)                 Not applicable.

(c)                 The following table provides certain information with regard to shares repurchased by the Company in the second quarter of 2022:

	Total number of	Average price		Total number of shares purchased as part of publicly announced	Maximum number of shares that may yet be purchased under
Period	shares purchased	paid per share		plans or programs	the plans or programs
April 1-30, 2022	631,900	$	27.66	631,900	3,764,284
May 1-31, 2022	1,515,379	24.79		1,515,379	2,248,905
June 1-30, 2022	—	—		—	2,248,905
Total	2,147,279	$	25.63	2,147,279	2,248,905

On January 19, 2022, the Company announced that its Board of Directors approved a stock repurchase program pursuant to which the Company is authorized to repurchase shares of Company common stock at a total cost of up to $140 million through December 31, 2022. This would result in the repurchase of approximately 9% of then outstanding shares based on the share price when the plan was approved. The maximum number of shares that may be purchased under this program has been estimated based on the June 30, 2022 closing price per share of Company common stock of $24.77.

ITEM 3.                DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.                  MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.                OTHER INFORMATION

None.

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ITEM 6.                   EXHIBITS

3.1	Amended and Restated Certificate of Incorporation of Berkshire Hills Bancorp, Inc.(1)
3.2	Amended and Restated Bylaws of Berkshire Hills Bancorp, Inc. (2)
4.1	Form of Common Stock Certificate of Berkshire Hills Bancorp, Inc. (3)
4.2	Certificate of Designations of Series B Non-Voting Preferred Stock of Berkshire Hills Bancorp, Inc. (4)
4.3	Indenture, dated June 30, 2022, between Berkshire Hills Bancorp, Inc. and Wilmington Trust National Association, as Trustee (5)
4.4	First Supplemental Indenture, dated June 30, 2022, between Berkshire Hills Bancorp, Inc. and Wilmington Trust National Association, as Trustee (5)
4.5	Form of 5.50% Fixed-to-Floating Rate Subordinated Notes due 2032
10.1	Berkshire Hills Bancorp, Inc. 2022 Equity Incentive Plan (6)
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, formatted in Inline XBRL: (i) the Consolidated Statements of Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements tagged as blocks of text and including detailed tags.
104	The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, formatted in Inline XBRL.

_______________________________________

(1)     Incorporated herein by reference from the Exhibits to the Form 10-Q as filed on August 9, 2018.

(2)    Incorporated herein by reference from the Exhibits to the Form 8-K as filed on June 26, 2017.

(3)    Incorporated herein by reference from the Exhibits to the Form S-1, Registration Statement and amendments thereto, initially filed on March 10, 2000, Registration No. 333-32146.

(4)    Incorporated herein by reference from the Exhibits to the Form 8-K as filed on October 16, 2017.

(5) Incorporated herein by reference from the Exhibits to the Form 8-K as filed on June 30, 2022.

(6) Incorporated herein by reference from Appendix A to the Definitive Proxy Statement as filed on April 8, 2022.

84

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BERKSHIRE HILLS BANCORP, INC.
Dated: August 9, 2022	By:	/s/ Nitin J. Mhatre
	Nitin J. Mhatre
	President and Chief Executive Officer
Dated: August 9, 2022	By:	/s/ Subhadeep Basu
	Subhadeep Basu
	Senior Executive Vice President, Chief Financial Officer

85

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Nitin J. Mhatre, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Berkshire Hills Bancorp, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant have:

a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a.	All significant deficiencies and material weakness in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 9, 2022	/s/ Nitin J. Mhatre
	Nitin J. Mhatre
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Subhadeep Basu, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Berkshire Hills Bancorp, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant have:

a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a.	All significant deficiencies and material weakness in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 9, 2022	/s/ Subhadeep Basu
	Subhadeep Basu
	Senior Executive Vice President, Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Berkshire Hills Bancorp, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2022, as filed with the Securities and Exchange Commission (the “Report”), I, Nitin J. Mhatre, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

August 9, 2022	/s/ Nitin J. Mhatre
	Nitin J. Mhatre
	President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Berkshire Hills Bancorp, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2022, as filed with the Securities and Exchange Commission (the “Report”), I, Subhadeep Basu, Senior Executive Vice President, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

August 9, 2022	/s/ Subhadeep Basu
	Subhadeep Basu
	Senior Executive Vice President, Chief Financial Officer

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Aug. 05, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-15781
Entity Registrant Name	BERKSHIRE HILLS BANCORP, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	04-3510455
Entity Address, Address Line One	60 State Street
Entity Address, City or Town	Boston
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02109
City Area Code	800
Local Phone Number	773-5601
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	BHLB
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		45,670,565
Entity Central Index Key	0001108134
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets
Cash and due from banks	$ 156,470	$ 109,350
Short-term investments	714,547	1,518,457
Total cash and cash equivalents	871,017	1,627,807
Trading security, at fair value	7,040	8,354
Marketable equity securities, at fair value	14,154	15,453
Securities available for sale, at fair value	1,697,019	1,877,585
Securities held to maturity (fair values of $544,065 and $647,236)	602,611	636,503
Federal Home Loan Bank stock and other restricted securities	9,365	10,800
Total securities	2,330,189	2,548,695
Less: Allowance for credit losses on held to maturity securities	(94)	(105)
Net securities	2,330,095	2,548,590
Loans held for sale	1,062	6,110
Total loans	7,803,451	6,825,847
Less: Allowance for credit losses on loans	(99,021)	(106,094)
Net loans	7,704,430	6,719,753
Premises and equipment, net	89,657	94,383
Other intangible assets	27,046	29,619
Cash surrender value of bank-owned life insurance policies	237,545	235,690
Other assets	312,730	288,384
Total assets	11,578,968	11,554,913
Liabilities
Demand deposits	2,921,347	3,008,461
NOW and other deposits	2,247,544	976,401
Money market deposits	2,327,004	3,293,526
Savings deposits	1,143,352	1,111,625
Time deposits	1,475,417	1,678,940
Total deposits	10,114,664	10,068,953
Short-term debt	50,000	0
Long-term Federal Home Loan Bank advances and other	8,542	13,331
Subordinated borrowings	195,659	97,513
Total borrowings	254,201	110,844
Other liabilities	196,053	192,681
Total liabilities	10,564,918	10,372,478
Shareholders’ equity
Common stock ($0.01 par value; 100,000,000 shares authorized and 51,903,190 shares issued and 45,787,618 shares outstanding in 2022; 51,903,190 shares issued and 48,667,110 shares outstanding in 2021)	528	528
Additional paid-in capital - common stock	1,424,081	1,423,445
Unearned compensation	(12,824)	(9,056)
Retained (deficit)	(106,997)	(139,383)
Accumulated other comprehensive (loss)	(122,999)	(3,243)
Treasury stock, at cost (6,115,572 shares in 2022 and 3,236,080 shares in 2021)	(167,739)	(89,856)
Total shareholders’ equity	1,014,050	1,182,435
Total liabilities and shareholders’ equity	11,578,968	11,554,913
Disposal Group, Held-for-sale, Not Discontinued Operations
Assets
Assets held for sale	$ 5,386	$ 4,577

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Securities held to maturity fair value	$ 544,065	$ 647,236
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	51,903,190	51,903,190
Common stock, shares outstanding (in shares)	45,787,618	48,667,110
Treasury stock (in shares)	6,115,572	3,236,080

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Interest and dividend income
Loans	$ 74,843	$ 73,921	$ 137,317	$ 149,854
Securities and other	12,536	11,443	24,885	23,663
Total interest and dividend income	87,379	85,364	162,202	173,517
Interest expense
Deposits	4,170	6,981	8,344	16,564
Borrowings	1,851	2,990	3,437	6,467
Total interest expense	6,021	9,971	11,781	23,031
Net interest income	81,358	75,393	150,421	150,486
Non-interest income
Other, net	1,812	2,211	4,978	4,359
(Loss) on securities, net	(973)	(484)	(1,718)	(515)
Total non-interest income	16,351	22,011	37,032	48,204
Total net revenue	97,709	97,404	187,453	198,690
(Benefit)/provision for credit losses	0	0	(4,000)	6,500
Non-interest expense
Compensation and benefits	37,830	36,970	75,351	75,705
Occupancy and equipment	9,438	10,599	19,505	21,623
Technology and communications	8,611	8,214	17,138	16,807
Marketing and promotion	1,472	518	2,583	1,113
Professional services	2,913	3,701	5,605	10,315
FDIC premiums and assessments	658	927	1,645	2,047
Other real estate owned and foreclosures	23	(26)	23	(24)
Amortization of intangible assets	1,286	1,297	2,572	2,616
Acquisition, restructuring, and other expenses	35	6	53	3,492
Other	6,209	6,666	12,550	13,332
Total non-interest expense	68,475	68,872	137,025	147,026
Income before income taxes	29,234	28,532	54,428	45,164
Income tax expense	6,119	6,896	11,117	10,497
Net income	$ 23,115	$ 21,636	$ 43,311	$ 34,667
Basic earnings per common share (in dollars per share)	$ 0.50	$ 0.43	$ 0.93	$ 0.69
Diluted earnings per common share (in dollars per share)	$ 0.50	$ 0.43	$ 0.92	$ 0.69
Weighted average shares outstanding:
Basic (in shares)	45,818	50,321	46,733	50,327
Diluted (in shares)	46,102	50,608	47,074	50,588
Total fee income
Non-interest income
Total fee income	$ 15,512	$ 20,284	$ 33,772	$ 44,360
Deposit related fees
Non-interest income
Total fee income	8,005	7,508	15,356	14,634
Loan fees and revenue
Non-interest income
Total fee income	4,623	7,431	12,888	17,677
Insurance commissions and fees
Non-interest income
Total fee income	0	2,292	0	5,422
Wealth management fees
Non-interest income
Total fee income	2,775	2,519	5,400	5,291
Mortgage banking originations
Non-interest income
Total fee income	$ 109	$ 534	$ 128	$ 1,336

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 23,115	$ 21,636	$ 43,311	$ 34,667
Other comprehensive (loss)/income, before tax:
Changes in unrealized (loss)//gain on debt securities available-for-sale	(60,487)	5,394	(161,860)	(21,619)
Income taxes related to other comprehensive (loss)/income:
Changes in unrealized (loss)/gain on debt securities available-for-sale	15,725	(1,343)	42,104	5,520
Total other comprehensive (loss)/income	(44,762)	4,051	(119,756)	(16,099)
Total comprehensive (loss)/income	$ (21,647)	$ 25,687	$ (76,445)	$ 18,568

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common stock	Additional paid-in capital	Unearned compensation	Retained earnings (deficit)	Accumulated other comprehensive income/(loss)	Treasury stock
Balance at beginning of period (in shares) at Dec. 31, 2020		50,833,000
Balance at Beginning of Period at Dec. 31, 2020	$ 1,187,773	$ 528	$ 1,427,239	$ (6,245)	$ (233,344)	$ 30,871	$ (31,276)
Comprehensive (loss):
Net income	34,667				34,667
Other comprehensive income	(16,099)					(16,099)
Total comprehensive (loss)/income	18,568				34,667	(16,099)
Cash dividends declared on common shares	(12,224)				(12,224)
Treasury shares repurchased (in shares)		(745,000)
Treasury shares repurchased	(20,750)						(20,750)
Forfeited shares (in shares)		(62,000)
Forfeited shares	0		(190)	1,570			(1,380)
Exercise of stock options (in shares)		7,000
Exercise of stock options	124		0	0	(93)		217
Restricted stock grants (in shares)		439,000
Restricted stock grants	0		(3,974)	(8,612)	0		12,586
Share-based compensation (in shares)		0
Stock-based compensation	2,281		0	2,281			0
Other, net (in shares)		(19,000)
Other, net	(383)		8	0			(391)
Balance at end of period (in shares) at Jun. 30, 2021		50,453,000
Balance at End of Period at Jun. 30, 2021	1,175,389	$ 528	1,423,083	(11,006)	(210,994)	14,772	(40,994)
Balance at beginning of period (in shares) at Mar. 31, 2021		50,988,000
Balance at Beginning of Period at Mar. 31, 2021	1,175,139	$ 528	1,424,349	(7,722)	(226,516)	10,721	(26,221)
Comprehensive (loss):
Net income	21,636				21,636
Other comprehensive income	4,051					4,051
Total comprehensive (loss)/income	25,687				21,636	4,051
Cash dividends declared on common shares	(6,100)				(6,100)
Treasury shares repurchased (in shares)		(745,000)
Treasury shares repurchased	(20,750)						(20,750)
Forfeited shares (in shares)		(11,000)
Forfeited shares	0		45	238			(283)
Exercise of stock options (in shares)		2,000
Exercise of stock options	55				(14)		69
Restricted stock grants (in shares)		229,000
Restricted stock grants	0		(1,314)	(5,127)			6,441
Stock-based compensation	1,605			1,605
Other, net (in shares)		(10,000)
Other, net	(247)		3				(250)
Balance at end of period (in shares) at Jun. 30, 2021		50,453,000
Balance at End of Period at Jun. 30, 2021	$ 1,175,389	$ 528	1,423,083	(11,006)	(210,994)	14,772	(40,994)
Balance at beginning of period (in shares) at Dec. 31, 2021	48,667,110	48,667,000
Balance at Beginning of Period at Dec. 31, 2021	$ 1,182,435	$ 528	1,423,445	(9,056)	(139,383)	(3,243)	(89,856)
Comprehensive (loss):
Net income	43,311				43,311
Other comprehensive income	(119,756)					(119,756)
Total comprehensive (loss)/income	(76,445)				43,311	(119,756)
Cash dividends declared on common shares	(10,921)				(10,921)
Treasury shares repurchased (in shares)		(3,119,000)
Treasury shares repurchased	(84,295)						(84,295)
Forfeited shares (in shares)		(51,000)
Forfeited shares	0		79	1,358			(1,437)
Exercise of stock options (in shares)		1,000
Exercise of stock options	25				(4)		29
Restricted stock grants (in shares)		314,000
Restricted stock grants	0		552	(9,052)			8,500
Stock-based compensation	3,926			3,926
Other, net (in shares)		(24,000)
Other, net	$ (675)		5				(680)
Balance at end of period (in shares) at Jun. 30, 2022	45,787,618	45,788,000
Balance at End of Period at Jun. 30, 2022	$ 1,014,050	$ 528	1,424,081	(12,824)	(106,997)	(122,999)	(167,739)
Balance at beginning of period (in shares) at Mar. 31, 2022		47,792,000
Balance at Beginning of Period at Mar. 31, 2022	1,093,861	$ 528	1,423,679	(10,284)	(125,343)	(78,237)	(116,482)
Comprehensive (loss):
Net income	23,115				23,115
Other comprehensive income	(44,762)					(44,762)
Total comprehensive (loss)/income	(21,647)				23,115	(44,762)
Cash dividends declared on common shares	(4,769)				(4,769)
Treasury shares repurchased (in shares)		(2,147,000)
Treasury shares repurchased	(55,040)						(55,040)
Forfeited shares (in shares)		(15,000)
Forfeited shares	0		9	375			(384)
Exercise of stock options (in shares)		0
Exercise of stock options	0				0		0
Restricted stock grants (in shares)		175,000
Restricted stock grants	0		391	(5,035)			4,644
Stock-based compensation	2,120			2,120
Other, net (in shares)		(17,000)
Other, net	$ (475)		2				(477)
Balance at end of period (in shares) at Jun. 30, 2022	45,787,618	45,788,000
Balance at End of Period at Jun. 30, 2022	$ 1,014,050	$ 528	$ 1,424,081	$ (12,824)	$ (106,997)	$ (122,999)	$ (167,739)

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Stockholders' Equity [Abstract]
Cash dividends, declared on common stock (in dollars per share)	$ 0.12	$ 0.12	$ 0.24	$ 0.24

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income	$ 43,311,000	$ 34,667,000
Adjustments to reconcile net income to net cash provided by operating activities:
(Benefit)/provision for credit losses	(4,000,000)	6,500,000
Net amortization of securities	1,383,000	748,000
Change in unamortized net loan costs and premiums	2,471,000	(5,410,000)
Premises and equipment depreciation and amortization expense	4,907,000	5,636,000
Stock-based compensation expense	3,926,000	2,281,000
Accretion of purchase accounting entries, net	(1,464,000)	(3,555,000)
Amortization of other intangibles	2,572,000	2,616,000
Income from cash surrender value of bank-owned life insurance policies	(2,697,000)	(2,731,000)
Securities losses, net	1,718,000	515,000
Net change in loans held-for-sale	4,442,000	8,164,000
Loss on disposition of assets	0	2,811,000
Gain on sale of real estate	0	(33,000)
Amortization of interest in tax-advantaged projects	708,000	207,000
Net change in other	(42,990,000)	11,319,000
Net cash provided by operating activities	14,287,000	63,735,000
Cash flows from investing activities:
Net decrease in trading security	404,000	384,000
Proceeds from sales of marketable equity securities	0	2,849,000
Purchases of securities available for sale	(386,637,000)	(268,923,000)
Proceeds from sales of securities available for sale	149,994,000	0
Proceeds from maturities, calls, and prepayments of securities available for sale	255,045,000	305,361,000
Purchases of securities held to maturity	(575,000)	(219,004,000)
Proceeds from maturities, calls, and prepayments of securities held to maturity	33,514,000	17,320,000
Net change in loans	(981,062,000)	831,505,000
Net change in Mid-Atlantic region loans held for sale	0	47,131,000
Proceeds from surrender of bank-owned life insurance	842,000	0
Purchase of Federal Home Loan Bank stock	(32,466,000)	0
Proceeds from redemption of Federal Home Loan Bank stock	33,901,000	15,235,000
Net investment in limited partnership tax credits	(721,000)	0
Purchase of premises and equipment, net	(730,000)	(1,606,000)
Proceeds from sales of seasoned commercial loan portfolios	0	14,749,000
Proceeds from sale of other real estate	0	142,000
Net cash (used)/provided by investing activities	(928,491,000)	745,143,000
Cash flows from financing activities:
Net increase/(decrease) in deposits	45,711,000	(301,908,000)
Net change in Mid-Atlantic region deposits held for sale	0	15,590,000
Proceeds from Federal Home Loan Bank advances and other borrowings	51,275,000	0
Repayments of Federal Home Loan Bank advances and other borrowings	(6,096,000)	(256,555,000)
Proceeds from issuance of subordinated debt	98,032,000	0
Purchase of treasury stock	(84,295,000)	(20,750,000)
Exercise of stock options	25,000	124,000
Common stock cash dividends paid	(10,921,000)	(6,124,000)
Settlement of derivative contracts with financial institution counterparties	63,683,000	29,551,000
Net cash provided/(used) by financing activities	157,414,000	(540,072,000)
Net change in cash and cash equivalents	(756,790,000)	268,806,000
Cash and cash equivalents at beginning of period	1,627,807,000	1,557,875,000
Cash and cash equivalents at end of period	871,017,000	1,826,681,000
Supplemental cash flow information:
Interest paid on deposits	8,810,000	18,515,000
Interest paid on borrowed funds	3,396,000	6,864,000
Income taxes (refunded) paid, net	12,590,000	(1,110,000)
Other non-cash changes:
Other net comprehensive income	(119,756,000)	(16,099,000)
Change in shareholder dividend payable	0	6,100,000
Reclass of seasoned loan portfolios to held-for-sale, net	0	11,660,000
Reclass of held-for-sale loans to held-for-investment, net	$ 606,000	$ 0

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BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

The Consolidated Financial Statements (the “financial statements”) of Berkshire Hills Bancorp, Inc. and its subsidiaries (the “Company” or “Berkshire”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company is a Delaware corporation, headquartered in Boston, Massachusetts, and the holding company for Berkshire Bank (the “Bank”), a Massachusetts-chartered trust company headquartered in Pittsfield, Massachusetts. These financial statements include the accounts of the Company, its wholly-owned subsidiaries and the Bank’s consolidated subsidiaries. In consolidation, all significant intercompany accounts and transactions are eliminated. The results of operations of companies or assets acquired are included only from the dates of acquisition. All material wholly-owned and majority-owned subsidiaries are consolidated unless GAAP requires otherwise.

The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these financial statements were issued.

These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X, and accordingly, certain information and footnote disclosures normally included in financial statements prepared according to GAAP have been omitted.

The results for any interim period are not necessarily indicative of results for the full year. These consolidated financial statements should be read in conjunction with the audited financial statements and disclosures Berkshire Hills Bancorp, Inc. previously filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In management’s opinion, all adjustments necessary for a fair statement are reflected in the interim periods.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates.

Refer to Note 9 – Other Commitments, Contingencies, Off-Balance Sheet Activities, and Pandemic Impact for pandemic related risks and uncertainties.

Recently Adopted Accounting Principles

There were no new applicable material accounting pronouncements adopted by the Company since December 31, 2021.

Future Application of Accounting Pronouncements

In March 2022, the FASB issued ASU No. 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method.” The guidance expands the current last-of-layer method to allow multiple hedge layers of a single closed portfolio (renamed to portfolio layer method) and expands the portfolio layer method to include nonprepayable financial assets. The ASU specifies eligible hedging instruments in a single-layer hedge and provides additional guidance on accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method. Further, hedge basis adjustments should be considered when determining credit losses for assets included in the closed portfolio. The amendments in this ASU are effective for fiscal years ending after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The Company is still evaluating; however, the adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements.

In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The ASU eliminates the troubled debt restructuring (“TDR”) accounting model that was adopted with Topic 326, “Financial Instruments – Credit Losses” and enhances disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. The ASU requires prospective disclosure of current-period gross write-offs by year of origination. The amendments in this ASU are effective for fiscal years ending after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted and the Company can elect to adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company is still evaluating; however, the adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements.

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TRADING SECURITY	6 Months Ended
	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
TRADING SECURITY	TRADING SECURITYThe Company holds a tax-advantaged economic development bond accounted for at fair value. The security had an amortized cost of $7.5 million and $7.9 million, and a fair value of $7.0 million and $8.4 million, at June 30, 2022 and December 31, 2021, respectively. As discussed further in Note 7 - Derivative Financial Instruments and Hedging Activities, the Company entered into a swap contract to swap-out the fixed rate of the security in exchange for a variable rate. The Company does not purchase securities with the intent of selling them in the near term, and there were no other securities in the trading portfolio at June 30, 2022 or December 31, 2021.

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SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES

SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE

        EQUITY SECURITIES

The following is a summary of securities available for sale, held to maturity, and marketable equity securities:

(In thousands)	Amortized  Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance
June 30, 2022
Securities available for sale
U.S Treasuries	$	99,920	$	—	$	(71)	$	99,849
Municipal bonds and obligations	66,980		608		(2,425)		65,163		—
Agency collateralized mortgage obligations	692,079		3		(65,695)		626,387		—
Agency mortgage-backed securities	679,422		6		(72,651)		606,777		—
Agency commercial mortgage-backed securities	280,266		26		(23,828)		256,464		—
Corporate bonds	43,786		119		(1,526)		42,379		—
Total securities available for sale	1,862,453		762		(166,196)		1,697,019		—
Securities held to maturity
Municipal bonds and obligations	270,219		1,450		(21,929)		249,740		66
Agency collateralized mortgage obligations	137,778		18		(13,550)		124,246		—
Agency mortgage-backed securities	53,630		—		(7,872)		45,758		—
Agency commercial mortgage-backed securities	138,419		—		(16,633)		121,786		—
Tax advantaged economic development bonds	2,400		5		(35)		2,370		28
Other bonds and obligations	165		—		—		165		—
Total securities held to maturity	602,611		1,473		(60,019)		544,065		94
Marketable equity securities	15,690		66		(1,602)		14,154		—
Total	$	2,480,754	$	2,301	$	(227,817)	$	2,255,238	$	94

(In thousands)	Amortized  Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance
December 31, 2021
Securities available for sale
U.S Treasuries	$	59,972	$	1	$	—	$	59,973	$	—
Municipal bonds and obligations	71,822		5,355		—		77,177		—
Agency collateralized mortgage obligations	693,782		5,566		(11,012)		688,336		—
Agency mortgage-backed securities	711,154		2,347		(7,642)		705,859		—
Agency commercial mortgage-backed securities	300,259		3,949		(3,628)		300,580		—
Corporate bonds	44,824		950		(114)		45,660		—
Total securities available for sale	1,881,813		18,168		(22,396)		1,877,585		—
Securities held to maturity
Municipal bonds and obligations	281,515		16,151		(693)		296,973		70
Agency collateralized mortgage obligations	149,195		3,203		(3,513)		148,885		—
Agency mortgage-backed securities	57,327		95		(1,498)		55,924		—
Agency commercial mortgage-backed securities	145,573		266		(3,289)		142,550		—
Tax advantaged economic development bonds	2,728		26		(15)		2,739		35
Other bonds and obligations	165		—		—		165		—
Total securities held to maturity	636,503		19,741		(9,008)		647,236		105
Marketable equity securities	15,689		67		(303)		15,453		—
Total	$	2,534,005	$	37,976	$	(31,707)	$	2,540,274	$	105

The following table summarizes the activity in the allowance for credit losses for debt securities held to maturity by security type for the three and six months ended June 30, 2022 and 2021:

(In thousands)	Municipal bonds and obligations		Tax advantaged economic development bonds		Total
Balance at March 31, 2022	$	67	$	32	$	99
(Benefit)/provision for credit losses	(1)		(4)		(5)
Balance at June 30, 2022	$	66	$	28	$	94

(In thousands)	Municipal bonds and obligations		Tax advantaged economic development bonds		Total
Balance at March 31, 2021	$	71	$	40	$	111
(Benefit)/provision for credit losses	19		—		19
Balance at June 30, 2021	$	90	$	40	$	130

(In thousands)	Municipal bonds and obligations		Tax advantaged economic development bonds		Total
Balance at December 31, 2021	$	70	$	35	$	105
(Benefit)/provision for credit losses	(4)		(7)		(11)
Balance at June 30, 2022	$	66	$	28	$	94

(In thousands)	Municipal bonds and obligations		Tax advantaged economic development bonds		Total
Balance at December 31, 2020	$	64	$	40	$	104
(Benefit)/provision for credit losses	26		—		26
Balance at June 30, 2021	$	90	$	40	$	130

Credit Quality Information

The Company monitors the credit quality of held to maturity securities through credit ratings from various rating agencies. Credit ratings express opinions about the credit quality of a security and are utilized by the Company to make informed decisions. Investment grade securities are rated BBB-/Baa3 or higher and generally considered by the rating agencies and market participants to be of low credit risk. Conversely, securities rated below investment grade are considered to have distinctively higher credit risk than investment grade securities. For securities without credit ratings, the Company utilizes other financial information indicating the financial health of the underlying municipality, agency, or organization.

As of June 30, 2022, none of the Company's investment securities were delinquent or in non-accrual status.

The amortized cost and estimated fair value of available for sale (“AFS”) and held to maturity (“HTM”) securities segregated by contractual maturity at June 30, 2022 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable.

	Available for sale				Held to maturity
	Amortized		Fair		Amortized		Fair
(In thousands)	Cost		Value		Cost		Value
Within 1 year	$	100,364	$	100,292	$	1,796	$	1,795
Over 1 year to 5 years	7,900		7,969		2,693		2,700
Over 5 years to 10 years	48,271		47,315		24,614		24,932
Over 10 years	54,151		51,815		243,681		222,848
Total bonds and obligations	210,686		207,391		272,784		252,275
Mortgage-backed securities	1,651,767		1,489,628		329,827		291,790
Total	$	1,862,453	$	1,697,019	$	602,611	$	544,065

During the three months ended June 30, 2022, there were no purchases of AFS securities. During the six months ended June 30, 2022, purchases of AFS securities totaled $386.6 million. During the three and six months ended June 30, 2022 sales of AFS securities totaled $150 million. During the three and six months ended June 30, 2021, purchases of AFS securities totaled $165.0 million and $268.9 million, respectively. During the three and six months ended June 30, 2021, there were no sales of AFS securities. During the three and six months ended June 30, 2022, gross gains totaled $6 thousand and there were no gross losses. During the three and six months ended June 30, 2021, there were no gross gains or losses on AFS securities. These gains and losses are included in gain/(loss) on securities, net on the consolidated statements of income.

Securities available for sale and held to maturity with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows:

	Less Than Twelve Months				Over Twelve Months				Total
	Gross				Gross				Gross
	Unrealized		Fair		Unrealized		Fair		Unrealized		Fair
(In thousands)	Losses		Value		Losses		Value		Losses		Value
June 30, 2022
Securities available for sale
U.S Treasuries	$	71	$	99,849	$	—	$	—	$	71	$	99,849
Municipal bonds and obligations	2,425		31,835		—		—		2,425		31,835
Agency collateralized mortgage obligations	45,768		509,510		19,927		114,042		65,695		623,552
Agency mortgage-backed securities	36,357		384,388		36,294		221,502		72,651		605,890
Agency commercial mortgage-backed securities	13,730		180,796		10,098		71,060		23,828		251,856
Corporate bonds	1,415		31,437		111		1,969		1,526		33,406
Total securities available for sale	$	99,766	$	1,237,815	$	66,430	$	408,573	$	166,196	$	1,646,388
Securities held to maturity
Municipal bonds and obligations	$	11,356	$	129,839	$	10,573	$	23,320	$	21,929	$	153,159
Agency collateralized mortgage obligations	4,219		60,827		9,331		48,927		13,550		109,754
Agency mortgage-backed securities	185		2,625		7,687		43,132		7,872		45,757
Agency commercial mortgage-backed securities	8,368		73,652		8,265		48,134		16,633		121,786
Tax advantaged economic development bonds	—		—		35		1,164		35		1,164
Total securities held to maturity	24,128		266,943		35,891		164,677		60,019		431,620
Total	$	123,894	$	1,504,758	$	102,321	$	573,250	$	226,215	$	2,078,008
December 31, 2021
Securities available for sale
Agency collateralized mortgage obligations	$	9,626	$	375,132	$	1,386	$	27,025	$	11,012	$	402,157
Agency mortgage-backed securities	3,179		222,887		4,463		175,941		7,642		398,828
Agency commercial mortgage-backed securities	1,609		103,354		2,019		49,313		3,628		152,667
Corporate bonds	114		11,115		—		—		114		11,115
Total securities available for sale	$	14,528	$	712,488	$	7,868	$	252,279	$	22,396	$	964,767
Securities held to maturity
Municipal bonds and obligations	$	693	$	36,981	$	—	$	—	$	693	$	36,981
Agency collateralized mortgage obligations	1,808		49,308		1,705		36,212		3,513		85,520
Agency mortgage-backed securities	839		26,656		659		26,025		1,498		52,681
Agency commercial mortgage-backed securities	1,255		80,406		2,034		51,654		3,289		132,060
Tax advantaged economic development bonds	15		1,255		—		—		15		1,255
Total securities held to maturity	4,610		194,606		4,398		113,891		9,008		308,497
Total	$	19,138	$	907,094	$	12,266	$	366,170	$	31,404	$	1,273,264

Debt Securities

The Company expects to recover its amortized cost basis on all debt securities in its AFS and HTM portfolios. Furthermore, the Company does not intend to sell nor does it anticipate that it will be required to sell any of its securities in an unrealized loss position as of June 30, 2022, prior to this recovery. The Company’s ability and intent to hold these securities until recovery is supported by the Company’s strong capital and liquidity positions as well as its historically low portfolio turnover.

The following summarizes, by investment security type, the basis for the conclusion that the debt securities in an unrealized loss position within the Company’s AFS and HTM portfolios were not other-than-temporarily impaired at June 30, 2022:

AFS U.S Treasuries

At June 30, 2022, 4 of the 4 securities in the Company’s portfolio of U.S Treasuries were in unrealized loss positions. Aggregate unrealized losses represented 0.1% of the amortized cost of securities in unrealized loss positions. The securities are all investment grade rated, and there were no material underlying credit downgrades during the quarter. All securities are performing.

AFS municipal bonds and obligations

At June 30, 2022, 32 of the 97 securities in the Company’s portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 7.1% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during the quarter. All securities are performing.

AFS collateralized mortgage obligations

At June 30, 2022, 240 of the 251 securities in the Company’s portfolio of AFS collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 9.5% of the amortized cost of securities in unrealized loss positions. The Federal National Mortgage Association (“FNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”), and Government National Mortgage Association (“GNMA”) guarantee the contractual cash flows of all of the Company’s collateralized mortgage obligations. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing.

AFS commercial and residential mortgage-backed securities

At June 30, 2022, 121 of the 139 securities in the Company’s portfolio of AFS mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 10.1% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of all of the Company’s mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing.

AFS corporate bonds

At June 30, 2022, 10 of the 14 securities in the Company’s portfolio of AFS corporate bonds were in an unrealized loss position. Aggregate unrealized losses represents 4.1% of the amortized cost of the bond in an unrealized loss position. The Company reviews the financial strength of all of these bonds and has concluded that the amortized cost remains supported by the expected future cash flows of these securities.

