v3.25.2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured and Recorded at Fair Value
Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and nonrecurring basis at December 31, 2024 and December 31, 2023, are summarized below:
December 31, 2024
(dollars in thousands)Carrying
amount
Quoted prices
in active
markets
for identical
assets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant unobservable
inputs
(Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. government sponsored entities and U.S. agency securities$20,141 $— $20,141 $— 
Mortgage-backed securities - agency847,056 — 847,056 — 
Mortgage-backed securities - non-agency101,012 — 101,012 — 
State and municipal securities69,061 — 69,061 — 
Corporate securities79,881 — 79,881 — 
Other securities90,423 — 90,423 — 
Equity securities4,792 4,792 — — 
Residential loans held for sale8,228 — 8,228 — 
Derivative assets3,837 — 3,837 — 
Total$1,224,431 $4,792 $1,219,639 $— 
Liabilities
Derivative liabilities$5,655 $— $5,655 $— 
Total$5,655 $— $5,655 $— 
Assets measured at fair value on a non-recurring basis:
Nonperforming loans$120,222 $— $— $120,222 
Consumer loans held for sale336,719 — — 336,719 
Other real estate owned4,941 — — 4,941 
Credit enhancement asset16,804 — — 16,804 
December 31, 2023
(Restated)
(dollars in thousands)Carrying
amount
Quoted prices
in active
markets
for identical
assets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant unobservable
inputs
(Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. Treasury securities$1,097 $1,097 $— $— 
U.S. government sponsored entities and U.S. agency securities72,572 — 72,572 — 
Mortgage-backed securities - agency574,500 — 574,500 — 
Mortgage-backed securities - non-agency83,529 — 83,529 — 
State and municipal securities57,460 — 57,460 — 
Corporate securities99,172 — 99,172 — 
Other securities27,565 — 27,565 — 
Equity securities4,501 4,501 — — 
Residential loans held for sale3,811 — 3,811 — 
Derivative assets372 — 372 — 
Total$924,579 $5,598 $918,981 $— 
Liabilities
Derivative liabilities$8,836 $— $8,836 $— 
Total$8,836 $— $8,836 $— 
Assets measured at fair value on a non-recurring basis:
Nonperforming loans$4,633 $— $— $4,633 
Other real estate owned9,112 — — 9,112 
Credit enhancement asset15,389 — — 15,389 
Schedule of Losses Recognized on Assets Measured on a Non-recurring Basis The following table presents losses recognized on assets measured on a nonrecurring basis for the years ended December 31, 2024, 2023 and 2022:
Years Ended December 31,
(dollars in thousands)202420232022
Commercial mortgage servicing rights$— $— $1,263 
Loan servicing rights held for sale— — 3,250 
Nonperforming loans21,317 19,421 8,892 
Other real estate owned4,866 — 4,276 
Total losses on assets measured on a nonrecurring basis$26,183 $19,421 $17,681 
The Company continues to take steps in 2025 to resolve nonperforming assets and improve its overall credit profile. These steps include foreclosures, short sales, pursuit of guarantors and sales of notes. The Company has continued to monitor credit actions and subsequent losses in order to determining the appropriate time period for recognition. Notable credit actions and subsequent losses are presented in the table below, in thousands.
