(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Large Accelerated Filer | ☐ | ☒ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | ||||||||
As of | ||||||||||||||
(dollars in thousands) | March 31, 2024 | December 31, 2023 | ||||||||||||
Assets | ||||||||||||||
Cash and due from financial institutions | $ | $ | ||||||||||||
Interest-bearing deposits in other financial institutions | ||||||||||||||
Investment securities: | ||||||||||||||
Available-for-sale debt securities, at fair value | ||||||||||||||
Held-to-maturity debt securities, at amortized cost; fair value of: $ | ||||||||||||||
Total investment securities | ||||||||||||||
Loans held for sale | ||||||||||||||
Loans | ||||||||||||||
Less: allowance for credit losses | ( | ( | ||||||||||||
Loans, net of allowance for credit losses | ||||||||||||||
Premises and equipment, net | ||||||||||||||
Accrued interest receivable | ||||||||||||||
Investment in unconsolidated entities | ||||||||||||||
Mortgage servicing rights, net | ||||||||||||||
Bank-owned life insurance | ||||||||||||||
Federal Home Loan Bank of Des Moines ("FHLB") stock | ||||||||||||||
Right-of-use lease assets | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities | ||||||||||||||
Deposits: | ||||||||||||||
Noninterest-bearing demand | $ | $ | ||||||||||||
Interest-bearing demand | ||||||||||||||
Savings and money market | ||||||||||||||
Time | ||||||||||||||
Total deposits | ||||||||||||||
Long-term debt, net of unamortized debt issuance costs of $ | ||||||||||||||
Lease liabilities | ||||||||||||||
Accrued interest payable | ||||||||||||||
Other liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Contingent liabilities and other commitments (see Note 16) | ||||||||||||||
Equity | ||||||||||||||
Preferred stock, issued and outstanding: | ||||||||||||||
Common stock, issued and outstanding: | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Total equity | ||||||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | ||||||||||||||
(dollars in thousands, except per share data) | 2024 | 2023 | ||||||||||||
Interest income: | ||||||||||||||
Interest and fees on loans | $ | $ | ||||||||||||
Interest and dividends on investment securities: | ||||||||||||||
Taxable investment securities | ||||||||||||||
Tax-exempt investment securities | ||||||||||||||
Interest on deposits in other financial institutions | ||||||||||||||
Dividend income on FHLB stock | ||||||||||||||
Total interest income | ||||||||||||||
Interest expense: | ||||||||||||||
Interest on deposits: | ||||||||||||||
Demand | ||||||||||||||
Savings and money market | ||||||||||||||
Time | ||||||||||||||
Interest on short-term borrowings | ||||||||||||||
Interest on long-term debt | ||||||||||||||
Total interest expense | ||||||||||||||
Net interest income | ||||||||||||||
Provision for credit losses | ||||||||||||||
Net interest income after provision for credit losses | ||||||||||||||
Other operating income: | ||||||||||||||
Mortgage banking income | ||||||||||||||
Service charges on deposit accounts | ||||||||||||||
Other service charges and fees | ||||||||||||||
Income from fiduciary activities | ||||||||||||||
Income from bank-owned life insurance | ||||||||||||||
Other | ||||||||||||||
Total other operating income | ||||||||||||||
Other operating expense: | ||||||||||||||
Salaries and employee benefits | ||||||||||||||
Net occupancy | ||||||||||||||
Computer software | ||||||||||||||
Legal and professional services | ||||||||||||||
Equipment | ||||||||||||||
Advertising | ||||||||||||||
Communication | ||||||||||||||
Other | ||||||||||||||
Total other operating expense | ||||||||||||||
Income before income taxes | ||||||||||||||
Income tax expense | ||||||||||||||
Net income | $ | $ | ||||||||||||
Per common share data: | ||||||||||||||
Basic earnings per share | $ | $ | ||||||||||||
Diluted earnings per share | $ | $ | ||||||||||||
Basic weighted average shares outstanding | ||||||||||||||
Diluted weighted average shares outstanding |
Three Months Ended March 31, | ||||||||||||||
(dollars in thousands) | 2024 | 2023 | ||||||||||||
Net income | $ | $ | ||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Net change in fair value of available-for-sale investment securities | ( | |||||||||||||
Amortization of unrealized losses on investment securities transferred to held-to-maturity | ||||||||||||||
Net change in fair value of derivatives | ( | |||||||||||||
Supplemental Executive Retirement Plans | ( | |||||||||||||
Total other comprehensive income (loss), net of tax | ( | |||||||||||||
Comprehensive income | $ | $ |
Common Shares Outstanding | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accum. Other Comp. Loss | Total | |||||||||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | — | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Common stock repurchased and retired and other related costs | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | — | ( | |||||||||||||||||||||||||||||||||||||||
Common Shares Outstanding | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accum. Other Comp. Loss | Total | |||||||||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | — | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Common stock repurchased and retired and other related costs | ( | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | — | ( | |||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Provision for credit losses | |||||||||||
Depreciation and amortization of premises and equipment | |||||||||||
Loss on disposal of premises and equipment | |||||||||||
Cash flows from operating leases | ( | ( | |||||||||
Amortization of mortgage servicing rights | |||||||||||
Net amortization and accretion of premium/discounts on investment securities | |||||||||||
Share-based compensation | ( | ||||||||||
Net gain on sales of residential mortgage loans | ( | ( | |||||||||
Proceeds from sales of loans held for sale | |||||||||||
Originations of loans held for sale | ( | ( | |||||||||
Equity in losses (earnings) of unconsolidated entities | ( | ||||||||||
Distributions from unconsolidated entities | |||||||||||
Net increase in cash surrender value of bank-owned life insurance | ( | ( | |||||||||
Deferred income tax expense | |||||||||||
Net tax expense (benefit) from share-based compensation | ( | ||||||||||
Net change in other assets and liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from maturities of and calls on available-for-sale investment securities | |||||||||||
Purchases of investment securities available-for-sale | ( | ( | |||||||||
Proceeds from maturities of and calls on held-to-maturity investment securities | |||||||||||
Net repayments of loans | |||||||||||
Purchases of loan portfolios | ( | ||||||||||
Proceeds from bank-owned life insurance death benefits | |||||||||||
Net purchases of premises, equipment and land | ( | ( | |||||||||
Contributions to unconsolidated entities | ( | ( | |||||||||
Net purchases of FHLB stock | ( | ( | |||||||||
Net cash provided by (used in) investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Net (decrease) increase in deposits | ( | ||||||||||
Net increase in FHLB advances and other short-term borrowings | |||||||||||
Proceeds from long-term debt | |||||||||||
Cash dividends paid on common stock | ( | ( | |||||||||
Repurchases of common stock and other related costs | ( | ( | |||||||||
Net cash (used in) provided by financing activities | ( | ||||||||||
Net (decrease) increase in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ |
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | $ | |||||||||
Supplemental disclosure of non-cash information: | |||||||||||
Lease liabilities arising from obtaining right-of-use lease assets | |||||||||||
Amortization of unrealized losses on investment securities transferred to held-to-maturity at fair value | |||||||||||
Expected Credit Loss Methodology | Historical Look-Back Period | Economic Forecast Length | Reversion Method | |||||||||||||||||||||||||||||
Loan Segment | After June 30, 2023 | June 30, 2023 and Prior | ||||||||||||||||||||||||||||||
Commercial and industrial - SBA PPP | Zero Loss | PD/LGD | 2008 to present | One year | One year (straight-line basis) | |||||||||||||||||||||||||||
Commercial and industrial - All others | DCF | PD/LGD | ||||||||||||||||||||||||||||||
Construction | DCF | PD/LGD | ||||||||||||||||||||||||||||||
Commercial real estate - Multi-family | DCF | PD/LGD | ||||||||||||||||||||||||||||||
Commercial real estate - All others | DCF | PD/LGD | ||||||||||||||||||||||||||||||
Residential mortgage | DCF | Loss-Rate Migration | ||||||||||||||||||||||||||||||
Home equity | DCF | Loss-Rate Migration | ||||||||||||||||||||||||||||||
Consumer - Other revolving | DCF | Loss-Rate Migration | ||||||||||||||||||||||||||||||
Consumer - Non-revolving | DCF | Loss-Rate Migration | ||||||||||||||||||||||||||||||
Consumer - Purchased portfolios | WARM | WARM | ||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ACL | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
March 31, 2024 | ||||||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
States and political subdivisions | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Corporate securities | ( | |||||||||||||||||||||||||||||||
U.S. Treasury and other government-sponsored entities and agencies | ( | |||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||
Residential - U.S. government-sponsored entities and agencies | ( | |||||||||||||||||||||||||||||||
Residential - Non-government agencies | ( | |||||||||||||||||||||||||||||||
Commercial - U.S. government-sponsored entities and agencies | ( | |||||||||||||||||||||||||||||||
Commercial - Non-government agencies | ( | |||||||||||||||||||||||||||||||
Total available-for-sale investment securities | $ | $ | $ | ( | $ | $ |
Amortized Cost | Gross Unrecognized Gains | Gross Unrecognized Losses | Fair Value | ACL | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
March 31, 2024 | ||||||||||||||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
States and political subdivisions | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||
Residential - U.S. government-sponsored entities and agencies | ( | |||||||||||||||||||||||||||||||
Total held-to-maturity investment securities | $ | $ | $ | ( | $ | $ |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ACL | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
States and political subdivisions | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Corporate securities | ( | |||||||||||||||||||||||||||||||
U.S. Treasury and other government-sponsored entities and agencies | ( | |||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||
Residential - U.S. government-sponsored entities and agencies | ( | |||||||||||||||||||||||||||||||
Residential - Non-government agencies | ( | |||||||||||||||||||||||||||||||
Commercial - U.S. government-sponsored entities and agencies | ( | |||||||||||||||||||||||||||||||
Commercial - Non-government agencies | ( | |||||||||||||||||||||||||||||||
Total available-for-sale investment securities | $ | $ | $ | ( | $ | $ |
Amortized Cost | Gross Unrecognized Gains | Gross Unrecognized Losses | Fair Value | ACL | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||
States and political subdivisions | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||
Residential - U.S. government-sponsored entities and agencies | ( | |||||||||||||||||||||||||||||||
Total held-to-maturity investment securities | $ | $ | $ | ( | $ | $ |
(dollars in thousands) | Amortized Cost | Fair Value | Weighted Average Yield (1) | |||||||||||||||||
Available-for-sale: | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
Due in one year or less | $ | $ | % | |||||||||||||||||
Due after one year through five years | ||||||||||||||||||||
Due after five years through ten years | ||||||||||||||||||||
Due after ten years | ||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
Residential - U.S. government-sponsored entities and agencies | ||||||||||||||||||||
Residential - Non-government agencies | ||||||||||||||||||||
Commercial - U.S. government-sponsored entities and agencies | ||||||||||||||||||||
Commercial - Non-government agencies | ||||||||||||||||||||
Total available-for-sale securities | $ | $ | % | |||||||||||||||||
(dollars in thousands) | Amortized Cost | Fair Value | Weighted Average Yield (1) | |||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
Due after ten years | $ | $ | % | |||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
Residential - U.S. government-sponsored entities and agencies | ||||||||||||||||||||
Total held-to-maturity securities | $ | $ | % | |||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
March 31, 2024 | ||||||||||||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||||||||
States and political subdivisions | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
Corporate securities | ( | ( | ||||||||||||||||||||||||||||||||||||
U.S. Treasury and other government-sponsored entities and agencies | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||
Residential - U.S. government-sponsored entities and agencies | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Residential - Non-government agencies | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Commercial - U.S. government-sponsored entities and agencies | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Commercial - Non-government agencies | ( | ( | ||||||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrecognized Losses | Fair Value | Unrecognized Losses | Fair Value | Unrecognized Losses | ||||||||||||||||||||||||||||||||
March 31, 2024 | ||||||||||||||||||||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||||||||
States and political subdivisions | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||
Residential - U.S. government-sponsored entities and agencies | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||||||||
States and political subdivisions | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
Corporate securities | ( | ( | ||||||||||||||||||||||||||||||||||||
U.S. Treasury and other government-sponsored entities and agencies | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||
Residential - U.S. government-sponsored entities and agencies | ( | ( | ||||||||||||||||||||||||||||||||||||
Residential - Non-government agencies | ( | ( | ||||||||||||||||||||||||||||||||||||
Commercial - U.S. government-sponsored entities and agencies | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Commercial - Non-government agencies | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrecognized Losses | Fair Value | Unrecognized Losses | Fair Value | Unrecognized Losses | ||||||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||||||||||
States and political subdivisions | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||
Residential - U.S. government-sponsored entities and agencies | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( |
(dollars in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Commercial and industrial | $ | $ | |||||||||
Real estate: | |||||||||||
Construction | |||||||||||
Residential mortgage | |||||||||||
Home equity | |||||||||||
Commercial mortgage | |||||||||||
Consumer | |||||||||||
Gross loans | |||||||||||
Net deferred fees and costs | ( | ( | |||||||||
Total loans, net of deferred fees and costs | $ | $ | |||||||||
Three Months Ended March 31, 2023 | |||||||||||||||||
(dollars in thousands) | U.S. Mainland Consumer - Unsecured | U.S. Mainland Consumer - Automobile | Total | ||||||||||||||
Purchases: | |||||||||||||||||
Outstanding balance | $ | $ | $ | ||||||||||||||
Premium | |||||||||||||||||
Purchase price | $ | $ | $ | ||||||||||||||
(dollars in thousands) | Accruing Loans 30 - 59 Days Past Due | Accruing Loans 60 - 89 Days Past Due | Accruing Loans 90+ Days Past Due | Nonaccrual Loans | Total Past Due and Nonaccrual | Loans Not Past Due | Total Loans | Nonaccrual Loans With No ACL | |||||||||||||||||||||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Accruing Loans 30 - 59 Days Past Due | Accruing Loans 60 - 89 Days Past Due | Accruing Loans 90+ Days Past Due | Nonaccrual Loans | Total Past Due and Nonaccrual | Loans Not Past Due | Total Loans | Nonaccrual Loans With No ACL | |||||||||||||||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | Secured by 1-4 Family Residential Properties | Secured by Nonfarm Nonresidential Properties | Total | Allocated ACL | |||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Residential mortgage | $ | $ | $ | $ | |||||||||||||||||||
Home equity | |||||||||||||||||||||||
Commercial mortgage | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
(dollars in thousands) | Secured by 1-4 Family Residential Properties | Secured by Nonfarm Nonresidential Properties | Total | Allocated ACL | |||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Residential mortgage | $ | $ | $ | $ | |||||||||||||||||||
Home equity | |||||||||||||||||||||||
Commercial mortgage | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