HTM municipal bonds and obligations

At June 30, 2022, 114 of the 197 securities in the Company’s portfolio of HTM municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 12.5% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during the quarter. All securities are performing.

HTM collateralized mortgage obligations

At June 30, 2022, 11 of the 13 securities in the Company’s portfolio of HTM collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 11.0% of the amortized cost of the securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of all of the Company's collateralized residential mortgage obligations. The securities are investment grade rated, and there were no material underlying credit downgrades during the quarter. All securities are performing.

HTM commercial and residential mortgage-backed securities

At June 30, 2022, 17 of the 17 securities in the Company’s portfolio of HTM mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 12.8% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of the Company’s mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing.

HTM tax-advantaged economic development bonds

At June 30, 2022, 1 of the 3 securities in the Company’s portfolio of tax-advantaged economic development bonds was in an unrealized loss position. Aggregate unrealized losses represented 2.9% of the amortized cost of the security in an unrealized loss position. The Company believes that more likely than not all the principal outstanding will be collected. All securities are performing.

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LOANS AND ALLOWANCE FOR CREDIT LOSSES

6 Months Ended

Jun. 30, 2022

Credit Loss [Abstract]

LOANS AND ALLOWANCE FOR CREDIT LOSSES

LOANS AND ALLOWANCE FOR CREDIT LOSSES

The following is a summary of total loans by regulatory call report code with sub-segmentation based on underlying collateral for certain loan types:

(In thousands)	June 30, 2022		December 31, 2021
Construction	$	323,969	$	324,282
Commercial multifamily	667,427		515,817
Commercial real estate owner occupied	624,869		606,477
Commercial real estate non-owner occupied	2,295,298		2,156,929
Commercial and industrial	1,435,739		1,284,429
Residential real estate	1,917,227		1,489,248
Home equity	240,874		252,366
Consumer other	298,048		196,299
Total loans	$	7,803,451	$	6,825,847
Allowance for credit losses	99,021		106,094
Net loans	$	7,704,430	$	6,719,753

As of June 30, 2022 and December 31, 2021, outstanding loans originated under the Small Business Administration ("SBA") Paycheck Protection Program ("PPP") totaled $13.9 million and $29.9 million, respectively. These loans are 100% guaranteed by the SBA and the full principal amount of the loan may qualify for forgiveness. These loans are included in commercial and industrial.

During the three and six months ended June 30, 2022, there were no loans reclassified to held for sale. During the three and six months ended June 30, 2021, the Company reclassified $2.2 million and $11.7 million of commercial loans to held for sale, reflecting its intent to sell these loans. Held for sale loans are not contained in the balances within this note and are accounted for at the lower of carrying value or fair market value within loans held for sale on the Consolidated Balance Sheet.

Risk characteristics relevant to each portfolio segment are as follows:

Construction - Loans in this segment primarily include real estate development loans for which payment is derived from sale of the property or long term financing at completion. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions.

Commercial real estate multifamily, owner occupied and non-owner - Loans in these segments are primarily owner-occupied or income-producing properties throughout New England and Northeastern New York. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy, which in turn, will have an effect on the credit quality in this segment. Management monitors the cash flows of these loans.

Commercial and industrial loans - Loans in this segment are made to businesses and are generally secured by assets of the business such as accounts receivable, inventory, marketable securities, other liquid collateral, equipment and other business assets. Repayment is expected from the cash flows of the business. Loans in this segment include asset based loans which generally have no scheduled repayment and which are closely monitored against formula based collateral advance ratios. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment.

Residential real estate - All loans in this segment are collateralized by residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.

Home equity and other consumer loans - Loans in this segment are primarily home equity lines of credit, automobile loans and other consumer loans. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment.

Allowance for Credit Losses for Loans

The Allowance for Credit Losses for Loans (“ACLL”) is comprised of the allowance for loan losses, and the allowance for unfunded commitments is accounted for as a separate liability in other liabilities on the balance sheet. The level of the ACLL represents management’s estimate of expected credit losses over the expected life of the loans at the balance sheet date. The Company uses a static pool migration analysis method, applying expected historical loss trend and observed economic metrics. The level of the ACLL is based on management’s ongoing review of all relevant information, from internal and external sources, relating to past and current events, utilizing a 7 quarter reasonable and supportable forecast period with a 1 year reversion period. The ACLL reserve is overlaid with qualitative factors based upon:

•the existence and growth of concentrations of credit;

•the volume and severity of past due financial assets, including nonaccrual assets;

•the institutions lending and credit review as well as the experience and ability of relevant management and staff and;

•the effect of other external factors such as regulatory, competition, regional market conditions, legal and technological environment and other events such as natural disasters;

•the effect of other economic factors such as economic stimulus and customer forbearance programs.

The allowance for unfunded commitments is maintained at a level by the Company to be sufficient to absorb expected lifetime losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit) and is included in other liabilities on the consolidated balance sheet.

The Company’s activity in the allowance for credit losses for loans for the three and six months ended June 30, 2022 and June 30, 2021 was as follows:

(In thousands)	Balance at Beginning of Period		Charge-offs		Recoveries		Provision for Credit Losses		Balance at End of Period
Three months ended June 30, 2022
Construction	$	2,505	$	—	$	—	$	(795)	$	1,710
Commercial multifamily	5,771		—		—		(1,150)		4,621
Commercial real estate owner occupied	11,498		(298)		97		(609)		10,688
Commercial real estate non-owner occupied	25,814		—		46		305		26,165
Commercial and industrial	22,949		(752)		584		133		22,914
Residential real estate	17,816		(216)		199		(1,389)		16,410
Home equity	3,303		—		112		(587)		2,828
Consumer other	9,819		(332)		101		4,097		13,685
Total allowance for credit losses	$	99,475	$	(1,598)	$	1,139	$	5	$	99,021

(In thousands)	Balance at Beginning of Period		Charge-offs		Recoveries		Provision for Credit Losses		Balance at End of Period
Three months ended June 30, 2021
Construction	$	4,397	$	—	$	—	$	(478)	$	3,919
Commercial multifamily	6,351		(115)		95		866		7,197
Commercial real estate owner occupied	14,257		(227)		40		(828)		13,242
Commercial real estate non-owner occupied	34,561		(2,561)		178		(1,863)		30,315
Commercial and industrial	26,071		(3,585)		1,266		4,473		28,225
Residential real estate	25,800		(220)		667		(2,604)		23,643
Home equity	5,749		(164)		15		(168)		5,432
Consumer other	6,614		(375)		249		583		7,071
Total allowance for credit losses	$	123,800	$	(7,247)	$	2,510	$	(19)	$	119,044

(In thousands)	Balance at Beginning of Period		Charge-offs		Recoveries		Provision for Credit Losses		Balance at End of Period
Six months ended June 30, 2022
Construction	$	3,206	$	—	$	—	$	(1,496)	$	1,710
Commercial multifamily	6,120		—		—		(1,499)		4,621
Commercial real estate owner occupied	12,752		(428)		306		(1,942)		10,688
Commercial real estate non-owner occupied	32,106		(4,884)		1,312		(2,369)		26,165
Commercial and industrial	22,584		(1,405)		1,872		(137)		22,914
Residential real estate	22,406		(380)		587		(6,203)		16,410
Home equity	4,006		—		246		(1,424)		2,828
Consumer other	2,914		(548)		238		11,081		13,685
Total allowance for credit losses	$	106,094	$	(7,645)	$	4,561	$	(3,989)	$	99,021

(In thousands)	Balance at Beginning of Period		Charge-offs		Recoveries		Provision for Credit Losses		Balance at End of Period
Six months ended June 30, 2021
Construction	$	5,111	$	—	$	—	$	(1,192)	$	3,919
Commercial multifamily	5,916		(239)		157		1,363		7,197
Commercial real estate owner occupied	12,380		(603)		52		1,413		13,242
Commercial real estate non-owner occupied	35,850		(9,220)		304		3,381		30,315
Commercial and industrial	25,013		(6,905)		1,911		8,206		28,225
Residential real estate	28,491		(598)		1,104		(5,354)		23,643
Home equity	6,482		(240)		39		(849)		5,432
Consumer other	8,059		(903)		409		(494)		7,071
Total allowance for credit losses	$	127,302	$	(18,708)	$	3,976	$	6,474	$	119,044

The Company’s allowance for credit losses on unfunded commitments is recognized as a liability (other liability on consolidated balance sheet), with adjustments to the reserve recognized in other noninterest expense in the consolidated statement of income. The Company’s activity in the allowance for credit losses on unfunded commitments for the three and six months ended June 30, 2022 and 2021 was as follows:

	Three Months Ended June 30,
(In thousands)	2022		2021
Balance at beginning of period	$	7,043	$	7,829
Expense for credit losses	—		—
Balance at end of period	$	7,043	$	7,829

	Six Months Ended June 30,
(In thousands)	2022		2021
Balance at beginning of period	$	7,043	$	7,629
Expense for credit losses	—		200
Balance at end of period	$	7,043	$	7,829

Credit Quality Information

The Company monitors the credit quality of its portfolio by using internal risk ratings that are based on regulatory guidance. Loans that are given a Pass rating are not considered a problem credit. Loans that are classified as Special Mention loans are considered to have potential weaknesses and are evaluated closely by management. Substandard, including non-accruing loans, are loans for which a definitive weakness has been identified and which may make full collection of contractual cash flows questionable. Doubtful loans are those with identified weaknesses that make full collection of contractual cash flows, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

For commercial credits, the Company assigns an internal risk rating at origination and reviews the rating annual, semiannually, or quarterly depending on the risk rating. The rating is also reassessed at any point in time when management becomes aware of information that may affect the borrower’s ability to fulfill their obligations.

The Company risk rates its residential mortgages, including 1-4 family and residential construction loans, based on a three rating system: Pass, Special Mention, and Substandard. Loans that are current within 59 days are rated Pass. Residential mortgages that are 60-89 days delinquent are rated Special Mention. Loans delinquent for 90 days or greater are rated Substandard and generally placed on non-accrual status. 

The following table presents the Company’s loans by risk category:

	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of June 30, 2022
Construction
Risk rating
Pass	$	66,278	$	125,071	$	29,805	$	75,853	$	2,321	$	4,871	$	49	$	—	$	304,248
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		19,721		—		—		—		19,721
Total	$	66,278	$	125,071	$	29,805	$	75,853	$	22,042	$	4,871	$	49	$	—	$	323,969
Commercial multifamily:
Risk rating
Pass	$	182,663	$	61,261	$	27,878	$	117,448	$	71,908	$	195,751	$	756	$	—	$	657,665
Special Mention	—		—		2,664		—		5,554		—		—		—		8,218
Substandard	—		—		—		—		—		1,413		131		—		1,544
Total	$	182,663	$	61,261	$	30,542	$	117,448	$	77,462	$	197,164	$	887	$	—	$	667,427
Commercial real estate owner occupied:
Risk rating
Pass	$	75,279	$	144,338	$	48,354	$	85,734	$	76,968	$	181,968	$	1,615	$	—	$	614,256
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	1,053		—		35		554		1,432		7,539		—		—		10,613
Total	$	76,332	$	144,338	$	48,389	$	86,288	$	78,400	$	189,507	$	1,615	$	—	$	624,869
Commercial real estate non-owner occupied:
Risk rating
Pass	$	384,990	$	427,922	$	173,393	$	269,140	$	323,077	$	600,342	$	18,031	$	—	$	2,196,895
Special Mention	—		—		—		7,669		13,568		27,563		—		—		48,800
Substandard	—		—		7,421		—		2,911		39,175		96		—		49,603
Total	$	384,990	$	427,922	$	180,814	$	276,809	$	339,556	$	667,080	$	18,127	$	—	$	2,295,298
Commercial and industrial:
Risk rating
Pass	$	133,144	$	172,622	$	106,743	$	87,963	$	138,263	$	133,896	$	607,388	$	—	$	1,380,019
Special Mention	—		—		—		1,757		1,257		—		—		—		3,014
Substandard	6		353		2,207		8,989		2,770		3,639		34,623		—		52,587
Doubtful	—		—		—		—		—		21		98		—		119
Total	$	133,150	$	172,975	$	108,950	$	98,709	$	142,290	$	137,556	$	642,109	$	—	$	1,435,739
Residential real estate
Risk rating
Pass	$	503,499	$	290,620	$	103,521	$	75,910	$	159,577	$	767,805	$	288	$	—	$	1,901,220
Special Mention	—		—		—		345		—		823		—		—		1,168
Substandard	—		599		—		304		1,955		11,981		—		—		14,839
Total	$	503,499	$	291,219	$	103,521	$	76,559	$	161,532	$	780,609	$	288	$	—	$	1,917,227

	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31, 2021
Construction
Risk rating
Pass	$	71,784	$	52,725	$	117,784	$	66,950	$	3,839	$	1,721	$	50	$	—	$	314,853
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		9,429		—		—		—		—		9,429
Total	$	71,784	$	52,725	$	117,784	$	76,379	$	3,839	$	1,721	$	50	$	—	$	324,282
Commercial multifamily:
Risk rating
Pass	$	63,630	$	28,172	$	98,455	$	59,720	$	76,699	$	176,020	$	457	$	—	$	503,153
Special Mention	—		2,700		—		5,598		—		—		—		—		8,298
Substandard	—		—		—		—		—		4,230		136		—		4,366
Total	$	63,630	$	30,872	$	98,455	$	65,318	$	76,699	$	180,250	$	593	$	—	$	515,817
Commercial real estate owner occupied:
Risk rating
Pass	$	154,434	$	50,236	$	85,687	$	91,316	$	45,995	$	157,346	$	3,206	$	—	$	588,220
Special Mention	—		525		869		1,668		1,405		1,157		—		—		5,624
Substandard	—		—		2,113		1,593		838		8,089		—		—		12,633
Total	$	154,434	$	50,761	$	88,669	$	94,577	$	48,238	$	166,592	$	3,206	$	—	$	606,477
Commercial real estate non-owner occupied:
Risk rating
Pass	$	426,086	$	176,172	$	296,985	$	349,947	$	204,043	$	585,044	$	19,511	$	—	$	2,057,788
Special Mention	—		221		3,472		7,632		2,302		27,268		—		—		40,895
Substandard	—		7,588		—		2,784		33,472		14,303		99		—		58,246
Total	$	426,086	$	183,981	$	300,457	$	360,363	$	239,817	$	626,615	$	19,610	$	—	$	2,156,929
Commercial and industrial:
Risk rating
Pass	$	187,257	$	130,520	$	114,153	$	156,443	$	54,190	$	136,837	$	424,393	$	—	$	1,203,793
Special Mention	661		1,691		10,824		5,092		1,433		488		22,468		—		42,657
Substandard	211		2,494		9,609		3,145		2,020		2,330		17,935		—		37,744
Doubtful	—		—		—		—		—		15		220		—		235
Total	$	188,129	$	134,705	$	134,586	$	164,680	$	57,643	$	139,670	$	465,016	$	—	$	1,284,429
Residential real estate
Risk rating
Pass	$	214,306	$	114,536	$	86,997	$	169,537	$	189,980	$	697,401	$	293	$	—	$	1,473,050
Special Mention	—		—		—		120		502		1,557		—		—		2,179
Substandard	1,239		—		142		1,849		2,161		8,628		—		—		14,019
Total	$	215,545	$	114,536	$	87,139	$	171,506	$	192,643	$	707,586	$	293	$	—	$	1,489,248

For home equity and consumer other loan portfolio segments, Berkshire evaluates credit quality based on the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an ongoing basis dependent upon improvement and deterioration in credit quality. The following table presents the amortized cost based on payment activity:

	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of June 30, 2022
Home equity:
Payment performance
Performing	$	—	$	119	$	460	$	—	$	—	$	20	$	238,524	$	—	$	239,123
Nonperforming	—		—		—		—		—		—		1,751		—		1,751
Total	$	—	$	119	$	460	$	—	$	—	$	20	$	240,275	$	—	$	240,874
Consumer other:
Payment performance
Performing	$	150,411	$	33,080	$	9,563	$	16,460	$	40,622	$	38,197	$	7,864	$	—	$	296,197
Nonperforming	49		108		23		297		621		745		8		—		1,851
Total	$	150,460	$	33,188	$	9,586	$	16,757	$	41,243	$	38,942	$	7,872	$	—	$	298,048

	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31, 2021
Home equity:
Payment performance
Performing	$	125	$	469	$	—	$	—	$	—	$	24	$	249,590	$	—	$	250,208
Nonperforming	—		—		—		—		—		—		2,158		—		2,158
Total	$	125	$	469	$	—	$	—	$	—	$	24	$	251,748	$	—	$	252,366
Consumer other:
Payment performance
Performing	$	37,994	$	11,189	$	21,548	$	55,577	$	30,632	$	28,797	$	7,505	$	—	$	193,242
Nonperforming	8		46		290		797		746		1,139		31		—		3,057
Total	$	38,002	$	11,235	$	21,838	$	56,374	$	31,378	$	29,936	$	7,536	$	—	$	196,299

The following is a summary of loans by past due status at June 30, 2022 and December 31, 2021:

(In thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loans
June 30, 2022
Construction	$	—	$	—	$	—	$	—	$	323,969	$	323,969
Commercial multifamily	—		—		174		174		667,253		667,427
Commercial real estate owner occupied	58		53		3,963		4,074		620,795		624,869
Commercial real estate non-owner occupied	154		25,000		4,915		30,069		2,265,229		2,295,298
Commercial and industrial	1,314		165		6,841		8,320		1,427,419		1,435,739
Residential real estate	5,534		1,168		14,237		20,939		1,896,288		1,917,227
Home equity	520		545		1,751		2,816		238,058		240,874
Consumer other	1,351		322		1,762		3,435		294,613		298,048
Total	$	8,931	$	27,253	$	33,643	$	69,827	$	7,733,624	$	7,803,451

(In thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loans
December 31, 2021
Construction	$	—	$	—	$	—	$	—	$	324,282	$	324,282
Commercial multifamily	82		306		187		575		515,242		515,817
Commercial real estate owner occupied	—		400		4,221		4,621		601,856		606,477
Commercial real estate non-owner occupied	25,420		653		9,049		35,122		2,121,807		2,156,929
Commercial and industrial	2,700		709		6,836		10,245		1,274,184		1,284,429
Residential real estate	5,529		2,015		13,264		20,808		1,468,440		1,489,248
Home equity	258		108		2,158		2,524		249,842		252,366
Consumer other	1,363		320		2,882		4,565		191,734		196,299
Total	$	35,352	$	4,511	$	38,597	$	78,460	$	6,747,387	$	6,825,847

The following is a summary of loans on nonaccrual status and loans past due 90 days or more and still accruing as of June 30, 2022 and December 31, 2021:

(In thousands)	Nonaccrual Amortized Cost		Nonaccrual With No Related Allowance		Past Due 90 Days or Greater and Accruing		Interest Income Recognized on Nonaccrual
At or for the three months ended June 30, 2022
Construction	$	—	$	—	$	—	$	—
Commercial multifamily	174		174		—		—
Commercial real estate owner occupied	3,370		2,336		593		—
Commercial real estate non-owner occupied	4,444		4,184		471		—
Commercial and industrial	4,856		441		1,985		—
Residential real estate	10,889		6,413		3,348		—
Home equity	1,521		127		230		—
Consumer other	1,630		3		132		—
Total	$	26,884	$	13,678	$	6,759	$	—

The commercial and industrial loans nonaccrual amortized cost as of June 30, 2022 included medallion loans with a fair value of $1.0 million and a contractual balance of $20.6 million.

(In thousands)	Nonaccrual Amortized Cost		Nonaccrual With No Related Allowance		Past Due 90 Days or Greater and Accruing		Interest Income Recognized on Nonaccrual
At or for the three months ended December 31, 2021
Construction	$	—	$	—	$	—	$	—
Commercial multifamily	187		187		—		—
Commercial real estate owner occupied	4,221		2,413		—		—
Commercial real estate non-owner occupied	8,877		8,412		172		—
Commercial and industrial	6,747		1,506		89		—
Residential real estate	10,698		6,511		2,566		—
Home equity	1,901		141		257		—
Consumer other	2,695		4		187		—
Total	$	35,326	$	19,174	$	3,271	$	—

The commercial and industrial loans nonaccrual amortized cost as of December 31, 2021 included medallion loans with a fair value of $1.2 million and a contractual balance of $31.4 million.

The following table summarizes information about total loans rated Special Mention or lower at June 30, 2022 and December 31, 2021. The table below includes consumer loans that are Special Mention and Substandard accruing that are classified as performing based on payment activity.

(In thousands)	June 30, 2022		December 31, 2021
Non-Accrual	$	26,884	$	35,326
Substandard Accruing	125,307		106,560
Total Classified	152,191		141,886
Special Mention	62,060		100,071
Total Criticized	$	214,251	$	241,957

A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Expected credit losses for collateral-dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table presents the amortized cost basis of individually analyzed collateral-dependent loans by loan portfolio segment:

	Type of Collateral
(In thousands)	Real Estate		Investment Securities/Cash		Other
June 30, 2022
Construction	$	—	$	—	$	—
Commercial multifamily	175		—		—
Commercial real estate owner occupied	3,472		—		—
Commercial real estate non-owner occupied	4,628		—		—
Commercial and industrial	290		—		2,528
Residential real estate	5,919		—		—
Home equity	247		—		—
Consumer other	5		—		—
Total loans	$	14,736	$	—	$	2,528
December 31, 2021
Construction	$	9,429	$	—	$	—
Commercial multifamily	188		—		—
Commercial real estate owner occupied	4,466		—		—
Commercial real estate non-owner occupied	9,501		—		—
Commercial and industrial	526		—		1,040
Residential real estate	7,035		—		—
Home equity	262		—		—
Consumer other	2		—		—
Total loans	$	31,409	$	—	$	1,040

Troubled Debt Restructuring Loans

The Company’s loan portfolio also includes certain loans that have been modified in a Troubled Debt Restructuring ("TDR"), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. TDRs are evaluated individually for impairment and may result in a specific allowance amount allocated to an individual loan.

The following table presents activity in TDRs for the three and six months ended June 30, 2022 and June 30, 2021:

(In thousands)	Balance at Beginning of Period		Principal Payments		TDR Status Change		Other Additions/(Reductions)		Newly Identified TDRs		Balance at End of Period
Three months ended June 30, 2022
Construction	$	9,429	$	—	$	—	$	(9,429)	$	—	$	—
Commercial multifamily	694		(17)		—		—		—		677
Commercial real estate owner occupied	2,724		(23)		—		—		—		2,701
Commercial real estate non-owner occupied	998		(12)		—		—		—		986
Commercial and industrial	3,592		(290)		—		(137)		1,486		4,651
Residential real estate	1,109		(23)		—		(67)		—		1,019
Home equity	169		(7)		—		—		—		162
Consumer other	32		(2)		—		—		—		30
Total	$	18,747	$	(374)	$	—	$	(9,633)	$	1,486	$	10,226

(In thousands)	Balance at Beginning of Period		Principal Payments		TDR Status Change		Other Additions/(Reductions)		Newly Identified TDRs		Balance at End of Period
Three months ended June 30, 2021
Construction	$	—	$	—	$	—	$	—	$	—	$	—
Commercial multifamily	741		(13)		—		—		—		728
Commercial real estate owner occupied	1,725		(29)		—		—		1,266		2,962
Commercial real estate non-owner occupied	14,725		(81)		—		(590)		10,434		24,488
Commercial and industrial	2,633		(229)		—		(37)		4,443		6,810
Residential real estate	1,493		(14)		—		(174)		—		1,305
Home equity	130		(3)		—		—		—		127
Consumer other	34		(3)		—		6		—		37
Total	$	21,481	$	(372)	$	—	$	(795)	$	16,143	$	36,457

(In thousands)	Balance at Beginning of Period		Principal Payments		TDR Status Change		Other Additions/(Reductions)		Newly Identified TDRs		Balance at End of Period
Six months ended June 30, 2022
Construction	$	9,429	$	—	$	—	$	(9,429)	$	—	$	—
Commercial multifamily	703		(26)		—		—		—		677
Commercial real estate owner occupied	2,733		(32)		—		—		—		2,701
Commercial real estate non-owner occupied	9,310		(13)		—		(8,311)		—		986
Commercial and industrial	3,656		(341)		—		(150)		1,486		4,651
Residential real estate	1,117		(31)		—		(67)		—		1,019
Home equity	121		(9)		—		—		50		162
Consumer other	33		(3)		—		—		—		30
Total	$	27,102	$	(455)	$	—	$	(17,957)	$	1,536	$	10,226

(In thousands)	Balance at Beginning of Period		Principal Payments		TDR Status Change		Other Additions/(Reductions)		Newly Identified TDRs		Balance at End of Period
Six months ended June 30, 2021
Construction	$	—	$	—	$	—	$	—	$	—	$	—
Commercial multifamily	754		(26)		—		—		—		728
Commercial real estate owner occupied	1,731		(35)		—		—		1,266		2,962
Commercial real estate non-owner occupied	13,684		(95)		—		(80)		10,979		24,488
Commercial and industrial	2,686		(428)		—		(37)		4,589		6,810
Residential real estate	1,524		(46)		—		(173)		—		1,305
Home equity	133		(6)		—		—		—		127
Consumer other	36		(5)		—		6		—		37
Total	$	20,548	$	(641)	$	—	$	(284)	$	16,834	$	36,457

The following table presents loans modified as TDRs that occurred during the three and six months ended June 30, 2022 and 2021:

(dollars in thousands)	Total
Three months ended June 30, 2022
TDR:
Number of loans	1
Pre-modification outstanding recorded investment	$	1,486
Post-modification outstanding recorded investment	$	1,486
Three months ended June 30, 2021
TDR:
Number of loans	9
Pre-modification outstanding recorded investment	$	16,143
Post-modification outstanding recorded investment	$	16,143

(dollars in thousands)	Total
Six months ended June 30, 2022
TDR:
Number of loans	2
Pre-modification outstanding recorded investment	$	1,536
Post-modification outstanding recorded investment	$	1,536
Six months ended June 30, 2021
TDR:
Number of loans	13
Pre-modification outstanding recorded investment	$	16,834
Post-modification outstanding recorded investment	$	16,834

There were no TDRs for which there was a payment default within twelve months following the modification during the three months ending June 30, 2022. The following table presents loans by portfolio segment modified as TDRs for which there was a payment default within twelve months following the modification during the six months ended June 30, 2022:

(in thousands)	Number of Loans	Recorded Investment
Six months ended June 30, 2022
Commercial and industrial	1	$	105
Total	1	$	105

There were no TDRs for which there was a payment default within twelve months following the modification during the three and six months ended June 30, 2021.

Beginning in March 2020, the Company has offered three-month payment deferrals for customers with a current payment status who were negatively impacted by economic disruption caused by the COVID-19 pandemic. Refer to Note 9 - Other Commitments, Contingencies, and Off-Balance Sheet Activities, and Pandemic Impact for more information regarding these modifications.

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DEPOSITS

6 Months Ended

Jun. 30, 2022

Deposits [Abstract]

DEPOSITS

DEPOSITS

A summary of time deposits is as follows:

(In thousands)	June 30, 2022		December 31, 2021
Time less than $100,000	$	531,023	$	676,979
Time $100,000 through $250,000	573,967		610,174
Time more than $250,000	370,427		391,787
Total time deposits	$	1,475,417	$	1,678,940

Included in total deposits were brokered deposits of $112.9 million and $228.1 million at June 30, 2022 and December 31, 2021, respectively. Included in total deposits were reciprocal deposits of $79.9 million and $89.2 million at June 30, 2022 and December 31, 2021, respectively.

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BORROWED FUNDS

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

BORROWED FUNDS

BORROWED FUNDS

Borrowed funds at June 30, 2022 and December 31, 2021 are summarized as follows:

	June 30, 2022				December 31, 2021
			Weighted				Weighted
			Average				Average
(Dollars in thousands)	Principal		Rate		Principal		Rate
Short-term borrowings:
Advances from the FHLB	$	50,000	1.28	%	$	—	—	%
Total short-term borrowings:	50,000		1.28		—		—
Long-term borrowings:
Advances from the FHLB and other borrowings	8,542		1.33		13,331		1.75
Subordinated borrowings	172,711		6.15		74,590		7.00
Junior subordinated borrowing - Trust I	15,464		3.35		15,464		2.01
Junior subordinated borrowing - Trust II	7,484		3.53		7,459		1.90
Total long-term borrowings:	204,201		5.64		110,844		5.33
Total	$	254,201	4.78	%	$	110,844	5.33	%

Short-term debt includes Federal Home Loan Bank (“FHLB”) advances with an original maturity of less than one year. The Bank also maintains a $3.0 million secured line of credit with the FHLB that bears a daily adjustable rate calculated by the FHLB. There was no outstanding balance on the FHLB line of credit for the periods ended June 30, 2022 and December 31, 2021. The Bank's available borrowing capacity with the FHLB was $1.3 billion and $1.5 billion for the periods ended June 30, 2022 and December 31, 2021.

The Bank is approved to borrow on a short-term basis from the Federal Reserve Bank of Boston as a non-member bank. The Bank has pledged certain loans and securities to the Federal Reserve Bank to support this arrangement. No borrowings with the Federal Reserve Bank under this arrangement took place for the periods ended June 30, 2022 and December 31, 2021. As a participant in the SBA Paycheck Protection Program ("PPP"), the Bank may pledge originated loans as collateral at face value to the Federal Reserve Bank of Boston for term financings. As of June 30, 2022 and December 31, 2021, the Bank had no pledged PPP loans. The Bank's available borrowing capacity with the Federal Reserve Bank was $590.5 million and $511.0 million for the periods ended June 30, 2022 and December 31, 2021, respectively.

Long-term FHLB advances consist of advances with an original maturity of more than one year and are subject to prepayment penalties. The advances outstanding at June 30, 2022 included callable advances totaling $4.0 million and amortizing advances totaling $4.5 million. The advances outstanding at December 31, 2021 included callable advances totaling $10.0 million and amortizing advances totaling $3.4 million. All FHLB borrowings, including the line of credit, are secured by a blanket security agreement on certain qualified collateral, principally all residential first mortgage loans and certain securities.

A summary of maturities of FHLB advances as of June 30, 2022 is as follows:

	June 30, 2022
			Weighted Average
(In thousands, except rates)	Principal		Rate
Fixed rate advances maturing:
2022	$	53,998	1.34	%
2023	—		—
2024	32		—
2025	—		—
2025 and beyond	4,512		0.72
Total FHLB advances	$	58,542	1.29	%

The Company did not have variable-rate FHLB advances for the periods ended June 30, 2022 and December 31, 2021, respectively.

In June 2022, the Company issued ten year subordinated notes in the amount of $100.0 million. The interest rate is fixed at 5.50% for the first five years. After five years, the notes become callable and will bear interest at a floating rate per annum equal to the Benchmark rate (which is expected to be Three-Month Term SOFR), plus 249 basis points. The subordinated note includes reduction to the note principal balance of $2.0 million for unamortized debt issuance costs as of June 30, 2022.

In September 2012, the Company issued fifteen year subordinated notes in the amount of $75.0 million at a discount of 1.15%. The interest rate is fixed at 6.875% for the first ten years. After ten years, the notes become callable and convert to an interest rate of three-month LIBOR rate plus 5.113%. The subordinated note includes reduction to the note principal balance of $31 thousand and $92 thousand for unamortized debt issuance costs as of June 30, 2022 and December 31, 2021, respectively.

The Company holds 100% of the common stock of Berkshire Hills Capital Trust I (“Trust I”) which is included in other assets at a cost of $0.5 million. The sole asset of Trust I is $15.5 million of the Company’s junior subordinated debentures due in 2035. These debentures bear interest at a variable rate equal to LIBOR plus 1.85% and had a rate of 3.35% and 2.01% at June 30, 2022 and December 31, 2021, respectively. The Company has the right to defer payments of interest for up to five years on the debentures at any time, or from time to time, with certain limitations, including a restriction on the payment of dividends to shareholders while such interest payments on the debentures have been deferred. The Company has not exercised this right to defer payments. The Company has the right to redeem the debentures at par value. Trust I is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, Trust I is not consolidated into the Company’s financial statements.

The Company holds 100% of the common stock of SI Capital Trust II (“Trust II”) which is included in other assets at a cost of $0.2 million. The sole asset of Trust II is $8.2 million of the Company’s junior subordinated debentures due in 2036. These debentures bear interest at a variable rate equal to LIBOR plus 1.70% and had a rate of 3.53% and 1.90% at June 30, 2022 and December 31, 2021, respectively. The Company has the right to defer payments of interest for up to five years on the debentures at any time, or from time to time, with certain limitations, including a restriction on the payment of dividends to shareholders while such interest payments on the debentures have been deferred. The Company has not exercised this right to defer payments. The Company has the right to redeem the debentures at par value. Trust II is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, Trust II is not consolidated into the Company’s financial statements.