Losses taken by period
AssetType of propertyAction takenBalance
December 31, 2024
2024First
quarter
2025
Second
quarter
2025
Total Losses takenReduction in nonperforming assets
OREOAssisted livingProperty sold
May 2025
$5,434 $(1,472)$— $— $(1,472)$(1,472)$(5,434)
LoansMulti-FamilyCollateral sold
May 2025
3,722 (337)(1,113)— (1,450)(3,722)
LoansMemory careNote sale
June 2025
7,737 — — (3,675)(3,675)(7,737)
LoansAssisted livingCharge off
May 2025
7,798 (7,798)— — (7,798)(7,798)
LoansMulti-FamilyNote sale agreement June 2025
Expected close third quarter 2025
27,354 (2,354)— — (2,354)(2,354)
LoansC&I OperatingCharge off
May 2025
11,292 — — (5,847)(5,847)(5,847)
Total$63,337 $(11,961)$(1,113)$(9,522)$(22,596)$(32,892)
Schedule Presents Quantitative Information about Significant Unobservable Inputs used in Fair Value Measurements of Non-recurring Assets (Level 3) The following tables present quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured on a nonrecurring basis at December 31, 2024 and December 31, 2023:
(dollars in thousands)Fair valueValuation
technique
Unobservable
input / assumptions
Range (weighted average)(1)
December 31, 2024
Nonperforming loans$120,222 Fair value of collateralDiscount for type of property, age of appraisal, and/or current status
0.00% - 34.15% (0.67%)
Other real estate loans4,941 Fair value of collateralDiscount for type of property, age of appraisal, and/or current status
0.00% - 43.54% (10.68%)
Consumer loans held for sale(2)
336,719 Discounted cash flowDiscount rate8.98%
Credit enhancement asset16,804 Income approachDiscount rate
10.61%
December 31, 2023 (restated)
Nonperforming loans$4,633 Collateral based measurementsDiscount to reflect current market conditions and ultimate collectability
24.38% - 100.00% (27.46%)
Other real estate loans9,112 Fair value of collateralDiscount for type of property, age of appraisal, and/or current status
Credit enhancement asset15,389 Income approachDiscount rate
(0.34)% - 10.31% (1.80%)
(1)Unobservable inputs were weighted by the relative fair value of the instruments.
(2)There was one pool of loans at December 31, 2024 with write-downs during 2024, so no range or weighted average is reported.
Schedule of the Fair Value Option for Newly Originated Residential and Commercial Loans Held for Sale
The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected as of December 31, 2024 and December 31, 2023:
December 31, 2024December 31, 2023
(dollars in thousands)Aggregate
fair value
DifferenceContractual
principal
Aggregate
fair value
DifferenceContractual
principal
Residential loans held for sale$8,228 $282 $7,946 $3,811 $203 $3,608 
The following table presents the amount of gains (losses) from fair value changes included in income before income taxes for financial assets carried at fair value for the years ended December 31, 2024, 2023 and 2022:
Years Ended December 31,
(dollars in thousands)202420232022
Residential loans held for sale$47 $163 $(425)
Schedule Presentation of Summary of the Carrying Values and Fair Value Estimates of Certain Financial Instruments The carrying values and estimated fair value of certain financial instruments not carried at fair value at December 31, 2024 and December 31, 2023 were as follows:
December 31, 2024
(dollars in thousands)Carrying
amount
Fair valueQuoted prices
in active
markets
for identical
assets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Assets
Cash and due from banks$114,055 $114,055 $114,055 $— $— 
Federal funds sold711 711 711 — — 
Loans5,167,574 4,979,885 — — 4,979,885 
Accrued interest receivable25,329 25,329 — 25,329 — 
Liabilities
Deposits$6,197,243 $6,183,807 $— $6,183,807 $— 
Short-term borrowings87,499 87,499 75,000 12,499 — 
FHLB and other borrowings258,000 253,520 — 253,520 — 
Subordinated debt77,749 69,827 — 69,827 — 
Trust preferred debentures51,205 49,056 — 49,056 — 
December 31, 2023
(Restated)
(dollars in thousands)Carrying
amount
Fair valueQuoted prices
in active
markets
for identical
assets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Assets
Cash and due from banks$134,212 $134,212 $134,212 $— $— 
Federal funds sold849 849 849 — — 
Loans6,103,592 6,129,244 — — 6,129,244 
Accrued interest receivable34,133 34,133 — 34,133 — 
Liabilities
Deposits$6,309,529 $6,294,979 $— $6,294,979 $— 
Short-term borrowings34,865 34,865 25,000 9,865 — 
FHLB and other borrowings476,000 475,240 — 475,240 — 
Subordinated debt93,546 90,253 — 90,253 — 
Trust preferred debentures50,616 51,626 — 51,626 —