(dollars in thousands) | Amortized Cost of Term Loans by Year of Origination | Amortized Cost of Revolving Loans | ||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2024 | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | |||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Gross Charge-Offs by Year of Origination | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2024 | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Amortized Cost of Term Loans by Year of Origination | Amortized Cost of Revolving Loans | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | |||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Gross Charge-Offs by Year of Origination | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2023 | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Real Estate | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2024 | Commercial and Industrial | Construction | Residential Mortgage | Home Equity | Commercial Mortgage | Consumer | Total | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Provision (credit) for credit losses on loans | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||
Net (charge-offs) recoveries | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Real Estate | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2023 | Commercial and Industrial | Construction | Residential Mortgage | Home Equity | Commercial Mortgage | Consumer | Total | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Provision (credit) for credit losses on loans | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Subtotal | ||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||
Net (charge-offs) recoveries | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Beginning balance | $ | $ | |||||||||
(Credit) provision for off-balance sheet credit exposures | ( | ||||||||||
Ending balance | $ | $ | |||||||||
(dollars in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Investments in low-income housing tax credit partnerships, net of amortization | $ | $ | |||||||||
Investments in common securities of statutory trusts | |||||||||||
Investments in affiliates | |||||||||||
Other | |||||||||||
Total | $ | $ |
(dollars in thousands) | |||||||||||||||||
Year Ending December 31, | LIHTC | Other | Total | ||||||||||||||
2024 (remainder) | $ | $ | $ | ||||||||||||||
2025 | |||||||||||||||||
2026 | |||||||||||||||||
2027 | |||||||||||||||||
2028 | |||||||||||||||||
2029 | |||||||||||||||||
Thereafter | |||||||||||||||||
Total unfunded commitments | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Proportional amortization method: | |||||||||||
Amortization expense recognized in income tax expense | $ | $ | |||||||||
Tax credits recognized in income tax expense |
(dollars in thousands) | |||||
Balance at December 31, 2023 | $ | ||||
Additions | |||||
Amortization | ( | ||||
Balance at March 31, 2024 | $ | ||||
Balance at December 31, 2022 | $ | ||||
Additions | |||||
Amortization | ( | ||||
Balance at March 31, 2023 | $ |
(dollars in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Fair market value, beginning of year | $ | $ | |||||||||
Fair market value, end of period | |||||||||||
Weighted average discount rate | % | % | |||||||||
Weighted average prepayment speed assumption |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||||||||||||||||||||||||
Mortgage servicing rights | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
(dollars in thousands) | |||||
Year Ending December 31, | |||||
2024 (remainder) | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
2029 | |||||
Thereafter | |||||
Total | $ |
Derivative Financial Instruments Not Designated as Hedging Instruments | Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||
Fair Value at | Fair Value at | |||||||||||||||||||||||||||||||
(dollars in thousands) | Balance Sheet Location | March 31, 2024 | December 31, 2023 | March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||
Interest rate lock and forward sale commitments | Other assets / other liabilities | $ | $ | $ | $ | |||||||||||||||||||||||||||
Back-to-back swap agreements | Other assets / other liabilities | |||||||||||||||||||||||||||||||
Derivative Financial Instruments Designated as Hedging Instruments | Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||
Fair Value at | Fair Value at | |||||||||||||||||||||||||||||||
(dollars in thousands) | Balance Sheet Location | March 31, 2024 | December 31, 2023 | March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||
Interest rate swap | Other assets / other liabilities | $ | $ | $ | $ | |||||||||||||||||||||||||||
Derivative Financial Instruments Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Earnings on Derivatives | Amount of Gain (Loss) Recognized in Earnings on Derivatives | ||||||||||||
(dollars in thousands) | ||||||||||||||
Three Months Ended March 31, 2024 | ||||||||||||||
Interest rate lock and forward sale commitments | $ | |||||||||||||
Back-to-back swap agreements | ||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||
Interest rate lock and forward sale commitments | ( | |||||||||||||
Loans held for sale | ||||||||||||||
Derivative Financial Instruments Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Earnings on Derivatives | Amount of Gain (Loss) Recognized in Earnings on Derivatives | ||||||||||||
(dollars in thousands) | ||||||||||||||
Three Months Ended March 31, 2024 | ||||||||||||||
Interest rate swap | $ | ( | ||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||
Interest rate swap | ||||||||||||||
Line Item in the Consolidated Balance Sheets | Carrying Amount of the Hedged Assets | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets | ||||||||||||
(dollars in thousands) | March 31, 2024 | March 31, 2024 | ||||||||||||
$ | $ | ( | ||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Name of Trust | March 31, 2024 | December 31, 2023 | Interest Rate | |||||||||||||||||
Trust IV | $ | $ | Three-month CME Term SOFR + tenor spread adjustment of | |||||||||||||||||
Trust V | Three-month CME Term SOFR + tenor spread adjustment of | |||||||||||||||||||
Total | $ | $ | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Description | March 31, 2024 | December 31, 2023 | Interest Rate | |||||||||||||||||
October 2020 Private Placement | $ | $ | ||||||||||||||||||
Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | In-Scope | Out-of-Scope | Total | In-Scope | Out-of-Scope | Total | |||||||||||||||||||||||||||||
Other operating income: | |||||||||||||||||||||||||||||||||||
Mortgage banking income | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Service charges on deposit accounts | |||||||||||||||||||||||||||||||||||
Other service charges and fees | |||||||||||||||||||||||||||||||||||
Income from fiduciary activities | |||||||||||||||||||||||||||||||||||
Income from bank-owned life insurance | |||||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||
Total other operating income | $ | $ | $ | $ | $ | $ |
(dollars in thousands, except per share data) | Shares | Weighted Average Grant Date Fair Value | Fair Value of RSUs and PSUs That Vested During the Period | ||||||||||||||
Non-vested RSUs and PSUs, beginning of period | $ | ||||||||||||||||
Changes during the period: | |||||||||||||||||
Granted | |||||||||||||||||
Forfeited | ( | ||||||||||||||||
Vested | ( | $ | |||||||||||||||
Non-vested RSUs and PSUs, end of period |
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Interest cost | $ | $ | |||||||||
Amortization of net actuarial (gain) loss | ( | ||||||||||
Amortization of net transition obligation | |||||||||||
Net periodic benefit cost | $ | $ |
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Lease cost: | |||||||||||
Operating lease cost | $ | $ | |||||||||
Variable lease cost | |||||||||||
Less: Sublease income | ( | ||||||||||
Total lease cost | $ | $ | |||||||||
Other information: | |||||||||||
Operating cash flows from operating leases | $ | ( | $ | ( | |||||||
Weighted-average remaining lease term - operating leases | | ||||||||||
Weighted-average discount rate - operating leases | % | % |
(dollars in thousands) | Undiscounted Cash Flows | Lease Liability Discount on Cash Flows | Lease Liability | |||||||||||||||||
Year Ending December 31, | ||||||||||||||||||||
2024 (remainder) | $ | $ | $ | |||||||||||||||||
2025 | ||||||||||||||||||||
2026 | ||||||||||||||||||||
2027 | ||||||||||||||||||||
2028 | ||||||||||||||||||||
2029 | ||||||||||||||||||||
Thereafter | ||||||||||||||||||||
Total | $ | $ | $ | |||||||||||||||||
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
$ | $ |
(dollars in thousands) | |||||
Year Ending December 31, | |||||
2024 (remainder) | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
2029 | |||||
Thereafter | |||||
Total | $ | ||||
(dollars in thousands) | Before Tax | Tax Effect | Net of Tax | |||||||||||||||||
Three Months Ended March 31, 2024 | ||||||||||||||||||||
Net change in fair value of investment securities: | ||||||||||||||||||||
Net unrealized losses on AFS investment securities arising during the period | $ | ( | $ | ( | $ | ( | ||||||||||||||
Less: Amortization of unrealized losses on investment securities transferred to HTM | ||||||||||||||||||||
Net change in fair value of investment securities | ( | ( | ( | |||||||||||||||||
Net change in fair value of derivatives: | ||||||||||||||||||||
Net unrealized gains arising during the period | ||||||||||||||||||||
Net change in fair value of derivatives | ||||||||||||||||||||
Other comprehensive loss | $ | ( | $ | ( | $ | ( | ||||||||||||||
(dollars in thousands) | Before Tax | Tax Effect | Net of Tax | |||||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||
Net change in fair value of investment securities: | ||||||||||||||||||||
Net unrealized gains on AFS investment securities arising during the period | $ | $ | $ | |||||||||||||||||
Less: Amortization of unrealized losses on investment securities transferred to HTM | ||||||||||||||||||||
Net change in fair value of investment securities | ||||||||||||||||||||
Net change in fair value of derivatives: | ||||||||||||||||||||
Net unrealized losses arising during the period | ( | ( | ( | |||||||||||||||||
Net change in fair value of derivatives | ( | ( | ( | |||||||||||||||||
SERP: | ||||||||||||||||||||
Amortization of net actuarial gain | ( | ( | ( | |||||||||||||||||
Amortization of net transition obligation | ||||||||||||||||||||
SERP | ( | ( | ( | |||||||||||||||||
Other comprehensive income | $ | $ | $ | |||||||||||||||||
(dollars in thousands) | Investment Securities | Derivatives | SERP | AOCI | ||||||||||||||||||||||
Three Months Ended March 31, 2024 | ||||||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ||||||||||||||||||||||||
Reclassification adjustments from AOCI | ||||||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | ||||||||||||||||||||||||
Balance at end of period | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
(dollars in thousands) | Investment Securities | Derivatives | SERP | AOCI | ||||||||||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | |||||||||||||||||||||||||
Reclassification adjustments from AOCI | ( | |||||||||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | ||||||||||||||||||||||||
Balance at end of period | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
Amount Reclassified from AOCI | Affected Line Item in the Statement Where Net Income is Presented | |||||||||||||||||||
(dollars in thousands) | Three Months Ended March 31, | |||||||||||||||||||
Details about AOCI Components | 2024 | 2023 | ||||||||||||||||||
Amortization of unrealized losses on investment securities transferred to HTM: | ||||||||||||||||||||
Amortization | $ | ( | $ | ( | Interest and dividends on investment securities | |||||||||||||||
Tax effect | Income tax benefit | |||||||||||||||||||
Net of tax | ( | ( | ||||||||||||||||||
SERP: | ||||||||||||||||||||
Amortization of net actuarial gain | Other operating expense - other | |||||||||||||||||||
Amortization of net transition obligation | ( | Other operating expense - other | ||||||||||||||||||
Total before tax | ||||||||||||||||||||
Tax effect | ( | Income tax expense | ||||||||||||||||||
Net of tax | ||||||||||||||||||||
Total reclassification adjustments from AOCI for the period, net of tax | $ | ( | $ | ( | ||||||||||||||||
Three Months Ended March 31, | |||||||||||
(dollars in thousands, except per share data) | 2024 | 2023 | |||||||||
Net income | $ | $ | |||||||||
Weighted average common shares outstanding - basic | |||||||||||
Dilutive effect of employee stock options and awards | |||||||||||
Weighted average common shares outstanding - diluted | |||||||||||
Basic earnings per share | $ | $ | |||||||||
Diluted earnings per share | $ | $ | |||||||||
Anti-dilutive employee stock options and awards |
Fair Value Measurement Using | |||||||||||||||||||||||||||||
(dollars in thousands) | Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and due from financial institutions | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Interest-bearing deposits in other financial institutions | |||||||||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Accrued interest receivable | |||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||
Noninterest-bearing demand | |||||||||||||||||||||||||||||
Interest-bearing demand and savings and money market | |||||||||||||||||||||||||||||
Time | |||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||
Accrued interest payable | |||||||||||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | Notional Amount | Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||||||||||||||
Off-balance sheet financial instruments: | |||||||||||||||||||||||||||||||||||
Commitments to extend credit | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Standby letters of credit and financial guarantees written | |||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||
Interest rate lock commitments | |||||||||||||||||||||||||||||||||||
Risk participation agreements | |||||||||||||||||||||||||||||||||||
Back-to-back swap agreements: | |||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Liabilities | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Interest rate swap agreements | |||||||||||||||||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||||||||||
(dollars in thousands) | Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and due from financial institutions | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Interest-bearing deposits in other financial institutions | |||||||||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Accrued interest receivable | |||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||
Noninterest-bearing demand | |||||||||||||||||||||||||||||
Interest-bearing demand and savings and money market | |||||||||||||||||||||||||||||
Time | |||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||
Accrued interest payable | |||||||||||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | Notional Amount | Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||
Off-balance sheet financial instruments: | |||||||||||||||||||||||||||||||||||
Commitments to extend credit | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Standby letters of credit and financial guarantees written | |||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||
Interest rate lock commitments | ( | ( | ( | ||||||||||||||||||||||||||||||||
Risk participation agreements | |||||||||||||||||||||||||||||||||||
Back-to-back swap agreements: | |||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Liabilities | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Interest rate swap agreements | |||||||||||||||||||||||||||||||||||
Fair Value at Reporting Date Using | |||||||||||||||||||||||
(dollars in thousands) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||
States and political subdivisions | $ | $ | $ | $ | |||||||||||||||||||
Corporate securities | |||||||||||||||||||||||
U.S. Treasury and other government-sponsored entities and agencies | |||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Residential - U.S. government-sponsored entities and agencies | |||||||||||||||||||||||
Residential - Non-government agencies | |||||||||||||||||||||||
Commercial - U.S. government-sponsored entities and agencies | |||||||||||||||||||||||
Commercial - Non-government agencies | |||||||||||||||||||||||
Total available-for-sale investment securities | |||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||
Interest rate lock commitments | |||||||||||||||||||||||
Interest rate swap agreements | |||||||||||||||||||||||
Total derivatives | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fair Value at Reporting Date Using | |||||||||||||||||||||||
(dollars in thousands) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||
States and political subdivisions | $ | $ | $ | $ | |||||||||||||||||||
Corporate securities | |||||||||||||||||||||||
U.S. Treasury and other government-sponsored entities and agencies | |||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Residential - U.S. government-sponsored entities and agencies | |||||||||||||||||||||||
Residential - Non-government agencies | |||||||||||||||||||||||
Commercial - U.S. government-sponsored entities and agencies | |||||||||||||||||||||||
Commercial - Non-government agencies | |||||||||||||||||||||||
Total available-for-sale investment securities | |||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||
Interest rate lock commitments | |||||||||||||||||||||||
Interest rate swap agreements | |||||||||||||||||||||||
Total derivatives | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Available-For-Sale Debt Securities: | |||||||||||||||||||||||
(dollars in thousands) | States and Political Subdivisions | Residential - Non-Government Agencies | Interest Rate Swap Agreements | Total | |||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | |||||||||||||||||||
Principal payments received | ( | ( | ( | ||||||||||||||||||||