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

As of June 30, 2022, the Company held derivatives with a total notional amount of $3.8 billion. The Company had economic hedges totaling $3.8 billion and $3.0 million non-hedging derivatives, which are not designated as hedges for accounting purposes with changes in fair value recorded directly through earnings. Economic hedges included interest rate swaps totaling $3.4 billion, risk participation agreements with dealer banks of $0.3 billion, and $1.0 million in forward commitment contracts.

As part of the Company’s risk management strategy, the Company enters into interest rate swap agreements to mitigate the interest rate risk inherent in certain of the Company’s assets and liabilities. Interest rate swap agreements involve the risk of dealing with both Bank customers and institutional derivative counterparties and their ability to meet contractual terms. The agreements are entered into with counterparties that meet established credit standards and contain master netting and collateral provisions protecting the at-risk party. The derivatives program is overseen by the Risk Management and Capital Committee of the Company’s Board of Directors. Based on adherence to the Company’s credit standards and the presence of the netting and collateral provisions, the Company believes that the credit risk inherent in these contracts was not significant at June 30, 2022.

The Company pledged collateral to derivative counterparties in the form of cash totaling $11.1 million and securities with an amortized cost of $37.6 million and a fair value of $37.5 million as of June 30, 2022. The Company does not typically require its commercial customers to post cash or securities as collateral on its program of back-to-back economic hedges. However certain language is written into the International Swaps Dealers Association, Inc. (“ISDA”) and loan documents where, in default situations, the Bank is allowed to access collateral supporting the loan relationship to recover any losses suffered on the derivative asset or liability. The Company may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions.

Information about derivative assets and liabilities at June 30, 2022, follows:

			Weighted	Weighted Average Rate				Estimated
	Notional		Average			Contract		Fair Value
	Amount		Maturity	Received		pay rate		Asset (Liability)
	(In thousands)		(In years)					(In thousands)
Economic hedges:
Interest rate swap on tax advantaged economic development bond	$	7,475	7.4	5.09	%	3.22	%	$	(509)
Interest rate swaps on loans with commercial loan customers	1,714,537		5.8	3.98	%	2.88	%	(47,467)
Offsetting interest rate swaps on loans with commercial loan customers (1)	1,714,537		5.8	2.88	%	3.98	%	29,488
Risk participation agreements with dealer banks	326,765		5.7					32
Forward sale commitments	984		0.2					18
Total economic hedges	3,764,298							(18,438)
Non-hedging derivatives:
Commitments to lend	2,957		0.2					26
Total non-hedging derivatives	2,957							26
Total	$	3,767,255						$	(18,412)

(1) Fair value estimates include the impact of $18.0 million settled to market contract agreements.

Information about derivative assets and liabilities at December 31, 2021, follows:

			Weighted	Weighted Average Rate				Estimated
	Notional		Average			Contract		Fair Value
	Amount		Maturity	Received		pay rate		Asset (Liability)
	(In thousands)		(In years)					(In thousands)
Economic hedges:
Interest rate swap on tax advantaged economic development bond	$	7,879	7.9	0.47	%	5.09	%	$	(1,158)
Interest rate swaps on loans with commercial loan customers	1,684,238		5.8	3.99	%	1.91	%	74,348
Offsetting interest rate swaps on loans with commercial loan customers (1)	1,684,238		5.8	1.91	%	3.99	%	(30,454)
Risk participation agreements with dealer banks	320,981		5.8					432
Forward sale commitments	6,377		0.2					134
Total economic hedges	3,703,713							43,302
Non-hedging derivatives:
Commitments to lend	8,192		0.2					124
Total non-hedging derivatives	8,192							124
Total	$	3,711,905						$	43,426

(1) Fair value estimates include the impact of $45.7 million settled to market contract agreements.

Economic hedges

As of June 30, 2022, the Company has an interest rate swap with a $7.5 million notional amount to swap out the fixed rate of interest on an economic development bond bearing a fixed rate of 5.09%, currently within the Company’s trading portfolio under the fair value option, in exchange for a LIBOR-based floating rate. The intent of the economic hedge is to improve the Company’s asset sensitivity to changing interest rates in anticipation of favorable average floating rates of interest over the 21-year life of the bond. The fair value changes of the economic development bond are mostly offset by fair value changes of the related interest rate swap.

The Company also offers certain derivative products directly to qualified commercial borrowers. The Company economically hedges derivative transactions executed with commercial borrowers by entering into mirror-image, offsetting derivatives with third-party financial institutions. The transaction allows the Company’s customer to convert a variable-rate loan to a fixed rate loan. Because the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts mostly offset each other in earnings. There was no credit valuation loss adjustment arising from the difference in credit worthiness of the commercial loan and financial institution counterparties as of June 30, 2022. The interest income and expense on these mirror image swaps exactly offset each other.

The Company has risk participation agreements with dealer banks. Risk participation agreements occur when the Company participates on a loan and a swap where another bank is the lead. The Company gets paid a fee to take on the risk associated with having to make the lead bank whole on Berkshire’s portion of the pro-rated swap should the borrower default. Changes in fair value are recorded in current period earnings.

The Company utilizes forward sale commitments to hedge interest rate risk and the associated effects on the fair value of interest rate lock commitments and loans originated for sale. The forward sale commitments are accounted for as derivatives with changes in fair value recorded in current period earnings.

The Company uses the following types of forward sale commitments contracts:

•Best efforts loan sales,

•Mandatory delivery loan sales, and

•To Be Announced (“TBA”) mortgage-backed securities sales.

A best efforts contract refers to a loan sale agreement where the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. The Company may enter into a best efforts contract once the price is known, which is shortly after the potential borrower’s interest rate is locked.

A mandatory delivery contract is a loan sale agreement where the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. Generally, the Company may enter into mandatory delivery contracts shortly after the loan closes with a customer.

The Company may sell TBA mortgage-backed securities to hedge the changes in fair value of interest rate lock commitments and held for sale loans, which do not have corresponding best efforts or mandatory delivery contracts. These security sales transactions are closed once mandatory contracts are written. On the closing date the price of the security is locked-in, and the sale is paired-off with a purchase of the same security. Settlement of the security purchase/sale transaction is done with cash on a net-basis.

Non-hedging derivatives

The Company enters into interest rate lock commitments (“IRLCs”), or commitments to lend, for residential mortgage loans, which commit the Company to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs that relate to the origination of mortgage loans that will be held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose the Company to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. The IRLCs are free-standing derivatives which are carried at fair value with changes recorded in non-interest income in the Company’s consolidated statements of operations. Changes in the fair value of IRLCs subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time.

Amounts included in the Consolidated Statements of Income related to economic hedges and non-hedging derivatives were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2022		2021		2022		2021
Economic hedges
Interest rate swap on industrial revenue bond:
Unrealized gain recognized in other non-interest income	$	217	$	10	$	649	$	355
Interest rate swaps on loans with commercial loan customers:
Unrealized (loss) recognized in other non-interest income	(44,927)		10,516		(123,625)		(49,785)
Favorable change in credit valuation adjustment recognized in other non-interest income	—		(982)		1,809		1,520
Offsetting interest rate swaps on loans with commercial loan customers:
Unrealized gain recognized in other non-interest income	44,927		(10,516)		123,625		49,785
Risk participation agreements:
Unrealized (loss) recognized in other non-interest income	(292)		150		(400)		(179)
Forward commitments:
Unrealized (loss)/gain recognized in other non-interest income	11		(234)		(116)		(228)
Non-hedging derivatives
Commitments to lend
Unrealized (loss) recognized in other non-interest income	$	8	$	76	$	(98)	$	(474)
Realized gain in other non-interest income	90		457		342		1,810

Assets and Liabilities Subject to Enforceable Master Netting Arrangements

Interest Rate Swap Agreements (“Swap Agreements”)

The Company enters into swap agreements to facilitate the risk management strategies for commercial banking customers. The Company mitigates this risk by entering into equal and offsetting swap agreements with highly rated third party financial institutions. The swap agreements are free-standing derivatives and are recorded at fair value in the Company’s consolidated statements of condition. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral generally in the form of marketable securities is received or posted by the counterparty with net liability positions, respectively, in accordance with contract thresholds.

The Company had net asset positions with its financial institution counterparties totaling $54.1 million and $2.2 million as of June 30, 2022 and December 31, 2021, respectively. The Company had net asset positions with its commercial banking counterparties totaling $4.4 million and $76.8 million as of June 30, 2022 and December 31, 2021, respectively. The Company had net liability positions with its financial institution counterparties totaling $24.9 million and $33.3 million as of June 30, 2022 and December 31, 2021, respectively. The Company had net liability positions with its commercial banking counterparties totaling $51.9 million and $2.5 million as of June 30, 2022 and December 31, 2021. The Company has collateral pledged to cover this liability.

The following table presents the assets and liabilities subject to an enforceable master netting arrangement as of June 30, 2022 and December 31, 2021:

Offsetting of Financial Assets and Derivative Assets

	Gross Amounts of		Gross Amounts Offset in the		Net Amounts of Assets Presented in the		Gross Amounts Not Offset in the Statements of Condition
	Recognized		Statements of		Statements of		Financial		Cash
(In thousands)	Assets		Condition		Condition		Instruments		Collateral Received		Net Amount
June 30, 2022
Interest Rate Swap Agreements:
Institutional counterparties	$	54,445	$	(370)	$	54,075	$	—	$	—	$	54,075
Commercial counterparties	4,434		—		4,434		—		—		4,434
Total	$	58,879	$	(370)	$	58,509	$	—	$	—	$	58,509

Offsetting of Financial Liabilities and Derivative Liabilities

	Gross Amounts of		Gross Amounts Offset in the		Net Amounts of Liabilities Presented in the		Gross Amounts Not Offset in the Statements of Condition
	Recognized		Statements of		Statements of		Financial		Cash
(In thousands)	Liabilities		Condition		Condition		Instruments		Collateral Pledged		Net Amount
June 30, 2022
Interest Rate Swap Agreements:
Institutional counterparties	$	(7,010)	$	(17,930)	$	(24,940)	$	37,453	$	11,079	$	23,592
Commercial counterparties	(51,901)		—		(51,901)		—		—		(51,901)
Total	$	(58,911)	$	(17,930)	$	(76,841)	$	37,453	$	11,079	$	(28,309)

Offsetting of Financial Assets and Derivative Assets

	Gross Amounts of		Gross Amounts Offset in the		Net Amounts of Assets Presented in the		Gross Amounts Not Offset in the Statements of Condition
	Recognized		Statements of		Statements of		Financial		Cash
(In thousands)	Assets		Condition		Condition		Instruments		Collateral Received		Net Amount
December 31, 2021
Interest Rate Swap Agreements:
Institutional counterparties	$	2,223	$	(75)	$	2,148	$	—	$	—	$	2,148
Commercial counterparties	76,809		—		76,809		—		—		76,809
Total	$	79,032	$	(75)	$	78,957	$	—	$	—	$	78,957

Offsetting of Financial Liabilities and Derivative Liabilities

	Gross Amounts of		Gross Amounts Offset in the		Net Amounts of Liabilities Presented in the		Gross Amounts Not Offset in the Statements of Condition
	Recognized		Statements of		Statements of		Financial		Cash
(In thousands)	Liabilities		Condition		Condition		Instruments		Collateral Pledged		Net Amount
December 31, 2021
Interest Rate Swap Agreements:
Institutional counterparties	$	(78,146)	$	44,814	$	(33,332)	$	34,896	$	43,694	$	45,258
Commercial counterparties	(2,461)		—		(2,461)		—		—		(2,461)
Total	$	(80,607)	$	44,814	$	(35,793)	$	34,896	$	43,694	$	42,797

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LEASES

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

LEASES

LEASES

Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches, ATM locations, and office space. Most of the Company’s leases are classified as operating leases. At June 30, 2022, lease expiration dates ranged from 1 month to 18 years.

The following table represents the Consolidated Balance Sheets classification of the Company’s right-of-use (“ROU”) assets and lease liabilities:

(In thousands)		June 30, 2022		December 31, 2021
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other assets	$	52,594	$	52,180
Finance lease right-of-use assets	Premises and equipment, net	6,413		6,674
Total Lease Right-of-Use Assets		$	59,007	$	58,854
Lease Liabilities
Operating lease liabilities	Other liabilities	$	55,988	$	55,674
Finance lease liabilities	Other liabilities	9,587		9,862
Total Lease Liabilities		$	65,575	$	65,536

Supplemental information related to leases was as follows:

	June 30, 2022		December 31, 2021
Weighted-Average Remaining Lease Term (in years)
Operating leases	9.3		9.5
Finance leases	12.3		12.8
Weighted-Average Discount Rate
Operating leases	2.60	%	2.77	%
Finance leases	5.00	%	5.00	%

The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated.

The Company does not have any material sub-lease agreements.

Lease expense for operating leases for the three months ended June 30, 2022 was $2.6 million. Lease expense for operating leases for the six months ended June 30, 2022 was $5.1 million. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities.

Lease expense for operating leases for the three months ended June 30, 2021 was $2.9 million. Lease expense for operating leases for the six months ended June 30, 2021 was $5.7 million. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities.

Supplemental cash flow information related to leases was as follows:

	Three Months Ended
(In thousands)	June 30, 2022		June 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,533	$	2,668
Operating cash flows from finance leases	120		126
Financing cash flows from finance leases	138		131

	Six Months Ended
(In thousands)	June 30, 2022		June 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,149	$	5,911
Operating cash flows from finance leases	240		253
Financing cash flows from finance leases	276		263

The following table presents a maturity analysis of the Company’s lease liability by lease classification at June 30, 2022:

(In thousands)	Operating Leases		Finance Leases
2022	$	5,002	$	514
2023	9,825		1,037
2024	8,243		1,037
2025	6,271		1,037
2026	5,046		1,037
Thereafter	28,796		8,187
Total undiscounted lease payments	63,183		12,849
Less amounts representing interest	(7,195)		(3,262)
Lease liability	$	55,988	$	9,587

LEASES

LEASES

Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches, ATM locations, and office space. Most of the Company’s leases are classified as operating leases. At June 30, 2022, lease expiration dates ranged from 1 month to 18 years.

The following table represents the Consolidated Balance Sheets classification of the Company’s right-of-use (“ROU”) assets and lease liabilities:

(In thousands)		June 30, 2022		December 31, 2021
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other assets	$	52,594	$	52,180
Finance lease right-of-use assets	Premises and equipment, net	6,413		6,674
Total Lease Right-of-Use Assets		$	59,007	$	58,854
Lease Liabilities
Operating lease liabilities	Other liabilities	$	55,988	$	55,674
Finance lease liabilities	Other liabilities	9,587		9,862
Total Lease Liabilities		$	65,575	$	65,536

Supplemental information related to leases was as follows:

	June 30, 2022		December 31, 2021
Weighted-Average Remaining Lease Term (in years)
Operating leases	9.3		9.5
Finance leases	12.3		12.8
Weighted-Average Discount Rate
Operating leases	2.60	%	2.77	%
Finance leases	5.00	%	5.00	%

The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated.

The Company does not have any material sub-lease agreements.

Lease expense for operating leases for the three months ended June 30, 2022 was $2.6 million. Lease expense for operating leases for the six months ended June 30, 2022 was $5.1 million. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities.

Lease expense for operating leases for the three months ended June 30, 2021 was $2.9 million. Lease expense for operating leases for the six months ended June 30, 2021 was $5.7 million. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities.

Supplemental cash flow information related to leases was as follows:

	Three Months Ended
(In thousands)	June 30, 2022		June 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,533	$	2,668
Operating cash flows from finance leases	120		126
Financing cash flows from finance leases	138		131

	Six Months Ended
(In thousands)	June 30, 2022		June 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,149	$	5,911
Operating cash flows from finance leases	240		253
Financing cash flows from finance leases	276		263

The following table presents a maturity analysis of the Company’s lease liability by lease classification at June 30, 2022:

(In thousands)	Operating Leases		Finance Leases
2022	$	5,002	$	514
2023	9,825		1,037
2024	8,243		1,037
2025	6,271		1,037
2026	5,046		1,037
Thereafter	28,796		8,187
Total undiscounted lease payments	63,183		12,849
Less amounts representing interest	(7,195)		(3,262)
Lease liability	$	55,988	$	9,587

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OTHER COMMITMENTS, CONTINGENCIES, OFF-BALANCE SHEET ACTIVITIES, AND PANDEMIC IMPACT

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

OTHER COMMITMENTS, CONTINGENCIES, OFF-BALANCE SHEET ACTIVITIES, AND PANDEMIC IMPACT

OTHER COMMITMENTS, CONTINGENCIES, OFF-BALANCE SHEET ACTIVITIES, AND PANDEMIC IMPACT

In March 2020, the World Health Organization declared a novel strain of coronavirus ("COVID-19") a global pandemic and the United States declared a National Public Health Emergency. The impact of the COVID-19 pandemic is fluid and continues to evolve, which is adversely affecting some of the Company’s clients. The COVID-19 pandemic and its associated impacts on trade (including supply chains and export levels), travel, employee productivity, unemployment, consumer spending, and other economic activities has resulted in less economic activity, lower equity market valuations and significant volatility and disruption in financial markets and has had an adverse effect on the Company’s business, financial condition and results of operations. The ultimate extent of the continuing impact of the COVID-19 pandemic on the Company’s business, financial condition and results of operations is currently uncertain and will depend on various developments and other factors, including, among others, the duration and scope of the pandemic, as well as governmental, regulatory and private sector responses to the pandemic, and the associated impacts on the economy, financial markets, and our clients, employees, and vendors.

The Company’s business, financial condition and results of operations generally rely upon the ability of the Company’s borrowers to repay their loans, the value of collateral underlying the Company’s secured loans, and demand for loans and other products and services the Company offers, which are highly dependent on the business environment in the Company’s primary markets where it operates and in the United States as a whole.

These circumstances could cause the Company to experience a material adverse effect on our business operations, asset valuations, financial condition, results of operations and prospects. Material adverse impacts may include all or a combination of valuation impairments on the Company’s intangible assets, investments, loans, loan servicing rights, deferred tax assets, lease right-of-use assets, or counter-party risk derivatives.

Beginning in March 2020, the Company offered three-month payment deferrals for customers with a current payment status who were negatively impacted by economic disruption caused by the COVID-19 pandemic. As of June 30, 2022, the Company had 7 active modified loans outstanding with a carrying value of $13.4 million. As of December 31, 2021, the Company had 19 active modified loans outstanding with a carrying value of $14.4 million, which excluded loans returning to payment or awaiting evaluation for further deferral. The Company continues to accrue interest on these loans during the deferral period. In accordance with interagency guidance issued in March 2020 and Section 4013 (Temporary Relief from Troubled Debt Restructurings) of the CARES Act, these short-term deferrals are not considered troubled debt restructurings (“TDRs”) unless the borrower was previously experiencing financial difficulty. In addition, the risk-ratings on COVID-19 modified loans did not automatically change as a result of payment deferrals, and these loans will not be considered past due until after the deferral period is over and scheduled payments resume. Section 4013 (Temporary Relief from Troubled Debt Restructurings) of the CARES Act expired on December 31, 2021.

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CAPITAL RATIOS AND SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

CAPITAL RATIOS AND SHAREHOLDERS' EQUITY

CAPITAL RATIOS AND SHAREHOLDERS’ EQUITY

The actual and required capital ratios were as follows:

	June 30, 2022		December 31, 2021		Minimum Capital Requirement
Company (consolidated)
Total capital to risk-weighted assets	16.1	%	17.3	%	8.0	%
Common equity tier 1 capital to risk-weighted assets	12.9		15.0		4.5
Tier 1 capital to risk-weighted assets	13.2		15.3		6.0
Tier 1 capital to average assets	10.2		10.5		4.0

	June 30, 2022		December 31, 2021		Regulatory Minimum to be Adequately Capitalized		Regulatory Minimum to be Well Capitalized
Bank
Total capital to risk-weighted assets	14.1	%	15.9	%	8.0	%	10.0	%
Common equity tier 1 capital to risk-weighted assets	13.1		14.8		4.5		6.5
Tier 1 capital to risk-weighted assets	13.1		14.8		6.0		8.0
Tier 1 capital to average assets	10.2		10.1		4.0		5.0

The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Failure to meet capital requirements can initiate regulatory action. At each date shown, the Company met the minimum capital requirements and the Bank met the conditions to be classified as “well capitalized” under the relevant regulatory framework. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table above.

Effective January 1, 2015, the Company and the Bank became subject to the Basel III rule that requires the Company and the Bank to assess their Common equity Tier 1 capital to risk weighted assets. The Bank's Common equity Tier 1 capital to risk weighted assets exceeds the minimum to be well capitalized. In addition, the final capital rules added a requirement to maintain a minimum conservation buffer, composed of Common equity Tier 1 capital, of 2.5% of risk-weighted assets, to be phased in over three years and applied to the Common equity Tier 1 risk-based capital ratio, the Tier 1 risk-based capital ratio, and the Total risk-based capital ratio. As of January 1, 2019, banking organizations must maintain a minimum Common equity Tier 1 risk-based capital ratio of 7.0%, a minimum Tier 1 risk-based capital ratio of 8.5%, and a minimum Total risk-based capital ratio of 10.5%. The final capital rules impose restrictions on capital distributions and certain discretionary cash bonus payments if the minimum capital conservation buffer is not met.

At June 30, 2022, the capital levels of both the Company and the Bank exceeded all regulatory capital requirements and the Bank's regulatory capital ratios were above the minimum levels required to be considered well capitalized for regulatory purposes. The capital levels of both the Company and the Bank at June 30, 2022 also exceeded the minimum capital requirements including the currently applicable capital conservation buffer of 2.5%.

Accumulated other comprehensive (loss)

Components of accumulated other comprehensive (loss) is as follows:

(In thousands)	June 30, 2022		December 31, 2021
Other accumulated comprehensive income, before tax:
Net unrealized holding loss on AFS securities	$	(163,666)	$	(1,806)
Net unrealized holding (loss) on pension plans	(2,518)		(2,518)
Income taxes related to items of accumulated other comprehensive income:
Net unrealized tax benefit on AFS securities	42,511		407
Net unrealized tax benefit on pension plans	674		674
Accumulated other comprehensive loss	$	(122,999)	$	(3,243)

The following table presents the components of other comprehensive (loss) for the three and six months ended June 30, 2022 and 2021:

(In thousands)	Before Tax		Tax Effect		Net of Tax
Three Months Ended June 30, 2022
Net unrealized holding loss on AFS securities:	x
Net unrealized (losses) arising during the period	$	(60,481)	$	15,723	$	(44,758)
Less: reclassification adjustment for gains realized in net income	6		(2)		4
Net unrealized holding (loss) on AFS securities	(60,487)		15,725		(44,762)
Other comprehensive (loss)	$	(60,487)	$	15,725	$	(44,762)
Three Months Ended June 30, 2021
Net unrealized holding loss on AFS securities:
Net unrealized gains arising during the period	$	5,394	$	(1,343)	$	4,051
Less: reclassification adjustment for gains realized in net income	—		—		—
Net unrealized holding gain on AFS securities	5,394		(1,343)		4,051
Other comprehensive income	$	5,394	$	(1,343)	$	4,051

(In thousands)	Before Tax		Tax Effect		Net of Tax
Six Months Ended June 30, 2022
Net unrealized holding loss on AFS securities:
Net unrealized (losses) arising during the period	$	(161,854)	$	42,102	$	(119,752)
Less: reclassification adjustment for gains realized in net income	6		(2)		4
Net unrealized holding (loss) on AFS securities	(161,860)		42,104		(119,756)
Other comprehensive (loss)	$	(161,860)	$	42,104	$	(119,756)
Six Months Ended June 30, 2021
Net unrealized holding loss on AFS securities:
Net unrealized (losses) arising during the period	$	(21,619)	$	5,520	$	(16,099)
Less: reclassification adjustment for gains realized in net income	—		—		—
Net unrealized holding (loss) on AFS securities	(21,619)		5,520		(16,099)
Other comprehensive (loss)	$	(21,619)	$	5,520	$	(16,099)

The following table presents the changes in each component of accumulated other comprehensive (loss), for the three and six months ended June 30, 2022 and 2021:

(In thousands)	Net unrealized holding loss on AFS Securities		Net unrealized holding loss on pension plans		Total
Three Months Ended June 30, 2022
Balance at Beginning of Period	$	(76,392)	$	(1,845)	$	(78,237)
Other comprehensive loss before reclassifications	(44,758)		—		(44,758)
Less: amounts reclassified from accumulated other comprehensive (loss)	4		—		4
Total other comprehensive (loss)	(44,762)		—		(44,762)
Balance at End of Period	$	(121,154)	$	(1,845)	$	(122,999)
Three Months Ended June 30, 2021
Balance at Beginning of Period	$	13,308	$	(2,587)	$	10,721
Other comprehensive gain before reclassifications	4,051		—		4,051
Less: amounts reclassified from accumulated other comprehensive (loss)	—		—		—
Total other comprehensive income	4,051		—		4,051
Balance at End of Period	$	17,359	$	(2,587)	$	14,772
Six Months Ended June 30, 2022
Balance at Beginning of Period	$	(1,398)	$	(1,845)	$	(3,243)
Other comprehensive loss before reclassifications	(119,752)		—		(119,752)
Less: amounts reclassified from accumulated other comprehensive income	4		—		4
Total other comprehensive (loss)	(119,756)		—		(119,756)
Balance at End of Period	$	(121,154)	$	(1,845)	$	(122,999)
Six Months Ended June 30, 2021
Balance at Beginning of Period	$	33,458	$	(2,587)	$	30,871
Other comprehensive loss before reclassifications	(16,099)				(16,099)
Less: amounts reclassified from accumulated other comprehensive income	—		—		—
Total other comprehensive (loss)	(16,099)		—		(16,099)
Balance at End of Period	$	17,359	$	(2,587)	$	14,772

The following table presents the amounts reclassified out of each component of accumulated other comprehensive

income for the three and six months ended June 30, 2022 and 2021:

					Affected Line Item in the
	Three Months Ended June 30,				Statement where Net Income
(In thousands)	2022		2021		is Presented
Realized gains on AFS securities:
	$	6	$	—	Non-interest income
	—		—		Retained earnings
	(2)		—		Tax expense
	4		—		Net of tax
Total reclassifications for the period	$	4	$	—	Net of tax

					Affected Line Item in the
	Six Months Ended June 30,				Statement where Net Income
(In thousands)	2022		2021		is Presented
Realized gains on AFS securities:
	$	6			Non-interest income
	(2)		—		Tax expense
	4		—		Net of tax
Total reclassifications for the period	$	4	$	—	Net of tax

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EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Earnings per share have been computed based on the following (average diluted shares outstanding are calculated using the treasury stock method):

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands, except per share data)	2022		2021		2022		2021
Net income	$	23,115	$	21,636	$	43,311	$	34,667
Average number of common shares issued	51,903		51,903		51,903		51,903
Less: average number of treasury shares	5,247		822		4,375		885
Less: average number of unvested stock award shares	838		760		795		691
Average number of basic shares outstanding	45,818		50,321		46,733		50,327
Plus: dilutive effect of unvested stock award shares	283		280		337		257
Plus: dilutive effect of stock options outstanding	1		7		4		4
Average number of diluted shares outstanding	46,102		50,608		47,074		50,588
Basic earnings per common share:	$	0.50	$	0.43	$	0.93	$	0.69
Diluted earnings per common share:	$	0.50	$	0.43	$	0.92	$	0.69

For the three months ended June 30, 2022, 555 thousand shares of unvested restricted stock and 74 thousand options outstanding were anti-dilutive and therefore excluded from the earnings per share calculation. For the six months ended June 30, 2022, 445 thousand shares of unvested restricted stock and 75 thousand options outstanding were anti-dilutive and therefore excluded from the earnings per share calculation. For the three months ended June 30, 2021, 480 thousand shares of unvested restricted stock and 96 thousand options outstanding were anti-dilutive and therefore excluded from the earnings per share calculation. For the six months ended June 30, 2021, 434 thousand shares of unvested restricted stock and 94 thousand options outstanding were anti-dilutive and therefore excluded from the earnings per share calculation.

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STOCK-BASED COMPENSATION PLANS

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS

A combined summary of activity in the Company’s stock award and stock option plans for the six months ended June 30, 2022 is presented in the following table:

	Non-Vested Stock Awards Outstanding			Stock Options Outstanding
(Shares in thousands)	Number of Shares	Weighted-Average Grant Date Fair Value		Number of Shares	Weighted-Average Exercise Price
December 31, 2021	710	$	20.16	80	$	25.21
Granted	314	28.86		—	—
Acquired	—	—		—	—
Stock options exercised	—	—		(1)	23.30
Stock awards vested	(111)	22.22		—	—
Forfeited	(51)	26.43		—	—
Expired	—	—		(6)	24.30
June 30, 2022	862	$	23.07	73	$	25.31

During the three and six months ended June 30, 2022, proceeds from stock option exercises totaled $25 thousand. During the three and six months ended June 30, 2021, proceeds from stock option exercises totaled $55 thousand and $124 thousand, respectively. During the three and six months ended June 30, 2022, there were 63 thousand and 111 thousand shares vested in connection with stock awards, respectively. During the three and six months ended June 30, 2021, there were 35 thousand and 79 thousand shares vested in connection with stock awards, respectively. All of these shares were issued from available treasury stock. Stock-based compensation expense totaled $2.1 million and $1.6 million during the three months ended June 30, 2022 and 2021, respectively. Stock-based compensation expense totaled $3.9 million and $2.3 million during the six months ended June 30, 2022 and 2021, respectively. Stock-based compensation expense is recognized over the requisite service period for all awards.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities that are carried at fair value.

Recurring Fair Value Measurements

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value.

	June 30, 2022
	Level 1		Level 2		Level 3		Total
(In thousands)	Inputs		Inputs		Inputs		Fair Value
Trading security	$	—	$	—	$	7,040	$	7,040
Securities available for sale:
U.S Treasuries	—		99,849		—		99,849
Municipal bonds and obligations	—		65,163		—		65,163
Agency collateralized mortgage obligations	—		626,387		—		626,387
Agency residential mortgage-backed securities	—		606,777		—		606,777
Agency commercial mortgage-backed securities	—		256,464		—		256,464
Corporate bonds	—		38,359		4,020		42,379
Marketable equity securities	13,499		655		—		14,154
Loans held for investment at fair value	—		—		1,049		1,049
Loans held for sale	—		1,062		—		1,062
Derivative assets	—		58,616		44		58,660
Capitalized servicing rights	—		—		1,906		1,906
Derivative liabilities	—		77,073		—		77,073

	December 31, 2021
	Level 1		Level 2		Level 3		Total
(In thousands)	Inputs		Inputs		Inputs		Fair Value
Trading security	$	—	$	—	$	8,354	$	8,354
Securities available for sale:
U.S Treasuries	—		59,973		—		59,973
Municipal bonds and obligations	—		77,177		—		77,177
Agency collateralized mortgage obligations	—		688,336		—		688,336
Agency residential mortgage-backed securities	—		705,859		—		705,859
Agency commercial mortgage-backed securities	—		300,580		—		300,580
Corporate bonds	—		41,630		4,030		45,660
Marketable equity securities	14,798		655		—		15,453
Loans held for investment at fair value	—		—		1,200		1,200
Loans held for sale	—		6,110		—		6,110
Derivative assets	—		79,270		258		79,528
Capitalized servicing rights	—		—		1,966		1,966
Derivative liabilities	—		35,194		—		35,194

There were no transfers between levels during the three and six months ended June 30, 2022.

Trading Security at Fair Value. The Company holds one security designated as a trading security. It is a tax-advantaged economic development bond issued to the Company by a local nonprofit which provides wellness and health programs. The fair value of this security is determined based on a discounted cash flow methodology. Certain inputs to the fair value calculation are unobservable and there is little to no market activity in the security; therefore, the security meets the definition of a Level 3 security. The discount rate used in the valuation of the security is sensitive to movements in the 3-month LIBOR rate.

Securities Available for Sale and Marketable Equity Securities. Marketable equity securities classified as Level 1 consist of publicly-traded equity securities for which the fair values can be obtained through quoted market prices in active exchange markets. Marketable equity securities classified as Level 2 consist of securities with infrequent trades in active exchange markets, and pricing is primarily sourced from third party pricing services. AFS securities classified as Level 2 include most of the Company’s debt securities. The pricing on Level 2 and Level 3 was primarily sourced from third party pricing services, overseen by management, and is based on models that consider standard input factors such as dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and condition, among other things. Level 3 pricing includes inputs unobservable to market participants.