Unrealized net gain (loss) included in other comprehensive income | ( | ( | |||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ | |||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | |||||||||||||||||||
Principal payments received | ( | ( | ( | ||||||||||||||||||||
Unrealized net gain (loss) included in other comprehensive income | ( | ( | |||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Return on average assets | 0.70 | % | 0.87 | % | |||||||
Return on average shareholders’ equity | 10.33 | 13.97 | |||||||||
Basic earnings per share | $ | 0.48 | $ | 0.60 | |||||||
Diluted earnings per share | 0.48 | 0.60 |
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Net income | $ | 12,945 | $ | 16,187 | |||||||
Add: Income tax expense | 3,974 | 5,059 | |||||||||
Pre-tax income | 16,919 | 21,246 | |||||||||
Add: Provision (credit) for credit losses | 3,936 | 1,852 | |||||||||
PPNR | $ | 20,855 | $ | 23,098 | |||||||
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Total other operating expense | $ | 40,576 | $ | 42,107 | |||||||
Net interest income | $ | 50,187 | $ | 54,196 | |||||||
Total other operating income | 11,244 | 11,009 | |||||||||
Total revenue | $ | 61,431 | $ | 65,205 | |||||||
Efficiency ratio | 66.05 | % | 64.58 | % |
(dollars in thousands) | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | Variance | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Average Yield/ Rate | Interest Income/ Expense | Average Balance | Average Yield/ Rate | Interest Income/ Expense | Average Balance | Average Yield/ Rate | Interest Income/ Expense | |||||||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits in other financial institutions | $ | 265,418 | 5.47 | % | $ | 3,611 | $ | 24,957 | 4.51 | % | $ | 277 | $ | 240,461 | 0.96 | % | $ | 3,334 | |||||||||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxable (1) | 1,324,657 | 2.18 | 7,211 | 1,395,985 | 2.10 | 7,336 | (71,328) | 0.08 | (125) | ||||||||||||||||||||||||||||||||||||||||||||
Tax-exempt (1) | 142,830 | 2.32 | 829 | 153,067 | 2.61 | 1,000 | (10,237) | (0.29) | (171) | ||||||||||||||||||||||||||||||||||||||||||||
Total investment securities | 1,467,487 | 2.19 | 8,040 | 1,549,052 | 2.15 | 8,336 | (81,565) | 0.04 | (296) | ||||||||||||||||||||||||||||||||||||||||||||
Loans, including loans held for sale (2) | 5,400,558 | 4.67 | 62,819 | 5,525,988 | 4.26 | 58,269 | (125,430) | 0.41 | 4,550 | ||||||||||||||||||||||||||||||||||||||||||||
FHLB stock | 6,801 | 6.24 | 106 | 12,380 | 4.40 | 136 | (5,579) | 1.84 | (30) | ||||||||||||||||||||||||||||||||||||||||||||
Total interest earning assets | 7,140,264 | 4.19 | 74,576 | 7,112,377 | 3.80 | 67,018 | 27,887 | 0.39 | 7,558 | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest-earning assets | 309,397 | 331,390 | (21,993) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 7,449,661 | $ | 7,443,767 | $ | 5,894 | |||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 1,296,865 | 0.15 | % | $ | 499 | $ | 1,415,155 | 0.10 | % | $ | 363 | $ | (118,290) | 0.05 | % | $ | 136 | |||||||||||||||||||||||||||||||||||
Savings and money market deposits | 2,218,250 | 1.53 | 8,443 | 2,182,942 | 0.63 | 3,386 | 35,308 | 0.90 | 5,057 | ||||||||||||||||||||||||||||||||||||||||||||
Time deposits up to $250,000 | 544,279 | 3.21 | 4,339 | 341,396 | 1.35 | 1,137 | 202,883 | 1.86 | 3,202 | ||||||||||||||||||||||||||||||||||||||||||||
Time deposits over $250,000 | 794,019 | 4.38 | 8,651 | 689,432 | 3.02 | 5,127 | 104,587 | 1.36 | 3,524 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 4,853,413 | 1.82 | 21,932 | 4,628,925 | 0.88 | 10,013 | 224,488 | 0.94 | 11,919 | ||||||||||||||||||||||||||||||||||||||||||||
FHLB advances and other short-term borrowings | — | — | — | 64,462 | 4.79 | 761 | (64,462) | (4.79) | (761) | ||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 156,129 | 5.88 | 2,283 | 127,273 | 5.86 | 1,838 | 28,856 | 0.02 | 445 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 5,009,542 | 1.94 | 24,215 | 4,820,660 | 1.06 | 12,612 | 188,882 | 0.88 | 11,603 | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 1,806,399 | 2,026,735 | (220,336) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 132,600 | 132,816 | (216) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 6,948,541 | 6,980,211 | (31,670) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 501,120 | 463,556 | 37,564 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 7,449,661 | $ | 7,443,767 | $ | 5,894 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 50,361 | $ | 54,406 | $ | (4,045) | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate spread | 2.25 | % | 2.74 | % | (0.49) | % | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin | 2.83 | % | 3.08 | % | (0.25) | % | |||||||||||||||||||||||||||||||||||||||||||||||
(1) At amortized cost. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Includes nonaccrual loans. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2024 Compared To March 31, 2023 | |||||||||||||||||
Increase (Decrease) Due to: | |||||||||||||||||
(dollars in thousands) | Volume | Rate | Net Change | ||||||||||||||
Interest earning assets: | |||||||||||||||||
Interest-bearing deposits in other financial institutions | $ | 2,700 | $ | 634 | $ | 3,334 | |||||||||||
Investment securities: | |||||||||||||||||
Taxable investment securities (1) | (383) | 258 | (125) | ||||||||||||||
Tax-exempt investment securities (1) | (67) | (104) | (171) | ||||||||||||||
Total investment securities | (450) | 154 | (296) | ||||||||||||||
Loans, including loans held for sale (2) | (1,268) | 5,818 | 4,550 | ||||||||||||||
FHLB stock | (61) | 31 | (30) | ||||||||||||||
Total interest earning assets | 921 | 6,637 | 7,558 | ||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Interest-bearing demand deposits | (29) | 165 | 136 | ||||||||||||||
Savings and money market deposits | 56 | 5,001 | 5,057 | ||||||||||||||
Time deposits up to $250,000 | 682 | 2,520 | 3,202 | ||||||||||||||
Time deposits over $250,000 | 798 | 2,726 | 3,524 | ||||||||||||||
Total interest-bearing deposits | 1,507 | 10,412 | 11,919 | ||||||||||||||
FHLB advances and other short-term borrowings | (761) | — | (761) | ||||||||||||||
Long-term debt | 437 | 8 | 445 | ||||||||||||||
Total interest-bearing liabilities | 1,183 | 10,420 | 11,603 | ||||||||||||||
Net interest income | $ | (262) | $ | (3,783) | $ | (4,045) | |||||||||||
(1) At amortized cost. | |||||||||||||||||
(2) Includes nonaccrual loans. |
Three Months Ended March 31, | |||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | $ Change | % Change | |||||||||||||||||||
Other operating income: | |||||||||||||||||||||||
Mortgage banking income | $ | 613 | $ | 526 | $ | 87 | 16.5 | % | |||||||||||||||
Service charges on deposit accounts | 2,103 | 2,111 | (8) | -0.4 | |||||||||||||||||||
Other service charges and fees | 5,261 | 4,985 | 276 | 5.5 | |||||||||||||||||||
Income from fiduciary activities | 1,435 | 1,321 | 114 | 8.6 | |||||||||||||||||||
Income from bank-owned life insurance | 1,522 | 1,291 | 231 | 17.9 | |||||||||||||||||||
Other: | |||||||||||||||||||||||
Equity in earnings of unconsolidated entities | (80) | 28 | (108) | -385.7 | |||||||||||||||||||
Income recovered on previously charged-off loans | 52 | 288 | (236) | -81.9 | |||||||||||||||||||
Other recoveries | 24 | 98 | (74) | -75.5 | |||||||||||||||||||
Unrealized gains (losses) on loans held for sale | — | 3 | (3) | -100.0 | |||||||||||||||||||
Commissions on sale of checks | 78 | 80 | (2) | -2.5 | |||||||||||||||||||
Other | 236 | 278 | (42) | -15.1 | |||||||||||||||||||
Total other operating income | $ | 11,244 | $ | 11,009 | $ | 235 | 2.1 | ||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | $ Change | % Change | |||||||||||||||||||
Other operating expense: | |||||||||||||||||||||||
Salaries and employee benefits | $ | 20,735 | $ | 22,023 | $ | (1,288) | -5.8 | % | |||||||||||||||
Net occupancy | 4,600 | 4,474 | 126 | 2.8 | |||||||||||||||||||
Computer software | 4,287 | 4,606 | (319) | -6.9 | |||||||||||||||||||
Legal and professional services | 2,320 | 2,886 | (566) | -19.6 | |||||||||||||||||||
Equipment | 1,010 | 946 | 64 | 6.8 | |||||||||||||||||||
Advertising | 914 | 933 | (19) | -2.0 | |||||||||||||||||||
Communication | 837 | 778 | 59 | 7.6 | |||||||||||||||||||
Other: | |||||||||||||||||||||||
SERP expense | 108 | 95 | 13 | 13.7 | |||||||||||||||||||
Charitable contributions | 199 | 198 | 1 | 0.5 | |||||||||||||||||||
FDIC insurance assessment | 959 | 1,086 | (127) | -11.7 | |||||||||||||||||||
Miscellaneous loan expenses | 275 | 282 | (7) | -2.5 | |||||||||||||||||||
ATM and debit card expenses | 924 | 787 | 137 | 17.4 | |||||||||||||||||||
Armored car expenses | 483 | 348 | 135 | 38.8 | |||||||||||||||||||
Entertainment and promotions | 406 | 542 | (136) | -25.1 | |||||||||||||||||||
Stationery and supplies | 172 | 293 | (121) | -41.3 | |||||||||||||||||||
Directors’ fees and expenses | 338 | 355 | (17) | -4.8 | |||||||||||||||||||
Directors' deferred compensation plan expense (credit) | 138 | (220) | 358 | -162.7 | |||||||||||||||||||
Loss on disposal of fixed assets | 3 | 2 | 1 | 50.0 | |||||||||||||||||||
Other | 1,868 | 1,693 | 175 | 10.3 | |||||||||||||||||||
Total other operating expense | $ | 40,576 | $ | 42,107 | $ | (1,531) | -3.6 | ||||||||||||||||
(dollars in thousands) | March 31, 2024 | December 31, 2023 | $ Change | % Change | ||||||||||||||||||||||
Hawaii: | ||||||||||||||||||||||||||
Commercial and industrial | $ | 420,009 | $ | 421,736 | $ | (1,727) | (0.4) | % | ||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 145,213 | 163,337 | (18,124) | (11.1) | ||||||||||||||||||||||
Residential mortgage | 1,924,889 | 1,927,789 | (2,900) | (0.2) | ||||||||||||||||||||||
Home equity | 729,210 | 736,524 | (7,314) | (1.0) | ||||||||||||||||||||||
Commercial mortgage | 1,103,174 | 1,063,969 | 39,205 | 3.7 | ||||||||||||||||||||||
Consumer | 306,563 | 322,346 | (15,783) | (4.9) | ||||||||||||||||||||||
Total loans | 4,629,058 | 4,635,701 | (6,643) | (0.1) | ||||||||||||||||||||||
Less: ACL | (48,739) | (48,189) | (550) | 1.1 | ||||||||||||||||||||||
Loans, net of ACL | $ | 4,580,319 | $ | 4,587,512 | $ | (7,193) | (0.2) | |||||||||||||||||||
U.S. Mainland: | ||||||||||||||||||||||||||
Commercial and industrial | $ | 156,087 | $ | 153,971 | $ | 2,116 | 1.4 | |||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 23,356 | 22,182 | 1,174 | 5.3 | ||||||||||||||||||||||
Commercial mortgage | 319,088 | 318,933 | 155 | — | ||||||||||||||||||||||
Consumer | 273,828 | 308,195 | (34,367) | (11.2) | ||||||||||||||||||||||
Total loans | 772,359 | 803,281 | (30,922) | (3.8) | ||||||||||||||||||||||
Less: ACL | (14,793) | (15,745) | 952 | (6.0) | ||||||||||||||||||||||
Loans, net of ACL | $ | 757,566 | $ | 787,536 | $ | (29,970) | (3.8) | |||||||||||||||||||
Total: | ||||||||||||||||||||||||||
Commercial and industrial | $ | 576,096 | $ | 575,707 | $ | 389 | 0.1 | |||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 168,569 | 185,519 | (16,950) | (9.1) | ||||||||||||||||||||||
Residential mortgage | 1,924,889 | 1,927,789 | (2,900) | (0.2) | ||||||||||||||||||||||
Home equity | 729,210 | 736,524 | (7,314) | (1.0) | ||||||||||||||||||||||
Commercial mortgage | 1,422,262 | 1,382,902 | 39,360 | 2.8 | ||||||||||||||||||||||
Consumer | 580,391 | 630,541 | (50,150) | (8.0) | ||||||||||||||||||||||
Total loans | 5,401,417 | 5,438,982 | (37,565) | (0.7) | ||||||||||||||||||||||
Less: ACL | (63,532) | (63,934) | 402 | (0.6) | ||||||||||||||||||||||
Loans, net of ACL | $ | 5,337,885 | $ | 5,375,048 | $ | (37,163) | (0.7) |
(dollars in thousands) | March 31, 2024 | December 31, 2023 | $ Change | % Change | |||||||||||||||||||
Nonperforming Assets ("NPAs") | |||||||||||||||||||||||
Nonaccrual loans: | |||||||||||||||||||||||
Commercial and industrial | $ | 357 | $ | 432 | $ | (75) | (17.4) | % | |||||||||||||||
Real estate: | |||||||||||||||||||||||
Residential mortgage | 7,979 | 4,962 | 3,017 | 60.8 | |||||||||||||||||||
Home equity | 929 | 834 | 95 | 11.4 | |||||||||||||||||||
Commercial mortgage | 77 | 77 | — | — | |||||||||||||||||||
Consumer | 790 | 703 | 87 | 12.4 | |||||||||||||||||||
Total nonaccrual loans | 10,132 | 7,008 | 3,124 | 44.6 | |||||||||||||||||||
Other real estate owned ("OREO") | — | — | — | — | |||||||||||||||||||
Total NPAs | 10,132 | 7,008 | 3,124 | 44.6 | |||||||||||||||||||
Accruing Loans 90+ Days Past Due | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 588 | — | 588 | — | |||||||||||||||||||
Residential mortgage | 386 | — | 386 | — | |||||||||||||||||||
Home equity | 560 | 229 | 331 | 144.5 | |||||||||||||||||||
Consumer | 924 | 1,083 | (159) | (14.7) | |||||||||||||||||||
Total accruing loans 90+ days past due | 2,458 | 1,312 | 1,146 | 87.3 | |||||||||||||||||||
Total NPAs and accruing loans 90+ days past due | $ | 12,590 | $ | 8,320 | $ | 4,270 | 51.3 | ||||||||||||||||
Ratio of nonaccrual loans to total loans | 0.19 | % | 0.13 | % | 0.06 | % | |||||||||||||||||
Ratio of NPAs to total assets | 0.14 | 0.09 | 0.05 | ||||||||||||||||||||
Ratio of NPAs and accruing loans 90+ days past due to total loans and OREO | 0.23 | 0.15 | 0.08 | ||||||||||||||||||||
Ratio of classified assets and OREO to tier 1 capital and ACL | 3.28 | 3.41 | (0.13) | ||||||||||||||||||||
(dollars in thousands) | |||||
Balance at December 31, 2023 | $ | 7,008 | |||
Additions | 4,792 | ||||
Reductions: | |||||
Payments | (263) | ||||
Return to accrual status | (198) | ||||
Net charge-offs, valuation and other adjustments | (1,207) | ||||
Total reductions | (1,668) | ||||
Net increase | 3,124 | ||||
Balance at March 31, 2024 | $ | 10,132 |
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2024 | 2023 | |||||||||
Allowance for Credit Losses: | |||||||||||
Balance at beginning of period | $ | 63,934 | $ | 63,738 | |||||||
Provision (credit) for credit losses on loans | 4,121 | 1,615 | |||||||||
Charge-offs: | |||||||||||
Commercial and industrial | (682) | (779) | |||||||||
Consumer | (4,838) | (2,686) | |||||||||
Total charge-offs | (5,520) | (3,465) | |||||||||
Recoveries: | |||||||||||
Commercial and industrial | 90 | 250 | |||||||||
Real estate: | |||||||||||
Residential mortgage | 8 | 53 | |||||||||
Home equity | 6 | — | |||||||||
Consumer | 893 | 908 | |||||||||
Total recoveries | 997 | 1,211 | |||||||||
Net charge-offs | (4,523) | (2,254) | |||||||||
Balance at end of period | $ | 63,532 | $ | 63,099 | |||||||
Average loans, net of deferred fees and costs | $ | 5,400,558 | $ | 5,525,988 | |||||||
Ratio of annualized net charge-offs to average loans | 0.34 | % | 0.16 | % | |||||||
Ratio of ACL to total loans | 1.18 | % | 1.14 | % | |||||||
(dollars in thousands) | March 31, 2024 | December 31, 2023 | $ Change | % Change | |||||||||||||||||||
Noninterest-bearing demand deposits | $ | 1,848,554 | $ | 1,913,379 | $ | (64,825) | (3.4) | % | |||||||||||||||
Interest-bearing demand deposits | 1,290,321 | 1,329,189 | (38,868) | (2.9) | |||||||||||||||||||
Savings and money market deposits | 2,211,966 | 2,209,733 | 2,233 | 0.1 | |||||||||||||||||||
Time deposits up to $250,000 | 544,600 | 533,898 | 10,702 | 2.0 | |||||||||||||||||||
Core deposits | 5,895,441 | 5,986,199 | (90,758) | (1.5) | |||||||||||||||||||
Government time deposits | 235,463 | 374,581 | (139,118) | (37.1) | |||||||||||||||||||
Other time deposits greater than $250,000 | 487,950 | 486,812 | 1,138 | 0.2 | |||||||||||||||||||
Total time deposits greater than $250,000 | 723,413 | 861,393 | (137,980) | (16.0) | |||||||||||||||||||
Total deposits | $ | 6,618,854 | $ | 6,847,592 | $ | (228,738) | (3.3) | ||||||||||||||||
(dollars in thousands) | March 31, 2024 | ||||
Remaining maturity: | |||||
Three months or less | $ | 336,961 | |||
Over three through twelve months | 380,348 | ||||
Over one year through three years | 6,104 | ||||
Over three years | — | ||||
Total | $ | 723,413 |
Actual | Minimum Required for Capital Adequacy Purposes | Minimum Required to be Well Capitalized | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio [1] | Amount | Ratio | ||||||||||||||||||||||||||||||||
Central Pacific Financial Corp. | ||||||||||||||||||||||||||||||||||||||
March 31, 2024 | ||||||||||||||||||||||||||||||||||||||
Leverage capital | $ | 681,094 | 9.0 | % | $ | 302,735 | 4.0 | % | N/A | N/A | ||||||||||||||||||||||||||||
Tier 1 risk-based capital | 681,094 | 12.6 | 325,055 | 6.0 | N/A | N/A | ||||||||||||||||||||||||||||||||
Total risk-based capital | 803,146 | 14.8 | 433,407 | 8.0 | N/A | N/A | ||||||||||||||||||||||||||||||||
CET1 risk-based capital | 631,094 | 11.6 | 243,792 | 4.5 | N/A | N/A | ||||||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Leverage capital | $ | 676,536 | 8.8 | % | $ | 305,843 | 4.0 | % | N/A | N/A | ||||||||||||||||||||||||||||
Tier 1 risk-based capital | 676,536 | 12.4 | 328,609 | 6.0 | N/A | N/A | ||||||||||||||||||||||||||||||||
Total risk-based capital | 799,175 | 14.6 | 438,146 | 8.0 | N/A | N/A | ||||||||||||||||||||||||||||||||
CET1 risk-based capital | 626,536 | 11.4 | 246,457 | 4.5 | N/A | N/A | ||||||||||||||||||||||||||||||||
Central Pacific Bank | ||||||||||||||||||||||||||||||||||||||
March 31, 2024 | ||||||||||||||||||||||||||||||||||||||
Leverage capital | $ | 706,490 | 9.4 | % | $ | 302,238 | 4.0 | % | $ | 377,798 | 5.0 | % | ||||||||||||||||||||||||||
Tier 1 risk-based capital | 706,490 | 13.1 | 324,309 | 6.0 | 432,411 | 8.0 | ||||||||||||||||||||||||||||||||
Total risk-based capital | 773,542 | 14.3 | 432,411 | 8.0 | 540,514 | 10.0 | ||||||||||||||||||||||||||||||||
CET1 risk-based capital | 706,490 | 13.1 | 243,231 | 4.5 | 351,334 | 6.5 | ||||||||||||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
Leverage capital | $ | 704,512 | 9.2 | % | $ | 305,375 | 4.0 | % | $ | 381,719 | 5.0 | % | ||||||||||||||||||||||||||
Tier 1 risk-based capital | 704,512 | 12.9 | 327,902 | 6.0 | 437,203 | 8.0 | ||||||||||||||||||||||||||||||||
Total risk-based capital | 772,151 | 14.1 | 437,203 | 8.0 | 546,503 | 10.0 | ||||||||||||||||||||||||||||||||
CET1 risk-based capital | 704,512 | 12.9 | 245,926 | 4.5 | 355,227 | 6.5 |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||
Estimated Net Interest Income Sensitivity | Estimated Net Interest Income Sensitivity | |||||||||||||||||||||||||
Rate Change | Gradual | Instantaneous | Gradual | Instantaneous | ||||||||||||||||||||||
+200 bps | 0.38 | % | 0.62 | % | 1.00 | % | 1.61 | % | ||||||||||||||||||
+100bps | 0.10 | % | 0.33 | % | 0.39 | % | 0.68 | % | ||||||||||||||||||
-100bps | (1.03) | % | (1.93) | % | (1.26) | % | (1.73) | % | ||||||||||||||||||
-200 bps | (2.33) | % | (4.28) | % | (2.53) | % | (3.59) | % | ||||||||||||||||||
Issuer Purchases of Equity Securities | ||||||||||||||||||||||||||
Period | Total Number of Shares Purchased [1] | Average Price Paid per Share | Total Shares Purchased as Part of Publicly Announced Programs | Maximum Dollar Value of Shares That May Yet Be Purchased Under the Program | ||||||||||||||||||||||
January 1-31, 2024 | — | $ | — | — | $ | 20,000,000 | ||||||||||||||||||||
February 1-29, 2024 | 67,299 | 19.11 | 42,660 | 19,190,275 | ||||||||||||||||||||||
March 1-31, 2024 | 7,300 | 18.54 | 7,300 | 19,054,953 | ||||||||||||||||||||||
Total | 74,599 | $ | 19.05 | 49,960 | 19,054,953 |
Exhibit No. | Document | |||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.1 | Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline Extensible Business Reporting Language (“Inline XBRL”) * | |||||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101.1) | |||||||
* | Filed herewith. | |||||||
** | Furnished herewith. | |||||||
CENTRAL PACIFIC FINANCIAL CORP. | ||||||||
(Registrant) | ||||||||
Date: | April 24, 2024 | /s/ Arnold D. Martines | ||||||
Arnold D. Martines | ||||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
/s/ David S. Morimoto | ||||||||
David S. Morimoto | ||||||||
Senior Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
Date: | April 24, 2024 | /s/ Arnold D. Martines | ||||||
Arnold D. Martines | ||||||||
Director, | ||||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: | April 24, 2024 | /s/ David S. Morimoto | ||||||
David S. Morimoto | ||||||||
Senior Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
Date: | April 24, 2024 | /s/ Arnold D. Martines | ||||||
Arnold D. Martines | ||||||||
Director, | ||||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: | April 24, 2024 | /s/ David S. Morimoto | ||||||
David S. Morimoto | ||||||||
Senior Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Held to maturity debt securities, fair value | $ 541,685 | $ 565,178 |
Unamortized debt issuance costs | $ 384 | $ 445 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 185,000,000 | 185,000,000 |
Common stock, issued (in shares) | 27,042,326 | 27,045,033 |
Common stock, outstanding (in shares) | 27,042,326 | 27,045,033 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 12,945 | $ 16,187 |
Other comprehensive income (loss), net of tax: | ||
Net change in fair value of available-for-sale investment securities | (5,180) | 11,206 |
Amortization of unrealized losses on investment securities transferred to held-to-maturity | 1,206 | 1,225 |
Net change in fair value of derivatives | 2,247 | (1,163) |
Supplemental Executive Retirement Plans | 0 | (12) |
Total other comprehensive income (loss), net of tax | (1,727) | 11,256 |
Comprehensive income | $ 11,218 | $ 27,443 |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.26 | $ 0.26 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements of Central Pacific Financial Corp. and Subsidiaries (herein referred to as the "Company," "we," "us," or "our") have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements and notes should be read in conjunction with the Company's consolidated financial statements and notes thereto filed on Form 10-K for the fiscal year ended December 31, 2023. In the opinion of management, all adjustments necessary for a fair presentation have been made and include all normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year. Allowance for Credit Losses for Loans The allowance for credit losses ("ACL") for loans is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on loans. The Company’s policy is to charge off a loan against the ACL during the period in which the loan is deemed to be uncollectible and all interest previously accrued but uncollected, is reversed against current period interest income. Subsequent receipts, if any, are credited first to the remaining principal, then to the ACL for loans as recoveries, and finally to interest income. The ACL for loans represents management's estimate of all expected credit losses over the expected life of the Company’s loan portfolio as of a given balance sheet date. Management estimates the ACL balance using relevant information available from both internal and external sources, regarding the collectability of cash flows impacted by past events, current conditions, and reasonable and supportable forecasts of future economic conditions. When the Company is unable to forecast future economic events, management may revert to historical information. The Company's ACL model incorporates a reasonable and supportable forecast period of one year and reverts to historical loss information on a straight-line basis over one year when its forecast is no longer deemed reasonable and supportable. Historical loss experience provides the basis for the Company’s expected credit loss estimate. Adjustments to historical loss information may be made for differences in current loan-specific risk characteristics, such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated. The Company's ACL model may also consider other adjustments to address changes in conditions, trends, and circumstances such as local industry changes that could have a significant impact on the risk profile of the loan portfolio and provide for adjustments that may not be reflected or captured in the historical loss data. These factors include: lending policies, imprecision in forecasting future economic conditions, loan profile, lending staff, problem loan trends, loan review, collateral, credit concentration, or other internal and external factors. The Company uses Moody’s Analytics ("Moody's"), a firm widely recognized and used for its research, analysis, and economic forecasts, for its economic forecast assumptions. The Company generally uses Moody’s most recent Baseline forecast, which is updated at least monthly with a variety of upside and downside economic scenarios and includes both national and Hawaii-specific economic indicators. During times of economic and market volatility or instability, the Company may include a qualitative factor for forecast imprecision. The ACL for loans is measured on a collective or pool basis when similar risk characteristics exist. The Company segments its portfolio generally by the loan categories in the Federal Financial Institutions Examination Council ("FFIEC") Call Report. The following is a description and the risk characteristics of each segment: Commercial and industrial loans - SBA Paycheck Protection Program loans Paycheck Protection Program (“PPP”) loans are considered lower risk as they are guaranteed by the Small Business Administration (“SBA”) and may be forgivable in whole or in part in accordance with the requirements of the PPP. Commercial and industrial loans - Others Commercial and industrial loans consist primarily of term loans and lines of credit to small- and middle-market businesses and professionals. The predominant risk characteristics of this segment are the cash flows of the business we lend to, global cash flows including guarantor liquidity, as well as economic and market conditions. Although our underwriting policy and practice generally requires secondary sources of support or collateral to mitigate risk, cash flow generated from the borrower’s business is typically regarded as the principal source of repayment. Construction loans Construction loans include both residential and commercial development projects. Each construction project is evaluated for economic viability and construction loans pose higher credit risks than typical secured loans. Financial strength of the borrower, completion risk (the risk that the project will not be completed on time and within budget) and geographic location are the predominant risk characteristics of this segment. Commercial real estate loans - Multi-family Multi-family mortgage loans can comprise multi-building properties with extensive amenities or a single building with no amenities. The predominant risk characteristic of this segment is operating risk or the ability to generate sufficient rental income from the operation of the property. Commercial real estate loans - Others Commercial real estate loans are secured by commercial properties. The predominant risk characteristic of this segment is operating risk, which is the risk that the borrower will be unable to generate sufficient cash flows from the operation of the property. Interest rate conditions and the commercial real estate market through economic cycles also impact risk levels. Residential mortgage loans Residential mortgage loans primarily includes fixed-rate or adjustable-rate loans secured by single-family owner-occupied primary residences in Hawaii. Economic conditions such as unemployment levels, future changes in interest rates, Hawaii home prices and other market factors impact the level of credit risk inherent in the portfolio. Home equity lines of credit Home equity lines of credit include fixed or floating interest rate loans and are also primarily secured by single-family owner-occupied primary residences in Hawaii. They are underwritten based on a minimum FICO score, maximum debt-to-income ratio, and maximum combined loan-to-value ratio. Home equity lines of credit are monitored based on credit score, delinquency, end of draw period and maturity. Consumer loans - Other revolving Other revolving consumer loans consist of unsecured consumer lines of credit. The predominant risk characteristics of this segment relate to current and projected economic conditions, as well as employment and income levels attributed to the borrower. Consumer loans - Non-revolving Non-revolving consumer loans consist of non-revolving (term) consumer loans, including automobile dealer loans. The predominant risk characteristics of this segment relate to current and projected economic conditions, as well as employment and income levels attributed to the borrower. Purchased consumer loans Purchased consumer loans consist of dealer and unsecured consumer loans. Credit risk for purchased consumer loans is managed on a pooled basis. The predominant risk characteristics of this segment include current and projected economic conditions, employment and income levels, and the quality of purchased consumer loans. The following table presents the Company's loan portfolio segments and the methodology used to measure expected credit losses. The historical look-back period is 2008 to present, economic forecast length is one year and the reversion method is one year (on a straight-line basis) for all segments.
During the third quarter of 2023, the Company updated its methodology to measure expected credit losses from the Probability of Default/Loss Given Default ("PD/LGD") or Loss-Rate Migration methods to the Discounted Cash Flow ("DCF") method for all segments except the SBA PPP and purchased consumer loan segments. The Company believes that the DCF methodology has better alignment with the Current Expected Credit Losses ("CECL") standard for forward looking forecasting, while also factoring in more detailed assumptions. At the time of the methodology update, the Company ran the ACL model under both the current and previous methodologies and noted that the changes to the ACL model and the differences in methodologies did not result in a material impact to the Company's financial statements and as a percentage of the ACL. The Company is utilizing an industry leading software platform to perform the DCF analysis using a historical look back period of 2008 to present. The Company continues to use the Moody's baseline forecast with an economic forecast length of one year and a one-year, straight-line reversion method. We revert to the historical average of the macroeconomic variables being used. Forecast models exclude the post-2019 COVID-19 pandemic period due to abnormal and volatile behavior. The ACL on the purchased consumer loan portfolios continues to be calculated using the Remaining Life methodology (also known as the Weighted Average Remaining Maturity or "WARM" methodology) as this portfolio is evaluated on a pooled basis. Because SBA PPP loans are guaranteed by the SBA and may be forgivable in whole or in part in accordance with the requirements of the PPP we anticipate zero losses on these loans and accordingly apply a Zero Loss methodology. The following is a description of the methodologies utilized to measure expected credit losses from the third quarter of 2023 to present: Discounted Cash Flow The DCF methodology calculates CECL reserves as the difference between the amortized cost of a loan and the discounted expected value of future cash flows. Expected future cash flows are calculated based on assumptions of PD/LGD, prepayments and recovery rates, and are discounted using the loan’s effective interest rate. Remaining Life or Weighted Average Remaining Life Under the remaining life or WARM methodology, lifetime losses are calculated by determining the remaining life of the loan pool, and then applying a loss rate over this remaining life of the loan. The methodology considers historical loss experience to estimate credit losses for the remaining balance of the loan pool. The calculated loss rate is applied to the contractual term (adjusted for prepayments) to determine the loan pool’s current expected credit losses. The following is a description of the methodologies utilized to measure expected credit losses as of June 30, 2023 and prior: Probability of Default/Loss Given Default The PD/LGD calculation is based on a cohort methodology whereby loans in the same cohort are tracked over time to identify defaults and corresponding losses. PD/LGD analysis requires a portfolio segmented into pools, and we elected to then further sub-segment by risk characteristics such as Risk Rating, loans modified for borrowers experiencing financial difficulty, TDRs prior to the adoption of ASU 2022-02 and nonaccrual status to measure losses accurately. PD measures the count or dollar amount of loans that defaulted in a given cohort. LGD measures the losses related to the loans that defaulted. Total loss rate is calculated using the formula 'PD times LGD'. Loss-Rate Migration Loss-rate migration analysis is a cohort-based approach that measures cumulative net charge-offs over a defined time-horizon to calculate a loss rate that will be applied to the loan pool. Loss-rate migration analysis requires the portfolio to be segmented into pools then further sub-segmented by risk characteristics such as days past due, delinquency counters, loans modified for borrowers experiencing financial difficulty, TDRs prior to the adoption of ASU 2022-02 and nonaccrual status to measure loss rates accurately. The key inputs to run a loss-rate migration analysis are the length and frequency of the migration period, the dates for the migration periods to start and the number of migration periods used for the analysis. For each migration period, the analysis will determine the outstanding balance in each segment and/or sub-segment at the start of each period. These loans will then be followed for the length of the migration period to identify the amount of associated charge-offs and recoveries. A loss rate for each migration period is calculated using the formula: net charge-offs over the period divided by beginning loan balance. Other Under both the previous and current methodologies utilized to measure expected credit losses, if a loan ceases to share similar risk characteristics with other loans in its segment, it will be moved to a different pool sharing similar risk characteristics. Loans that do not share risk characteristics are evaluated on an individual basis based on the fair value of the collateral or other approaches such as the discounted cash flows methodology. Individually evaluated loans are not included in the collective evaluation. Impact of Other Recently Issued Accounting Pronouncements on Future Filings In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures". ASU 2023-09 expands existing income tax disclosures for rate reconciliations by requiring disclosure of certain specific categories in the rate reconciliation, as well as additional qualitative information about the reconciliation, and additional disaggregated information about income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and is to be applied on a prospective basis. The Company does not expect ASU 2023-09 to have a material impact on its consolidated financial statements.