Loans Held for Investment. The Company’s held for investment loan portfolio includes loans originated by Company and loans acquired through business combinations. The Company intends to hold these assets until maturity as a part of its business operations. For one acquired portfolio subset, the Company previously accounted for these purchased-credit impaired loans as a pool under ASC 310, as they were determined to have common risk characteristics. These loans were recorded at fair value on acquisition date and subsequently evaluated for impairment collectively. Upon adoption of ASC 326, the Company elected the fair value option on this portfolio, recognizing an $11.2 million fair value write-down charged to retained earnings, net of deferred tax impact, as of January 1, 2020. The fair value of this loan portfolio is determined based on a discounted cash flow methodology. Certain inputs to the fair value calculation are unobservable; therefore, the loans meet the definition of Level 3 assets. The discount rate used in the valuation is consistent with assets that have significant credit deterioration. The cash flow assumptions include payment schedules for loans with current payment histories and estimated collateral value for delinquent loans. All of these loans were nonperforming as of June 30, 2022.

					Aggregate Fair Value
June 30, 2022	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		Unpaid Principal
Loans held for investment at fair value	$	1,049	$	20,603	$	(19,554)

					Aggregate Fair Value
December 31, 2021	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		Unpaid Principal
Loans held for investment at fair value	$	1,200	$	31,430	$	(30,230)

Loans Held for Sale. The Company elected the fair value option for all loans held for sale (HFS) originated for sale on or after May 1, 2012. Loans HFS are classified as Level 2 as the fair value is based on input factors such as quoted prices for similar loans in active markets.

					Aggregate Fair Value
June 30, 2022	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		Unpaid Principal
Loans held for sale	$	1,062	$	1,039	$	23

					Aggregate Fair Value
December 31, 2021	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		Unpaid Principal
Loans held for sale	$	6,110	$	5,926	$	184

The changes in fair value of loans held for sale for the three and six months ended June 30, 2022, were gains of $14 thousand and losses of $161 thousand, respectively. During the three and six months ended June 30, 2022, originations of loans held for sale totaled $2.7 million and $10.1 million, respectively. During the three and six months ended June 30, 2022, sales of loans originated for sale totaled $2.0 million and $15.1 million, respectively.

The changes in fair value of loans held for sale for the three and six months ended June 30, 2021, were losses of $240 thousand and $234 thousand, respectively. During the three and six months ended June 30, 2021, originations of loans held for sale totaled $16.3 million and $60.4 million, respectively. During the three and six months ended June 30, 2021, sales of loans originated for sale totaled $20.3 million and $68.3 million, respectively.

Interest Rate Swaps. The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings.

Although the Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2022, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

Commitments to Lend. The Company enters into commitments to lend for residential mortgage loans intended for sale, which commit the Company to lend funds to a potential borrower at a specific interest rate and within a specified period of time. The estimated fair value of commitments to originate residential mortgage loans for sale is based on quoted prices for similar loans in active markets. However, this value is adjusted by a factor which considers the likelihood that the loan in a lock position will ultimately close, and by the non-refundable costs of originating the loan. The closing ratio is derived from the Bank’s internal data and is adjusted using significant management judgment. The costs to originate are primarily based on the Company’s internal commission rates that are not observable. As such, these commitments are classified as Level 3 measurements.

Forward Sale Commitments. The Company utilizes forward sale commitments as economic hedges against potential changes in the values of the commitments to lend and loans originated for sale. To Be Announced (“TBA”) mortgage-backed securities forward commitment sales are used as the hedging instrument, are classified as Level 1, and consist of publicly-traded debt securities for which identical fair values can be obtained through quoted market prices in active exchange markets. The fair values of the Company’s best efforts and mandatory delivery loan sale commitments are determined similarly to the commitments to lend using quoted prices in the market place that are observable. However, costs to originate and closing ratios included in the calculation are internally generated and are based on management’s judgment and prior experience, which are considered factors that are not observable. As such, best efforts and mandatory forward commitments are classified as Level 3 measurements.

Capitalized Servicing Rights. The Company accounts for certain capitalized servicing rights at fair value in its Consolidated Financial Statements, as the Company is permitted to elect the fair value option for each specific instrument. A loan servicing right asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans exceed adequate compensation for performing the servicing. The fair value of servicing rights is estimated using a present value cash flow model. The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates. Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy.

The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis for the three and six months ended June 30, 2022 and 2021.

	Assets (Liabilities)
			Securities		Loans						Capitalized
	Trading		Available		Held for		Commitments		Forward		Servicing
(In thousands)	Security		for Sale		Investment		to Lend		Commitments		Rights
Three Months Ended June 30, 2022
March 31, 2022	$	7,798	$	4,020	$	1,197	$	18	$	7	$	1,786
Unrealized (loss)/gain, net recognized in other non-interest income	(556)		—		259		60		11		120
Unrealized gain included in accumulated other comprehensive income	—		—		—		—		—		—
Paydown of asset	(202)		—		(407)		—		—		—
Transfers to held for sale loans	—		—		—		(52)		—		—
June 30, 2022	$	7,040	$	4,020	$	1,049	$	26	$	18	$	1,906
Six Months Ended June 30, 2022
December 31, 2021	$	8,354	$	4,030	$	1,200	$	124	$	134	$	1,966
Unrealized (loss)/gain, net recognized in other non-interest income	(910)		—		468		130		(116)		(60)
Unrealized (loss) included in accumulated other comprehensive income	—		(10)		—		—		—		—
Paydown of asset	(404)		—		(619)		—		—		—
Transfers to held for sale loans	—		—		—		(228)		—		—
June 30, 2022	$	7,040	$	4,020	$	1,049	$	26	$	18	$	1,906
Unrealized gain relating to instruments still held at June 30, 2022	$	(436)	$	20	$	—	$	26	$	18	$	—

			Securities		Loans						Capitalized
	Trading		Available		Held for		Commitments		Forward		Servicing
(In thousands)	Security		for Sale		Investment		to Lend		Commitments		Rights
Three Months Ended June 30, 2021
March 31, 2021	$	9,350	$	—	$	1,448	$	185	$	326	$	2,968
Unrealized (loss)/gain, net recognized in other non-interest income	(305)		—		187		430		(234)		(612)
Paydown of asset	(192)		—		(375)		—		—		—
Transfers to held for sale loans	—		—		—		(354)		—		—
June 30, 2021	$	8,853	$	—	$	1,260	$	261	$	92	$	2,356
Six Months Ended June 30, 2021
December 31, 2020	$	9,708	$	15,000	$	2,265	$	735	$	320	$	3,033
Maturity of AFS security	—		(15,000)		—		—		—		—
Unrealized gain, net recognized in other non-interest income	(471)		—		601		—		(228)		—
Unrealized gain/(loss), net recognized in other non-interest income	—		—		—		1,248		—		(677)
Paydown of asset	(384)		—		(1,606)		—		—		—
Transfers to held for sale loans	—		—		—		(1,722)		—		—
June 30, 2021	$	8,853	$	—	$	1,260	$	261	$	92	$	2,356
Unrealized gains relating to instruments still held at June 30,2021	$	581	$	—	$	—	$	261	$	92	$	—

Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows:

	Fair Value				Significant Unobservable Input
(In thousands)	June 30, 2022		Valuation Techniques	Unobservable Inputs	Value
Assets (Liabilities)
Trading security	$	7,040	Discounted Cash Flow	Discount Rate	4.32		%
AFS Securities	4,020		Indication from Market Maker	Price	101.00%
Loans held for investment	1,049		Discounted Cash Flow	Discount Rate	25.00		%
				Collateral Value	$6.3 - $22.2
Commitments to lend	26		Historical Trend	Closing Ratio	83.49		%
			Pricing Model	Origination Costs, per loan	$	3
Forward commitments	18		Historical Trend	Closing Ratio	83.49		%
			Pricing Model	Origination Costs, per loan	$	3
Capitalized servicing rights	1,906		Discounted cash flow	Constant Prepayment Rate (CPR)	12.26		%
				Discount Rate	9.04		%
Total	$	14,059

	Fair Value				Significant Unobservable Input
(In thousands)	December 31, 2021		Valuation Techniques	Unobservable Inputs	Value
Assets (Liabilities)
Trading security	$	8,354	Discounted Cash Flow	Discount Rate	3.35		%
AFS Securities	4,030		Indication from Market Maker	Price	101.00		%
Loans held for investment	1,200		Discounted Cash Flow	Discount Rate	25.00		%
				Collateral Value	$6.3- $19.8
Commitments to lend	124		Historical Trend	Closing Ratio	82.09		%
			Pricing Model	Origination Costs, per loan	$	3
Forward commitments	134		Historical Trend	Closing Ratio	82.09		%
			Pricing Model	Origination Costs, per loan	$	3
Capitalized servicing rights	1,966		Discounted Cash Flow	Constant Prepayment Rate (CPR)	19.41		%
				Discount Rate	9.50		%
Total	$	15,808

Non-Recurring Fair Value Measurements

The Company is required, on a non-recurring basis, to adjust the carrying value or provide valuation allowances for certain assets using fair value measurements in accordance with GAAP. The following is a summary of applicable non-recurring fair value measurements. There are no liabilities measured at fair value on a non-recurring basis.

	June 30, 2022		December 31, 2021		Fair Value Measurement Date as of June 30, 2022
	Level 3		Level 3		Level 3
(In thousands)	Inputs		Inputs		Inputs
Assets
Individually evaluated	$	3,026	$	12,482	June 2022
Capitalized servicing rights	12,510		14,056		June 2022
Total	$	15,536	$	26,538

Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is as follows:

	Fair Value
(In thousands)	June 30, 2022		Valuation Techniques	Unobservable Inputs	Range (Weighted Average) (1)
Assets
Individually evaluated	$	3,026	Fair Value of Collateral	Discounted Cash Flow - Loss Severity	(100.00)% to 15.31% ((49.34)%)
				Appraised Value	$0 to $734 ($485)
Capitalized servicing rights	12,510		Discounted Cash Flow	Constant Prepayment Rate (CPR)	5.90% to 13.24% (10.99%)
				Discount Rate	9.09% to 11.74% (10.80%)
Total	$	15,536

(1)     Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.

	Fair Value
(In thousands)	December 31, 2021		Valuation Techniques	Unobservable Inputs	Range (Weighted Average) (1)
Assets
Individually evaluated	$	12,482	Fair Value of Collateral	Discounted Cash Flow - loss severity	(35.96)% to 133.09% ((49.14)%)
				Appraised Value	$0 to $405 ($256)
Capitalized servicing rights	14,056		Discounted Cash Flow	Constant Prepayment Rate (CPR)	6.24% to 17.73% (13.29%)
				Discount Rate	9.59% to 13.11% (11.97%)
Total	$	26,538

(1)     Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.

There were no Level 1 or Level 2 nonrecurring fair value measurements for the periods ended June 30, 2022 and December 31, 2021.

Individually evaluated loans. Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records non-recurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Non-recurring adjustments can also include certain impairment amounts for collateral-dependent loans calculated when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace. However, the choice of observable data is subject to significant judgment, and there are often adjustments based on judgment in order to make observable data comparable and to consider the impact of time, the condition of properties, interest rates, and other market factors on current values. Additionally, commercial real estate appraisals frequently involve discounting of projected cash flows, which relies inherently on unobservable data. Therefore, nonrecurring fair value measurement adjustments that relate to real estate collateral have generally been classified as Level 3. Estimates of fair value for other collateral that supports commercial loans are generally based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. 

Capitalized loan servicing rights. A loan servicing right asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans exceed adequate compensation for performing the servicing. The fair value of servicing rights is estimated using a present value cash flow model. The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates. Adjustments are only recorded when the discounted cash flows derived from the valuation model are less than the carrying value of the asset. Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy.

Summary of Estimated Fair Values of Financial Instruments

The following tables summarize the estimated fair values (represents exit price), and related carrying amounts, of the Company’s financial instruments. Certain financial instruments and all non-financial instruments are excluded. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

	June 30, 2022
	Carrying		Fair
(In thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	871,017	$	871,017	$	871,017	$	—	$	—
Trading security	7,040		7,040		—		—		7,040
Marketable equity securities	14,154		14,154		13,499		655		—
Securities available for sale	1,697,019		1,697,019		—		1,692,999		4,020
Securities held to maturity	602,611		544,065		—		541,695		2,370
FHLB bank stock and restricted securities	9,365		N/A		N/A		N/A		N/A
Net loans	7,704,430		7,708,139		—		—		7,708,139
Loans held for sale	1,062		1,062		—		1,062		—
Accrued interest receivable	36,203		36,203		—		36,203		—
Derivative assets	58,660		58,660		—		58,616		44
Financial Liabilities
Total deposits	$	10,114,664	$	10,087,181	$	—	$	10,087,181	$	—
Short-term debt	50,000		49,996		—		49,996		—
Long-term Federal Home Loan Bank advances and other	8,542		7,214		—		7,214		—
Subordinated borrowings	195,659		190,048		—		190,048		—
Derivative liabilities	77,073		77,073		—		77,073		—

	December 31, 2021
	Carrying		Fair
(In thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	1,627,807	$	1,627,807	$	1,627,807	$	—	$	—
Trading security	8,354		8,354		—		—		8,354
Marketable equity securities	15,453		15,453		14,798		655		—
Securities available for sale and other	1,877,585		1,877,585		—		1,873,555		4,030
Securities held to maturity	636,503		647,236		—		644,497		2,739
FHLB bank stock and restricted securities	10,800		N/A		N/A		N/A		N/A
Net loans	6,719,753		6,850,975		—		—		6,850,975
Loans held for sale	6,110		6,110		—		6,110		—
Accrued interest receivable	33,534		33,534		—		33,534		—
Derivative assets	79,528		79,528		—		79,270		258
Financial Liabilities
Total deposits	$	10,068,953	$	10,073,217	$	—	$	10,073,217	$	—
Short-term debt	—		—		—		—		—
Long-term Federal Home Loan Bank advances	13,331		13,053		—		13,053		—
Subordinated borrowings	97,513		95,006		—		95,006		—
Derivative liabilities	35,194		35,194		—		35,194		—

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NET INTEREST INCOME AFTER BENEFIT/PROVISION FOR CREDIT LOSSES

6 Months Ended

Jun. 30, 2022

Banking and Thrift, Interest [Abstract]

NET INTEREST INCOME AFTER BENEFIT/PROVISION FOR CREDIT LOSSES

NET INTEREST INCOME AFTER BENEFIT/PROVISION FOR CREDIT LOSSES

Presented below is net interest income after provision for credit losses for the three and six months ended June 30, 2022 and 2021, respectively.

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2022		2021		2022		2021
Net interest income	$	81,358	$	75,393	$	150,421	$	150,486
(Benefit)/provision for credit losses	—		—		(4,000)		6,500
Net interest after provision for credit losses	$	81,358	$	75,393	$	154,421	$	143,986

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BASIS OF PRESENTATION (Policies)

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

The Consolidated Financial Statements (the “financial statements”) of Berkshire Hills Bancorp, Inc. and its subsidiaries (the “Company” or “Berkshire”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company is a Delaware corporation, headquartered in Boston, Massachusetts, and the holding company for Berkshire Bank (the “Bank”), a Massachusetts-chartered trust company headquartered in Pittsfield, Massachusetts. These financial statements include the accounts of the Company, its wholly-owned subsidiaries and the Bank’s consolidated subsidiaries. In consolidation, all significant intercompany accounts and transactions are eliminated. The results of operations of companies or assets acquired are included only from the dates of acquisition. All material wholly-owned and majority-owned subsidiaries are consolidated unless GAAP requires otherwise.

The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these financial statements were issued.

These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X, and accordingly, certain information and footnote disclosures normally included in financial statements prepared according to GAAP have been omitted.

The results for any interim period are not necessarily indicative of results for the full year. These consolidated financial statements should be read in conjunction with the audited financial statements and disclosures Berkshire Hills Bancorp, Inc. previously filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In management’s opinion, all adjustments necessary for a fair statement are reflected in the interim periods.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates.

Refer to Note 9 – Other Commitments, Contingencies, Off-Balance Sheet Activities, and Pandemic Impact for pandemic related risks and uncertainties.

Recently Adopted Accounting Principles and Future Application of Accounting Pronouncements

Recently Adopted Accounting Principles

There were no new applicable material accounting pronouncements adopted by the Company since December 31, 2021.

Future Application of Accounting Pronouncements

In March 2022, the FASB issued ASU No. 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method.” The guidance expands the current last-of-layer method to allow multiple hedge layers of a single closed portfolio (renamed to portfolio layer method) and expands the portfolio layer method to include nonprepayable financial assets. The ASU specifies eligible hedging instruments in a single-layer hedge and provides additional guidance on accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method. Further, hedge basis adjustments should be considered when determining credit losses for assets included in the closed portfolio. The amendments in this ASU are effective for fiscal years ending after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The Company is still evaluating; however, the adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements.

In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The ASU eliminates the troubled debt restructuring (“TDR”) accounting model that was adopted with Topic 326, “Financial Instruments – Credit Losses” and enhances disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. The ASU requires prospective disclosure of current-period gross write-offs by year of origination. The amendments in this ASU are effective for fiscal years ending after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted and the Company can elect to adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company is still evaluating; however, the adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements.

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SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES (Tables)

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Securities Available for Sale, Held to Maturity, and Marketable Equity Securities

The following is a summary of securities available for sale, held to maturity, and marketable equity securities:

(In thousands)	Amortized  Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance
June 30, 2022
Securities available for sale
U.S Treasuries	$	99,920	$	—	$	(71)	$	99,849
Municipal bonds and obligations	66,980		608		(2,425)		65,163		—
Agency collateralized mortgage obligations	692,079		3		(65,695)		626,387		—
Agency mortgage-backed securities	679,422		6		(72,651)		606,777		—
Agency commercial mortgage-backed securities	280,266		26		(23,828)		256,464		—
Corporate bonds	43,786		119		(1,526)		42,379		—
Total securities available for sale	1,862,453		762		(166,196)		1,697,019		—
Securities held to maturity
Municipal bonds and obligations	270,219		1,450		(21,929)		249,740		66
Agency collateralized mortgage obligations	137,778		18		(13,550)		124,246		—
Agency mortgage-backed securities	53,630		—		(7,872)		45,758		—
Agency commercial mortgage-backed securities	138,419		—		(16,633)		121,786		—
Tax advantaged economic development bonds	2,400		5		(35)		2,370		28
Other bonds and obligations	165		—		—		165		—
Total securities held to maturity	602,611		1,473		(60,019)		544,065		94
Marketable equity securities	15,690		66		(1,602)		14,154		—
Total	$	2,480,754	$	2,301	$	(227,817)	$	2,255,238	$	94

(In thousands)	Amortized  Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance
December 31, 2021
Securities available for sale
U.S Treasuries	$	59,972	$	1	$	—	$	59,973	$	—
Municipal bonds and obligations	71,822		5,355		—		77,177		—
Agency collateralized mortgage obligations	693,782		5,566		(11,012)		688,336		—
Agency mortgage-backed securities	711,154		2,347		(7,642)		705,859		—
Agency commercial mortgage-backed securities	300,259		3,949		(3,628)		300,580		—
Corporate bonds	44,824		950		(114)		45,660		—
Total securities available for sale	1,881,813		18,168		(22,396)		1,877,585		—
Securities held to maturity
Municipal bonds and obligations	281,515		16,151		(693)		296,973		70
Agency collateralized mortgage obligations	149,195		3,203		(3,513)		148,885		—
Agency mortgage-backed securities	57,327		95		(1,498)		55,924		—
Agency commercial mortgage-backed securities	145,573		266		(3,289)		142,550		—
Tax advantaged economic development bonds	2,728		26		(15)		2,739		35
Other bonds and obligations	165		—		—		165		—
Total securities held to maturity	636,503		19,741		(9,008)		647,236		105
Marketable equity securities	15,689		67		(303)		15,453		—
Total	$	2,534,005	$	37,976	$	(31,707)	$	2,540,274	$	105

Schedule of Debt Securities, Held-to-maturity, Allowance for Credit Loss

The following table summarizes the activity in the allowance for credit losses for debt securities held to maturity by security type for the three and six months ended June 30, 2022 and 2021:

(In thousands)	Municipal bonds and obligations		Tax advantaged economic development bonds		Total
Balance at March 31, 2022	$	67	$	32	$	99
(Benefit)/provision for credit losses	(1)		(4)		(5)
Balance at June 30, 2022	$	66	$	28	$	94

(In thousands)	Municipal bonds and obligations		Tax advantaged economic development bonds		Total
Balance at March 31, 2021	$	71	$	40	$	111
(Benefit)/provision for credit losses	19		—		19
Balance at June 30, 2021	$	90	$	40	$	130

(In thousands)	Municipal bonds and obligations		Tax advantaged economic development bonds		Total
Balance at December 31, 2021	$	70	$	35	$	105
(Benefit)/provision for credit losses	(4)		(7)		(11)
Balance at June 30, 2022	$	66	$	28	$	94

(In thousands)	Municipal bonds and obligations		Tax advantaged economic development bonds		Total
Balance at December 31, 2020	$	64	$	40	$	104
(Benefit)/provision for credit losses	26		—		26
Balance at June 30, 2021	$	90	$	40	$	130

Schedule of Estimated Fair Value of Available for Sale (“AFS”) and Held to Maturity (“HTM”) Securities Segregated by Contractual Maturity

The amortized cost and estimated fair value of available for sale (“AFS”) and held to maturity (“HTM”) securities segregated by contractual maturity at June 30, 2022 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable.

	Available for sale				Held to maturity
	Amortized		Fair		Amortized		Fair
(In thousands)	Cost		Value		Cost		Value
Within 1 year	$	100,364	$	100,292	$	1,796	$	1,795
Over 1 year to 5 years	7,900		7,969		2,693		2,700
Over 5 years to 10 years	48,271		47,315		24,614		24,932
Over 10 years	54,151		51,815		243,681		222,848
Total bonds and obligations	210,686		207,391		272,784		252,275
Mortgage-backed securities	1,651,767		1,489,628		329,827		291,790
Total	$	1,862,453	$	1,697,019	$	602,611	$	544,065

Schedule of Securities Available for Sale and Held to Maturity with Unrealized Losses, Segregated by Duration

Securities available for sale and held to maturity with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows:

	Less Than Twelve Months				Over Twelve Months				Total
	Gross				Gross				Gross
	Unrealized		Fair		Unrealized		Fair		Unrealized		Fair
(In thousands)	Losses		Value		Losses		Value		Losses		Value
June 30, 2022
Securities available for sale
U.S Treasuries	$	71	$	99,849	$	—	$	—	$	71	$	99,849
Municipal bonds and obligations	2,425		31,835		—		—		2,425		31,835
Agency collateralized mortgage obligations	45,768		509,510		19,927		114,042		65,695		623,552
Agency mortgage-backed securities	36,357		384,388		36,294		221,502		72,651		605,890
Agency commercial mortgage-backed securities	13,730		180,796		10,098		71,060		23,828		251,856
Corporate bonds	1,415		31,437		111		1,969		1,526		33,406
Total securities available for sale	$	99,766	$	1,237,815	$	66,430	$	408,573	$	166,196	$	1,646,388
Securities held to maturity
Municipal bonds and obligations	$	11,356	$	129,839	$	10,573	$	23,320	$	21,929	$	153,159
Agency collateralized mortgage obligations	4,219		60,827		9,331		48,927		13,550		109,754
Agency mortgage-backed securities	185		2,625		7,687		43,132		7,872		45,757
Agency commercial mortgage-backed securities	8,368		73,652		8,265		48,134		16,633		121,786
Tax advantaged economic development bonds	—		—		35		1,164		35		1,164
Total securities held to maturity	24,128		266,943		35,891		164,677		60,019		431,620
Total	$	123,894	$	1,504,758	$	102,321	$	573,250	$	226,215	$	2,078,008
December 31, 2021
Securities available for sale
Agency collateralized mortgage obligations	$	9,626	$	375,132	$	1,386	$	27,025	$	11,012	$	402,157
Agency mortgage-backed securities	3,179		222,887		4,463		175,941		7,642		398,828
Agency commercial mortgage-backed securities	1,609		103,354		2,019		49,313		3,628		152,667
Corporate bonds	114		11,115		—		—		114		11,115
Total securities available for sale	$	14,528	$	712,488	$	7,868	$	252,279	$	22,396	$	964,767
Securities held to maturity
Municipal bonds and obligations	$	693	$	36,981	$	—	$	—	$	693	$	36,981
Agency collateralized mortgage obligations	1,808		49,308		1,705		36,212		3,513		85,520
Agency mortgage-backed securities	839		26,656		659		26,025		1,498		52,681
Agency commercial mortgage-backed securities	1,255		80,406		2,034		51,654		3,289		132,060
Tax advantaged economic development bonds	15		1,255		—		—		15		1,255
Total securities held to maturity	4,610		194,606		4,398		113,891		9,008		308,497
Total	$	19,138	$	907,094	$	12,266	$	366,170	$	31,404	$	1,273,264

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LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2022

Credit Loss [Abstract]

Schedule of Loans

The following is a summary of total loans by regulatory call report code with sub-segmentation based on underlying collateral for certain loan types:

(In thousands)	June 30, 2022		December 31, 2021
Construction	$	323,969	$	324,282
Commercial multifamily	667,427		515,817
Commercial real estate owner occupied	624,869		606,477
Commercial real estate non-owner occupied	2,295,298		2,156,929
Commercial and industrial	1,435,739		1,284,429
Residential real estate	1,917,227		1,489,248
Home equity	240,874		252,366
Consumer other	298,048		196,299
Total loans	$	7,803,451	$	6,825,847
Allowance for credit losses	99,021		106,094
Net loans	$	7,704,430	$	6,719,753

Schedule of Allowance for Credit Losses for Loans, Activity

The Company’s activity in the allowance for credit losses for loans for the three and six months ended June 30, 2022 and June 30, 2021 was as follows:

(In thousands)	Balance at Beginning of Period		Charge-offs		Recoveries		Provision for Credit Losses		Balance at End of Period
Three months ended June 30, 2022
Construction	$	2,505	$	—	$	—	$	(795)	$	1,710
Commercial multifamily	5,771		—		—		(1,150)		4,621
Commercial real estate owner occupied	11,498		(298)		97		(609)		10,688
Commercial real estate non-owner occupied	25,814		—		46		305		26,165
Commercial and industrial	22,949		(752)		584		133		22,914
Residential real estate	17,816		(216)		199		(1,389)		16,410
Home equity	3,303		—		112		(587)		2,828
Consumer other	9,819		(332)		101		4,097		13,685
Total allowance for credit losses	$	99,475	$	(1,598)	$	1,139	$	5	$	99,021

(In thousands)	Balance at Beginning of Period		Charge-offs		Recoveries		Provision for Credit Losses		Balance at End of Period
Three months ended June 30, 2021
Construction	$	4,397	$	—	$	—	$	(478)	$	3,919
Commercial multifamily	6,351		(115)		95		866		7,197
Commercial real estate owner occupied	14,257		(227)		40		(828)		13,242
Commercial real estate non-owner occupied	34,561		(2,561)		178		(1,863)		30,315
Commercial and industrial	26,071		(3,585)		1,266		4,473		28,225
Residential real estate	25,800		(220)		667		(2,604)		23,643
Home equity	5,749		(164)		15		(168)		5,432
Consumer other	6,614		(375)		249		583		7,071
Total allowance for credit losses	$	123,800	$	(7,247)	$	2,510	$	(19)	$	119,044

(In thousands)	Balance at Beginning of Period		Charge-offs		Recoveries		Provision for Credit Losses		Balance at End of Period
Six months ended June 30, 2022
Construction	$	3,206	$	—	$	—	$	(1,496)	$	1,710
Commercial multifamily	6,120		—		—		(1,499)		4,621
Commercial real estate owner occupied	12,752		(428)		306		(1,942)		10,688
Commercial real estate non-owner occupied	32,106		(4,884)		1,312		(2,369)		26,165
Commercial and industrial	22,584		(1,405)		1,872		(137)		22,914
Residential real estate	22,406		(380)		587		(6,203)		16,410
Home equity	4,006		—		246		(1,424)		2,828
Consumer other	2,914		(548)		238		11,081		13,685
Total allowance for credit losses	$	106,094	$	(7,645)	$	4,561	$	(3,989)	$	99,021

(In thousands)	Balance at Beginning of Period		Charge-offs		Recoveries		Provision for Credit Losses		Balance at End of Period
Six months ended June 30, 2021
Construction	$	5,111	$	—	$	—	$	(1,192)	$	3,919
Commercial multifamily	5,916		(239)		157		1,363		7,197
Commercial real estate owner occupied	12,380		(603)		52		1,413		13,242
Commercial real estate non-owner occupied	35,850		(9,220)		304		3,381		30,315
Commercial and industrial	25,013		(6,905)		1,911		8,206		28,225
Residential real estate	28,491		(598)		1,104		(5,354)		23,643
Home equity	6,482		(240)		39		(849)		5,432
Consumer other	8,059		(903)		409		(494)		7,071
Total allowance for credit losses	$	127,302	$	(18,708)	$	3,976	$	6,474	$	119,044

Schedule of Allowance for Credit Losses on Unfunded Loan Commitments, Activity

The Company’s activity in the allowance for credit losses on unfunded commitments for the three and six months ended June 30, 2022 and 2021 was as follows:

	Three Months Ended June 30,
(In thousands)	2022		2021
Balance at beginning of period	$	7,043	$	7,829
Expense for credit losses	—		—
Balance at end of period	$	7,043	$	7,829

	Six Months Ended June 30,
(In thousands)	2022		2021
Balance at beginning of period	$	7,043	$	7,629
Expense for credit losses	—		200
Balance at end of period	$	7,043	$	7,829

Schedule of Loans by Risk Rating

The following table presents the Company’s loans by risk category:

	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of June 30, 2022
Construction
Risk rating
Pass	$	66,278	$	125,071	$	29,805	$	75,853	$	2,321	$	4,871	$	49	$	—	$	304,248
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		19,721		—		—		—		19,721
Total	$	66,278	$	125,071	$	29,805	$	75,853	$	22,042	$	4,871	$	49	$	—	$	323,969
Commercial multifamily:
Risk rating
Pass	$	182,663	$	61,261	$	27,878	$	117,448	$	71,908	$	195,751	$	756	$	—	$	657,665
Special Mention	—		—		2,664		—		5,554		—		—		—		8,218
Substandard	—		—		—		—		—		1,413		131		—		1,544
Total	$	182,663	$	61,261	$	30,542	$	117,448	$	77,462	$	197,164	$	887	$	—	$	667,427
Commercial real estate owner occupied:
Risk rating
Pass	$	75,279	$	144,338	$	48,354	$	85,734	$	76,968	$	181,968	$	1,615	$	—	$	614,256
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	1,053		—		35		554		1,432		7,539		—		—		10,613
Total	$	76,332	$	144,338	$	48,389	$	86,288	$	78,400	$	189,507	$	1,615	$	—	$	624,869
Commercial real estate non-owner occupied:
Risk rating
Pass	$	384,990	$	427,922	$	173,393	$	269,140	$	323,077	$	600,342	$	18,031	$	—	$	2,196,895
Special Mention	—		—		—		7,669		13,568		27,563		—		—		48,800
Substandard	—		—		7,421		—		2,911		39,175		96		—		49,603
Total	$	384,990	$	427,922	$	180,814	$	276,809	$	339,556	$	667,080	$	18,127	$	—	$	2,295,298
Commercial and industrial:
Risk rating
Pass	$	133,144	$	172,622	$	106,743	$	87,963	$	138,263	$	133,896	$	607,388	$	—	$	1,380,019
Special Mention	—		—		—		1,757		1,257		—		—		—		3,014
Substandard	6		353		2,207		8,989		2,770		3,639		34,623		—		52,587
Doubtful	—		—		—		—		—		21		98		—		119
Total	$	133,150	$	172,975	$	108,950	$	98,709	$	142,290	$	137,556	$	642,109	$	—	$	1,435,739
Residential real estate
Risk rating
Pass	$	503,499	$	290,620	$	103,521	$	75,910	$	159,577	$	767,805	$	288	$	—	$	1,901,220
Special Mention	—		—		—		345		—		823		—		—		1,168
Substandard	—		599		—		304		1,955		11,981		—		—		14,839
Total	$	503,499	$	291,219	$	103,521	$	76,559	$	161,532	$	780,609	$	288	$	—	$	1,917,227

	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31, 2021
Construction
Risk rating
Pass	$	71,784	$	52,725	$	117,784	$	66,950	$	3,839	$	1,721	$	50	$	—	$	314,853
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		9,429		—		—		—		—		9,429
Total	$	71,784	$	52,725	$	117,784	$	76,379	$	3,839	$	1,721	$	50	$	—	$	324,282
Commercial multifamily:
Risk rating
Pass	$	63,630	$	28,172	$	98,455	$	59,720	$	76,699	$	176,020	$	457	$	—	$	503,153
Special Mention	—		2,700		—		5,598		—		—		—		—		8,298
Substandard	—		—		—		—		—		4,230		136		—		4,366
Total	$	63,630	$	30,872	$	98,455	$	65,318	$	76,699	$	180,250	$	593	$	—	$	515,817
Commercial real estate owner occupied:
Risk rating
Pass	$	154,434	$	50,236	$	85,687	$	91,316	$	45,995	$	157,346	$	3,206	$	—	$	588,220
Special Mention	—		525		869		1,668		1,405		1,157		—		—		5,624
Substandard	—		—		2,113		1,593		838		8,089		—		—		12,633
Total	$	154,434	$	50,761	$	88,669	$	94,577	$	48,238	$	166,592	$	3,206	$	—	$	606,477
Commercial real estate non-owner occupied:
Risk rating
Pass	$	426,086	$	176,172	$	296,985	$	349,947	$	204,043	$	585,044	$	19,511	$	—	$	2,057,788
Special Mention	—		221		3,472		7,632		2,302		27,268		—		—		40,895
Substandard	—		7,588		—		2,784		33,472		14,303		99		—		58,246
Total	$	426,086	$	183,981	$	300,457	$	360,363	$	239,817	$	626,615	$	19,610	$	—	$	2,156,929
Commercial and industrial:
Risk rating
Pass	$	187,257	$	130,520	$	114,153	$	156,443	$	54,190	$	136,837	$	424,393	$	—	$	1,203,793
Special Mention	661		1,691		10,824		5,092		1,433		488		22,468		—		42,657
Substandard	211		2,494		9,609		3,145		2,020		2,330		17,935		—		37,744
Doubtful	—		—		—		—		—		15		220		—		235
Total	$	188,129	$	134,705	$	134,586	$	164,680	$	57,643	$	139,670	$	465,016	$	—	$	1,284,429
Residential real estate
Risk rating
Pass	$	214,306	$	114,536	$	86,997	$	169,537	$	189,980	$	697,401	$	293	$	—	$	1,473,050
Special Mention	—		—		—		120		502		1,557		—		—		2,179
Substandard	1,239		—		142		1,849		2,161		8,628		—		—		14,019
Total	$	215,545	$	114,536	$	87,139	$	171,506	$	192,643	$	707,586	$	293	$	—	$	1,489,248

For home equity and consumer other loan portfolio segments, Berkshire evaluates credit quality based on the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an ongoing basis dependent upon improvement and deterioration in credit quality. The following table presents the amortized cost based on payment activity:

	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of June 30, 2022
Home equity:
Payment performance
Performing	$	—	$	119	$	460	$	—	$	—	$	20	$	238,524	$	—	$	239,123
Nonperforming	—		—		—		—		—		—		1,751		—		1,751
Total	$	—	$	119	$	460	$	—	$	—	$	20	$	240,275	$	—	$	240,874
Consumer other:
Payment performance
Performing	$	150,411	$	33,080	$	9,563	$	16,460	$	40,622	$	38,197	$	7,864	$	—	$	296,197
Nonperforming	49		108		23		297		621		745		8		—		1,851
Total	$	150,460	$	33,188	$	9,586	$	16,757	$	41,243	$	38,942	$	7,872	$	—	$	298,048

	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31, 2021
Home equity:
Payment performance
Performing	$	125	$	469	$	—	$	—	$	—	$	24	$	249,590	$	—	$	250,208
Nonperforming	—		—		—		—		—		—		2,158		—		2,158
Total	$	125	$	469	$	—	$	—	$	—	$	24	$	251,748	$	—	$	252,366
Consumer other:
Payment performance
Performing	$	37,994	$	11,189	$	21,548	$	55,577	$	30,632	$	28,797	$	7,505	$	—	$	193,242
Nonperforming	8		46		290		797		746		1,139		31		—		3,057
Total	$	38,002	$	11,235	$	21,838	$	56,374	$	31,378	$	29,936	$	7,536	$	—	$	196,299

The following table summarizes information about total loans rated Special Mention or lower at June 30, 2022 and December 31, 2021. The table below includes consumer loans that are Special Mention and Substandard accruing that are classified as performing based on payment activity.