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INVESTMENT SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES | 2. INVESTMENT SECURITIES The amortized cost, gross unrecognized/unrealized gains and losses, fair value and related ACL on available-for-sale ("AFS") and held-to-maturity ("HTM") debt securities at March 31, 2024 and December 31, 2023 are as follows:
In 2022, the Company transferred 81 investment securities that were classified as AFS to HTM. The investment securities had an amortized cost basis of $762.7 million and a fair market value of $673.2 million. On the date of transfers, these securities had a total net unrealized loss of $89.5 million. There was no impact to net income as a result of the reclassifications. The Company did not transfer any investment securities that were classified as AFS to HTM during 2023 and in the three months ended March 31, 2024. During the three months ended March 31, 2024 and 2023, the Company recorded a total of $1.6 million and $1.7 million, respectively, in amortization of unrecognized losses on the aforementioned investment securities transferred from AFS to HTM. Upon adoption of ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” the Company elected to exclude accrued interest receivable from the amortized cost basis of debt securities and report on AFS debt securities together with accrued interest receivable on HTM securities and loans in the consolidated balance sheets. The Company also elected to not measure an estimate of credit losses on accrued interest receivable as the Company writes off any uncollectible accrued interest receivable in a timely manner. Accrued interest receivable on AFS debt securities totaled $2.9 million and $3.2 million as of March 31, 2024 and December 31, 2023, respectively. Accrued interest receivable on HTM debt securities totaled $1.2 million and $1.2 million as of March 31, 2024 and December 31, 2023, respectively. The amortized cost, estimated fair value and weighted average yield of our AFS and HTM debt securities at March 31, 2024, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
(1)Weighted-average yields are computed on an annual basis, and yields on tax-exempt obligations are computed on a taxable-equivalent basis using a federal statutory tax rate of 21% The Company did not sell any investment securities during the three months ended March 31, 2024 and 2023. Investment securities with carrying values totaling $966.2 million and $990.4 million at March 31, 2024 and December 31, 2023, respectively, were pledged to secure public funds on deposit, Federal Reserve Bank borrowings and other financial transactions. There were no holdings of investment securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders' equity at March 31, 2024 and December 31, 2023. The following tables summarize AFS and HTM investment securities, which were in a loss position as of the dates presented, aggregated by major security type and length of time in a continuous loss position. There were a total of 220 and 208 AFS investment securities which were in an unrealized loss position, without an ACL, at March 31, 2024 and December 31, 2023, respectively. There were a total of 83 and 82 HTM investment securities which were in an unrecognized loss position, without an ACL, at March 31, 2024 and December 31, 2023, respectively.
Investment securities in an unrecognized or unrealized loss position are evaluated at least on a quarterly basis, and include evaluating the changes in the investment securities' ratings issued by rating agencies and changes in the financial condition of the issuer. For mortgage-related securities, delinquency and loss information with respect to the underlying collateral, changes in levels of subordination for the Company's particular position within the repayment structure, and remaining credit enhancement as compared to projected credit losses of the security are also evaluated. The Company has evaluated its AFS and HTM investment securities that are in an unrecognized or unrealized loss position and has determined that the unrecognized or unrealized losses on the Company's investment securities are unrelated to credit quality and primarily attributable to changes in interest rates and volatility in the financial markets since purchase. All of the investment securities in an unrecognized or unrealized loss position continue to be rated investment grade by one or more major rating agencies. The Company does not intend to sell the AFS and HTM securities that were in an unrecognized or unrealized loss position as of March 31, 2024 and December 31, 2023, and it is unlikely that the Company will be required to sell these securities before recovery of its amortized cost basis that may be at maturity. Therefore, the Company has not recorded an ACL on these securities and the unrecognized or unrealized losses on these securities have not been recognized into income.
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LOANS AND CREDIT QUALITY |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS AND CREDIT QUALITY | 3. LOANS AND CREDIT QUALITY The following table presents loans by class, excluding loans held for sale, net of deferred fees and costs as of the dates presented:
Interest income on loans is accrued at the contractual rate of interest on the unpaid principal balance. Accrued interest receivable on loans totaled $17.6 million and $17.1 million at March 31, 2024 and December 31, 2023, respectively, and was reported together with on the consolidated balance sheets. Accrued interest receivable on loans is excluded from the estimate of credit losses. The Company did not transfer any loans to the held for sale category during the three months ended March 31, 2024 and 2023 and did not sell any other loans originally held for investment during the three months ended March 31, 2024 and 2023. There were no loans categorized as purchased credit deteriorated ("PCD") as of March 31, 2024 and December 31, 2023. The following tables present loans purchased by class for the periods presented. No loan portfolios were purchased during the three months ended March 31, 2024.
Foreclosure Proceedings The Company did not own any foreclosed properties as of March 31, 2024 and December 31, 2023. The Company had $1.6 million and $2.3 million of residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure at March 31, 2024 and December 31, 2023, respectively. The Company had $0.1 million in commercial real estate loans in the process of foreclosure at March 31, 2024 and December 31, 2023. The Company did not sell any foreclosed properties during the three months ended March 31, 2024 and 2023. Nonaccrual and Past Due Loans For all loan types, the Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. The following tables present by class, the aging of the recorded investment in past due loans as of the dates presented. The following tables also present the amortized cost of loans on nonaccrual status for which there was no related ACL as of the dates presented:
Collateral-Dependent Loans In accordance with ASC 326, a loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following tables present the amortized cost basis of collateral-dependent loans by class, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of the dates presented:
Loan Modifications for Borrowers Experiencing Financial Difficulty Since the adoption of ASU 2022-02 on January 1, 2023 and during the three months ended March 31, 2024, the Company has not had any material modifications to loans either individually or in the aggregate for borrowers experiencing financial difficulty. Troubled Debt Restructurings Prior to the Adoption of ASU 2022-02 Prior to our adoption of ASU 2022-02, we accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a troubled debt restructuring ("TDR"). There were $0.9 million of TDRs included in nonperforming assets at March 31, 2024, which remained unchanged from December 31, 2023. There were $2.1 million of TDRs that were still accruing interest at March 31, 2024, which remained unchanged from December 31, 2023. None of the TDRs still accruing interest at March 31, 2024 and December 31, 2023 were more than 90 days delinquent. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans by credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk rating of loans. Pass. Loans classified as pass are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan agreement. Special Mention. Loans classified as special mention, while still adequately protected by the borrower's capital adequacy and payment capability, exhibit distinct weakening trends and/or elevated levels of exposure to external conditions. If left unchecked or uncorrected, these potential weaknesses may result in deteriorated prospects of repayment. These exposures require management's close attention so as to avoid becoming undue or unwarranted credit exposures. Substandard. Loans classified as substandard are inadequately protected by the borrower's current financial condition and payment capability or of the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the orderly repayment of debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimate loss is deferred until its more exact status may be determined. Loss. Loans classified as loss are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Losses are taken in the period in which they surface as uncollectible. The following tables present the amortized cost basis, net of deferred (fees) costs, of the Company's loans by class, credit quality indicator and origination year as of the dates presented. Revolving loans converted to term as of and during the periods presented were not material to the total loan portfolio. In addition, the following tables present gross charge-offs of loans by origination year during the periods presented.
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ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURES |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSSES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURES | 4. ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURES The following tables present by class, the activities in the ACL for loans during the periods presented:
In the three months ended March 31, 2024, we recorded a provision for credit losses of $3.9 million, which consisted of a provision for credit losses on loans of $4.1 million and a credit to the provision for credit losses on off-balance sheet credit exposures of $0.2 million. In the three months ended March 31, 2023, we recorded a provision for credit losses of $1.9 million, which consisted of a provision for credit losses on loans of $1.6 million and a provision for credit losses on off-balance sheet credit exposures of $0.3 million. The following table presents the activities in the reserve for off-balance sheet credit exposures, included in other liabilities, during the periods presented:
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INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES | 5. INVESTMENTS IN UNCONSOLIDATED ENTITIES The following table presents the components of the Company's investments in unconsolidated entities as of the dates presented:
The Company invests in low-income housing tax credit ("LIHTC") and other partnerships. The Company had commitments to fund LIHTC partnerships totaling $47.8 million as of March 31, 2024 and December 31, 2023. Unfunded commitments related to LIHTC partnerships totaled $14.3 million and $22.0 million at March 31, 2024 and December 31, 2023, respectively, and are included in other liabilities in the Company's consolidated balance sheets. The investments are accounted for under the proportional amortization method and are included in investments in unconsolidated entities in the Company's consolidated balance sheets. The following table presents the expected payments for the unfunded commitments of LIHTC and other partnerships as of March 31, 2024, for the remainder of fiscal year 2024, the next five succeeding fiscal years, and all years thereafter:
The following table presents amortization and tax credits recognized associated with our investments in LIHTC partnerships for the periods presented:
In 2021, the Company committed $2.0 million to the JAM FINTOP Banktech Fund, L.P. The Company does not have the ability to exercise significant influence over the JAM FINTOP Banktech Fund, L.P. and the investment does not have a readily determinable fair value. As a result, the Company determined that the cost method of accounting for the investment was appropriate. The Company had $0.9 million and $1.0 million in unfunded commitments related to the investment as of March 31, 2024 and December 31, 2023, respectively, which was recorded in other liabilities. During the first quarter of 2022, the Company invested $2.0 million in Swell Financial, Inc. ("Swell"). The Company did not have the ability to exercise significant influence over Swell and the investment did not have a readily determinable fair value. As a result, the Company determined that the cost method of accounting for the investment was appropriate. During the third quarter of 2023, the Company entered into a transaction with Swell whereby Swell repurchased the Company’s entire preferred and common stock equity investment in exchange for $0.5 million in cash and certain intellectual property rights and a platform usage fee agreement related to products that may be launched by Swell or its affiliates in the future (not to exceed $1.5 million in value). Due to the aforementioned events, the Company performed an impairment analysis and concluded the intellectual property rights and the platform usage fee agreement received in exchange for the Company's investment in Swell were not impaired as of March 31, 2024 and December 31, 2023. The intangible assets, net of accumulated amortization, totaling $1.4 million and $1.5 million are included in other assets on the Company's consolidated balance sheet as of March 31, 2024 and December 31, 2023, respectively.
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MORTGAGE SERVICING RIGHTS |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MORTGAGE SERVICING RIGHTS | 6. MORTGAGE SERVICING RIGHTS The following table presents changes in mortgage servicing rights ("MSR") for the periods presented:
Income generated as the result of new MSR is reported as gains on sales of loans and totaled $0.1 million for the three months ended March 31, 2024 and March 31, 2023. Amortization of MSR totaled $0.2 million for the three months ended March 31, 2024 and March 31, 2023. The following table presents the fair market value and key assumptions used in determining the fair market value of MSR as of the dates presented:
The following table presents carrying values and accumulated amortization related to MSR as of the dates presented:
The following table presents the estimated amortization expense for the remainder of fiscal year 2024, the next five succeeding fiscal years, and all years thereafter, based on MSR held as of March 31, 2024:
The Company performs an impairment assessment of its MSR whenever events or changes in circumstance indicate that the carrying value of the MSR may not be recoverable.
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DERIVATIVES |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES | 7. DERIVATIVES The Company utilizes various designated and undesignated derivative financial instruments to reduce its exposure to movements in interest rates. The Company measures all derivatives at fair value on its consolidated balance sheet. In each reporting period, the Company records the derivative instruments in other assets or other liabilities depending on whether the derivatives are in an asset or liability position. For derivative instruments that are designated as cash flow hedging instruments, the Company records the effective portion of the changes in the fair value of the derivative in accumulated other comprehensive income (loss) ("AOCI"), net of tax, until earnings are affected by the variability of cash flows of the hedged transaction. The Company immediately recognizes the portion of the gain or loss in the fair value of the derivative that represents hedge ineffectiveness in current period earnings. For derivative instruments that are not designated as hedging instruments, changes in the fair value of the derivative are included in current period earnings. Derivative financial instruments are subject to credit and counterparty risk, which is defined as the risk of financial loss if a borrower or counterparty is either unable or unwilling to repay borrowings or settle transactions in accordance with the underlying contractual terms. Credit and counterparty risks associated with derivative financial instruments are similar to those relating to traditional financial instruments. The Company manages derivative credit and counterparty risk by evaluating the creditworthiness of each borrower or counterparty and requiring collateral where appropriate. Interest Rate Lock and Forward Sale Commitments The Company enters into interest rate lock commitments on certain mortgage loans that are intended to be sold. To manage interest rate risk on interest rate lock commitments, the Company also enters into forward loan sale commitments on the loans that are intended to be sold. The interest rate lock and forward loan sale commitments are accounted for as undesignated derivatives and are recorded at their respective fair values in other assets and other liabilities, with changes in fair value recorded in current period earnings. These instruments serve to reduce the Company's exposure to movements in interest rates. The Company was party to interest rate lock commitments on $0.8 million and $1.8 million of mortgage loans at March 31, 2024 and December 31, 2023, respectively. The Company was not a party to any forward sale commitments on mortgage loans at March 31, 2024 and December 31, 2023. Risk Participation Agreements The Company enters into credit risk participation agreements ("RPA") with financial institution counterparties for interest rate swaps related to loans in which it participates. The RPAs entered into by us and a participant bank provide credit protection to the financial institution counterparties should the borrowers fail to perform on their interest rate derivative contracts with the financial institutions. The RPAs are accounted for as undesignated derivatives and are recorded at fair value, with changes in fair value recorded in current period earnings. The Company was party to RPAs with total notional amounts of $35.8 million and $36.0 million at March 31, 2024 and December 31, 2023, respectively. The fair value of the RPAs was insignificant to the consolidated financial statements at March 31, 2024 and December 31, 2023. Back-to-Back Swap Agreements The Company established a program whereby it originates a variable rate loan and enters into a variable-to-fixed interest rate swap with the customer. The Company also enters into an equal and offsetting swap with a highly rated third-party financial institution. These "back-to-back swap agreements" are intended to offset each other and allow the Company to originate a variable rate loan, while providing a contract for fixed interest payments for the customer. The net cash flow for the Company is equal to the interest income received from a variable rate loan originated with the customer. These back-to-back swap agreements are free-standing derivatives and recorded at fair value on our consolidated balance sheet in other assets or other liabilities. The Company was party to swap agreements with its borrowers with total notional amounts of $50.9 million and $51.1 million at March 31, 2024 and December 31, 2023, respectively, offset by swap agreements with third party financial institutions with the same total notional amounts. The Company received $13.8 million and $9.6 million in counter-party cash collateral related to the back-to-back swap agreements at March 31, 2024 and December 31, 2023, respectively. Interest Rate Swaps During the first quarter of 2022, the Company entered into a forward starting interest rate swap, with an effective date of March 31, 2024. This transaction had a notional amount of $115.5 million and was designated as a fair value hedge of certain municipal debt securities. The Company pays the counterparty a fixed rate of 2.095% and receives a floating rate based on the Federal Funds effective rate. The fair value hedge has a maturity date of March 31, 2029. The interest rate swap is carried on the Company’s consolidated balance sheet at its fair value in other assets (when the fair value is positive) or in other liabilities (when the fair value is negative). The changes in the fair value of the interest rate swap are recorded in interest income. The unrealized gains or losses due to changes in fair value of the hedged debt securities due to changes in benchmark interest rates are recorded as an adjustment to the hedged debt securities and offset in the same interest income line item. The following tables present the location of all assets and liabilities associated with our derivative instruments within the consolidated balance sheets as of the dates presented:
The following tables present the impact of derivative instruments and their location within the consolidated statements of income for the periods presented:
The following table presents the amounts recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges as of the periods presented:
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SHORT-TERM BORROWINGS AND LONG-TERM DEBT |
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SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 8. SHORT-TERM BORROWINGS AND LONG-TERM DEBT Federal Home Loan Bank Advances and Other Borrowings The Bank is a member of the Federal Home Loan Bank of Des Moines (the "FHLB") and maintained a $1.93 billion line of credit as of March 31, 2024, which remained unchanged from December 31, 2023. At March 31, 2024, $1.80 billion was undrawn under this arrangement, compared to $1.81 billion at December 31, 2023. There were no short-term borrowings under this arrangement at March 31, 2024 and December 31, 2023. There were $50.0 million in long-term advances under the FHLB arrangement bearing interest rates between 4.02% and 4.62% at March 31, 2024 and December 31, 2023. The FHLB provides standby letters of credit on behalf of the Bank to secure certain public deposits. If the FHLB is required to make a payment on a standby letter of credit, the payment amount is converted to an advance at the FHLB. Standby letters of credit under this arrangement that are used to collateralize certain government deposits totaled $75.0 million as of March 31, 2024, compared to $72.0 million as of December 31, 2023. In accordance with the collateral provisions of the Advances, Security and Deposit Agreement with the FHLB, the FHLB advances and standby letters of credit available at March 31, 2024 and December 31, 2023 were secured by certain real estate loans with a carrying value of approximately $3.16 billion. The Bank had additional unused borrowings available at the Federal Reserve Discount Window of $241.0 million and $285.8 million at March 31, 2024 and December 31, 2023, respectively. Certain commercial and commercial real estate loans with a par value totaling $133.4 million and $135.1 million at March 31, 2024 and December 31, 2023, respectively, were pledged as collateral on our line of credit with the Federal Reserve. In addition, investment securities with a par value of $194.0 million and $196.7 million as of March 31, 2024 and December 31, 2023, respectively, were pledged to the Federal Reserve in support of the line of credit. The Federal Reserve does not have the right to sell or repledge these loans and investment securities. The Bank had an unused and unsecured credit line available at Pacific Coast Bankers' Bank ("PCBB") of $50.0 million at March 31, 2024 and December 31, 2023. The Bank had an additional unused unsecured credit line available at Wells Fargo of $25.0 million at March 31, 2024 and December 31, 2023. Subordinated Debentures The following table present's the Company's junior subordinated debentures outstanding, which are recorded in long-term debt on the Company's consolidated balance sheets as of the dates presented:
In September 2004, we created a wholly-owned statutory trust, CPB Capital Trust IV ("Trust IV"). Trust IV issued $30.0 million in floating rate trust preferred securities which bore an interest rate of three-month LIBOR plus 2.45% and maturing on December 15, 2034. The principal assets of Trust IV are $30.9 million of the Company's junior subordinated debentures with an identical interest rate and maturity as the Trust IV trust preferred securities. Trust IV issued $0.9 million of common securities to the Company. In December 2004, we created a wholly-owned statutory trust, CPB Statutory Trust V ("Trust V"). Trust V issued $20.0 million in floating rate trust preferred securities which bore an interest rate of three-month LIBOR plus 1.87% and maturing on December 15, 2034. The principal assets of Trust V are $20.6 million of the Company's junior subordinated debentures with an identical interest rate and maturity as the Trust V trust preferred securities. Trust V issued $0.6 million of common securities to the Company. On July 3, 2023, after the cessation of the LIBOR benchmark rate on June 30, 2023, the Company amended its Trust IV and Trust V debt agreements to replace the LIBOR-based reference rate with an adjusted CME Term Secured Overnight Financing Rate ("SOFR") plus a tenor spread adjustment. Accounting Standards Codification ("ASC") 848 allows us to account for the modification as a continuation of the existing contract without additional analysis. The Company is not considered the primary beneficiary of Trusts IV and V. Therefore, the trusts are not considered a variable interest entity and are not consolidated in the Company's financial statements. Rather the subordinated debentures are shown as a liability on the Company's consolidated balance sheets. The Company's investments in the common securities of the trusts are included in investment in unconsolidated entities in the Company's consolidated balance sheets. The floating trust preferred securities, the junior subordinated debentures that are the assets of Trusts IV and V and the common securities issued by Trusts IV and V are redeemable in whole or in part on any interest payment date on or after December 15, 2009 for Trust IV and V, or at any time in whole but not in part within 90 days following the occurrence of certain events. Our obligations with respect to the issuance of the trust preferred securities constitute a full and unconditional guarantee by the Company of each trust's obligations with respect to its trust preferred securities. Subject to certain exceptions and limitations, we may elect from time to time to defer interest payments on the subordinated debentures, which would result in a deferral of distribution payments on the related trust preferred securities, for up to 20 consecutive quarterly periods without default or penalty. The subordinated debentures may be included in Tier 1 capital, with certain limitations applicable, under current regulatory guidelines and interpretations. Subordinated Notes The following table presents the Company's subordinated notes outstanding as of the dates presented:
On October 20, 2020, the Company completed a $55.0 million private placement of ten-year fixed-to-floating rate subordinated notes, which will be used to support regulatory capital ratios and for general corporate purposes. The Company exchanged the privately placed notes for registered notes with the same terms and in the same aggregate principal amount at the end of the fourth quarter of 2020. The subordinated notes bear a fixed interest rate of 4.75% for the first five years through November 1, 2025 and will reset quarterly thereafter for the remaining five years to the then current three-month SOFR, as published by the Federal Reserve Bank of New York, plus 456 basis points. The subordinated notes may be included in Tier 2 capital, with certain limitations applicable, under current regulatory guidelines and interpretations. The subordinated notes had a carrying value of $54.6 million, net of unamortized debt issuance costs of $0.4 million, at March 31, 2024.
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REVENUE FROM CONTRACTS WITH CUSTOMERS |
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REVENUE FROM CONTRACTS WITH CUSTOMERS | The following table presents the Company's other operating income, segregated by revenue streams that are in-scope and out-of-scope of ASC 606, "Revenue from Contracts with Customers" for the periods presented:
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SHARE-BASED COMPENSATION |
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SHARE-BASED COMPENSATION | 10. SHARE-BASED COMPENSATION Restricted and Performance Stock Units Under the Company's 2023 Stock Compensation Plan, the Company awarded restricted stock units ("RSUs") and performance stock units ("PSUs") to certain non-officer directors and senior management personnel. The awards typically vest over a -, - or five-year period from the date of grant and are subject to forfeiture until performance and employment targets are achieved. Compensation expense is typically measured as the market price of the stock awards on the grant date, and is recognized over the specified vesting periods. The following table presents the activities of RSUs and PSUs for the three months ended March 31, 2024:
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SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS |
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PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS | 11. SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS In 1995, 2001, 2004 and 2006, the Bank established Supplemental Executive Retirement Plans ("SERP"), which provide certain (current and former) officers of the Company with supplemental retirement benefits. On December 31, 2002, the 1995 and 2001 SERP were curtailed. In conjunction with the September 2004 merger with CB Bancshares, Inc. ("CBBI"), the Company assumed CBBI's SERP obligation. The projected benefit obligation of the unfunded SERP is recorded in other liabilities on the Company's consolidated balance sheets. The projected benefit obligation was $9.2 million at March 31, 2024, which remained relatively unchanged from $9.3 million at December 31, 2023. The following table presents the components of net periodic benefit cost for the SERP for the periods presented:
All components of net periodic benefit cost are included in other operating expenses in the Company's consolidated statements of income.
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OPERATING LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | 12. OPERATING LEASES We lease certain land and buildings for our bank branches and ATMs. In some instances, a lease may contain renewal options to extend the term of the lease. Renewal options that are likely to be exercised have been recognized as part of our right-of-use assets and lease liabilities in accordance with ASC 842, "Leases". Certain leases also contain variable payments that are primarily determined based on common area maintenance costs and Hawaii state tax rates. All leases are operating leases and we do not include any short-term leases in the calculation of the right-of-use assets and lease liabilities. The most significant assumption related to the Company’s application of ASC 842 was the discount rate assumption. As most of the Company’s lease agreements do not provide for an implicit interest rate, the Company uses the collateralized interest rate that the Company would have to pay to borrow over a similar term to estimate the Company’s lease liabilities. The following table presents total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate for the periods presented:
The following table presents a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities as of March 31, 2024, for the remainder of fiscal year 2024, the next five succeeding fiscal years and all years thereafter:
In addition, the Company, as lessor, leases certain properties that it owns. All of these leases are operating leases. The following table presents lease income related to these leases that was recognized for the periods presented:
The following table presents estimated lease payments, based on the Company's leases as lessor as of March 31, 2024, for the remainder of fiscal year 2024, the next five succeeding fiscal years, and all years thereafter:
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LEASES | 12. OPERATING LEASES We lease certain land and buildings for our bank branches and ATMs. In some instances, a lease may contain renewal options to extend the term of the lease. Renewal options that are likely to be exercised have been recognized as part of our right-of-use assets and lease liabilities in accordance with ASC 842, "Leases". Certain leases also contain variable payments that are primarily determined based on common area maintenance costs and Hawaii state tax rates. All leases are operating leases and we do not include any short-term leases in the calculation of the right-of-use assets and lease liabilities. The most significant assumption related to the Company’s application of ASC 842 was the discount rate assumption. As most of the Company’s lease agreements do not provide for an implicit interest rate, the Company uses the collateralized interest rate that the Company would have to pay to borrow over a similar term to estimate the Company’s lease liabilities. The following table presents total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate for the periods presented:
The following table presents a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities as of March 31, 2024, for the remainder of fiscal year 2024, the next five succeeding fiscal years and all years thereafter:
In addition, the Company, as lessor, leases certain properties that it owns. All of these leases are operating leases. The following table presents lease income related to these leases that was recognized for the periods presented:
The following table presents estimated lease payments, based on the Company's leases as lessor as of March 31, 2024, for the remainder of fiscal year 2024, the next five succeeding fiscal years, and all years thereafter:
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables present the components of other comprehensive income (loss) for the periods presented:
The following tables present the changes in each component of accumulated other comprehensive income (loss), net of tax, for the periods presented:
The following tables present the amounts reclassified out of each component of AOCI for the periods presented:
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EARNINGS PER SHARE |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | 14. EARNINGS PER SHARE The following table presents the information used to compute basic and diluted earnings per share for the periods presented:
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FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 15. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Disclosures about Fair Value of Financial Instruments Fair value estimates, methods and assumptions are set forth below for our financial instruments. Short-Term Financial Instruments The carrying values of short-term financial instruments are deemed to approximate fair values. Such instruments are considered readily convertible to cash and include cash and due from financial institutions, interest-bearing deposits in other financial institutions, accrued interest receivable, the majority of FHLB advances and other short-term borrowings, and accrued interest payable. Investment Securities The fair value of investment securities is based on market price quotations received from third-party pricing services. The third-party pricing services utilize pricing models supported with timely market data information. Where quoted market prices are not available, fair values are based on quoted market prices of comparable securities. Loans Fair values of loans are estimated based on discounted cash flows of portfolios of loans with similar financial characteristics including the type of loan, interest terms and repayment history. Fair values are calculated by discounting scheduled cash flows through estimated maturities using estimated market discount rates. Estimated market discount rates are reflective of credit and interest rate risks inherent in the Company's various loan types and are derived from available market information, as well as specific borrower information. The weighted average discount rate used in the valuation of loans was 7.01% and 6.86% as of March 31, 2024 and December 31, 2023, respectively. In accordance with ASU 2016-01, the fair values of loans are measured based on the notion of exit price. Loans Held for Sale The fair value of loans classified as held for sale are generally based upon quoted prices for similar assets in active markets, acceptance of firm offer letters with agreed upon purchase prices, discounted cash flow models that take into account market observable assumptions, or independent appraisals of the underlying collateral securing the loans. We report the fair values of Hawaii and U.S. Mainland construction and commercial real estate loans, if any, net of estimated selling costs on our consolidated balance sheets. Deposit Liabilities The fair values of deposits with no stated maturity, such as noninterest-bearing demand deposits and interest-bearing demand and savings accounts, for the purposes of this disclosure, are shown to equal the carrying amount which is the amount payable on demand. The fair value of time deposits is estimated by discounting future cash flows using rates currently offered for FHLB advances of similar remaining maturities. The weighted average discount rate used in the valuation of time deposits was 5.46% and 5.48% as of March 31, 2024 and December 31, 2023, respectively. Long-Term Debt The fair values of our long-term debt is estimated by discounting scheduled cash flows over the contractual borrowing period at the estimated market rate for similar borrowing arrangements. The weighted average discount rate used in the valuation of long-term debt was 7.17% and 6.83% as of March 31, 2024 and December 31, 2023, respectively. Derivatives The fair values of derivative financial instruments are based upon current market values, if available. If there are no relevant comparable values, fair values are based on pricing models using current assumptions for interest rate swaps and options. Off-Balance Sheet Financial Instruments The fair values of off-balance sheet financial instruments are estimated based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties, current settlement values or quoted market prices of comparable instruments. Limitations Fair value estimates are made at a specific point in time based on relevant market and financial instrument information. These estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates cannot be determined with precision as they are subjective in nature and involve uncertainties and matters of significant judgment. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of future business and the value of assets and liabilities that are not considered financial instruments. For example, significant assets and liabilities that are not considered financial assets or liabilities include deferred tax assets, premises and equipment and intangible assets.
Fair Value Measurements We group our financial assets and liabilities at fair value into three levels based on the markets in which the financial assets and liabilities are traded and the reliability of the assumptions used to determine fair value as follows: •Level 1 — Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities traded in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. •Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. •Level 3 — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of discounted cash flow models and similar techniques that requires the use of significant judgment or estimation. We base our fair values on the price that we would expect to receive if an asset were sold, or the price that we would expect to pay to transfer a liability in an orderly transaction between market participants at the measurement date. We also maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. We use fair value measurements to record adjustments to certain financial assets and liabilities and to determine fair value disclosures. Available-for-sale securities and derivatives are recorded at fair value on a recurring basis. Periodically, we may be required to record other financial assets at fair value on a nonrecurring basis such as loans held for sale, individually evaluated loans, mortgage servicing rights, and other real estate owned. These nonrecurring fair value adjustments typically involve application of the lower of cost or fair value accounting or write-downs of individual assets. The following tables present the fair value of financial assets and liabilities measured on a recurring basis as of the dates presented:
The following table presents changes in Level 3 financial assets and liabilities measured at fair value on a recurring basis for the periods presented:
Based on a discounted cash flow model that calculates the present value of estimated future principal and interest payments, the estimated aggregate fair value of Level 3 financial assets and liabilities measured at fair value on a recurring basis was $16.4 million and $13.6 million as of March 31, 2024 and December 31, 2023, respectively. Within the states and political subdivisions available-for-sale debt securities category, the Company held two mortgage revenue bonds issued by the City & County of Honolulu, which had an aggregate fair value of $6.3 million at March 31, 2024, compared to $6.4 million at December 31, 2023. Within the residential non-government agency MBS category, the Company held two mortgage-backed bonds issued by Habitat for Humanity with an aggregate fair value of $0.7 million at March 31, 2024 and also remained relatively unchanged from $0.7 million at December 31, 2023. The significant unobservable input used in the fair value measurement of the Company's two mortgage revenue bonds issued by the City & County of Honolulu and the two mortgage-backed bonds issued by Habitat for Humanity is the weighted-average discount rate. The weighted average discount rate utilized was 6.43% and 6.12% as of March 31, 2024 and December 31, 2023, respectively, which was derived by incorporating a credit spread over the FHLB Fixed-Rate Advance curve. Significant increases (decreases) in the weighted-average discount rate could result in a significantly lower (higher) fair value measurement. The significant unobservable input used in the fair value measurement of the Company's forward starting interest rate swap is the weighted-average discount rate. The weighted average discount rate utilized was 3.91% and 3.34% as of March 31, 2024 and December 31, 2023, respectively. There were no financial assets or liabilities measured on a nonrecurring basis as of March 31, 2024 and December 31, 2023.