(In thousands)	June 30, 2022		December 31, 2021
Non-Accrual	$	26,884	$	35,326
Substandard Accruing	125,307		106,560
Total Classified	152,191		141,886
Special Mention	62,060		100,071
Total Criticized	$	214,251	$	241,957

Summary of Past Due Loans

The following is a summary of loans by past due status at June 30, 2022 and December 31, 2021:

(In thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loans
June 30, 2022
Construction	$	—	$	—	$	—	$	—	$	323,969	$	323,969
Commercial multifamily	—		—		174		174		667,253		667,427
Commercial real estate owner occupied	58		53		3,963		4,074		620,795		624,869
Commercial real estate non-owner occupied	154		25,000		4,915		30,069		2,265,229		2,295,298
Commercial and industrial	1,314		165		6,841		8,320		1,427,419		1,435,739
Residential real estate	5,534		1,168		14,237		20,939		1,896,288		1,917,227
Home equity	520		545		1,751		2,816		238,058		240,874
Consumer other	1,351		322		1,762		3,435		294,613		298,048
Total	$	8,931	$	27,253	$	33,643	$	69,827	$	7,733,624	$	7,803,451

(In thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Current		Total Loans
December 31, 2021
Construction	$	—	$	—	$	—	$	—	$	324,282	$	324,282
Commercial multifamily	82		306		187		575		515,242		515,817
Commercial real estate owner occupied	—		400		4,221		4,621		601,856		606,477
Commercial real estate non-owner occupied	25,420		653		9,049		35,122		2,121,807		2,156,929
Commercial and industrial	2,700		709		6,836		10,245		1,274,184		1,284,429
Residential real estate	5,529		2,015		13,264		20,808		1,468,440		1,489,248
Home equity	258		108		2,158		2,524		249,842		252,366
Consumer other	1,363		320		2,882		4,565		191,734		196,299
Total	$	35,352	$	4,511	$	38,597	$	78,460	$	6,747,387	$	6,825,847

Summary of Loans on Nonaccrual Status and Loans Past Due

The following is a summary of loans on nonaccrual status and loans past due 90 days or more and still accruing as of June 30, 2022 and December 31, 2021:

(In thousands)	Nonaccrual Amortized Cost		Nonaccrual With No Related Allowance		Past Due 90 Days or Greater and Accruing		Interest Income Recognized on Nonaccrual
At or for the three months ended June 30, 2022
Construction	$	—	$	—	$	—	$	—
Commercial multifamily	174		174		—		—
Commercial real estate owner occupied	3,370		2,336		593		—
Commercial real estate non-owner occupied	4,444		4,184		471		—
Commercial and industrial	4,856		441		1,985		—
Residential real estate	10,889		6,413		3,348		—
Home equity	1,521		127		230		—
Consumer other	1,630		3		132		—
Total	$	26,884	$	13,678	$	6,759	$	—

The commercial and industrial loans nonaccrual amortized cost as of June 30, 2022 included medallion loans with a fair value of $1.0 million and a contractual balance of $20.6 million.

(In thousands)	Nonaccrual Amortized Cost		Nonaccrual With No Related Allowance		Past Due 90 Days or Greater and Accruing		Interest Income Recognized on Nonaccrual
At or for the three months ended December 31, 2021
Construction	$	—	$	—	$	—	$	—
Commercial multifamily	187		187		—		—
Commercial real estate owner occupied	4,221		2,413		—		—
Commercial real estate non-owner occupied	8,877		8,412		172		—
Commercial and industrial	6,747		1,506		89		—
Residential real estate	10,698		6,511		2,566		—
Home equity	1,901		141		257		—
Consumer other	2,695		4		187		—
Total	$	35,326	$	19,174	$	3,271	$	—

Schedule of Collateral Dependent Loans

The following table presents the amortized cost basis of individually analyzed collateral-dependent loans by loan portfolio segment:

	Type of Collateral
(In thousands)	Real Estate		Investment Securities/Cash		Other
June 30, 2022
Construction	$	—	$	—	$	—
Commercial multifamily	175		—		—
Commercial real estate owner occupied	3,472		—		—
Commercial real estate non-owner occupied	4,628		—		—
Commercial and industrial	290		—		2,528
Residential real estate	5,919		—		—
Home equity	247		—		—
Consumer other	5		—		—
Total loans	$	14,736	$	—	$	2,528
December 31, 2021
Construction	$	9,429	$	—	$	—
Commercial multifamily	188		—		—
Commercial real estate owner occupied	4,466		—		—
Commercial real estate non-owner occupied	9,501		—		—
Commercial and industrial	526		—		1,040
Residential real estate	7,035		—		—
Home equity	262		—		—
Consumer other	2		—		—
Total loans	$	31,409	$	—	$	1,040

Schedule of Troubled Debt Restructurings, Activity

The following table presents activity in TDRs for the three and six months ended June 30, 2022 and June 30, 2021:

(In thousands)	Balance at Beginning of Period		Principal Payments		TDR Status Change		Other Additions/(Reductions)		Newly Identified TDRs		Balance at End of Period
Three months ended June 30, 2022
Construction	$	9,429	$	—	$	—	$	(9,429)	$	—	$	—
Commercial multifamily	694		(17)		—		—		—		677
Commercial real estate owner occupied	2,724		(23)		—		—		—		2,701
Commercial real estate non-owner occupied	998		(12)		—		—		—		986
Commercial and industrial	3,592		(290)		—		(137)		1,486		4,651
Residential real estate	1,109		(23)		—		(67)		—		1,019
Home equity	169		(7)		—		—		—		162
Consumer other	32		(2)		—		—		—		30
Total	$	18,747	$	(374)	$	—	$	(9,633)	$	1,486	$	10,226

(In thousands)	Balance at Beginning of Period		Principal Payments		TDR Status Change		Other Additions/(Reductions)		Newly Identified TDRs		Balance at End of Period
Three months ended June 30, 2021
Construction	$	—	$	—	$	—	$	—	$	—	$	—
Commercial multifamily	741		(13)		—		—		—		728
Commercial real estate owner occupied	1,725		(29)		—		—		1,266		2,962
Commercial real estate non-owner occupied	14,725		(81)		—		(590)		10,434		24,488
Commercial and industrial	2,633		(229)		—		(37)		4,443		6,810
Residential real estate	1,493		(14)		—		(174)		—		1,305
Home equity	130		(3)		—		—		—		127
Consumer other	34		(3)		—		6		—		37
Total	$	21,481	$	(372)	$	—	$	(795)	$	16,143	$	36,457

(In thousands)	Balance at Beginning of Period		Principal Payments		TDR Status Change		Other Additions/(Reductions)		Newly Identified TDRs		Balance at End of Period
Six months ended June 30, 2022
Construction	$	9,429	$	—	$	—	$	(9,429)	$	—	$	—
Commercial multifamily	703		(26)		—		—		—		677
Commercial real estate owner occupied	2,733		(32)		—		—		—		2,701
Commercial real estate non-owner occupied	9,310		(13)		—		(8,311)		—		986
Commercial and industrial	3,656		(341)		—		(150)		1,486		4,651
Residential real estate	1,117		(31)		—		(67)		—		1,019
Home equity	121		(9)		—		—		50		162
Consumer other	33		(3)		—		—		—		30
Total	$	27,102	$	(455)	$	—	$	(17,957)	$	1,536	$	10,226

(In thousands)	Balance at Beginning of Period		Principal Payments		TDR Status Change		Other Additions/(Reductions)		Newly Identified TDRs		Balance at End of Period
Six months ended June 30, 2021
Construction	$	—	$	—	$	—	$	—	$	—	$	—
Commercial multifamily	754		(26)		—		—		—		728
Commercial real estate owner occupied	1,731		(35)		—		—		1,266		2,962
Commercial real estate non-owner occupied	13,684		(95)		—		(80)		10,979		24,488
Commercial and industrial	2,686		(428)		—		(37)		4,589		6,810
Residential real estate	1,524		(46)		—		(173)		—		1,305
Home equity	133		(6)		—		—		—		127
Consumer other	36		(5)		—		6		—		37
Total	$	20,548	$	(641)	$	—	$	(284)	$	16,834	$	36,457

Schedule of Loans Modified as TDRs

The following table presents loans modified as TDRs that occurred during the three and six months ended June 30, 2022 and 2021:

(dollars in thousands)	Total
Three months ended June 30, 2022
TDR:
Number of loans	1
Pre-modification outstanding recorded investment	$	1,486
Post-modification outstanding recorded investment	$	1,486
Three months ended June 30, 2021
TDR:
Number of loans	9
Pre-modification outstanding recorded investment	$	16,143
Post-modification outstanding recorded investment	$	16,143

(dollars in thousands)	Total
Six months ended June 30, 2022
TDR:
Number of loans	2
Pre-modification outstanding recorded investment	$	1,536
Post-modification outstanding recorded investment	$	1,536
Six months ended June 30, 2021
TDR:
Number of loans	13
Pre-modification outstanding recorded investment	$	16,834
Post-modification outstanding recorded investment	$	16,834

There were no TDRs for which there was a payment default within twelve months following the modification during the three months ending June 30, 2022. The following table presents loans by portfolio segment modified as TDRs for which there was a payment default within twelve months following the modification during the six months ended June 30, 2022:

(in thousands)	Number of Loans	Recorded Investment
Six months ended June 30, 2022
Commercial and industrial	1	$	105
Total	1	$	105

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DEPOSITS (Tables)

6 Months Ended

Jun. 30, 2022

Deposits [Abstract]

Schedule of Time Deposits

A summary of time deposits is as follows:

(In thousands)	June 30, 2022		December 31, 2021
Time less than $100,000	$	531,023	$	676,979
Time $100,000 through $250,000	573,967		610,174
Time more than $250,000	370,427		391,787
Total time deposits	$	1,475,417	$	1,678,940

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BORROWED FUNDS (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Schedule of Borrowed Funds

Borrowed funds at June 30, 2022 and December 31, 2021 are summarized as follows:

	June 30, 2022				December 31, 2021
			Weighted				Weighted
			Average				Average
(Dollars in thousands)	Principal		Rate		Principal		Rate
Short-term borrowings:
Advances from the FHLB	$	50,000	1.28	%	$	—	—	%
Total short-term borrowings:	50,000		1.28		—		—
Long-term borrowings:
Advances from the FHLB and other borrowings	8,542		1.33		13,331		1.75
Subordinated borrowings	172,711		6.15		74,590		7.00
Junior subordinated borrowing - Trust I	15,464		3.35		15,464		2.01
Junior subordinated borrowing - Trust II	7,484		3.53		7,459		1.90
Total long-term borrowings:	204,201		5.64		110,844		5.33
Total	$	254,201	4.78	%	$	110,844	5.33	%

Summary of Maturities of FHLBB Advances

A summary of maturities of FHLB advances as of June 30, 2022 is as follows:

	June 30, 2022
			Weighted Average
(In thousands, except rates)	Principal		Rate
Fixed rate advances maturing:
2022	$	53,998	1.34	%
2023	—		—
2024	32		—
2025	—		—
2025 and beyond	4,512		0.72
Total FHLB advances	$	58,542	1.29	%

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Swap Agreements and Non-Hedging Derivative Assets and Liabilities

Information about derivative assets and liabilities at June 30, 2022, follows:

			Weighted	Weighted Average Rate				Estimated
	Notional		Average			Contract		Fair Value
	Amount		Maturity	Received		pay rate		Asset (Liability)
	(In thousands)		(In years)					(In thousands)
Economic hedges:
Interest rate swap on tax advantaged economic development bond	$	7,475	7.4	5.09	%	3.22	%	$	(509)
Interest rate swaps on loans with commercial loan customers	1,714,537		5.8	3.98	%	2.88	%	(47,467)
Offsetting interest rate swaps on loans with commercial loan customers (1)	1,714,537		5.8	2.88	%	3.98	%	29,488
Risk participation agreements with dealer banks	326,765		5.7					32
Forward sale commitments	984		0.2					18
Total economic hedges	3,764,298							(18,438)
Non-hedging derivatives:
Commitments to lend	2,957		0.2					26
Total non-hedging derivatives	2,957							26
Total	$	3,767,255						$	(18,412)

(1) Fair value estimates include the impact of $18.0 million settled to market contract agreements.

Information about derivative assets and liabilities at December 31, 2021, follows:

			Weighted	Weighted Average Rate				Estimated
	Notional		Average			Contract		Fair Value
	Amount		Maturity	Received		pay rate		Asset (Liability)
	(In thousands)		(In years)					(In thousands)
Economic hedges:
Interest rate swap on tax advantaged economic development bond	$	7,879	7.9	0.47	%	5.09	%	$	(1,158)
Interest rate swaps on loans with commercial loan customers	1,684,238		5.8	3.99	%	1.91	%	74,348
Offsetting interest rate swaps on loans with commercial loan customers (1)	1,684,238		5.8	1.91	%	3.99	%	(30,454)
Risk participation agreements with dealer banks	320,981		5.8					432
Forward sale commitments	6,377		0.2					134
Total economic hedges	3,703,713							43,302
Non-hedging derivatives:
Commitments to lend	8,192		0.2					124
Total non-hedging derivatives	8,192							124
Total	$	3,711,905						$	43,426

(1) Fair value estimates include the impact of $45.7 million settled to market contract agreements.

Schedule of Amounts Included in the Consolidated Statements of Income Related to Economic Hedges and Non-Hedging Derivatives

Amounts included in the Consolidated Statements of Income related to economic hedges and non-hedging derivatives were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2022		2021		2022		2021
Economic hedges
Interest rate swap on industrial revenue bond:
Unrealized gain recognized in other non-interest income	$	217	$	10	$	649	$	355
Interest rate swaps on loans with commercial loan customers:
Unrealized (loss) recognized in other non-interest income	(44,927)		10,516		(123,625)		(49,785)
Favorable change in credit valuation adjustment recognized in other non-interest income	—		(982)		1,809		1,520
Offsetting interest rate swaps on loans with commercial loan customers:
Unrealized gain recognized in other non-interest income	44,927		(10,516)		123,625		49,785
Risk participation agreements:
Unrealized (loss) recognized in other non-interest income	(292)		150		(400)		(179)
Forward commitments:
Unrealized (loss)/gain recognized in other non-interest income	11		(234)		(116)		(228)
Non-hedging derivatives
Commitments to lend
Unrealized (loss) recognized in other non-interest income	$	8	$	76	$	(98)	$	(474)
Realized gain in other non-interest income	90		457		342		1,810

Schedule of Assets Subject to an Enforceable Master Netting Arrangement

Offsetting of Financial Assets and Derivative Assets

	Gross Amounts of		Gross Amounts Offset in the		Net Amounts of Assets Presented in the		Gross Amounts Not Offset in the Statements of Condition
	Recognized		Statements of		Statements of		Financial		Cash
(In thousands)	Assets		Condition		Condition		Instruments		Collateral Received		Net Amount
June 30, 2022
Interest Rate Swap Agreements:
Institutional counterparties	$	54,445	$	(370)	$	54,075	$	—	$	—	$	54,075
Commercial counterparties	4,434		—		4,434		—		—		4,434
Total	$	58,879	$	(370)	$	58,509	$	—	$	—	$	58,509

Offsetting of Financial Assets and Derivative Assets

	Gross Amounts of		Gross Amounts Offset in the		Net Amounts of Assets Presented in the		Gross Amounts Not Offset in the Statements of Condition
	Recognized		Statements of		Statements of		Financial		Cash
(In thousands)	Assets		Condition		Condition		Instruments		Collateral Received		Net Amount
December 31, 2021
Interest Rate Swap Agreements:
Institutional counterparties	$	2,223	$	(75)	$	2,148	$	—	$	—	$	2,148
Commercial counterparties	76,809		—		76,809		—		—		76,809
Total	$	79,032	$	(75)	$	78,957	$	—	$	—	$	78,957

Schedule of Liabilities Subject to an Enforceable Master Netting Arrangement

Offsetting of Financial Liabilities and Derivative Liabilities

	Gross Amounts of		Gross Amounts Offset in the		Net Amounts of Liabilities Presented in the		Gross Amounts Not Offset in the Statements of Condition
	Recognized		Statements of		Statements of		Financial		Cash
(In thousands)	Liabilities		Condition		Condition		Instruments		Collateral Pledged		Net Amount
June 30, 2022
Interest Rate Swap Agreements:
Institutional counterparties	$	(7,010)	$	(17,930)	$	(24,940)	$	37,453	$	11,079	$	23,592
Commercial counterparties	(51,901)		—		(51,901)		—		—		(51,901)
Total	$	(58,911)	$	(17,930)	$	(76,841)	$	37,453	$	11,079	$	(28,309)

Offsetting of Financial Liabilities and Derivative Liabilities

	Gross Amounts of		Gross Amounts Offset in the		Net Amounts of Liabilities Presented in the		Gross Amounts Not Offset in the Statements of Condition
	Recognized		Statements of		Statements of		Financial		Cash
(In thousands)	Liabilities		Condition		Condition		Instruments		Collateral Pledged		Net Amount
December 31, 2021
Interest Rate Swap Agreements:
Institutional counterparties	$	(78,146)	$	44,814	$	(33,332)	$	34,896	$	43,694	$	45,258
Commercial counterparties	(2,461)		—		(2,461)		—		—		(2,461)
Total	$	(80,607)	$	44,814	$	(35,793)	$	34,896	$	43,694	$	42,797

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LEASES (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Schedule of ROU Assets and Lease Liabilities

The following table represents the Consolidated Balance Sheets classification of the Company’s right-of-use (“ROU”) assets and lease liabilities:

(In thousands)		June 30, 2022		December 31, 2021
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other assets	$	52,594	$	52,180
Finance lease right-of-use assets	Premises and equipment, net	6,413		6,674
Total Lease Right-of-Use Assets		$	59,007	$	58,854
Lease Liabilities
Operating lease liabilities	Other liabilities	$	55,988	$	55,674
Finance lease liabilities	Other liabilities	9,587		9,862
Total Lease Liabilities		$	65,575	$	65,536

Schedule of Supplemental Information Related to Leases

Supplemental information related to leases was as follows:

	June 30, 2022		December 31, 2021
Weighted-Average Remaining Lease Term (in years)
Operating leases	9.3		9.5
Finance leases	12.3		12.8
Weighted-Average Discount Rate
Operating leases	2.60	%	2.77	%
Finance leases	5.00	%	5.00	%

Schedule of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:

	Three Months Ended
(In thousands)	June 30, 2022		June 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,533	$	2,668
Operating cash flows from finance leases	120		126
Financing cash flows from finance leases	138		131

	Six Months Ended
(In thousands)	June 30, 2022		June 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,149	$	5,911
Operating cash flows from finance leases	240		253
Financing cash flows from finance leases	276		263

Schedule of Maturity Analysis of Operating Lease Liability

The following table presents a maturity analysis of the Company’s lease liability by lease classification at June 30, 2022:

(In thousands)	Operating Leases		Finance Leases
2022	$	5,002	$	514
2023	9,825		1,037
2024	8,243		1,037
2025	6,271		1,037
2026	5,046		1,037
Thereafter	28,796		8,187
Total undiscounted lease payments	63,183		12,849
Less amounts representing interest	(7,195)		(3,262)
Lease liability	$	55,988	$	9,587

Schedule of Maturity Analysis of Finance Lease Liability

The following table presents a maturity analysis of the Company’s lease liability by lease classification at June 30, 2022:

(In thousands)	Operating Leases		Finance Leases
2022	$	5,002	$	514
2023	9,825		1,037
2024	8,243		1,037
2025	6,271		1,037
2026	5,046		1,037
Thereafter	28,796		8,187
Total undiscounted lease payments	63,183		12,849
Less amounts representing interest	(7,195)		(3,262)
Lease liability	$	55,988	$	9,587

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CAPITAL RATIOS AND SHAREHOLDERS' EQUITY (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Schedule of Actual and Required Capital Ratios

The actual and required capital ratios were as follows:

	June 30, 2022		December 31, 2021		Minimum Capital Requirement
Company (consolidated)
Total capital to risk-weighted assets	16.1	%	17.3	%	8.0	%
Common equity tier 1 capital to risk-weighted assets	12.9		15.0		4.5
Tier 1 capital to risk-weighted assets	13.2		15.3		6.0
Tier 1 capital to average assets	10.2		10.5		4.0

	June 30, 2022		December 31, 2021		Regulatory Minimum to be Adequately Capitalized		Regulatory Minimum to be Well Capitalized
Bank
Total capital to risk-weighted assets	14.1	%	15.9	%	8.0	%	10.0	%
Common equity tier 1 capital to risk-weighted assets	13.1		14.8		4.5		6.5
Tier 1 capital to risk-weighted assets	13.1		14.8		6.0		8.0
Tier 1 capital to average assets	10.2		10.1		4.0		5.0

Schedule of Components of Accumulated Other Comprehensive Income (Loss)

Components of accumulated other comprehensive (loss) is as follows:

(In thousands)	June 30, 2022		December 31, 2021
Other accumulated comprehensive income, before tax:
Net unrealized holding loss on AFS securities	$	(163,666)	$	(1,806)
Net unrealized holding (loss) on pension plans	(2,518)		(2,518)
Income taxes related to items of accumulated other comprehensive income:
Net unrealized tax benefit on AFS securities	42,511		407
Net unrealized tax benefit on pension plans	674		674
Accumulated other comprehensive loss	$	(122,999)	$	(3,243)

Schedule of Components of Other Comprehensive Income (Loss)

The following table presents the components of other comprehensive (loss) for the three and six months ended June 30, 2022 and 2021:

(In thousands)	Before Tax		Tax Effect		Net of Tax
Three Months Ended June 30, 2022
Net unrealized holding loss on AFS securities:	x
Net unrealized (losses) arising during the period	$	(60,481)	$	15,723	$	(44,758)
Less: reclassification adjustment for gains realized in net income	6		(2)		4
Net unrealized holding (loss) on AFS securities	(60,487)		15,725		(44,762)
Other comprehensive (loss)	$	(60,487)	$	15,725	$	(44,762)
Three Months Ended June 30, 2021
Net unrealized holding loss on AFS securities:
Net unrealized gains arising during the period	$	5,394	$	(1,343)	$	4,051
Less: reclassification adjustment for gains realized in net income	—		—		—
Net unrealized holding gain on AFS securities	5,394		(1,343)		4,051
Other comprehensive income	$	5,394	$	(1,343)	$	4,051

(In thousands)	Before Tax		Tax Effect		Net of Tax
Six Months Ended June 30, 2022
Net unrealized holding loss on AFS securities:
Net unrealized (losses) arising during the period	$	(161,854)	$	42,102	$	(119,752)
Less: reclassification adjustment for gains realized in net income	6		(2)		4
Net unrealized holding (loss) on AFS securities	(161,860)		42,104		(119,756)
Other comprehensive (loss)	$	(161,860)	$	42,104	$	(119,756)
Six Months Ended June 30, 2021
Net unrealized holding loss on AFS securities:
Net unrealized (losses) arising during the period	$	(21,619)	$	5,520	$	(16,099)
Less: reclassification adjustment for gains realized in net income	—		—		—
Net unrealized holding (loss) on AFS securities	(21,619)		5,520		(16,099)
Other comprehensive (loss)	$	(21,619)	$	5,520	$	(16,099)

Schedule of Gross Changes in Each Component of Accumulated Other Comprehensive Income

The following table presents the changes in each component of accumulated other comprehensive (loss), for the three and six months ended June 30, 2022 and 2021:

(In thousands)	Net unrealized holding loss on AFS Securities		Net unrealized holding loss on pension plans		Total
Three Months Ended June 30, 2022
Balance at Beginning of Period	$	(76,392)	$	(1,845)	$	(78,237)
Other comprehensive loss before reclassifications	(44,758)		—		(44,758)
Less: amounts reclassified from accumulated other comprehensive (loss)	4		—		4
Total other comprehensive (loss)	(44,762)		—		(44,762)
Balance at End of Period	$	(121,154)	$	(1,845)	$	(122,999)
Three Months Ended June 30, 2021
Balance at Beginning of Period	$	13,308	$	(2,587)	$	10,721
Other comprehensive gain before reclassifications	4,051		—		4,051
Less: amounts reclassified from accumulated other comprehensive (loss)	—		—		—
Total other comprehensive income	4,051		—		4,051
Balance at End of Period	$	17,359	$	(2,587)	$	14,772
Six Months Ended June 30, 2022
Balance at Beginning of Period	$	(1,398)	$	(1,845)	$	(3,243)
Other comprehensive loss before reclassifications	(119,752)		—		(119,752)
Less: amounts reclassified from accumulated other comprehensive income	4		—		4
Total other comprehensive (loss)	(119,756)		—		(119,756)
Balance at End of Period	$	(121,154)	$	(1,845)	$	(122,999)
Six Months Ended June 30, 2021
Balance at Beginning of Period	$	33,458	$	(2,587)	$	30,871
Other comprehensive loss before reclassifications	(16,099)				(16,099)
Less: amounts reclassified from accumulated other comprehensive income	—		—		—
Total other comprehensive (loss)	(16,099)		—		(16,099)
Balance at End of Period	$	17,359	$	(2,587)	$	14,772

Schedule of Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Income

The following table presents the amounts reclassified out of each component of accumulated other comprehensive

income for the three and six months ended June 30, 2022 and 2021:

					Affected Line Item in the
	Three Months Ended June 30,				Statement where Net Income
(In thousands)	2022		2021		is Presented
Realized gains on AFS securities:
	$	6	$	—	Non-interest income
	—		—		Retained earnings
	(2)		—		Tax expense
	4		—		Net of tax
Total reclassifications for the period	$	4	$	—	Net of tax

					Affected Line Item in the
	Six Months Ended June 30,				Statement where Net Income
(In thousands)	2022		2021		is Presented
Realized gains on AFS securities:
	$	6			Non-interest income
	(2)		—		Tax expense
	4		—		Net of tax
Total reclassifications for the period	$	4	$	—	Net of tax

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EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Schedule of Earnings Per Share

Earnings per share have been computed based on the following (average diluted shares outstanding are calculated using the treasury stock method):

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands, except per share data)	2022		2021		2022		2021
Net income	$	23,115	$	21,636	$	43,311	$	34,667
Average number of common shares issued	51,903		51,903		51,903		51,903
Less: average number of treasury shares	5,247		822		4,375		885
Less: average number of unvested stock award shares	838		760		795		691
Average number of basic shares outstanding	45,818		50,321		46,733		50,327
Plus: dilutive effect of unvested stock award shares	283		280		337		257
Plus: dilutive effect of stock options outstanding	1		7		4		4
Average number of diluted shares outstanding	46,102		50,608		47,074		50,588
Basic earnings per common share:	$	0.50	$	0.43	$	0.93	$	0.69
Diluted earnings per common share:	$	0.50	$	0.43	$	0.92	$	0.69

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STOCK-BASED COMPENSATION PLANS (Tables)

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Activity in the Stock Award and Stock Option Plans

A combined summary of activity in the Company’s stock award and stock option plans for the six months ended June 30, 2022 is presented in the following table:

	Non-Vested Stock Awards Outstanding			Stock Options Outstanding
(Shares in thousands)	Number of Shares	Weighted-Average Grant Date Fair Value		Number of Shares	Weighted-Average Exercise Price
December 31, 2021	710	$	20.16	80	$	25.21
Granted	314	28.86		—	—
Acquired	—	—		—	—
Stock options exercised	—	—		(1)	23.30
Stock awards vested	(111)	22.22		—	—
Forfeited	(51)	26.43		—	—
Expired	—	—		(6)	24.30
June 30, 2022	862	$	23.07	73	$	25.31

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis Segregated by the Level of the Valuation Inputs Within the Fair Value Hierarchy Utilized to Measure Fair Value

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value.

	June 30, 2022
	Level 1		Level 2		Level 3		Total
(In thousands)	Inputs		Inputs		Inputs		Fair Value
Trading security	$	—	$	—	$	7,040	$	7,040
Securities available for sale:
U.S Treasuries	—		99,849		—		99,849
Municipal bonds and obligations	—		65,163		—		65,163
Agency collateralized mortgage obligations	—		626,387		—		626,387
Agency residential mortgage-backed securities	—		606,777		—		606,777
Agency commercial mortgage-backed securities	—		256,464		—		256,464
Corporate bonds	—		38,359		4,020		42,379
Marketable equity securities	13,499		655		—		14,154
Loans held for investment at fair value	—		—		1,049		1,049
Loans held for sale	—		1,062		—		1,062
Derivative assets	—		58,616		44		58,660
Capitalized servicing rights	—		—		1,906		1,906
Derivative liabilities	—		77,073		—		77,073

	December 31, 2021
	Level 1		Level 2		Level 3		Total
(In thousands)	Inputs		Inputs		Inputs		Fair Value
Trading security	$	—	$	—	$	8,354	$	8,354
Securities available for sale:
U.S Treasuries	—		59,973		—		59,973
Municipal bonds and obligations	—		77,177		—		77,177
Agency collateralized mortgage obligations	—		688,336		—		688,336
Agency residential mortgage-backed securities	—		705,859		—		705,859
Agency commercial mortgage-backed securities	—		300,580		—		300,580
Corporate bonds	—		41,630		4,030		45,660
Marketable equity securities	14,798		655		—		15,453
Loans held for investment at fair value	—		—		1,200		1,200
Loans held for sale	—		6,110		—		6,110
Derivative assets	—		79,270		258		79,528
Capitalized servicing rights	—		—		1,966		1,966
Derivative liabilities	—		35,194		—		35,194

Schedule of Loans Held for Sale

					Aggregate Fair Value
June 30, 2022	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		Unpaid Principal
Loans held for investment at fair value	$	1,049	$	20,603	$	(19,554)

					Aggregate Fair Value
December 31, 2021	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		Unpaid Principal
Loans held for investment at fair value	$	1,200	$	31,430	$	(30,230)

Loans Held for Sale. The Company elected the fair value option for all loans held for sale (HFS) originated for sale on or after May 1, 2012. Loans HFS are classified as Level 2 as the fair value is based on input factors such as quoted prices for similar loans in active markets.