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LEGAL PROCEEDINGS |
3 Months Ended |
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Mar. 31, 2024 | |
Legal Proceedings [Abstract] | |
LEGAL PROCEEDINGS | 16. LEGAL PROCEEDINGS We are involved in legal proceedings that arise in the ordinary course of our business. The outcome of these matters and the timing of ultimate resolution is inherently difficult to predict. Based on information currently available to us, we do not expect that the ultimate costs to resolve these matters will have a material adverse effect on our financial condition or operations.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Total reclassification adjustments from AOCI for the period, net of tax | $ 12,945 | $ 16,187 |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of Central Pacific Financial Corp. and Subsidiaries (herein referred to as the "Company," "we," "us," or "our") have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements and notes should be read in conjunction with the Company's consolidated financial statements and notes thereto filed on Form 10-K for the fiscal year ended December 31, 2023. In the opinion of management, all adjustments necessary for a fair presentation have been made and include all normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year.
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Allowance for Credit Losses for Loans | Allowance for Credit Losses for Loans The allowance for credit losses ("ACL") for loans is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on loans. The Company’s policy is to charge off a loan against the ACL during the period in which the loan is deemed to be uncollectible and all interest previously accrued but uncollected, is reversed against current period interest income. Subsequent receipts, if any, are credited first to the remaining principal, then to the ACL for loans as recoveries, and finally to interest income. The ACL for loans represents management's estimate of all expected credit losses over the expected life of the Company’s loan portfolio as of a given balance sheet date. Management estimates the ACL balance using relevant information available from both internal and external sources, regarding the collectability of cash flows impacted by past events, current conditions, and reasonable and supportable forecasts of future economic conditions. When the Company is unable to forecast future economic events, management may revert to historical information. The Company's ACL model incorporates a reasonable and supportable forecast period of one year and reverts to historical loss information on a straight-line basis over one year when its forecast is no longer deemed reasonable and supportable. Historical loss experience provides the basis for the Company’s expected credit loss estimate. Adjustments to historical loss information may be made for differences in current loan-specific risk characteristics, such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated. The Company's ACL model may also consider other adjustments to address changes in conditions, trends, and circumstances such as local industry changes that could have a significant impact on the risk profile of the loan portfolio and provide for adjustments that may not be reflected or captured in the historical loss data. These factors include: lending policies, imprecision in forecasting future economic conditions, loan profile, lending staff, problem loan trends, loan review, collateral, credit concentration, or other internal and external factors. The Company uses Moody’s Analytics ("Moody's"), a firm widely recognized and used for its research, analysis, and economic forecasts, for its economic forecast assumptions. The Company generally uses Moody’s most recent Baseline forecast, which is updated at least monthly with a variety of upside and downside economic scenarios and includes both national and Hawaii-specific economic indicators. During times of economic and market volatility or instability, the Company may include a qualitative factor for forecast imprecision. The ACL for loans is measured on a collective or pool basis when similar risk characteristics exist. The Company segments its portfolio generally by the loan categories in the Federal Financial Institutions Examination Council ("FFIEC") Call Report. The following is a description and the risk characteristics of each segment: Commercial and industrial loans - SBA Paycheck Protection Program loans Paycheck Protection Program (“PPP”) loans are considered lower risk as they are guaranteed by the Small Business Administration (“SBA”) and may be forgivable in whole or in part in accordance with the requirements of the PPP. Commercial and industrial loans - Others Commercial and industrial loans consist primarily of term loans and lines of credit to small- and middle-market businesses and professionals. The predominant risk characteristics of this segment are the cash flows of the business we lend to, global cash flows including guarantor liquidity, as well as economic and market conditions. Although our underwriting policy and practice generally requires secondary sources of support or collateral to mitigate risk, cash flow generated from the borrower’s business is typically regarded as the principal source of repayment. Construction loans Construction loans include both residential and commercial development projects. Each construction project is evaluated for economic viability and construction loans pose higher credit risks than typical secured loans. Financial strength of the borrower, completion risk (the risk that the project will not be completed on time and within budget) and geographic location are the predominant risk characteristics of this segment. Commercial real estate loans - Multi-family Multi-family mortgage loans can comprise multi-building properties with extensive amenities or a single building with no amenities. The predominant risk characteristic of this segment is operating risk or the ability to generate sufficient rental income from the operation of the property. Commercial real estate loans - Others Commercial real estate loans are secured by commercial properties. The predominant risk characteristic of this segment is operating risk, which is the risk that the borrower will be unable to generate sufficient cash flows from the operation of the property. Interest rate conditions and the commercial real estate market through economic cycles also impact risk levels. Residential mortgage loans Residential mortgage loans primarily includes fixed-rate or adjustable-rate loans secured by single-family owner-occupied primary residences in Hawaii. Economic conditions such as unemployment levels, future changes in interest rates, Hawaii home prices and other market factors impact the level of credit risk inherent in the portfolio. Home equity lines of credit Home equity lines of credit include fixed or floating interest rate loans and are also primarily secured by single-family owner-occupied primary residences in Hawaii. They are underwritten based on a minimum FICO score, maximum debt-to-income ratio, and maximum combined loan-to-value ratio. Home equity lines of credit are monitored based on credit score, delinquency, end of draw period and maturity. Consumer loans - Other revolving Other revolving consumer loans consist of unsecured consumer lines of credit. The predominant risk characteristics of this segment relate to current and projected economic conditions, as well as employment and income levels attributed to the borrower. Consumer loans - Non-revolving Non-revolving consumer loans consist of non-revolving (term) consumer loans, including automobile dealer loans. The predominant risk characteristics of this segment relate to current and projected economic conditions, as well as employment and income levels attributed to the borrower. Purchased consumer loans Purchased consumer loans consist of dealer and unsecured consumer loans. Credit risk for purchased consumer loans is managed on a pooled basis. The predominant risk characteristics of this segment include current and projected economic conditions, employment and income levels, and the quality of purchased consumer loans. The following table presents the Company's loan portfolio segments and the methodology used to measure expected credit losses. The historical look-back period is 2008 to present, economic forecast length is one year and the reversion method is one year (on a straight-line basis) for all segments.
During the third quarter of 2023, the Company updated its methodology to measure expected credit losses from the Probability of Default/Loss Given Default ("PD/LGD") or Loss-Rate Migration methods to the Discounted Cash Flow ("DCF") method for all segments except the SBA PPP and purchased consumer loan segments. The Company believes that the DCF methodology has better alignment with the Current Expected Credit Losses ("CECL") standard for forward looking forecasting, while also factoring in more detailed assumptions. At the time of the methodology update, the Company ran the ACL model under both the current and previous methodologies and noted that the changes to the ACL model and the differences in methodologies did not result in a material impact to the Company's financial statements and as a percentage of the ACL. The Company is utilizing an industry leading software platform to perform the DCF analysis using a historical look back period of 2008 to present. The Company continues to use the Moody's baseline forecast with an economic forecast length of one year and a one-year, straight-line reversion method. We revert to the historical average of the macroeconomic variables being used. Forecast models exclude the post-2019 COVID-19 pandemic period due to abnormal and volatile behavior. The ACL on the purchased consumer loan portfolios continues to be calculated using the Remaining Life methodology (also known as the Weighted Average Remaining Maturity or "WARM" methodology) as this portfolio is evaluated on a pooled basis. Because SBA PPP loans are guaranteed by the SBA and may be forgivable in whole or in part in accordance with the requirements of the PPP we anticipate zero losses on these loans and accordingly apply a Zero Loss methodology. The following is a description of the methodologies utilized to measure expected credit losses from the third quarter of 2023 to present: Discounted Cash Flow The DCF methodology calculates CECL reserves as the difference between the amortized cost of a loan and the discounted expected value of future cash flows. Expected future cash flows are calculated based on assumptions of PD/LGD, prepayments and recovery rates, and are discounted using the loan’s effective interest rate. Remaining Life or Weighted Average Remaining Life Under the remaining life or WARM methodology, lifetime losses are calculated by determining the remaining life of the loan pool, and then applying a loss rate over this remaining life of the loan. The methodology considers historical loss experience to estimate credit losses for the remaining balance of the loan pool. The calculated loss rate is applied to the contractual term (adjusted for prepayments) to determine the loan pool’s current expected credit losses. The following is a description of the methodologies utilized to measure expected credit losses as of June 30, 2023 and prior: Probability of Default/Loss Given Default The PD/LGD calculation is based on a cohort methodology whereby loans in the same cohort are tracked over time to identify defaults and corresponding losses. PD/LGD analysis requires a portfolio segmented into pools, and we elected to then further sub-segment by risk characteristics such as Risk Rating, loans modified for borrowers experiencing financial difficulty, TDRs prior to the adoption of ASU 2022-02 and nonaccrual status to measure losses accurately. PD measures the count or dollar amount of loans that defaulted in a given cohort. LGD measures the losses related to the loans that defaulted. Total loss rate is calculated using the formula 'PD times LGD'. Loss-Rate Migration Loss-rate migration analysis is a cohort-based approach that measures cumulative net charge-offs over a defined time-horizon to calculate a loss rate that will be applied to the loan pool. Loss-rate migration analysis requires the portfolio to be segmented into pools then further sub-segmented by risk characteristics such as days past due, delinquency counters, loans modified for borrowers experiencing financial difficulty, TDRs prior to the adoption of ASU 2022-02 and nonaccrual status to measure loss rates accurately. The key inputs to run a loss-rate migration analysis are the length and frequency of the migration period, the dates for the migration periods to start and the number of migration periods used for the analysis. For each migration period, the analysis will determine the outstanding balance in each segment and/or sub-segment at the start of each period. These loans will then be followed for the length of the migration period to identify the amount of associated charge-offs and recoveries. A loss rate for each migration period is calculated using the formula: net charge-offs over the period divided by beginning loan balance. Other Under both the previous and current methodologies utilized to measure expected credit losses, if a loan ceases to share similar risk characteristics with other loans in its segment, it will be moved to a different pool sharing similar risk characteristics. Loans that do not share risk characteristics are evaluated on an individual basis based on the fair value of the collateral or other approaches such as the discounted cash flows methodology. Individually evaluated loans are not included in the collective evaluation.
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Impact of Other Recently Issued Accounting Pronouncements on Future Filings | Impact of Other Recently Issued Accounting Pronouncements on Future Filings In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures". ASU 2023-09 expands existing income tax disclosures for rate reconciliations by requiring disclosure of certain specific categories in the rate reconciliation, as well as additional qualitative information about the reconciliation, and additional disaggregated information about income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and is to be applied on a prospective basis. The Company does not expect ASU 2023-09 to have a material impact on its consolidated financial statements.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financing Receivable Portfolio Segments | The following table presents the Company's loan portfolio segments and the methodology used to measure expected credit losses. The historical look-back period is 2008 to present, economic forecast length is one year and the reversion method is one year (on a straight-line basis) for all segments.
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INVESTMENT SECURITIES (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of available for sale and held to maturity investment securities | The amortized cost, gross unrecognized/unrealized gains and losses, fair value and related ACL on available-for-sale ("AFS") and held-to-maturity ("HTM") debt securities at March 31, 2024 and December 31, 2023 are as follows:
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Schedule of amortized cost and estimated fair value of investment securities by contractual maturity | The amortized cost, estimated fair value and weighted average yield of our AFS and HTM debt securities at March 31, 2024, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
(1)Weighted-average yields are computed on an annual basis, and yields on tax-exempt obligations are computed on a taxable-equivalent basis using a federal statutory tax rate of 21%
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Schedule of investment securities in an unrealized loss position | The following tables summarize AFS and HTM investment securities, which were in a loss position as of the dates presented, aggregated by major security type and length of time in a continuous loss position. There were a total of 220 and 208 AFS investment securities which were in an unrealized loss position, without an ACL, at March 31, 2024 and December 31, 2023, respectively. There were a total of 83 and 82 HTM investment securities which were in an unrecognized loss position, without an ACL, at March 31, 2024 and December 31, 2023, respectively.
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LOANS AND CREDIT QUALITY (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loans and leases, excluding loans held for sale | The following table presents loans by class, excluding loans held for sale, net of deferred fees and costs as of the dates presented:
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Financing Receivable, Purchased With Credit Deterioration | The following tables present loans purchased by class for the periods presented. No loan portfolios were purchased during the three months ended March 31, 2024.
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Schedule of aging of the recorded investment in past due loans and leases, by class | The following tables also present the amortized cost of loans on nonaccrual status for which there was no related ACL as of the dates presented:
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Schedule of balance in the allowance for loan and lease losses and the recorded investment in loans and leases based on the impairment measurement methods, by class | The following tables present the amortized cost basis of collateral-dependent loans by class, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of the dates presented:
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Schedule of recorded investment in loans and leases, by class and credit indicator | The following tables present the amortized cost basis, net of deferred (fees) costs, of the Company's loans by class, credit quality indicator and origination year as of the dates presented. Revolving loans converted to term as of and during the periods presented were not material to the total loan portfolio. In addition, the following tables present gross charge-offs of loans by origination year during the periods presented.
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ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSSES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of activity in the allowance, by class | The following tables present by class, the activities in the ACL for loans during the periods presented:
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Schedule of Credit Losses Related to Impaired Financing Receivables | The following table presents the activities in the reserve for off-balance sheet credit exposures, included in other liabilities, during the periods presented:
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INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of investment in unconsolidated subsidiaries | The following table presents the components of the Company's investments in unconsolidated entities as of the dates presented:
The following table presents amortization and tax credits recognized associated with our investments in LIHTC partnerships for the periods presented:
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Other Commitments | The following table presents the expected payments for the unfunded commitments of LIHTC and other partnerships as of March 31, 2024, for the remainder of fiscal year 2024, the next five succeeding fiscal years, and all years thereafter:
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MORTGAGE SERVICING RIGHTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of gross carrying value and accumulated amortization related to intangible assets | The following table presents changes in mortgage servicing rights ("MSR") for the periods presented:
The following table presents carrying values and accumulated amortization related to MSR as of the dates presented:
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Schedule of fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights | The following table presents the fair market value and key assumptions used in determining the fair market value of MSR as of the dates presented:
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Schedule of estimated amortization expense | The following table presents the estimated amortization expense for the remainder of fiscal year 2024, the next five succeeding fiscal years, and all years thereafter, based on MSR held as of March 31, 2024:
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DERIVATIVES (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the location of all assets and liabilities associated with derivative instruments within the consolidated balance sheets | The following tables present the location of all assets and liabilities associated with our derivative instruments within the consolidated balance sheets as of the dates presented:
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Schedule of the impact of derivative instruments and their location within the consolidated statements of income | The following tables present the impact of derivative instruments and their location within the consolidated statements of income for the periods presented:
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Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the amounts recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges as of the periods presented:
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SHORT-TERM BORROWINGS AND LONG-TERM DEBT - (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Subordinated Borrowing | The following table present's the Company's junior subordinated debentures outstanding, which are recorded in long-term debt on the Company's consolidated balance sheets as of the dates presented:
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Schedule of Long-term Debt Instruments | The following table presents the Company's subordinated notes outstanding as of the dates presented:
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REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other operating income segregated by revenue streams | The following table presents the Company's other operating income, segregated by revenue streams that are in-scope and out-of-scope of ASC 606, "Revenue from Contracts with Customers" for the periods presented:
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SHARE-BASED COMPENSATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of activity of restricted stock awards and units | The following table presents the activities of RSUs and PSUs for the three months ended March 31, 2024:
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SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The following table presents the components of net periodic benefit cost for the SERP for the periods presented:
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OPERATING LEASES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | The following table presents total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate for the periods presented:
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Lessee, Operating Lease, Liability, Maturity | The following table presents a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities as of March 31, 2024, for the remainder of fiscal year 2024, the next five succeeding fiscal years and all years thereafter:
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Operating Lease, Lease Income | The following table presents lease income related to these leases that was recognized for the periods presented:
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Lessor, Operating Lease, Payments to be Received, Maturity | The following table presents estimated lease payments, based on the Company's leases as lessor as of March 31, 2024, for the remainder of fiscal year 2024, the next five succeeding fiscal years, and all years thereafter:
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of other comprehensive income (loss) | The following tables present the components of other comprehensive income (loss) for the periods presented:
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Schedule of changes in each component of AOCI, net of tax | The following tables present the changes in each component of accumulated other comprehensive income (loss), net of tax, for the periods presented:
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Schedule of amounts reclassified out of each component of AOCI | The following tables present the amounts reclassified out of each component of AOCI for the periods presented:
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EARNINGS PER SHARE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of information used to compute basic and diluted earnings per share | The following table presents the information used to compute basic and diluted earnings per share for the periods presented:
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FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of carrying amount and estimated fair value of financial instruments |
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Schedule of balances of assets and liabilities measured at fair value on a recurring basis | The following tables present the fair value of financial assets and liabilities measured on a recurring basis as of the dates presented:
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Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | The following table presents changes in Level 3 financial assets and liabilities measured at fair value on a recurring basis for the periods presented:
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LOANS AND CREDIT QUALITY (Loans and Leases) (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
LOANS AND LEASES | ||
Loans and leases, gross | $ 5,401,744 | $ 5,439,215 |
Net deferred fees and costs | (327) | (233) |
Total loans, net of deferred fees and costs | 5,401,417 | 5,438,982 |
Commercial and Industrial | ||
LOANS AND LEASES | ||
Loans and leases, gross | 576,088 | 576,038 |
Real Estate | Construction | ||
LOANS AND LEASES | ||
Loans and leases, gross | 168,989 | 185,994 |
Real Estate | Residential Mortgage | ||
LOANS AND LEASES | ||
Loans and leases, gross | 1,924,403 | 1,927,206 |
Real Estate | Home Equity | ||
LOANS AND LEASES | ||
Loans and leases, gross | 727,218 | 734,500 |
Real Estate | Commercial Mortgage | ||
LOANS AND LEASES | ||
Loans and leases, gross | 1,424,305 | 1,384,579 |
Consumer | ||
LOANS AND LEASES | ||
Loans and leases, gross | $ 580,741 | $ 630,898 |
LOANS AND CREDIT QUALITY (Purchases) (Details) - Consumer - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Loans and Leases Receivable Disclosure [Line Items] | ||
Outstanding balance | $ 18,939 | |
Premium | 568 | |
Purchase price | $ 0 | 19,507 |
U.S. Mainland Consumer - Unsecured | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Outstanding balance | 3,780 | |
Premium | 0 | |
Purchase price | 3,780 | |
U.S. Mainland Consumer - Automobile | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Outstanding balance | 15,159 | |
Premium | 568 | |
Purchase price | $ 15,727 |
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURES (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Leases [Abstract] | ||
Provision for credit losses | $ 3,936 | $ 1,852 |
Provision (credit) for credit losses on loans | 4,121 | 1,615 |
(Credit) provision for off-balance sheet credit exposures | $ (200) | $ 300 |
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURES (Reserve For Off-Balance Sheet Credit Exposure) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Beginning balance | $ 3,706 | $ 3,243 |
(Credit) provision for off-balance sheet credit exposures | (200) | 300 |
Ending balance | 3,521 | 3,480 |
Adjusted balance at beginning of period | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
(Credit) provision for off-balance sheet credit exposures | $ (185) | $ 237 |
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||
Investments in low-income housing tax credit partnerships, net of amortization | $ 37,151 | $ 37,838 |
Investments in common securities of statutory trusts | 1,547 | 1,547 |
Investments in affiliates | 32 | 111 |
Other | 2,050 | 2,050 |
Total | $ 40,780 | $ 41,546 |
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Future Commitments) (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Other Commitments [Line Items] | ||
2024 (remainder) | $ 10,599 | |
2025 | 4,248 | |
2026 | 26 | |
2027 | 26 | |
2028 | 20 | |
2029 | 27 | |
Thereafter | 286 | |
Total unfunded commitments | 15,232 | |
LIHTC | ||
Other Commitments [Line Items] | ||
2024 (remainder) | 9,696 | |
2025 | 4,248 | |
2026 | 26 | |
2027 | 26 | |
2028 | 20 | |
2029 | 27 | |
Thereafter | 286 | |
Total unfunded commitments | 14,329 | $ 22,000 |
Other | ||
Other Commitments [Line Items] | ||
2024 (remainder) | 903 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028 | 0 | |
2029 | 0 | |
Thereafter | 0 | |
Total unfunded commitments | $ 903 | $ 1,000 |
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Amortization Expense and Tax Credits Recognized With Investments in LIHTC) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||
Amortization expense recognized in income tax expense | $ 686 | $ 714 |
Tax credits recognized in income tax expense | $ 800 | $ 892 |
MORTGAGE SERVICING RIGHTS (Changes In Mortgage Servicing Rights) (Details) - Mortgage servicing rights - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Changes in other intangible assets | ||
Balance, beginning of period | $ 8,696 | $ 9,074 |
Additions | 81 | 58 |
Amortization | (178) | (189) |
Balance, end of period | $ 8,599 | $ 8,943 |
MORTGAGE SERVICING RIGHTS (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gain on sale of residential mortgage loans | $ 217 | $ 128 |
Mortgage servicing rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gain on sale of residential mortgage loans | 100 | 100 |
Amortization | $ (178) | $ (189) |
MORTGAGE SERVICING RIGHTS (Fair Market Value And Key Assumptions Used In Determining Fair Market Value of Mortgage Servicing Rights) (Details) - Mortgage servicing rights $ in Thousands |
Mar. 31, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
---|---|---|---|
Finite-Lived Intangible Assets [Line Items] | |||
Fair market value | $ 12,134 | $ 12,185 | $ 12,061 |
Weighted-average discount rate | |||
Finite-Lived Intangible Assets [Line Items] | |||
Measurement input | 0.095 | 0.095 | |
Weighted-average prepayment speed assumption | |||
Finite-Lived Intangible Assets [Line Items] | |||
Measurement input | 0.113 | 0.112 |
MORTGAGE SERVICING RIGHTS (Gross Carrying Value, Accumulated Amortization, Net Carrying Value) (Details) - Mortgage servicing rights - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Gross carrying value, accumulated amortization and net carrying value related to intangible assets | ||||
Gross Carrying Value | $ 69,821 | $ 69,740 | ||
Accumulated Amortization | (61,222) | (61,044) | ||
Net Carrying Value | $ 8,599 | $ 8,696 | $ 8,943 | $ 9,074 |
MORTGAGE SERVICING RIGHTS (Estimated Amortization Expense) (Details) - Mortgage servicing rights - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Estimated Amortization Expense | ||||
2024 (remainder) | $ 617 | |||
2025 | 829 | |||
2026 | 748 | |||
2027 | 674 | |||
2028 | 603 | |||
2029 | 531 | |||
Thereafter | 4,597 | |||
Net Carrying Value | $ 8,599 | $ 8,696 | $ 8,943 | $ 9,074 |
DERIVATIVES (Additional Information) (Details) - USD ($) |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Interest rate lock commitments | Derivative Financial Instruments Not Designated as Hedging Instruments | ||
DERIVATIVES | ||
Mortgage loans hedged | $ 800,000 | $ 1,800,000 |
Risk Participation Agreements | Derivative Financial Instruments Not Designated as Hedging Instruments | ||
DERIVATIVES | ||
Notional amount | 35,800,000 | 36,000,000 |
Back-to-back swap agreements | Derivative Financial Instruments Not Designated as Hedging Instruments | ||
DERIVATIVES | ||
Notional amount | 50,900,000 | 51,100,000 |
Cash pledged as collateral | (13,800,000) | $ (9,600,000) |
Interest rate swap agreements | Derivative Financial Instruments Designated as Hedging Instruments | ||
DERIVATIVES | ||
Notional amount | $ 115,500,000 | |
Fixed interest rate | 2.095% |
DERIVATIVES (Balance Sheet) (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Derivative Financial Instruments Not Designated as Hedging Instruments | Derivatives - Interest rate contracts | ||
Asset Derivatives | ||
Fair Value | $ 3 | $ 0 |
Liability Derivatives | ||
Fair Value | 2 | 34 |
Derivative Financial Instruments Not Designated as Hedging Instruments | Back-to-back swap agreements | ||
Asset Derivatives | ||
Fair Value | 4,220 | 3,547 |
Liability Derivatives | ||
Fair Value | 4,220 | 3,547 |
Derivative Financial Instruments Designated as Hedging Instruments | Interest rate swap agreements | ||
Asset Derivatives | ||
Fair Value | 9,375 | 6,440 |
Liability Derivatives | ||
Fair Value | $ 0 | $ 0 |
DERIVATIVES (Balance Sheet Cumulative Basis Adjustments For Fair Value Hedges) (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Line Item in the Consolidated Balance Sheets | Fair Value |
Carrying Amount of the Hedged Assets | $ 90,419 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets | $ (485) |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Subordinated Debentures (Details) - Junior Subordinated Debt - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Debt Instrument [Line Items] | ||
Subordinated Debentures | $ 51,547 | $ 51,547 |
Trust IV | ||
Debt Instrument [Line Items] | ||
Subordinated Debentures | $ 30,928 | $ 30,928 |
Trust IV | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.26% | 0.26% |
Trust IV | Tenor Spread Adjustment | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.45% | 2.45% |
Trust V | ||
Debt Instrument [Line Items] | ||
Subordinated Debentures | $ 20,619 | $ 20,619 |
Trust V | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.26% | 0.26% |
Trust V | Tenor Spread Adjustment | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.87% | 1.87% |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Subordinated Notes) (Details) - Notes - Subordinated notes - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Oct. 20, 2020 |
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Debt Instrument [Line Items] | |||
Subordinated notes | $ 55,000 | $ 55,000 | |
Stated interest rate, first five years | 4.75% | 4.75% | 4.75% |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 4.56% | 4.56% | 4.56% |
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Revenue from External Customer [Line Items] | ||
In-Scope | $ 8,280 | $ 7,962 |
Out-of-Scope | 2,964 | 3,047 |
Total | 11,244 | 11,009 |
Mortgage banking income | ||
Revenue from External Customer [Line Items] | ||
In-Scope | 72 | 151 |
Out-of-Scope | 541 | 375 |
Total | 613 | 526 |
Service charges on deposit accounts | ||
Revenue from External Customer [Line Items] | ||
In-Scope | 2,103 | 2,111 |
Out-of-Scope | 0 | 0 |
Total | 2,103 | 2,111 |
Other service charges and fees | ||
Revenue from External Customer [Line Items] | ||
In-Scope | 4,670 | 4,379 |
Out-of-Scope | 591 | 606 |
Total | 5,261 | 4,985 |
Income from fiduciary activities | ||
Revenue from External Customer [Line Items] | ||
In-Scope | 1,435 | 1,321 |
Out-of-Scope | 0 | 0 |
Total | 1,435 | 1,321 |
Income from bank-owned life insurance | ||
Revenue from External Customer [Line Items] | ||
In-Scope | 0 | 0 |
Out-of-Scope | 1,522 | 1,291 |
Total | 1,522 | 1,291 |
Other | ||
Revenue from External Customer [Line Items] | ||
In-Scope | 0 | 0 |
Out-of-Scope | 310 | 775 |
Total | $ 310 | $ 775 |
SHARE-BASED COMPENSATION (Narrative) (Details) - Restricted Stock Units ("RSUs") and Performance Stock Units ("PSUs") |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Share-Based Payment Arrangement, Tranche One | |
SHARE-BASED COMPENSATION | |
Award vesting period | 2 years |
Share-Based Payment Arrangement, Tranche Two | |
SHARE-BASED COMPENSATION | |
Award vesting period | 3 years |
Share-Based Payment Arrangement, Tranche Three | |
SHARE-BASED COMPENSATION | |
Award vesting period | 5 years |
SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS (Narrative) (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
SERPs | ||
PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS | ||
Projected benefit obligation | $ 9.2 | $ 9.3 |
SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS (Net Periodic Benefit Cost) (Details) - SERPs - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS | ||
Interest cost | $ 108 | $ 112 |
Amortization of net actuarial (gain) loss | 0 | (19) |
Amortization of net transition obligation | 0 | 2 |
Net periodic benefit cost | $ 108 | $ 95 |
OPERATING LEASES (Lease Cost and Other Information) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Lease cost: | ||
Operating lease cost | $ 1,303 | $ 1,325 |
Variable lease cost | 935 | 888 |
Less: Sublease income | 0 | (17) |
Total lease cost | 2,238 | 2,196 |
Operating cash flows from operating leases | $ (1,257) | $ (1,390) |
Weighted-average remaining lease term - operating leases | 11 years 1 month 24 days | 11 years 2 months 19 days |
Weighted-average discount rate - operating leases | 4.08% | 3.96% |
OPERATING LEASES (Undiscounted Cash Flows And Reconciliation To Operating Lease Liabilities) (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Undiscounted Cash Flows | |
2024 (remainder) | $ 3,568 |
2025 | 4,195 |
2026 | 4,135 |
2027 | 4,128 |
2028 | 3,579 |
2029 | 3,113 |
Thereafter | 18,712 |
Total | 41,430 |
Lease Liability Discount on Cash Flows | |
2024 (remainder) | 940 |
2025 | 1,141 |
2026 | 1,022 |
2027 | 899 |
2028 | 784 |
2029 | 679 |
Thereafter | 2,796 |
Total | 8,261 |
Lease Liability | |
2024 (remainder) | 2,628 |
2025 | 3,054 |
2026 | 3,113 |
2027 | 3,229 |
2028 | 2,795 |
2029 | 2,434 |
Thereafter | 15,916 |
Total | $ 33,169 |
OPERATING LEASES (Lease Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Leases [Abstract] | ||
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Net occupancy | Net occupancy |
Total rental income recognized | $ 509 | $ 562 |
OPERATING LEASES (Future Minimum Rental Income) (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Future minimum rental income for those noncancellable operating leases that had initial lease terms in excess of one year | |
2024 (remainder) | $ 956 |
2025 | 1,157 |
2026 | 1,015 |
2027 | 960 |
2028 | 608 |
2029 | 553 |
Thereafter | 1,293 |
Total | $ 6,542 |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
SHARE-BASED COMPENSATION | ||
Net income | $ 12,945 | $ 16,187 |
Weighted average shares outstanding - basic | 27,046,525 | 26,999,138 |
Weighted average shares outstanding - diluted | 27,099,101 | 27,122,012 |
Basic earnings per share (in dollars per share) | $ 0.48 | $ 0.60 |
Diluted earnings per share (in dollars per share) | $ 0.48 | $ 0.60 |
Antidilutive securities excluded from the dilutive share calculation (in shares) | 1,443 | 8,348 |
Stock Option | ||
SHARE-BASED COMPENSATION | ||
Dilutive effect of share-based compensation arrangements | 52,576 | 122,874 |
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