					Aggregate Fair Value
June 30, 2022	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		Unpaid Principal
Loans held for sale	$	1,062	$	1,039	$	23

					Aggregate Fair Value
December 31, 2021	Aggregate		Aggregate		Less Aggregate
(In thousands)	Fair Value		Unpaid Principal		Unpaid Principal
Loans held for sale	$	6,110	$	5,926	$	184

Schedule of Changes in Level 3 Assets That Were Measured at Fair Value on a Recurring Basis

The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis for the three and six months ended June 30, 2022 and 2021.

	Assets (Liabilities)
			Securities		Loans						Capitalized
	Trading		Available		Held for		Commitments		Forward		Servicing
(In thousands)	Security		for Sale		Investment		to Lend		Commitments		Rights
Three Months Ended June 30, 2022
March 31, 2022	$	7,798	$	4,020	$	1,197	$	18	$	7	$	1,786
Unrealized (loss)/gain, net recognized in other non-interest income	(556)		—		259		60		11		120
Unrealized gain included in accumulated other comprehensive income	—		—		—		—		—		—
Paydown of asset	(202)		—		(407)		—		—		—
Transfers to held for sale loans	—		—		—		(52)		—		—
June 30, 2022	$	7,040	$	4,020	$	1,049	$	26	$	18	$	1,906
Six Months Ended June 30, 2022
December 31, 2021	$	8,354	$	4,030	$	1,200	$	124	$	134	$	1,966
Unrealized (loss)/gain, net recognized in other non-interest income	(910)		—		468		130		(116)		(60)
Unrealized (loss) included in accumulated other comprehensive income	—		(10)		—		—		—		—
Paydown of asset	(404)		—		(619)		—		—		—
Transfers to held for sale loans	—		—		—		(228)		—		—
June 30, 2022	$	7,040	$	4,020	$	1,049	$	26	$	18	$	1,906
Unrealized gain relating to instruments still held at June 30, 2022	$	(436)	$	20	$	—	$	26	$	18	$	—

			Securities		Loans						Capitalized
	Trading		Available		Held for		Commitments		Forward		Servicing
(In thousands)	Security		for Sale		Investment		to Lend		Commitments		Rights
Three Months Ended June 30, 2021
March 31, 2021	$	9,350	$	—	$	1,448	$	185	$	326	$	2,968
Unrealized (loss)/gain, net recognized in other non-interest income	(305)		—		187		430		(234)		(612)
Paydown of asset	(192)		—		(375)		—		—		—
Transfers to held for sale loans	—		—		—		(354)		—		—
June 30, 2021	$	8,853	$	—	$	1,260	$	261	$	92	$	2,356
Six Months Ended June 30, 2021
December 31, 2020	$	9,708	$	15,000	$	2,265	$	735	$	320	$	3,033
Maturity of AFS security	—		(15,000)		—		—		—		—
Unrealized gain, net recognized in other non-interest income	(471)		—		601		—		(228)		—
Unrealized gain/(loss), net recognized in other non-interest income	—		—		—		1,248		—		(677)
Paydown of asset	(384)		—		(1,606)		—		—		—
Transfers to held for sale loans	—		—		—		(1,722)		—		—
June 30, 2021	$	8,853	$	—	$	1,260	$	261	$	92	$	2,356
Unrealized gains relating to instruments still held at June 30,2021	$	581	$	—	$	—	$	261	$	92	$	—

Schedule of Changes in Level 3 Liabilities That Were Measured at Fair Value on a Recurring Basis

The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis for the three and six months ended June 30, 2022 and 2021.

	Assets (Liabilities)
			Securities		Loans						Capitalized
	Trading		Available		Held for		Commitments		Forward		Servicing
(In thousands)	Security		for Sale		Investment		to Lend		Commitments		Rights
Three Months Ended June 30, 2022
March 31, 2022	$	7,798	$	4,020	$	1,197	$	18	$	7	$	1,786
Unrealized (loss)/gain, net recognized in other non-interest income	(556)		—		259		60		11		120
Unrealized gain included in accumulated other comprehensive income	—		—		—		—		—		—
Paydown of asset	(202)		—		(407)		—		—		—
Transfers to held for sale loans	—		—		—		(52)		—		—
June 30, 2022	$	7,040	$	4,020	$	1,049	$	26	$	18	$	1,906
Six Months Ended June 30, 2022
December 31, 2021	$	8,354	$	4,030	$	1,200	$	124	$	134	$	1,966
Unrealized (loss)/gain, net recognized in other non-interest income	(910)		—		468		130		(116)		(60)
Unrealized (loss) included in accumulated other comprehensive income	—		(10)		—		—		—		—
Paydown of asset	(404)		—		(619)		—		—		—
Transfers to held for sale loans	—		—		—		(228)		—		—
June 30, 2022	$	7,040	$	4,020	$	1,049	$	26	$	18	$	1,906
Unrealized gain relating to instruments still held at June 30, 2022	$	(436)	$	20	$	—	$	26	$	18	$	—

			Securities		Loans						Capitalized
	Trading		Available		Held for		Commitments		Forward		Servicing
(In thousands)	Security		for Sale		Investment		to Lend		Commitments		Rights
Three Months Ended June 30, 2021
March 31, 2021	$	9,350	$	—	$	1,448	$	185	$	326	$	2,968
Unrealized (loss)/gain, net recognized in other non-interest income	(305)		—		187		430		(234)		(612)
Paydown of asset	(192)		—		(375)		—		—		—
Transfers to held for sale loans	—		—		—		(354)		—		—
June 30, 2021	$	8,853	$	—	$	1,260	$	261	$	92	$	2,356
Six Months Ended June 30, 2021
December 31, 2020	$	9,708	$	15,000	$	2,265	$	735	$	320	$	3,033
Maturity of AFS security	—		(15,000)		—		—		—		—
Unrealized gain, net recognized in other non-interest income	(471)		—		601		—		(228)		—
Unrealized gain/(loss), net recognized in other non-interest income	—		—		—		1,248		—		(677)
Paydown of asset	(384)		—		(1,606)		—		—		—
Transfers to held for sale loans	—		—		—		(1,722)		—		—
June 30, 2021	$	8,853	$	—	$	1,260	$	261	$	92	$	2,356
Unrealized gains relating to instruments still held at June 30,2021	$	581	$	—	$	—	$	261	$	92	$	—

Schedule of Quantitative Information About the Significant Unobservable Inputs Within Level 3

Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows:

	Fair Value				Significant Unobservable Input
(In thousands)	June 30, 2022		Valuation Techniques	Unobservable Inputs	Value
Assets (Liabilities)
Trading security	$	7,040	Discounted Cash Flow	Discount Rate	4.32		%
AFS Securities	4,020		Indication from Market Maker	Price	101.00%
Loans held for investment	1,049		Discounted Cash Flow	Discount Rate	25.00		%
				Collateral Value	$6.3 - $22.2
Commitments to lend	26		Historical Trend	Closing Ratio	83.49		%
			Pricing Model	Origination Costs, per loan	$	3
Forward commitments	18		Historical Trend	Closing Ratio	83.49		%
			Pricing Model	Origination Costs, per loan	$	3
Capitalized servicing rights	1,906		Discounted cash flow	Constant Prepayment Rate (CPR)	12.26		%
				Discount Rate	9.04		%
Total	$	14,059

	Fair Value				Significant Unobservable Input
(In thousands)	December 31, 2021		Valuation Techniques	Unobservable Inputs	Value
Assets (Liabilities)
Trading security	$	8,354	Discounted Cash Flow	Discount Rate	3.35		%
AFS Securities	4,030		Indication from Market Maker	Price	101.00		%
Loans held for investment	1,200		Discounted Cash Flow	Discount Rate	25.00		%
				Collateral Value	$6.3- $19.8
Commitments to lend	124		Historical Trend	Closing Ratio	82.09		%
			Pricing Model	Origination Costs, per loan	$	3
Forward commitments	134		Historical Trend	Closing Ratio	82.09		%
			Pricing Model	Origination Costs, per loan	$	3
Capitalized servicing rights	1,966		Discounted Cash Flow	Constant Prepayment Rate (CPR)	19.41		%
				Discount Rate	9.50		%
Total	$	15,808

The following is a summary of applicable non-recurring fair value measurements. There are no liabilities measured at fair value on a non-recurring basis.

	June 30, 2022		December 31, 2021		Fair Value Measurement Date as of June 30, 2022
	Level 3		Level 3		Level 3
(In thousands)	Inputs		Inputs		Inputs
Assets
Individually evaluated	$	3,026	$	12,482	June 2022
Capitalized servicing rights	12,510		14,056		June 2022
Total	$	15,536	$	26,538

Summary of Applicable Non-Recurring Fair Value Measurements

Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is as follows:

	Fair Value
(In thousands)	June 30, 2022		Valuation Techniques	Unobservable Inputs	Range (Weighted Average) (1)
Assets
Individually evaluated	$	3,026	Fair Value of Collateral	Discounted Cash Flow - Loss Severity	(100.00)% to 15.31% ((49.34)%)
				Appraised Value	$0 to $734 ($485)
Capitalized servicing rights	12,510		Discounted Cash Flow	Constant Prepayment Rate (CPR)	5.90% to 13.24% (10.99%)
				Discount Rate	9.09% to 11.74% (10.80%)
Total	$	15,536

(1)     Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.

	Fair Value
(In thousands)	December 31, 2021		Valuation Techniques	Unobservable Inputs	Range (Weighted Average) (1)
Assets
Individually evaluated	$	12,482	Fair Value of Collateral	Discounted Cash Flow - loss severity	(35.96)% to 133.09% ((49.14)%)
				Appraised Value	$0 to $405 ($256)
Capitalized servicing rights	14,056		Discounted Cash Flow	Constant Prepayment Rate (CPR)	6.24% to 17.73% (13.29%)
				Discount Rate	9.59% to 13.11% (11.97%)
Total	$	26,538

(1)     Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.

Summary of Estimated Fair Values, and Related Carrying Amounts, of Financial Instruments

The following tables summarize the estimated fair values (represents exit price), and related carrying amounts, of the Company’s financial instruments. Certain financial instruments and all non-financial instruments are excluded. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

	June 30, 2022
	Carrying		Fair
(In thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	871,017	$	871,017	$	871,017	$	—	$	—
Trading security	7,040		7,040		—		—		7,040
Marketable equity securities	14,154		14,154		13,499		655		—
Securities available for sale	1,697,019		1,697,019		—		1,692,999		4,020
Securities held to maturity	602,611		544,065		—		541,695		2,370
FHLB bank stock and restricted securities	9,365		N/A		N/A		N/A		N/A
Net loans	7,704,430		7,708,139		—		—		7,708,139
Loans held for sale	1,062		1,062		—		1,062		—
Accrued interest receivable	36,203		36,203		—		36,203		—
Derivative assets	58,660		58,660		—		58,616		44
Financial Liabilities
Total deposits	$	10,114,664	$	10,087,181	$	—	$	10,087,181	$	—
Short-term debt	50,000		49,996		—		49,996		—
Long-term Federal Home Loan Bank advances and other	8,542		7,214		—		7,214		—
Subordinated borrowings	195,659		190,048		—		190,048		—
Derivative liabilities	77,073		77,073		—		77,073		—

	December 31, 2021
	Carrying		Fair
(In thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	1,627,807	$	1,627,807	$	1,627,807	$	—	$	—
Trading security	8,354		8,354		—		—		8,354
Marketable equity securities	15,453		15,453		14,798		655		—
Securities available for sale and other	1,877,585		1,877,585		—		1,873,555		4,030
Securities held to maturity	636,503		647,236		—		644,497		2,739
FHLB bank stock and restricted securities	10,800		N/A		N/A		N/A		N/A
Net loans	6,719,753		6,850,975		—		—		6,850,975
Loans held for sale	6,110		6,110		—		6,110		—
Accrued interest receivable	33,534		33,534		—		33,534		—
Derivative assets	79,528		79,528		—		79,270		258
Financial Liabilities
Total deposits	$	10,068,953	$	10,073,217	$	—	$	10,073,217	$	—
Short-term debt	—		—		—		—		—
Long-term Federal Home Loan Bank advances	13,331		13,053		—		13,053		—
Subordinated borrowings	97,513		95,006		—		95,006		—
Derivative liabilities	35,194		35,194		—		35,194		—

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NET INTEREST INCOME AFTER BENEFIT/PROVISION FOR CREDIT LOSSES (Tables)

6 Months Ended

Jun. 30, 2022

Banking and Thrift, Interest [Abstract]

Schedule of Net Interest Income After Provision for Loan Losses

Presented below is net interest income after provision for credit losses for the three and six months ended June 30, 2022 and 2021, respectively.

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2022		2021		2022		2021
Net interest income	$	81,358	$	75,393	$	150,421	$	150,486
(Benefit)/provision for credit losses	—		—		(4,000)		6,500
Net interest after provision for credit losses	$	81,358	$	75,393	$	154,421	$	143,986

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TRADING SECURITY (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Amortized cost	$ 7.5	$ 7.9
Trading security	$ 7.0	$ 8.4

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SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Summary of Securities Available for Sale and Held to Maturity (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Securities available for sale
Amortized  Cost	$ 1,862,453	$ 1,881,813
Gross Unrealized Gains	762	18,168
Gross Unrealized Losses	(166,196)	(22,396)
Fair Value	1,697,019	1,877,585
Allowance	0	0
Securities held to maturity
Amortized  Cost	602,611	636,503
Gross Unrealized Gains	1,473	19,741
Gross Unrealized Losses	(60,019)	(9,008)
Fair Value	544,065	647,236
Allowance	94	105	$ 99	$ 130	$ 111	$ 104
Marketable equity securities, amortized cost	15,690	15,689
Marketable equity securities, gross unrealized gains	66	67
Marketable equity securities, gross unrealized losses	(1,602)	(303)
Marketable equity securities, fair value	14,154	15,453
Total, amortized cost basis	2,480,754	2,534,005
Total, gross unrealized gain	2,301	37,976
Total, gross unrealized loss	(227,817)	(31,707)
Total, fair value	2,255,238	2,540,274
Total, allowance	94	105
U.S Treasuries
Securities available for sale
Amortized  Cost	99,920	59,972
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(71)	0
Fair Value	99,849	59,973
Allowance		0
Municipal bonds and obligations
Securities available for sale
Amortized  Cost	66,980	71,822
Gross Unrealized Gains	608	5,355
Gross Unrealized Losses	(2,425)	0
Fair Value	65,163	77,177
Allowance	0	0
Securities held to maturity
Amortized  Cost	270,219	281,515
Gross Unrealized Gains	1,450	16,151
Gross Unrealized Losses	(21,929)	(693)
Fair Value	249,740	296,973
Allowance	66	70	67	90	71	64
Agency collateralized mortgage obligations
Securities available for sale
Amortized  Cost	692,079	693,782
Gross Unrealized Gains	3	5,566
Gross Unrealized Losses	(65,695)	(11,012)
Fair Value	626,387	688,336
Allowance	0	0
Securities held to maturity
Amortized  Cost	137,778	149,195
Gross Unrealized Gains	18	3,203
Gross Unrealized Losses	(13,550)	(3,513)
Fair Value	124,246	148,885
Allowance	0	0
Agency mortgage-backed securities
Securities available for sale
Amortized  Cost	679,422	711,154
Gross Unrealized Gains	6	2,347
Gross Unrealized Losses	(72,651)	(7,642)
Fair Value	606,777	705,859
Allowance	0	0
Securities held to maturity
Amortized  Cost	53,630	57,327
Gross Unrealized Gains	0	95
Gross Unrealized Losses	(7,872)	(1,498)
Fair Value	45,758	55,924
Allowance	0	0
Agency commercial mortgage-backed securities
Securities available for sale
Amortized  Cost	280,266	300,259
Gross Unrealized Gains	26	3,949
Gross Unrealized Losses	(23,828)	(3,628)
Fair Value	256,464	300,580
Allowance	0	0
Securities held to maturity
Amortized  Cost	138,419	145,573
Gross Unrealized Gains	0	266
Gross Unrealized Losses	(16,633)	(3,289)
Fair Value	121,786	142,550
Allowance	0	0
Corporate bonds
Securities available for sale
Amortized  Cost	43,786	44,824
Gross Unrealized Gains	119	950
Gross Unrealized Losses	(1,526)	(114)
Fair Value	42,379	45,660
Allowance	0	0
Tax advantaged economic development bonds
Securities held to maturity
Amortized  Cost	2,400	2,728
Gross Unrealized Gains	5	26
Gross Unrealized Losses	(35)	(15)
Fair Value	2,370	2,739
Allowance	28	35	$ 32	$ 40	$ 40	$ 40
Other Debt Obligations [Member]
Securities held to maturity
Amortized  Cost	165	165
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	165	165
Allowance	$ 0	$ 0

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SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Debt Securities, Held to Maturity, Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 99	$ 111	$ 105	$ 104
Provision for credit losses - expense (reversal)	(5)	19	(11)	26
Ending balance	94	130	94	130
Municipal bonds and obligations
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance	67	71	70	64
Provision for credit losses - expense (reversal)	(1)	19	(4)	26
Ending balance	66	90	66	90
Tax advantaged economic development bonds
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance	32	40	35	40
Provision for credit losses - expense (reversal)	(4)	0	(7)	0
Ending balance	$ 28	$ 40	$ 28	$ 40

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SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Schedule of Maturity of Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Available for sale, Amortized Cost
Within 1 year	$ 100,364
Over 1 year to 5 years	7,900
Over 5 years to 10 years	48,271
Over 10 years	54,151
Total bonds and obligations	210,686
Mortgage-backed securities	1,651,767
Amortized  Cost	1,862,453	$ 1,881,813
Available for sale, Fair Value
Within 1 year	100,292
Over 1 year to 5 years	7,969
Over 5 years to 10 years	47,315
Over 10 years	51,815
Total bonds and obligations	207,391
Mortgage-backed securities	1,489,628
Fair Value	1,697,019	1,877,585
Held to maturity, Amortized Cost
Within 1 year	1,796
Over 1 year to 5 years	2,693
Over 5 years to 10 years	24,614
Over 10 years	243,681
Total bonds and obligations	272,784
Mortgage-backed securities	329,827
Amortized  Cost	602,611	636,503
Held to maturity, Fair Value
Within 1 year	1,795
Over 1 year to 5 years	2,700
Over 5 years to 10 years	24,932
Over 10 years	222,848
Total bonds and obligations	252,275
Mortgage-backed securities	291,790
Fair Value	$ 544,065	$ 647,236

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SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) security	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) security	Jun. 30, 2021 USD ($)
Investment Holdings [Line Items]
Purchases of securities available for sale | $	$ 0	$ 165,000,000	$ 386,637,000	$ 268,923,000
Proceeds from sale of available-for-sale securities | $	150,000,000	0	149,994,000	0
Debt securities, available-for-sale, realized gain | $	6,000	0	6,000	0
Debt securities, available-for-sale, realized loss | $	$ 0	$ 0	$ 0	$ 0
Available-for-sale Securities | U.S Treasuries
Investment Holdings [Line Items]
Available-for-sale, securities in unrealized loss positions	4		4
Number of securities	4		4
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage			0.10%
Available-for-sale Securities | Municipal bonds and obligations
Investment Holdings [Line Items]
Available-for-sale, securities in unrealized loss positions	32		32
Number of securities	97		97
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage			7.10%
Available-for-sale Securities | Agency collateralized mortgage obligations
Investment Holdings [Line Items]
Available-for-sale, securities in unrealized loss positions	240		240
Number of securities	251		251
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage			9.50%
Available-for-sale Securities | Agency commercial mortgage-backed securities
Investment Holdings [Line Items]
Available-for-sale, securities in unrealized loss positions	121		121
Number of securities	139		139
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage			10.10%
Available-for-sale Securities | Corporate bonds
Investment Holdings [Line Items]
Available-for-sale, securities in unrealized loss positions	10		10
Number of securities	14		14
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage			4.10%
Held-to-maturity Securities | Municipal bonds and obligations
Investment Holdings [Line Items]
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage			12.50%
Held-to-maturity, securities in unrealized loss positions	114		114
Held-to-maturity securities portfolio, number of securities	197		197
Held-to-maturity Securities | Agency collateralized mortgage obligations
Investment Holdings [Line Items]
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage			11.00%
Held-to-maturity, securities in unrealized loss positions	11		11
Held-to-maturity securities portfolio, number of securities	13		13
Held-to-maturity Securities | Agency commercial mortgage-backed securities
Investment Holdings [Line Items]
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage			12.80%
Held-to-maturity, securities in unrealized loss positions	17		17
Held-to-maturity securities portfolio, number of securities	17		17
Held-to-maturity Securities | Tax advantaged economic development bonds
Investment Holdings [Line Items]
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage			2.90%
Held-to-maturity, securities in unrealized loss positions	1		1
Held-to-maturity securities portfolio, number of securities	3		3

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SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Summary of Securities with Unrealized Losses (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Securities available for sale, Gross Unrealized Losses
Debt securities, available for sale securities, less than twelve months, gross unrealized losses	$ 99,766	$ 14,528
Debt securities, available for sale securities, over twelve months, gross unrealized losses	66,430	7,868
Debt securities, available for sale securities, continuous unrealized loss position, accumulated loss	166,196	22,396
Securities available for sale, Fair Value
Debt securities, available for sale securities, continuous unrealized loss position, less than twelve months, fair value	1,237,815	712,488
Debt securities, available for sale securities, continuous unrealized loss position, over twelve months, fair value	408,573	252,279
Debt securities, available for sale securities, continuous unrealized loss position, fair value	1,646,388	964,767
Gros Unrealized Losses
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss	24,128	4,610
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses	35,891	4,398
Held to maturity securities, accumulated unrecognized holding loss	60,019	9,008
Fair Value
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value	266,943	194,606
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value	164,677	113,891
Held to maturity securities, accumulated unrecognized holding loss, fair value	431,620	308,497
Securities available for sale and held to maturity
Held to maturity and available for sale securities continuous unrealized loss position, less than twelve months, aggregate losses	123,894	19,138
Held to maturity and available for sale securities continuous unrealized loss position, less than twelve months, fair value	1,504,758	907,094
Held to maturity and available for sale securities continuous unrealized loss position, over twelve months, aggregate losses	102,321	12,266
Held to maturity and available for sale securities continuous unrealized loss position, over twelve months, fair value	573,250	366,170
Held to maturity and available for sale securities continuous unrealized loss position, aggregate losses	226,215	31,404
Held to maturity and available for sale securities continuous unrealized loss position, fair value	2,078,008	1,273,264
U.S Treasuries
Securities available for sale, Gross Unrealized Losses
Debt securities, available for sale securities, less than twelve months, gross unrealized losses	71
Debt securities, available for sale securities, over twelve months, gross unrealized losses	0
Debt securities, available for sale securities, continuous unrealized loss position, accumulated loss	71
Securities available for sale, Fair Value
Debt securities, available for sale securities, continuous unrealized loss position, less than twelve months, fair value	99,849
Debt securities, available for sale securities, continuous unrealized loss position, over twelve months, fair value	0
Debt securities, available for sale securities, continuous unrealized loss position, fair value	99,849
Municipal bonds and obligations
Securities available for sale, Gross Unrealized Losses
Debt securities, available for sale securities, less than twelve months, gross unrealized losses	2,425
Debt securities, available for sale securities, over twelve months, gross unrealized losses	0
Debt securities, available for sale securities, continuous unrealized loss position, accumulated loss	2,425
Securities available for sale, Fair Value
Debt securities, available for sale securities, continuous unrealized loss position, less than twelve months, fair value	31,835
Debt securities, available for sale securities, continuous unrealized loss position, over twelve months, fair value	0
Debt securities, available for sale securities, continuous unrealized loss position, fair value	31,835
Gros Unrealized Losses
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss	11,356	693
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses	10,573	0
Held to maturity securities, accumulated unrecognized holding loss	21,929	693
Fair Value
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value	129,839	36,981
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value	23,320	0
Held to maturity securities, accumulated unrecognized holding loss, fair value	153,159	36,981
Agency collateralized mortgage obligations
Securities available for sale, Gross Unrealized Losses
Debt securities, available for sale securities, less than twelve months, gross unrealized losses	45,768	9,626
Debt securities, available for sale securities, over twelve months, gross unrealized losses	19,927	1,386
Debt securities, available for sale securities, continuous unrealized loss position, accumulated loss	65,695	11,012
Securities available for sale, Fair Value
Debt securities, available for sale securities, continuous unrealized loss position, less than twelve months, fair value	509,510	375,132
Debt securities, available for sale securities, continuous unrealized loss position, over twelve months, fair value	114,042	27,025
Debt securities, available for sale securities, continuous unrealized loss position, fair value	623,552	402,157
Gros Unrealized Losses
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss	4,219	1,808
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses	9,331	1,705
Held to maturity securities, accumulated unrecognized holding loss	13,550	3,513
Fair Value
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value	60,827	49,308
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value	48,927	36,212
Held to maturity securities, accumulated unrecognized holding loss, fair value	109,754	85,520
Agency mortgage-backed securities
Securities available for sale, Gross Unrealized Losses
Debt securities, available for sale securities, less than twelve months, gross unrealized losses	36,357	3,179
Debt securities, available for sale securities, over twelve months, gross unrealized losses	36,294	4,463
Debt securities, available for sale securities, continuous unrealized loss position, accumulated loss	72,651	7,642
Securities available for sale, Fair Value
Debt securities, available for sale securities, continuous unrealized loss position, less than twelve months, fair value	384,388	222,887
Debt securities, available for sale securities, continuous unrealized loss position, over twelve months, fair value	221,502	175,941
Debt securities, available for sale securities, continuous unrealized loss position, fair value	605,890	398,828
Gros Unrealized Losses
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss	185	839
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses	7,687	659
Held to maturity securities, accumulated unrecognized holding loss	7,872	1,498
Fair Value
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value	2,625	26,656
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value	43,132	26,025
Held to maturity securities, accumulated unrecognized holding loss, fair value	45,757	52,681
Agency commercial mortgage-backed securities
Securities available for sale, Gross Unrealized Losses
Debt securities, available for sale securities, less than twelve months, gross unrealized losses	13,730	1,609
Debt securities, available for sale securities, over twelve months, gross unrealized losses	10,098	2,019
Debt securities, available for sale securities, continuous unrealized loss position, accumulated loss	23,828	3,628
Securities available for sale, Fair Value
Debt securities, available for sale securities, continuous unrealized loss position, less than twelve months, fair value	180,796	103,354
Debt securities, available for sale securities, continuous unrealized loss position, over twelve months, fair value	71,060	49,313
Debt securities, available for sale securities, continuous unrealized loss position, fair value	251,856	152,667
Gros Unrealized Losses
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss	8,368	1,255
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses	8,265	2,034
Held to maturity securities, accumulated unrecognized holding loss	16,633	3,289
Fair Value
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value	73,652	80,406
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value	48,134	51,654
Held to maturity securities, accumulated unrecognized holding loss, fair value	121,786	132,060
Corporate bonds
Securities available for sale, Gross Unrealized Losses
Debt securities, available for sale securities, less than twelve months, gross unrealized losses	1,415	114
Debt securities, available for sale securities, over twelve months, gross unrealized losses	111	0
Debt securities, available for sale securities, continuous unrealized loss position, accumulated loss	1,526	114
Securities available for sale, Fair Value
Debt securities, available for sale securities, continuous unrealized loss position, less than twelve months, fair value	31,437	11,115
Debt securities, available for sale securities, continuous unrealized loss position, over twelve months, fair value	1,969	0
Debt securities, available for sale securities, continuous unrealized loss position, fair value	33,406	11,115
Other Debt Obligations [Member]
Gros Unrealized Losses
Held to maturity securities, accumulated unrecognized holding loss	0	0
Tax advantaged economic development bonds
Gros Unrealized Losses
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss	0	15
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses	35	0
Held to maturity securities, accumulated unrecognized holding loss	35	15
Fair Value
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value	0	1,255
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value	1,164	0
Held to maturity securities, accumulated unrecognized holding loss, fair value	$ 1,164	$ 1,255

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LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Total Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	$ 7,803,451		$ 6,825,847
Allowance for credit losses	99,021	$ 99,475	106,094	$ 119,044	$ 123,800	$ 127,302
Net loans	7,704,430		6,719,753
Construction and commercial multifamily | Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	323,969		324,282
Allowance for credit losses	1,710	2,505	3,206	3,919	4,397	5,111
Construction and commercial multifamily | Commercial multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	667,427		515,817
Allowance for credit losses	4,621	5,771	6,120	7,197	6,351	5,916
Commercial real estate | Commercial real estate owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	624,869		606,477
Allowance for credit losses	10,688	11,498	12,752	13,242	14,257	12,380
Commercial real estate | Commercial real estate non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	2,295,298		2,156,929
Allowance for credit losses	26,165	25,814	32,106	30,315	34,561	35,850
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	1,435,739		1,284,429
Allowance for credit losses	22,914	22,949	22,584	28,225	26,071	25,013
Residential real estate | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	1,917,227		1,489,248
Allowance for credit losses	16,410	17,816	22,406	23,643	25,800	28,491
Consumer loans | Home equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	240,874		252,366
Allowance for credit losses	2,828	3,303	4,006	5,432	5,749	6,482
Consumer loans | Consumer other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	298,048		196,299
Allowance for credit losses	$ 13,685	$ 9,819	$ 2,914	$ 7,071	$ 6,614	$ 8,059

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LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans	$ 7,704,430,000		$ 7,704,430,000		$ 6,719,753,000
Financing receivable, reclassification, held for sale	0		0
Commercial loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, reclassification, held for sale		$ 2,200,000		$ 11,700,000
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivable, nonaccrual, medallion loans, fair value	1,000,000		1,000,000		1,200,000
Financing receivable, nonaccrual, medallion loans, contractual balance	20,600,000		20,600,000		31,400,000
Small Business Administration (SBA), CARES Act, Paycheck Protection Program
Financing Receivable, Allowance for Credit Loss [Line Items]
Net loans	$ 13,900,000		$ 13,900,000		$ 29,900,000

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LOANS AND ALLOWANCE FOR CREDIT - LOSSES Allowance for Credit Loss Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	$ 99,475	$ 123,800	$ 106,094	$ 127,302
Charge-offs	(1,598)	(7,247)	(7,645)	(18,708)
Recoveries	1,139	2,510	4,561	3,976
Provision for Credit Losses	5	(19)	(3,989)	6,474
Balance at End of Period	99,021	119,044	99,021	119,044
Construction and commercial multifamily | Construction
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	2,505	4,397	3,206	5,111
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision for Credit Losses	(795)	(478)	(1,496)	(1,192)
Balance at End of Period	1,710	3,919	1,710	3,919
Construction and commercial multifamily | Commercial multifamily
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	5,771	6,351	6,120	5,916
Charge-offs	0	(115)	0	(239)
Recoveries	0	95	0	157
Provision for Credit Losses	(1,150)	866	(1,499)	1,363
Balance at End of Period	4,621	7,197	4,621	7,197
Commercial real estate | Commercial real estate owner occupied
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	11,498	14,257	12,752	12,380
Charge-offs	(298)	(227)	(428)	(603)
Recoveries	97	40	306	52
Provision for Credit Losses	(609)	(828)	(1,942)	1,413
Balance at End of Period	10,688	13,242	10,688	13,242
Commercial real estate | Commercial real estate non-owner occupied
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	25,814	34,561	32,106	35,850
Charge-offs	0	(2,561)	(4,884)	(9,220)
Recoveries	46	178	1,312	304
Provision for Credit Losses	305	(1,863)	(2,369)	3,381
Balance at End of Period	26,165	30,315	26,165	30,315
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	22,949	26,071	22,584	25,013
Charge-offs	(752)	(3,585)	(1,405)	(6,905)
Recoveries	584	1,266	1,872	1,911
Provision for Credit Losses	133	4,473	(137)	8,206
Balance at End of Period	22,914	28,225	22,914	28,225
Residential real estate | Residential real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	17,816	25,800	22,406	28,491
Charge-offs	(216)	(220)	(380)	(598)
Recoveries	199	667	587	1,104
Provision for Credit Losses	(1,389)	(2,604)	(6,203)	(5,354)
Balance at End of Period	16,410	23,643	16,410	23,643
Consumer loans | Home equity
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	3,303	5,749	4,006	6,482
Charge-offs	0	(164)	0	(240)
Recoveries	112	15	246	39
Provision for Credit Losses	(587)	(168)	(1,424)	(849)
Balance at End of Period	2,828	5,432	2,828	5,432
Consumer loans | Consumer other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	9,819	6,614	2,914	8,059
Charge-offs	(332)	(375)	(548)	(903)
Recoveries	101	249	238	409
Provision for Credit Losses	4,097	583	11,081	(494)
Balance at End of Period	$ 13,685	$ 7,071	$ 13,685	$ 7,071

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LOANS AND ALLOWANCE FOR CREDIT LOSSES - Allowance for Credit Losses Activity, Unfunded Loan Commitments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]
Balance at beginning of period	$ 7,043	$ 7,829	$ 7,043	$ 7,629
Expense for credit losses	0	0	0	200
Balance at end of period	$ 7,043	$ 7,829	$ 7,043	$ 7,829

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LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loan Risk by Category (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	$ 7,803,451	$ 6,825,847
Construction and commercial multifamily | Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	66,278	71,784
2021	125,071	52,725
2020	29,805	117,784
2019	75,853	76,379
2018	22,042	3,839
Prior	4,871	1,721
Revolving Loans Amortized Cost Basis	49	50
Revolving Loans Converted to Term	0	0
Total loans	323,969	324,282
Construction and commercial multifamily | Commercial multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	182,663	63,630
2021	61,261	30,872
2020	30,542	98,455
2019	117,448	65,318
2018	77,462	76,699
Prior	197,164	180,250
Revolving Loans Amortized Cost Basis	887	593
Revolving Loans Converted to Term	0	0
Total loans	667,427	515,817
Commercial real estate | Commercial real estate owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	76,332	154,434
2021	144,338	50,761
2020	48,389	88,669
2019	86,288	94,577
2018	78,400	48,238
Prior	189,507	166,592
Revolving Loans Amortized Cost Basis	1,615	3,206
Revolving Loans Converted to Term	0	0
Total loans	624,869	606,477
Commercial real estate | Commercial real estate non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	384,990	426,086
2021	427,922	183,981
2020	180,814	300,457
2019	276,809	360,363
2018	339,556	239,817
Prior	667,080	626,615
Revolving Loans Amortized Cost Basis	18,127	19,610
Revolving Loans Converted to Term	0	0
Total loans	2,295,298	2,156,929
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	133,150	188,129
2021	172,975	134,705
2020	108,950	134,586
2019	98,709	164,680
2018	142,290	57,643
Prior	137,556	139,670
Revolving Loans Amortized Cost Basis	642,109	465,016
Revolving Loans Converted to Term	0	0
Total loans	1,435,739	1,284,429
Residential real estate | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	503,499	215,545
2021	291,219	114,536
2020	103,521	87,139
2019	76,559	171,506
2018	161,532	192,643
Prior	780,609	707,586
Revolving Loans Amortized Cost Basis	288	293
Revolving Loans Converted to Term	0	0
Total loans	1,917,227	1,489,248
Consumer loans | Home equity
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	0	125
2021	119	469
2020	460	0
2019	0	0
2018	0	0
Prior	20	24
Revolving Loans Amortized Cost Basis	240,275	251,748
Revolving Loans Converted to Term	0	0
Total loans	240,874	252,366
Consumer loans | Home equity | Performing
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	0	125
2021	119	469
2020	460	0
2019	0	0
2018	0	0
Prior	20	24
Revolving Loans Amortized Cost Basis	238,524	249,590
Revolving Loans Converted to Term	0	0
Total loans	239,123	250,208
Consumer loans | Home equity | Nonperforming
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	1,751	2,158
Revolving Loans Converted to Term	0	0
Total loans	1,751	2,158
Consumer loans | Consumer other
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	150,460	38,002
2021	33,188	11,235
2020	9,586	21,838
2019	16,757	56,374
2018	41,243	31,378
Prior	38,942	29,936
Revolving Loans Amortized Cost Basis	7,872	7,536
Revolving Loans Converted to Term	0	0
Total loans	298,048	196,299
Consumer loans | Consumer other | Performing
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	150,411	37,994
2021	33,080	11,189
2020	9,563	21,548
2019	16,460	55,577
2018	40,622	30,632
Prior	38,197	28,797
Revolving Loans Amortized Cost Basis	7,864	7,505
Revolving Loans Converted to Term	0	0
Total loans	296,197	193,242
Consumer loans | Consumer other | Nonperforming
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	49	8
2021	108	46
2020	23	290
2019	297	797
2018	621	746
Prior	745	1,139
Revolving Loans Amortized Cost Basis	8	31
Revolving Loans Converted to Term	0	0
Total loans	1,851	3,057
Pass | Construction and commercial multifamily | Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	66,278	71,784
2021	125,071	52,725
2020	29,805	117,784
2019	75,853	66,950
2018	2,321	3,839
Prior	4,871	1,721
Revolving Loans Amortized Cost Basis	49	50
Revolving Loans Converted to Term	0	0
Total loans	304,248	314,853
Pass | Construction and commercial multifamily | Commercial multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	182,663	63,630
2021	61,261	28,172
2020	27,878	98,455
2019	117,448	59,720
2018	71,908	76,699
Prior	195,751	176,020
Revolving Loans Amortized Cost Basis	756	457
Revolving Loans Converted to Term	0	0
Total loans	657,665	503,153
Pass | Commercial real estate | Commercial real estate owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	75,279	154,434
2021	144,338	50,236
2020	48,354	85,687
2019	85,734	91,316
2018	76,968	45,995
Prior	181,968	157,346
Revolving Loans Amortized Cost Basis	1,615	3,206
Revolving Loans Converted to Term	0	0
Total loans	614,256	588,220
Pass | Commercial real estate | Commercial real estate non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	384,990	426,086
2021	427,922	176,172
2020	173,393	296,985
2019	269,140	349,947
2018	323,077	204,043
Prior	600,342	585,044
Revolving Loans Amortized Cost Basis	18,031	19,511
Revolving Loans Converted to Term	0	0
Total loans	2,196,895	2,057,788
Pass | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	133,144	187,257
2021	172,622	130,520
2020	106,743	114,153
2019	87,963	156,443
2018	138,263	54,190
Prior	133,896	136,837
Revolving Loans Amortized Cost Basis	607,388	424,393
Revolving Loans Converted to Term	0	0
Total loans	1,380,019	1,203,793
Pass | Residential real estate | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	503,499	214,306
2021	290,620	114,536
2020	103,521	86,997
2019	75,910	169,537
2018	159,577	189,980
Prior	767,805	697,401
Revolving Loans Amortized Cost Basis	288	293
Revolving Loans Converted to Term	0	0
Total loans	1,901,220	1,473,050
Special Mention | Performing
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	62,060	100,071
Special Mention | Construction and commercial multifamily | Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans	0	0
Special Mention | Construction and commercial multifamily | Commercial multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	0	0
2021	0	2,700
2020	2,664	0
2019	0	5,598
2018	5,554	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans	8,218	8,298
Special Mention | Commercial real estate | Commercial real estate owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	0	0
2021	0	525
2020	0	869
2019	0	1,668
2018	0	1,405
Prior	0	1,157
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans	0	5,624
Special Mention | Commercial real estate | Commercial real estate non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	0	0
2021	0	221
2020	0	3,472
2019	7,669	7,632
2018	13,568	2,302
Prior	27,563	27,268
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans	48,800	40,895
Special Mention | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	0	661
2021	0	1,691
2020	0	10,824
2019	1,757	5,092
2018	1,257	1,433
Prior	0	488
Revolving Loans Amortized Cost Basis	0	22,468
Revolving Loans Converted to Term	0	0
Total loans	3,014	42,657
Special Mention | Residential real estate | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	345	120
2018	0	502
Prior	823	1,557
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans	1,168	2,179
Substandard | Performing
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	125,307	106,560
Substandard | Construction and commercial multifamily | Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	9,429
2018	19,721	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans	19,721	9,429
Substandard | Construction and commercial multifamily | Commercial multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	1,413	4,230
Revolving Loans Amortized Cost Basis	131	136
Revolving Loans Converted to Term	0	0
Total loans	1,544	4,366
Substandard | Commercial real estate | Commercial real estate owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	1,053	0
2021	0	0
2020	35	2,113
2019	554	1,593
2018	1,432	838
Prior	7,539	8,089
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans	10,613	12,633
Substandard | Commercial real estate | Commercial real estate non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	0	0
2021	0	7,588
2020	7,421	0
2019	0	2,784
2018	2,911	33,472
Prior	39,175	14,303
Revolving Loans Amortized Cost Basis	96	99
Revolving Loans Converted to Term	0	0
Total loans	49,603	58,246
Substandard | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	6	211
2021	353	2,494
2020	2,207	9,609
2019	8,989	3,145
2018	2,770	2,020
Prior	3,639	2,330
Revolving Loans Amortized Cost Basis	34,623	17,935
Revolving Loans Converted to Term	0	0
Total loans	52,587	37,744
Substandard | Residential real estate | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	0	1,239
2021	599	0
2020	0	142
2019	304	1,849
2018	1,955	2,161
Prior	11,981	8,628
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans	14,839	14,019
Doubtful | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
2022	0	0
2021	0	0
2020	0	0
2019	0	0
2018	0	0
Prior	21	15
Revolving Loans Amortized Cost Basis	98	220
Revolving Loans Converted to Term	0	0
Total loans	$ 119	$ 235

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LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans Past Due (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	$ 7,803,451	$ 6,825,847
Construction and commercial multifamily | Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	323,969	324,282
Construction and commercial multifamily | Commercial multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	667,427	515,817
Commercial real estate | Commercial real estate owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	624,869	606,477
Commercial real estate | Commercial real estate non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	2,295,298	2,156,929
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	1,435,739	1,284,429
Residential real estate | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	1,917,227	1,489,248
Consumer loans | Home equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	240,874	252,366
Consumer loans | Consumer other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	298,048	196,299
30-59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	8,931	35,352
30-59 Days Past Due | Construction and commercial multifamily | Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	0	0
30-59 Days Past Due | Construction and commercial multifamily | Commercial multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	0	82
30-59 Days Past Due | Commercial real estate | Commercial real estate owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	58	0
30-59 Days Past Due | Commercial real estate | Commercial real estate non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	154	25,420
30-59 Days Past Due | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	1,314	2,700
30-59 Days Past Due | Residential real estate | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	5,534	5,529
30-59 Days Past Due | Consumer loans | Home equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	520	258
30-59 Days Past Due | Consumer loans | Consumer other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	1,351	1,363
60-89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	27,253	4,511
60-89 Days Past Due | Construction and commercial multifamily | Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	0	0
60-89 Days Past Due | Construction and commercial multifamily | Commercial multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	0	306
60-89 Days Past Due | Commercial real estate | Commercial real estate owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	53	400
60-89 Days Past Due | Commercial real estate | Commercial real estate non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	25,000	653
60-89 Days Past Due | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	165	709
60-89 Days Past Due | Residential real estate | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	1,168	2,015
60-89 Days Past Due | Consumer loans | Home equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	545	108
60-89 Days Past Due | Consumer loans | Consumer other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	322	320
90 Days or Greater Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	33,643	38,597
90 Days or Greater Past Due | Construction and commercial multifamily | Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	0	0
90 Days or Greater Past Due | Construction and commercial multifamily | Commercial multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	174	187
90 Days or Greater Past Due | Commercial real estate | Commercial real estate owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	3,963	4,221
90 Days or Greater Past Due | Commercial real estate | Commercial real estate non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	4,915	9,049
90 Days or Greater Past Due | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	6,841	6,836
90 Days or Greater Past Due | Residential real estate | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	14,237	13,264
90 Days or Greater Past Due | Consumer loans | Home equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	1,751	2,158
90 Days or Greater Past Due | Consumer loans | Consumer other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	1,762	2,882
Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	69,827	78,460
Total Past Due | Construction and commercial multifamily | Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	0	0
Total Past Due | Construction and commercial multifamily | Commercial multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	174	575
Total Past Due | Commercial real estate | Commercial real estate owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	4,074	4,621
Total Past Due | Commercial real estate | Commercial real estate non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	30,069	35,122
Total Past Due | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	8,320	10,245
Total Past Due | Residential real estate | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	20,939	20,808
Total Past Due | Consumer loans | Home equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	2,816	2,524
Total Past Due | Consumer loans | Consumer other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	3,435	4,565
Current
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	7,733,624	6,747,387
Current | Construction and commercial multifamily | Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	323,969	324,282
Current | Construction and commercial multifamily | Commercial multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	667,253	515,242
Current | Commercial real estate | Commercial real estate owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	620,795	601,856
Current | Commercial real estate | Commercial real estate non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	2,265,229	2,121,807
Current | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	1,427,419	1,274,184
Current | Residential real estate | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	1,896,288	1,468,440
Current | Consumer loans | Home equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	238,058	249,842
Current | Consumer loans | Consumer other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	$ 294,613	$ 191,734

XML

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Nonaccrual Loans and Loans Past Due (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	$ 26,884	$ 35,326
Nonaccrual With No Related Allowance	13,678	19,174
Past Due 90 Days or Greater and Accruing	6,759	3,271
Interest Income Recognized on Nonaccrual	0	0
Construction and commercial multifamily | Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Nonaccrual With No Related Allowance	0	0
Past Due 90 Days or Greater and Accruing	0	0
Interest Income Recognized on Nonaccrual	0	0
Construction and commercial multifamily | Commercial multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	174	187
Nonaccrual With No Related Allowance	174	187
Past Due 90 Days or Greater and Accruing	0	0
Interest Income Recognized on Nonaccrual	0	0
Commercial real estate | Commercial real estate owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	3,370	4,221
Nonaccrual With No Related Allowance	2,336	2,413
Past Due 90 Days or Greater and Accruing	593	0
Interest Income Recognized on Nonaccrual	0	0
Commercial real estate | Commercial real estate non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	4,444	8,877
Nonaccrual With No Related Allowance	4,184	8,412
Past Due 90 Days or Greater and Accruing	471	172
Interest Income Recognized on Nonaccrual	0	0
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	4,856	6,747
Nonaccrual With No Related Allowance	441	1,506
Past Due 90 Days or Greater and Accruing	1,985	89
Interest Income Recognized on Nonaccrual	0	0
Residential real estate | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	10,889	10,698
Nonaccrual With No Related Allowance	6,413	6,511
Past Due 90 Days or Greater and Accruing	3,348	2,566
Interest Income Recognized on Nonaccrual	0	0
Consumer loans | Home equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	1,521	1,901
Nonaccrual With No Related Allowance	127	141
Past Due 90 Days or Greater and Accruing	230	257
Interest Income Recognized on Nonaccrual	0	0
Consumer loans | Consumer other
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	1,630	2,695
Nonaccrual With No Related Allowance	3	4
Past Due 90 Days or Greater and Accruing	132	187
Interest Income Recognized on Nonaccrual	$ 0	$ 0

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LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Summary of Total Loans Rated Special Mention or Lower (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	$ 7,803,451	$ 6,825,847
Total Criticized | Performing
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	214,251	241,957
Total Classified | Performing
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	152,191	141,886
Non-Accrual | Performing
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	26,884	35,326
Substandard Accruing | Performing
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	125,307	106,560
Special Mention | Performing
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans	$ 62,060	$ 100,071

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LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	$ 26,884	$ 35,326
Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	14,736	31,409
Investment Securities/Cash
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	2,528	1,040
Construction and commercial multifamily | Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Construction and commercial multifamily | Construction | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	9,429
Construction and commercial multifamily | Construction | Investment Securities/Cash
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Construction and commercial multifamily | Construction | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Construction and commercial multifamily | Commercial multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	174	187
Construction and commercial multifamily | Commercial multifamily | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	175	188
Construction and commercial multifamily | Commercial multifamily | Investment Securities/Cash
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Construction and commercial multifamily | Commercial multifamily | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Commercial real estate | Commercial real estate owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	3,370	4,221
Commercial real estate | Commercial real estate owner occupied | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	3,472	4,466
Commercial real estate | Commercial real estate owner occupied | Investment Securities/Cash
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Commercial real estate | Commercial real estate owner occupied | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Commercial real estate | Commercial real estate non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	4,444	8,877
Commercial real estate | Commercial real estate non-owner occupied | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	4,628	9,501
Commercial real estate | Commercial real estate non-owner occupied | Investment Securities/Cash
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Commercial real estate | Commercial real estate non-owner occupied | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	4,856	6,747
Commercial and industrial | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	290	526
Commercial and industrial | Investment Securities/Cash
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Commercial and industrial | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	2,528	1,040
Residential real estate | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	10,889	10,698
Residential real estate | Residential real estate | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	5,919	7,035
Residential real estate | Residential real estate | Investment Securities/Cash
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Residential real estate | Residential real estate | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Consumer loans | Home equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	1,521	1,901
Consumer loans | Home equity | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	247	262
Consumer loans | Home equity | Investment Securities/Cash
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Consumer loans | Home equity | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Consumer loans | Consumer other
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	1,630	2,695
Consumer loans | Consumer other | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	5	2
Consumer loans | Consumer other | Investment Securities/Cash
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	0	0
Consumer loans | Consumer other | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual Amortized Cost	$ 0	$ 0

XML

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Troubled Debt Restructurings, Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Trouble Debt Restructuring on Financing Receivables [Roll Forward]
Balance at Beginning of Period	$ 18,747	$ 21,481	$ 27,102	$ 20,548
Principal Payments	(374)	(372)	(455)	(641)
TDR Status Change	0	0	0	0
Other Additions/(Reductions)	(9,633)	(795)	(17,957)	(284)
Newly Identified TDRs	1,486	16,143	1,536	16,834
Balance at End of Period	10,226	36,457	10,226	36,457
Construction and commercial multifamily | Construction
Trouble Debt Restructuring on Financing Receivables [Roll Forward]
Balance at Beginning of Period	9,429	0	9,429	0
Principal Payments	0	0	0	0
TDR Status Change	0	0	0	0
Other Additions/(Reductions)	(9,429)	0	(9,429)	0
Newly Identified TDRs	0	0	0	0
Balance at End of Period	0	0	0	0
Construction and commercial multifamily | Commercial multifamily
Trouble Debt Restructuring on Financing Receivables [Roll Forward]
Balance at Beginning of Period	694	741	703	754
Principal Payments	(17)	(13)	(26)	(26)
TDR Status Change	0	0	0	0
Other Additions/(Reductions)	0	0	0	0
Newly Identified TDRs	0	0	0	0
Balance at End of Period	677	728	677	728
Commercial real estate | Commercial real estate owner occupied
Trouble Debt Restructuring on Financing Receivables [Roll Forward]
Balance at Beginning of Period	2,724	1,725	2,733	1,731
Principal Payments	(23)	(29)	(32)	(35)
TDR Status Change	0	0	0	0
Other Additions/(Reductions)	0	0	0	0
Newly Identified TDRs	0	1,266	0	1,266
Balance at End of Period	2,701	2,962	2,701	2,962
Commercial real estate | Commercial real estate non-owner occupied
Trouble Debt Restructuring on Financing Receivables [Roll Forward]
Balance at Beginning of Period	998	14,725	9,310	13,684
Principal Payments	(12)	(81)	(13)	(95)
TDR Status Change	0	0	0	0
Other Additions/(Reductions)	0	(590)	(8,311)	(80)
Newly Identified TDRs	0	10,434	0	10,979
Balance at End of Period	986	24,488	986	24,488
Commercial and industrial
Trouble Debt Restructuring on Financing Receivables [Roll Forward]
Balance at Beginning of Period	3,592	2,633	3,656	2,686
Principal Payments	(290)	(229)	(341)	(428)
TDR Status Change	0	0	0	0
Other Additions/(Reductions)	(137)	(37)	(150)	(37)
Newly Identified TDRs	1,486	4,443	1,486	4,589
Balance at End of Period	4,651	6,810	4,651	6,810
Residential real estate | Residential real estate
Trouble Debt Restructuring on Financing Receivables [Roll Forward]
Balance at Beginning of Period	1,109	1,493	1,117	1,524
Principal Payments	(23)	(14)	(31)	(46)
TDR Status Change	0	0	0	0
Other Additions/(Reductions)	(67)	(174)	(67)	(173)
Newly Identified TDRs	0	0	0	0
Balance at End of Period	1,019	1,305	1,019	1,305
Consumer loans | Home equity
Trouble Debt Restructuring on Financing Receivables [Roll Forward]
Balance at Beginning of Period	169	130	121	133
Principal Payments	(7)	(3)	(9)	(6)
TDR Status Change	0	0	0	0
Other Additions/(Reductions)	0	0	0	0
Newly Identified TDRs	0	0	50	0
Balance at End of Period	162	127	162	127
Consumer loans | Consumer other
Trouble Debt Restructuring on Financing Receivables [Roll Forward]
Balance at Beginning of Period	32	34	33	36
Principal Payments	(2)	(3)	(3)	(5)
TDR Status Change	0	0	0	0
Other Additions/(Reductions)	0	6	0	6
Newly Identified TDRs	0	0	0	0
Balance at End of Period	$ 30	$ 37	$ 30	$ 37

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LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans Modified as Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) loan	Jun. 30, 2021 USD ($) loan	Jun. 30, 2022 USD ($) loan	Jun. 30, 2021 USD ($) loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of loans | loan	1,000	9,000	2,000	13,000
Pre-modification outstanding recorded investment	$ 1,486	$ 16,143	$ 1,536	$ 16,834
Post-modification outstanding recorded investment	$ 1,486	$ 16,143	$ 1,536	$ 16,834
Number of Loans | loan			1
Recorded Investment			$ 105
Commercial and industrial | Other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | loan			1
Recorded Investment			$ 105

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DEPOSITS (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Deposits [Abstract]
Time less than $100,000	$ 531,023	$ 676,979
Time $100,000 through $250,000	573,967	610,174
Time more than $250,000	370,427	391,787
Total time deposits	1,475,417	1,678,940
Brokered time deposits	112,900	228,100
Reciprocal deposits	$ 79,900	$ 89,200

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BORROWED FUNDS - Summary of Borrowed Funds (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Principal, Short-term borrowings	$ 50,000	$ 0
Principal, Long-term borrowings	204,201	110,844
Total borrowings	$ 254,201	$ 110,844
Weighted average rate on short-term borrowings	1.28%	0.00%
Weighted average rate on long-term borrowings	5.64%	5.33%
Weighted average rate	4.78%	5.33%
Advances from the FHLB
Debt Instrument [Line Items]
Principal, Short-term borrowings	$ 50,000	$ 0
Principal, Long-term borrowings	$ 8,542	$ 13,331
Weighted average rate on short-term borrowings	1.28%	0.00%
Weighted average rate on long-term borrowings	1.33%	1.75%
Subordinated borrowings
Debt Instrument [Line Items]
Principal, Long-term borrowings	$ 172,711	$ 74,590
Weighted average rate on long-term borrowings	6.15%	7.00%
Junior subordinated borrowing - Trust I
Debt Instrument [Line Items]
Principal, Long-term borrowings	$ 15,464	$ 15,464
Weighted average rate on long-term borrowings	3.35%	2.01%
Junior subordinated borrowing - Trust II
Debt Instrument [Line Items]
Principal, Long-term borrowings	$ 7,484	$ 7,459
Weighted average rate on long-term borrowings	3.53%	1.90%

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BORROWED FUNDS - Narrative (Details) - USD ($)	1 Months Ended		6 Months Ended
	Jun. 30, 2022	Sep. 30, 2012	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Line of credit, current	$ 3,000,000		$ 3,000,000
Short-term debt	50,000,000		50,000,000	$ 0
Long-term borrowings	204,201,000		204,201,000	110,844,000
Variable-rate FHLB advances	0		0	0
Advances from the FHLB
Debt Instrument [Line Items]
Long-term line of credit	0		0	0
Line of credit facility, remaining borrowing capacity	1,300,000,000		1,300,000,000	1,500,000,000
Short-term debt	50,000,000		50,000,000	0
Long-term borrowings	8,542,000		8,542,000	13,331,000
Federal Home Loan Bank Certificates And Obligations F H L B Callable Advances
Debt Instrument [Line Items]
Long-term borrowings	4,000,000		4,000,000	10,000,000
Federal Home Loan Bank Certificates And Obligations F H L B Amortizing Advances
Debt Instrument [Line Items]
Long-term borrowings	4,500,000		4,500,000	3,400,000
Subordinated borrowings
Debt Instrument [Line Items]
Long-term borrowings	172,711,000		172,711,000	74,590,000
Maturity period		15 years
Principal amount of debt issued		$ 75,000,000
Discount rate		1.15%
Fixed interest rate		6.875%
Maturity period with fixed interest rate		10 years
Non callable period		10 years
Subordinated borrowings | Debt Instrument Variable Rate Three Month L I B O R
Debt Instrument [Line Items]
Interest rate margin		5.113%
Unamortized debt issuance expense	$ 31,000		$ 31,000	$ 92,000
Junior subordinated borrowing | Trust I
Debt Instrument [Line Items]
Common stock of trust	100.00%		100.00%
Common stock of trust included in other asset	$ 500,000		$ 500,000
Sole asset of trust in form of debt	$ 15,500,000		$ 15,500,000
Variable interest rate	3.35%		3.35%	2.01%
Period up to which interest payments can be deferred			5 years
Junior subordinated borrowing | Trust II
Debt Instrument [Line Items]
Common stock of trust	100.00%		100.00%
Common stock of trust included in other asset	$ 200,000		$ 200,000
Sole asset of trust in form of debt	$ 8,200,000		$ 8,200,000
Variable interest rate	3.53%		3.53%	1.90%
Period up to which interest payments can be deferred			5 years
Junior subordinated borrowing | LIBOR | Trust I
Debt Instrument [Line Items]
Interest rate margin			1.85%
Junior subordinated borrowing | LIBOR | Trust II
Debt Instrument [Line Items]
Interest rate margin			1.70%
Federal Reserve Bank Advances
Debt Instrument [Line Items]
Line of credit facility, remaining borrowing capacity	$ 590,500,000		$ 590,500,000	$ 511,000,000
Short-term debt	0		$ 0	$ 0
Subordinated Debt | Subordinated borrowings
Debt Instrument [Line Items]
Maturity period			10 years
Principal amount of debt issued	$ 100,000,000		$ 100,000,000
Fixed interest rate	5.50%		5.50%
Maturity period with fixed interest rate			5 years
Non callable period			5 years
Interest rate margin	2.49%
Subordinated Debt | Subordinated borrowings | Debt Instrument Variable Rate Three Month SOFR
Debt Instrument [Line Items]
Unamortized debt issuance expense	$ 2,000,000		$ 2,000,000

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BORROWED FUNDS - Summary of Maturities of FHLB (Details) - Fixed rate advances $ in Thousands	Jun. 30, 2022 USD ($)
Principal
2022	$ 53,998
2023	0
2024	32
2025	0
2025 and beyond	4,512
Total FHLB advances	$ 58,542
Weighted Average Rate
Weighted Average Rate
2022	1.34%
2023	0.00%
2024	0.00%
2025	0.00%
2025 and beyond	0.72%
Total FHLB advances	1.29%

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) - USD ($)	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Derivative [Line Items]
Notional amount	$ 3,767,255,000	$ 3,711,905,000
Cash collateral pledged	11,100,000
Amortized cost of securities pledged as collateral to derivative counterparties	37,600,000
Fair value of securities as pledged collateral to derivative counterparties	37,500,000
Commercial counterparties
Derivative [Line Items]
Net asset position	54,100,000	2,200,000
Interest rate swaps
Derivative [Line Items]
Notional amount	7,500,000
Cash collateral pledged	11,079,000	43,694,000
Interest rate swaps | Commercial counterparties
Derivative [Line Items]
Cash collateral pledged	0	0
Net asset position	4,400,000	76,800,000
Collateral already posted, aggregate fair value	51,900,000	2,500,000
Interest rate swaps | Institutional counterparties
Derivative [Line Items]
Cash collateral pledged	11,079,000	43,694,000
Collateral already posted, aggregate fair value	24,900,000	33,300,000
Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	2,957,000	8,192,000
Economic hedges
Derivative [Line Items]
Credit valuation adjustments	$ 0
Economic hedges | Interest rate swap on tax advantaged economic development bond
Derivative [Line Items]
Fixed rate of interest	5.09%
Maturity period	21 years
Economic hedges | Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	$ 3,764,298,000	3,703,713,000
Economic hedges | Designated as Hedging Instrument | Interest rate swaps
Derivative [Line Items]
Notional amount	3,400,000,000
Economic hedges | Designated as Hedging Instrument | Interest rate swaps | Interest rate swap on tax advantaged economic development bond
Derivative [Line Items]
Notional amount	7,475,000	7,879,000
Economic hedges | Designated as Hedging Instrument | Risk participation agreements with dealer banks
Derivative [Line Items]
Notional amount	326,765,000	320,981,000
Economic hedges | Designated as Hedging Instrument | Forward sale commitments
Derivative [Line Items]
Notional amount	$ 984,000	$ 6,377,000

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Interest rate swap agreements and non-hedging derivative assets and liabilities
Notional amount	$ 3,767,255	$ 3,711,905
Estimated fair value asset (liability)	(18,412)	43,426
Impact of settled to market contracts	18,000	45,700
Interest rate swaps
Interest rate swap agreements and non-hedging derivative assets and liabilities
Notional amount	7,500
Designated as Hedging Instrument | Economic hedges
Interest rate swap agreements and non-hedging derivative assets and liabilities
Notional amount	3,764,298	3,703,713
Estimated fair value asset (liability)	(18,438)	43,302
Designated as Hedging Instrument | Economic hedges | Interest rate swaps
Interest rate swap agreements and non-hedging derivative assets and liabilities
Notional amount	3,400,000
Designated as Hedging Instrument | Economic hedges | Interest rate swaps | Interest rate swap on tax advantaged economic development bond
Interest rate swap agreements and non-hedging derivative assets and liabilities
Notional amount	$ 7,475	$ 7,879
Weighted average maturity	7 years 4 months 24 days	7 years 10 months 24 days
Weighted average rate, received	5.09%	0.47%
Weighted average rate, contract pay rate	3.22%	5.09%
Estimated fair value asset (liability)	$ (509)	$ (1,158)
Designated as Hedging Instrument | Economic hedges | Interest rate swaps | Loans with commercial loan customers
Interest rate swap agreements and non-hedging derivative assets and liabilities
Notional amount	$ 1,714,537	$ 1,684,238
Weighted average maturity	5 years 9 months 18 days	5 years 9 months 18 days
Weighted average rate, received	3.98%	3.99%
Weighted average rate, contract pay rate	2.88%	1.91%
Estimated fair value asset (liability)	$ (47,467)	$ 74,348
Designated as Hedging Instrument | Economic hedges | Reverse interest rate swaps | Loans with commercial loan customers
Interest rate swap agreements and non-hedging derivative assets and liabilities
Notional amount	$ 1,714,537	$ 1,684,238
Weighted average maturity	5 years 9 months 18 days	5 years 9 months 18 days
Weighted average rate, received	2.88%	1.91%
Weighted average rate, contract pay rate	3.98%	3.99%
Estimated fair value asset (liability)	$ 29,488	$ (30,454)
Designated as Hedging Instrument | Economic hedges | Risk participation agreements with dealer banks
Interest rate swap agreements and non-hedging derivative assets and liabilities
Notional amount	$ 326,765	$ 320,981
Weighted average maturity	5 years 8 months 12 days	5 years 9 months 18 days
Estimated fair value asset (liability)	$ 32	$ 432
Designated as Hedging Instrument | Economic hedges | Forward sale commitments
Interest rate swap agreements and non-hedging derivative assets and liabilities
Notional amount	$ 984	$ 6,377
Weighted average maturity	2 months 12 days	2 months 12 days
Estimated fair value asset (liability)	$ 18	$ 134
Not Designated as Hedging Instrument
Interest rate swap agreements and non-hedging derivative assets and liabilities
Notional amount	2,957	8,192
Estimated fair value asset (liability)	26	124
Not Designated as Hedging Instrument | Commitments to lend
Interest rate swap agreements and non-hedging derivative assets and liabilities
Notional amount	$ 2,957	$ 8,192
Weighted average maturity	2 months 12 days	2 months 12 days
Estimated fair value asset (liability)	$ 26	$ 124

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Economic Hedges and Non-hedging Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Interest rate swaps | Economic hedges | Industrial revenue bond
Derivative [Line Items]
Unrealized (loss) recognized in other non-interest income	$ 217	$ 10	$ 649	$ 355
Interest rate swaps | Economic hedges | Loans with commercial loan customers
Derivative [Line Items]
Unrealized (loss) recognized in other non-interest income	(44,927)	10,516	(123,625)	(49,785)
Favorable change in credit valuation adjustment recognized in other non-interest income	0	(982)	1,809	1,520
Reverse interest rate swaps | Economic hedges | Loans with commercial loan customers
Derivative [Line Items]
Unrealized (loss) recognized in other non-interest income	44,927	(10,516)	123,625	49,785
Risk participation agreements | Economic hedges
Derivative [Line Items]
Unrealized (loss) recognized in other non-interest income	(292)	150	(400)	(179)
Forward commitments | Economic hedges
Derivative [Line Items]
Unrealized (loss) recognized in other non-interest income	11	(234)	(116)	(228)
Commitments to lend | Non-hedging derivatives
Derivative [Line Items]
Unrealized (loss) recognized in other non-interest income	8	76	(98)	(474)
Realized gain/(loss) in other non-interest income	$ 90	$ 457	$ 342	$ 1,810

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting of Financial Assets and Derivative Assets (Details) - Interest rate swaps - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Offsetting of Financial Assets and Derivative Assets
Gross Amounts of Recognized Assets	$ 58,879	$ 79,032
Gross Amounts Offset in the Statements of Condition	(370)	(75)
Net Amounts of Assets Presented in the Statements of Condition	58,509	78,957
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments	0	0
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received	0	0
Net Amount	58,509	78,957
Institutional counterparties
Offsetting of Financial Assets and Derivative Assets
Gross Amounts of Recognized Assets	54,445	2,223
Gross Amounts Offset in the Statements of Condition	(370)	(75)
Net Amounts of Assets Presented in the Statements of Condition	54,075	2,148
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments	0	0
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received	0	0
Net Amount	54,075	2,148
Commercial counterparties
Offsetting of Financial Assets and Derivative Assets
Gross Amounts of Recognized Assets	4,434	76,809
Gross Amounts Offset in the Statements of Condition	0	0
Net Amounts of Assets Presented in the Statements of Condition	4,434	76,809
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments	0	0
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received	0	0
Net Amount	$ 4,434	$ 76,809

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting Financial Liabilities and Derivative Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Offsetting of Financial Liabilities and Derivative Liabilities
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received	$ 11,100
Interest rate swaps
Offsetting of Financial Liabilities and Derivative Liabilities
Gross Amounts of Recognized Liabilities	(58,911)	$ (80,607)
Gross amounts offset in the Statements of Condition	(17,930)	44,814
Net Amounts of Liabilities Presented in the Statements of Condition	(76,841)	(35,793)
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments	37,453	34,896
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received	11,079	43,694
Net Amount	(28,309)	42,797
Interest rate swaps | Institutional counterparties
Offsetting of Financial Liabilities and Derivative Liabilities
Gross Amounts of Recognized Liabilities	(7,010)	(78,146)
Gross amounts offset in the Statements of Condition	(17,930)	44,814
Net Amounts of Liabilities Presented in the Statements of Condition	(24,940)	(33,332)
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments	37,453	34,896
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received	11,079	43,694
Net Amount	23,592	45,258
Interest rate swaps | Commercial counterparties
Offsetting of Financial Liabilities and Derivative Liabilities
Gross Amounts of Recognized Liabilities	(51,901)	(2,461)
Gross amounts offset in the Statements of Condition	0	0
Net Amounts of Liabilities Presented in the Statements of Condition	(51,901)	(2,461)
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments	0	0
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received	0	0
Net Amount	$ (51,901)	$ (2,461)

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LEASES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Lessee, Lease, Description [Line Items]
Operating lease expense	$ 2.6	$ 2.9	$ 5.1	$ 5.7
Minimum
Lessee, Lease, Description [Line Items]
Operating lease contract term			1 month
Maximum
Lessee, Lease, Description [Line Items]
Operating lease contract term			18 years

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LEASES - Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Lease Right-of-Use Assets
Operating lease right-of-use assets	$ 52,594	$ 52,180
Finance lease right-of-use assets	6,413	6,674
Total Lease Right-of-Use Assets	59,007	58,854
Lease Liabilities
Operating lease liabilities	55,988	55,674
Finance lease liabilities	9,587	9,862
Total Lease Liabilities	$ 65,575	$ 65,536
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Premises and equipment, net	Premises and equipment, net
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities

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LEASES - Supplemental Lease Information (Details)	Jun. 30, 2022	Dec. 31, 2021
Weighted-Average Remaining Lease Term (in years)
Operating leases	9 years 3 months 18 days	9 years 6 months
Finance leases	12 years 3 months 18 days	12 years 9 months 18 days
Weighted-Average Discount Rate
Operating leases	2.60%	2.77%
Finance leases	5.00%	5.00%

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LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 2,533	$ 2,668	$ 5,149	$ 5,911
Operating cash flows from finance leases	120	126	240	253
Financing cash flows from finance leases	$ 138	$ 131	$ 276	$ 263

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LEASES - Maturity Analysis of Lease Liability (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Operating Leases
2022	$ 5,002
2023	9,825
2024	8,243
2025	6,271
2026	5,046
Thereafter	28,796
Total undiscounted lease payments	63,183
Less amounts representing interest	(7,195)
Lease liability	55,988	$ 55,674
Finance Leases
2022	514
2023	1,037
2024	1,037
2025	1,037
2026	1,037
Thereafter	8,187
Total undiscounted lease payments	12,849
Less amounts representing interest	(3,262)
Lease liability	$ 9,587	$ 9,862

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OTHER COMMITMENTS, CONTINGENCIES, OFF-BALANCE SHEET ACTIVITIES, AND PANDEMIC IMPACT - Narrative (Details) $ in Millions	Jun. 30, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan
Commitments and Contingencies Disclosure [Abstract]
Active modified loans | loan	7	19
Active modified loans, carrying value | $	$ 13.4	$ 14.4

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CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Actual and Required Capital Ratios (Details)	Jun. 30, 2022	Dec. 31, 2021
Tier 1 capital to risk-weighted assets
Total capital to risk-weighted assets	0.161	0.173
Common equity tier 1 capital to risk-weighted assets	12.90%	15.00%
Tier 1 capital to risk-weighted assets	0.132	0.153
Tier 1 capital to average assets	0.102	0.105
Total capital to risk-weighted assets	0.080
Common equity tier 1 capital to risk-weighted assets	0.045
Tier 1 capital to risk-weighted assets	0.060
Tier 1 capital to average assets	0.040
Bank
Tier 1 capital to risk-weighted assets
Total capital to risk-weighted assets	0.141	0.159
Common equity tier 1 capital to risk-weighted assets	13.10%	14.80%
Tier 1 capital to risk-weighted assets	0.131	0.148
Tier 1 capital to average assets	0.102	0.101

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CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Components of AOCI (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total shareholders’ equity	$ 1,014,050	$ 1,093,861	$ 1,182,435	$ 1,175,389	$ 1,175,139	$ 1,187,773
Accumulated other comprehensive loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total shareholders’ equity	(122,999)	(78,237)	(3,243)	14,772	10,721	30,871
Net unrealized holding loss on AFS securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other accumulated comprehensive income, before tax	(163,666)		(1,806)
Income taxes related to items of accumulated other comprehensive income	42,511		407
Total shareholders’ equity	(121,154)	(76,392)	(1,398)	17,359	13,308	33,458
Net unrealized holding (loss) on pension plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other accumulated comprehensive income, before tax	(2,518)		(2,518)
Income taxes related to items of accumulated other comprehensive income	674		674
Total shareholders’ equity	$ (1,845)	$ (1,845)	$ (1,845)	$ (2,587)	$ (2,587)	$ (2,587)

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CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Components of OCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net unrealized gains (losses) arising during the period
Net of Tax	$ (44,758)	$ 4,051	$ (119,752)	$ (16,099)
Less: reclassification adjustment for gains (losses) realized in net income
Net of Tax	4	0	4	0
Other comprehensive income (loss)
Before Tax	(60,487)	5,394	(161,860)	(21,619)
Tax Effect	15,725	(1,343)	42,104	5,520
Total other comprehensive (loss)/income	(44,762)	4,051	(119,756)	(16,099)
Net unrealized holding loss on AFS securities
Net unrealized gains (losses) arising during the period
Before Tax	(60,481)	5,394	(161,854)	(21,619)
Tax Effect	15,723	(1,343)	42,102	5,520
Net of Tax	(44,758)	4,051	(119,752)	(16,099)
Less: reclassification adjustment for gains (losses) realized in net income
Before Tax	6	0	6	0
Tax Effect	(2)	0	(2)	0
Net of Tax	4	0	4	0
Other comprehensive income (loss)
Before Tax	(60,487)	5,394	(161,860)	(21,619)
Tax Effect	15,725	(1,343)	42,104	5,520
Total other comprehensive (loss)/income	$ (44,762)	$ 4,051	$ (119,756)	$ (16,099)

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CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Reclassified of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at Beginning of Period	$ 1,093,861	$ 1,175,139	$ 1,182,435	$ 1,187,773
Other comprehensive loss before reclassifications	(44,758)	4,051	(119,752)	(16,099)
Less: amounts reclassified from accumulated other comprehensive (loss)	4	0	4	0
Other comprehensive income	(44,762)	4,051	(119,756)	(16,099)
Balance at End of Period	1,014,050	1,175,389	1,014,050	1,175,389
Net unrealized holding loss on AFS securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at Beginning of Period	(76,392)	13,308	(1,398)	33,458
Other comprehensive loss before reclassifications	(44,758)	4,051	(119,752)	(16,099)
Less: amounts reclassified from accumulated other comprehensive (loss)	4	0	4	0
Other comprehensive income	(44,762)	4,051	(119,756)	(16,099)
Balance at End of Period	(121,154)	17,359	(121,154)	17,359
Net unrealized holding (loss) on pension plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at Beginning of Period	(1,845)	(2,587)	(1,845)	(2,587)
Other comprehensive loss before reclassifications	0	0	0
Less: amounts reclassified from accumulated other comprehensive (loss)	0	0	0	0
Other comprehensive income	0	0	0	0
Balance at End of Period	(1,845)	(2,587)	(1,845)	(2,587)
Accumulated other comprehensive loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at Beginning of Period	(78,237)	10,721	(3,243)	30,871
Other comprehensive income	(44,762)	4,051	(119,756)	(16,099)
Balance at End of Period	$ (122,999)	$ 14,772	$ (122,999)	$ 14,772

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CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Amounts Reclassified Out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Amounts reclassified out of each component of accumulated other comprehensive income
Non-interest income	$ 16,351	$ 22,011	$ 37,032	$ 48,204
Retained earnings	29,234	28,532	54,428	45,164
Tax expense	6,119	6,896	11,117	10,497
Amount Reclassified From Accumulated Other Comprehensive Income (loss)
Amounts reclassified out of each component of accumulated other comprehensive income
Total reclassifications for the period	4	0	4	0
Realized gains on AFS securities | Amount Reclassified From Accumulated Other Comprehensive Income (loss)
Amounts reclassified out of each component of accumulated other comprehensive income
Non-interest income	6	0	6
Retained earnings	0	0
Tax expense	(2)	0	(2)	0
Total reclassifications for the period	$ 4	$ 0	$ 4	$ 0

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EARNINGS PER SHARE - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings per share
Net income	$ 23,115	$ 21,636	$ 43,311	$ 34,667
Average number of common shares issued (in shares)	51,903	51,903	51,903	51,903
Less: average number of treasury shares (in shares)	5,247	822	4,375	885
Less: average number of unvested stock award shares (in shares)	838	760	795	691
Average number of basic shares outstanding (in shares)	45,818	50,321	46,733	50,327
Average number of diluted shares outstanding (in shares)	46,102	50,608	47,074	50,588
Basic earnings per common share (in dollars per share)	$ 0.50	$ 0.43	$ 0.93	$ 0.69
Diluted earnings per common share (in dollars per share)	$ 0.50	$ 0.43	$ 0.92	$ 0.69
Unvested stock award shares
Earnings per share
Plus: dilutive effect of share-based payment arrangements (in shares)	283	280	337	257
Stock Options Outstanding
Earnings per share
Plus: dilutive effect of share-based payment arrangements (in shares)	1	7	4	4

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EARNINGS PER SHARE - Narrative (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Unvested stock award shares
Anti-dilutive securities
Securities excluded from the earnings per share calculations (in shares)	555	480	445	434
Stock Options Outstanding
Anti-dilutive securities
Securities excluded from the earnings per share calculations (in shares)	74	96	75	94

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STOCK-BASED COMPENSATION PLANS - Summary of Activity (Details) - $ / shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Non-Vested Stock Awards Outstanding
Number of Shares
Balance at the beginning of the period (in shares)			710
Granted (in shares)			314
Acquired (in shares)			0
Stock awards vested (in shares)			(111)
Forfeited (in shares)			(51)
Expired (in shares)			0
Balance at the end of the period (in shares)	862		862
Weighted-Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per share)			$ 20.16
Granted (in dollars per share)			28.86
Acquired (in dollars per share)			0
Stock awards vested (in dollars per share)			22.22
Forfeited (in dollars per share)			26.43
Expired (in dollars per share)			0
Balance at the end of the period (in dollars per share)	$ 23.07		$ 23.07
Stock Options Outstanding
Number of Shares
Stock awards vested (in shares)	(63)	(35)	(111)	(79)
Number of Shares
Balance at the beginning of the period (in shares)			80
Granted (in shares)			0
Acquired (in shares)			0
Stock options exercised (in shares)			(1)
Forfeited (in shares)			0
Expired (in shares)			(6)
Balance at the end of the period (in shares)	73		73
Weighted-Average Exercise Price
Balance at the beginning of the period (in dollars per share)			$ 25.21
Granted (in dollars per share)			0
Acquired (in dollars per share)			0
Stock options exercised (in dollars per share)			23.30
Forfeited (in dollars per share)			0
Expired (in dollars per share)			24.30
Balance at the end of the period (in dollars per share)	$ 25.31		$ 25.31

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STOCK-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise of stock options			$ 25	$ 124
Stock Options Outstanding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise of stock options	$ 25	$ 55	$ 25	$ 124
Stock awards vested (in shares)	63	35	111	79
Non-Vested Stock Awards Outstanding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards vested (in shares)			111
Total compensation cost	$ 2,100	$ 1,600	$ 3,900	$ 2,300

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FAIR VALUE MEASUREMENTS - Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading security	$ 7,000	$ 8,400
Securities available for sale, at fair value	1,697,019	1,877,585
Marketable equity securities	14,154	15,453
U.S Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	99,849	59,973
Municipal bonds and obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	65,163	77,177
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	42,379	45,660
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading security	7,040	8,354
Securities available for sale, at fair value	1,697,019	1,877,585
Marketable equity securities	14,154	15,453
Loans held for investment at fair value	7,708,139	6,850,975
Loans held for sale	1,062	6,110
Derivative assets	58,660	79,528
Derivative liabilities	77,073	35,194
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading security	0	0
Securities available for sale, at fair value	0	0
Marketable equity securities	13,499	14,798
Loans held for investment at fair value	0	0
Loans held for sale	0	0
Derivative assets	0	0
Derivative liabilities	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading security	0	0
Securities available for sale, at fair value	1,692,999	1,873,555
Marketable equity securities	655	655
Loans held for investment at fair value	0	0
Loans held for sale	1,062	6,110
Derivative assets	58,616	79,270
Derivative liabilities	77,073	35,194
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading security	7,040	8,354
Securities available for sale, at fair value	4,020	4,030
Marketable equity securities	0	0
Loans held for investment at fair value	7,708,139	6,850,975
Loans held for sale	0	0
Derivative assets	44	258
Derivative liabilities	0	0
Recurring | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading security	7,040	8,354
Marketable equity securities	14,154	15,453
Loans held for investment at fair value	1,049	1,200
Loans held for sale	1,062	6,110
Derivative assets	58,660	79,528
Capitalized servicing rights	1,906	1,966
Derivative liabilities	77,073	35,194
Recurring | Fair Value | U.S Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	99,849	59,973
Recurring | Fair Value | Municipal bonds and obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	65,163	77,177
Recurring | Fair Value | Agency collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	626,387	688,336
Recurring | Fair Value | Agency residential mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	606,777	705,859
Recurring | Fair Value | Agency commercial mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	256,464	300,580
Recurring | Fair Value | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	42,379	45,660
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading security	0	0
Marketable equity securities	13,499	14,798
Loans held for investment at fair value	0	0
Loans held for sale	0	0
Derivative assets	0	0
Capitalized servicing rights	0	0
Derivative liabilities	0	0
Recurring | Level 1 | U.S Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Recurring | Level 1 | Municipal bonds and obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Recurring | Level 1 | Agency collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Recurring | Level 1 | Agency residential mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Recurring | Level 1 | Agency commercial mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Recurring | Level 1 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading security	0	0
Marketable equity securities	655	655
Loans held for investment at fair value	0	0
Loans held for sale	1,062	6,110
Derivative assets	58,616	79,270
Capitalized servicing rights	0	0
Derivative liabilities	77,073	35,194
Recurring | Level 2 | U.S Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	99,849	59,973
Recurring | Level 2 | Municipal bonds and obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	65,163	77,177
Recurring | Level 2 | Agency collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	626,387	688,336
Recurring | Level 2 | Agency residential mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	606,777	705,859
Recurring | Level 2 | Agency commercial mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	256,464	300,580
Recurring | Level 2 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	38,359	41,630
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading security	7,040	8,354
Securities available for sale, at fair value		4,030
Marketable equity securities	0	0
Loans held for investment at fair value	1,049	1,200
Loans held for sale	0	0
Derivative assets	44	258
Capitalized servicing rights	1,906	1,966
Derivative liabilities	0	0
Recurring | Level 3 | U.S Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Recurring | Level 3 | Municipal bonds and obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Recurring | Level 3 | Agency collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Recurring | Level 3 | Agency residential mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Recurring | Level 3 | Agency commercial mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	0	0
Recurring | Level 3 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	$ 4,020	$ 4,030

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FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) security	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Jan. 01, 2020 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of trading securities in the portfolio | security			1
Retained earnings write-down	$ 106,997		$ 106,997		$ 139,383
Continuing Operations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payments for origination of mortgage loans held-for-sale	2,700	$ 16,300	10,100	$ 60,400
Proceeds from sale and collection of loans held-for-sale	2,000	20,300	15,100	68,300
Continuing Operations | Loans Held for Sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains (losses) in fair value of loans held for sale included in earnings	$ 14	$ (240)	$ (161)	$ (234)
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | Loans Held for Investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Retained earnings write-down						$ 11,200

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FAIR VALUE MEASUREMENTS - Loans Held for Investment (Details) - Loans Held for Investment - Continuing Operations - Recurring - Level 2 - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate Fair Value	$ 1,049	$ 1,200
Aggregate Unpaid Principal	20,603	31,430
Aggregate Fair Value Less Aggregate Unpaid Principal	$ (19,554)	$ (30,230)

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FAIR VALUE MEASUREMENTS - Loans Held for Sale (Details) - Level 2 - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Loans Held for Sale
Aggregate Fair Value	$ 1,062	$ 6,110
Recurring
Loans Held for Sale
Aggregate Fair Value	1,062	6,110
Continuing Operations | Recurring | Loans Held for Sale
Loans Held for Sale
Aggregate Fair Value	1,062	6,110
Aggregate Unpaid Principal	1,039	5,926
Aggregate Fair Value Less Aggregate Unpaid Principal	$ 23	$ 184

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FAIR VALUE MEASUREMENTS - Changes in Level 3 (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Commitments to Lend
Changes in Level 3 assets that were measured at fair value on a recurring basis
Unrealized (loss)/gain, net recognized in other non-interest income	$ 60	$ 430	$ 130	$ 1,248
Unrealized gain relating to instruments still held at the end of the period	26	261	26	261
Derivative Asset (Liability)
Beginning balance	18	185	124	735
Unrealized (loss)/gain, net recognized in other non-interest income	60	430	130	1,248
Transfers to held for sale loans	(52)	(354)	(228)	(1,722)
Ending balance	26	261	26	261
Forward Commitments
Changes in Level 3 assets that were measured at fair value on a recurring basis
Unrealized (loss)/gain, net recognized in other non-interest income	11	(234)	(116)	(228)
Unrealized gain relating to instruments still held at the end of the period	18	92	18	92
Derivative Asset (Liability)
Beginning balance	7	326	134	320
Unrealized (loss)/gain, net recognized in other non-interest income	11	(234)	(116)	(228)
Ending balance	18	92	18	92
Trading Security
Changes in Level 3 assets that were measured at fair value on a recurring basis
Balance at the beginning of the period	7,798	9,350	8,354	9,708
Unrealized (loss)/gain, net recognized in other non-interest income	(556)	(305)	(910)	(471)
Paydown of asset	(202)	(192)	(404)	(384)
Balance at the end of the period	7,040	8,853	7,040	8,853
Unrealized gain relating to instruments still held at the end of the period	(436)	581	(436)	581
Derivative Asset (Liability)
Unrealized (loss)/gain, net recognized in other non-interest income	(556)	(305)	(910)	(471)
Securities Available for Sale
Changes in Level 3 assets that were measured at fair value on a recurring basis
Balance at the beginning of the period	4,020	0	4,030	15,000
Maturity of AFS security				(15,000)
Unrealized gain (loss) included in accumulated other comprehensive income	0		10
Balance at the end of the period	4,020	0	4,020	0
Unrealized gain relating to instruments still held at the end of the period	20	0	20	0
Loans Held for Investment
Changes in Level 3 assets that were measured at fair value on a recurring basis
Balance at the beginning of the period	1,197	1,448	1,200	2,265
Unrealized (loss)/gain, net recognized in other non-interest income	259	187	468	601
Paydown of asset	(407)	(375)	(619)	(1,606)
Balance at the end of the period	1,049	1,260	1,049	1,260
Unrealized gain relating to instruments still held at the end of the period	0	0	0	0
Derivative Asset (Liability)
Unrealized (loss)/gain, net recognized in other non-interest income	259	187	468	601
Capitalized Servicing Rights
Changes in Level 3 assets that were measured at fair value on a recurring basis
Balance at the beginning of the period	1,786	2,968	1,966	3,033
Unrealized (loss)/gain, net recognized in other non-interest income	120	(612)	(60)	(677)
Balance at the end of the period	1,906	2,356	1,906	2,356
Derivative Asset (Liability)
Unrealized (loss)/gain, net recognized in other non-interest income	$ 120	$ (612)	$ (60)	$ (677)

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FAIR VALUE MEASUREMENTS - Unobservable Inputs Recurring (Details) uSDPerLoan in Thousands, $ in Thousands	Jun. 30, 2022 USD ($) uSDPerLoan	Dec. 31, 2021 USD ($) uSDPerLoan
Quantitative information about the significant unobservable inputs within Level 3
Trading security	$ 7,040	$ 8,354
Level 3 | Recurring
Quantitative information about the significant unobservable inputs within Level 3
Trading security	7,040	8,354
AFS Securities	4,020
Loans held for investment	1,049	1,200
Total	14,059	15,808
Level 3 | Recurring | Commitments to lend
Quantitative information about the significant unobservable inputs within Level 3
Derivative asset	26	124
Level 3 | Recurring | Forward commitments
Quantitative information about the significant unobservable inputs within Level 3
Derivative asset	18	134
Level 3 | Recurring | Capitalized servicing rights
Quantitative information about the significant unobservable inputs within Level 3
Capitalized servicing rights	$ 1,906	$ 1,966
Level 3 | Recurring | Discounted Cash Flow | Discount Rate
Quantitative information about the significant unobservable inputs within Level 3
Trading security, Significant Unobservable Input Value	0.0432	0.0335
Loan held for investment, Significant Unobservable Input Value	0.2500	0.2500
Level 3 | Recurring | Discounted Cash Flow | Discount Rate | Capitalized servicing rights
Quantitative information about the significant unobservable inputs within Level 3
Capitalized servicing rights, Significant Unobservable Input Value	0.0904	0.0950
Level 3 | Recurring | Discounted Cash Flow | Collateral Value | Minimum
Quantitative information about the significant unobservable inputs within Level 3
Loan held for investment, Significant Unobservable Input Value	6,300,000	6,300,000
Level 3 | Recurring | Discounted Cash Flow | Collateral Value | Maximum
Quantitative information about the significant unobservable inputs within Level 3
Loan held for investment, Significant Unobservable Input Value	22,200,000	19,800,000
Level 3 | Recurring | Discounted Cash Flow | Constant Prepayment Rate (CPR) | Capitalized servicing rights
Quantitative information about the significant unobservable inputs within Level 3
Capitalized servicing rights, Significant Unobservable Input Value	0.1226	0.1941
Level 3 | Recurring | Indication from Market Maker | Price
Quantitative information about the significant unobservable inputs within Level 3
AFS Securities, Significant Unobservable Input Value	1.0100	1.0100
Level 3 | Recurring | Historical Trend | Closing Ratio | Commitments to lend
Quantitative information about the significant unobservable inputs within Level 3
Derivative asset, Significant Unobservable Input Value	0.8349	0.8209
Level 3 | Recurring | Historical Trend | Closing Ratio | Forward commitments
Quantitative information about the significant unobservable inputs within Level 3
Derivative asset, Significant Unobservable Input Value	0.8349	0.8209
Level 3 | Recurring | Pricing Model | Origination Costs, per loan | Commitments to lend
Quantitative information about the significant unobservable inputs within Level 3
Derivative asset, Significant Unobservable Input Value | uSDPerLoan	3	3
Level 3 | Recurring | Pricing Model | Origination Costs, per loan | Forward commitments
Quantitative information about the significant unobservable inputs within Level 3
Derivative asset, Significant Unobservable Input Value | uSDPerLoan	3	3

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FAIR VALUE MEASUREMENTS - Measured on Non-recurring Basis (Details) - Non-recurring - Level 3 - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Quantitative information about the significant unobservable inputs within Level 3
Individually evaluated	$ 3,026	$ 12,482
Capitalized servicing rights	12,510	14,056
Total	$ 15,536	$ 26,538

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FAIR VALUE MEASUREMENTS - Unobservable Inputs Non-recurring (Details) - Non-recurring - Level 3 $ in Thousands	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Quantitative information about the significant unobservable inputs within Level 3
Individually evaluated	$ 3,026	$ 12,482
Capitalized servicing rights	12,510	14,056
Total	15,536	26,538
Fair Value of Collateral
Quantitative information about the significant unobservable inputs within Level 3
Individually evaluated	$ 3,026	$ 12,482
Minimum | Discounted Cash Flow - Loss Severity | Fair Value of Collateral
Quantitative information about the significant unobservable inputs within Level 3
Individually evaluated, Unobservable Inputs, Range (Weighted Average)	1.0000	0.3596
Minimum | Appraised Value | Fair Value of Collateral
Quantitative information about the significant unobservable inputs within Level 3
Individually evaluated, Unobservable Inputs, Range (Weighted Average)	0	0
Maximum | Discounted Cash Flow - Loss Severity | Fair Value of Collateral
Quantitative information about the significant unobservable inputs within Level 3
Individually evaluated, Unobservable Inputs, Range (Weighted Average)	0.1531	1.3309
Maximum | Appraised Value | Fair Value of Collateral
Quantitative information about the significant unobservable inputs within Level 3
Individually evaluated, Unobservable Inputs, Range (Weighted Average)	734,000	405,000
Weighted Average | Discounted Cash Flow - Loss Severity | Fair Value of Collateral
Quantitative information about the significant unobservable inputs within Level 3
Individually evaluated, Unobservable Inputs, Range (Weighted Average)	0.4934	0.4914
Weighted Average | Appraised Value | Fair Value of Collateral
Quantitative information about the significant unobservable inputs within Level 3
Individually evaluated, Unobservable Inputs, Range (Weighted Average)	485,000	256,000
Capitalized servicing rights | Discounted Cash Flow
Quantitative information about the significant unobservable inputs within Level 3
Capitalized servicing rights	$ 12,510	$ 14,056
Capitalized servicing rights | Minimum | Constant Prepayment Rate (CPR) | Discounted Cash Flow
Quantitative information about the significant unobservable inputs within Level 3
Capitalized servicing rights, Unobservable Inputs, Range (Weighted Average)	0.0590	0.0624
Capitalized servicing rights | Minimum | Discount Rate | Discounted Cash Flow
Quantitative information about the significant unobservable inputs within Level 3
Capitalized servicing rights, Unobservable Inputs, Range (Weighted Average)	0.0909	0.0959
Capitalized servicing rights | Maximum | Constant Prepayment Rate (CPR) | Discounted Cash Flow
Quantitative information about the significant unobservable inputs within Level 3
Capitalized servicing rights, Unobservable Inputs, Range (Weighted Average)	0.1324	0.1773
Capitalized servicing rights | Maximum | Discount Rate | Discounted Cash Flow
Quantitative information about the significant unobservable inputs within Level 3
Capitalized servicing rights, Unobservable Inputs, Range (Weighted Average)	0.1174	0.1311
Capitalized servicing rights | Weighted Average | Constant Prepayment Rate (CPR) | Discounted Cash Flow
Quantitative information about the significant unobservable inputs within Level 3
Capitalized servicing rights, Unobservable Inputs, Range (Weighted Average)	0.1099	0.1329
Capitalized servicing rights | Weighted Average | Discount Rate | Discounted Cash Flow
Quantitative information about the significant unobservable inputs within Level 3
Capitalized servicing rights, Unobservable Inputs, Range (Weighted Average)	0.1080	0.1197

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FAIR VALUE MEASUREMENTS - Fair Values and Carrying Amounts (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financial Assets
Trading security	$ 7,000	$ 8,400
Marketable equity securities	14,154	15,453
Securities available for sale, at fair value	1,697,019	1,877,585
Securities held to maturity	544,065	647,236
FHLB bank stock and restricted securities	9,365	10,800
Level 1
Financial Assets
Cash and cash equivalents	871,017	1,627,807
Trading security	0	0
Marketable equity securities	13,499	14,798
Securities available for sale, at fair value	0	0
Securities held to maturity	0	0
Net loans	0	0
Loans held for sale	0	0
Accrued interest receivable	0	0
Derivative assets	0	0
Financial Liabilities
Total deposits	0	0
Short-term debt	0	0
Long-term Federal Home Loan Bank advances and other	0	0
Subordinated borrowings	0	0
Derivative liabilities	0	0
Level 2
Financial Assets
Cash and cash equivalents	0	0
Trading security	0	0
Marketable equity securities	655	655
Securities available for sale, at fair value	1,692,999	1,873,555
Securities held to maturity	541,695	644,497
Net loans	0	0
Loans held for sale	1,062	6,110
Accrued interest receivable	36,203	33,534
Derivative assets	58,616	79,270
Financial Liabilities
Total deposits	10,087,181	10,073,217
Short-term debt	49,996	0
Long-term Federal Home Loan Bank advances and other	7,214	13,053
Subordinated borrowings	190,048	95,006
Derivative liabilities	77,073	35,194
Level 3
Financial Assets
Cash and cash equivalents	0	0
Trading security	7,040	8,354
Marketable equity securities	0	0
Securities available for sale, at fair value	4,020	4,030
Securities held to maturity	2,370	2,739
Net loans	7,708,139	6,850,975
Loans held for sale	0	0
Accrued interest receivable	0	0
Derivative assets	44	258
Financial Liabilities
Total deposits	0	0
Short-term debt	0	0
Long-term Federal Home Loan Bank advances and other	0	0
Subordinated borrowings	0	0
Derivative liabilities	0	0
Carrying Amount
Financial Assets
Cash and cash equivalents	871,017	1,627,807
Trading security	7,040	8,354
Marketable equity securities	14,154	15,453
Securities available for sale, at fair value	1,697,019	1,877,585
Securities held to maturity	602,611	636,503
FHLB bank stock and restricted securities	9,365	10,800
Net loans	7,704,430	6,719,753
Loans held for sale	1,062	6,110
Accrued interest receivable	36,203	33,534
Derivative assets	58,660	79,528
Financial Liabilities
Total deposits	10,114,664	10,068,953
Short-term debt	50,000	0
Long-term Federal Home Loan Bank advances and other	8,542	13,331
Subordinated borrowings	195,659	97,513
Derivative liabilities	77,073	35,194
Fair Value
Financial Assets
Cash and cash equivalents	871,017	1,627,807
Trading security	7,040	8,354
Marketable equity securities	14,154	15,453
Securities available for sale, at fair value	1,697,019	1,877,585
Securities held to maturity	544,065	647,236
Net loans	7,708,139	6,850,975
Loans held for sale	1,062	6,110
Accrued interest receivable	36,203	33,534
Derivative assets	58,660	79,528
Financial Liabilities
Total deposits	10,087,181	10,073,217
Short-term debt	49,996	0
Long-term Federal Home Loan Bank advances and other	7,214	13,053
Subordinated borrowings	190,048	95,006
Derivative liabilities	$ 77,073	$ 35,194

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NET INTEREST INCOME AFTER BENEFIT/PROVISION FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Banking and Thrift, Interest [Abstract]
Net interest income	$ 81,358	$ 75,393	$ 150,421	$ 150,486
(Benefit)/provision for credit losses	0	0	(4,000)	6,500
Net interest after provision for credit losses	$ 81,358	$ 75,393	$ 154,421	$ 143,986