| Fair Value Information |
8. FAIR VALUE INFORMATION Fair Value Hierarchy Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The valuation methodologies for financial assets and liabilities measured at fair value on a recurring and non-recurring basis are described in Note 17 — Fair Value Information, included in our Annual Report on Form 10-K for the year ended December 31, 2024. Assets and Liabilities Measured at Fair Value on a Recurring Basis The tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of the dates presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying Value at June 30, 2025 |
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1) |
|
|
Significant Other Observable Inputs
(Level 2) |
|
|
Significant Unobservable Inputs
(Level 3) |
|
|
|
(Dollars in thousands) |
|
Description of assets |
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities - AFS: |
|
|
|
|
|
|
|
|
|
|
|
|
Government agency/GSE |
|
$ |
34,372 |
|
|
$ |
— |
|
|
$ |
34,372 |
|
|
$ |
— |
|
Mortgage-backed securities |
|
|
2,080,184 |
|
|
|
— |
|
|
|
2,080,184 |
|
|
|
— |
|
CMO/REMIC |
|
|
349,610 |
|
|
|
— |
|
|
|
349,610 |
|
|
|
— |
|
Municipal bonds |
|
|
20,619 |
|
|
|
— |
|
|
|
20,619 |
|
|
|
— |
|
Other securities |
|
|
1,521 |
|
|
|
— |
|
|
|
1,521 |
|
|
|
— |
|
Total investment securities - AFS |
|
|
2,486,306 |
|
|
|
— |
|
|
|
2,486,306 |
|
|
|
— |
|
Derivatives not designated as hedging
instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
|
188 |
|
|
|
— |
|
|
|
188 |
|
|
|
— |
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges: interest rate swaps |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Cash flow hedges: interest rate swaps |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total assets |
|
$ |
2,486,494 |
|
|
$ |
— |
|
|
$ |
2,486,494 |
|
|
$ |
— |
|
Description of liability |
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging
instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
$ |
188 |
|
|
$ |
— |
|
|
$ |
188 |
|
|
$ |
— |
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges: interest rate swaps |
|
|
9,585 |
|
|
|
— |
|
|
|
9,585 |
|
|
|
— |
|
Cash flow hedges: interest rate swaps |
|
|
2,855 |
|
|
|
— |
|
|
|
2,855 |
|
|
|
— |
|
Total liabilities |
|
$ |
12,628 |
|
|
$ |
— |
|
|
$ |
12,628 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying Value at
December 31, 2024 |
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1) |
|
|
Significant Other Observable Inputs
(Level 2) |
|
|
Significant Unobservable Inputs
(Level 3) |
|
|
|
(Dollars in thousands) |
|
Description of assets |
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities - AFS: |
|
|
|
|
|
|
|
|
|
|
|
|
Government agency/GSE |
|
$ |
34,255 |
|
|
$ |
— |
|
|
$ |
34,255 |
|
|
$ |
— |
|
Mortgage-backed securities |
|
|
2,134,534 |
|
|
|
— |
|
|
|
2,134,534 |
|
|
|
— |
|
CMO/REMIC |
|
|
351,522 |
|
|
|
— |
|
|
|
351,522 |
|
|
|
— |
|
Municipal bonds |
|
|
20,377 |
|
|
|
— |
|
|
|
20,377 |
|
|
|
— |
|
Other securities |
|
|
1,427 |
|
|
|
— |
|
|
|
1,427 |
|
|
|
— |
|
Total investment securities - AFS |
|
|
2,542,115 |
|
|
|
— |
|
|
|
2,542,115 |
|
|
|
— |
|
Derivatives not designated as hedging
instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
|
30 |
|
|
|
— |
|
|
|
30 |
|
|
|
— |
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges: interest rate swaps |
|
|
7,222 |
|
|
|
— |
|
|
|
7,222 |
|
|
|
— |
|
Cash flow hedges: interest rate swaps |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total assets |
|
$ |
2,549,367 |
|
|
$ |
— |
|
|
$ |
2,549,367 |
|
|
$ |
— |
|
Description of liability |
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging
instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
$ |
30 |
|
|
$ |
— |
|
|
$ |
30 |
|
|
$ |
— |
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges: interest rate swaps |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Cash flow hedges: interest rate swaps |
|
|
517 |
|
|
|
— |
|
|
|
517 |
|
|
|
— |
|
Total liabilities |
|
$ |
547 |
|
|
$ |
— |
|
|
$ |
547 |
|
|
$ |
— |
|
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis We may be required to measure certain assets at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from application of lower of cost or fair value accounting or impairment write-downs of individual assets. For assets measured at fair value on a non-recurring basis that were held on the balance sheet at June 30, 2025 and December 31, 2024, the following tables provide the level of valuation assumptions used to determine each adjustment and the carrying value of the related assets that had losses during the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying value at June 30, 2025 |
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1) |
|
|
Significant Other Observable Inputs (Level 2) |
|
|
Significant Unobservable Inputs (Level 3) |
|
|
Total Losses For The Six Months Ended June 30, 2025 |
|
|
|
(Dollars in thousands) |
|
Description of assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
32,248 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
32,248 |
|
|
$ |
1 |
|
Construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
SBA |
|
|
1,268 |
|
|
|
— |
|
|
|
— |
|
|
|
1,268 |
|
|
|
51 |
|
SBA - PPP |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial and industrial |
|
|
1,529 |
|
|
|
— |
|
|
|
— |
|
|
|
1,529 |
|
|
|
109 |
|
Dairy & livestock and
agribusiness |
|
|
455 |
|
|
|
— |
|
|
|
— |
|
|
|
455 |
|
|
|
10 |
|
Municipal lease finance
receivables |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
SFR mortgage |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer and other loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other real estate owned |
|
|
661 |
|
|
|
— |
|
|
|
— |
|
|
|
661 |
|
|
|
— |
|
Total assets |
|
$ |
36,161 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
36,161 |
|
|
$ |
171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying Value at December 31, 2024 |
|
|
Quoted Prices in Active Markets for Identical Assets (Level 1) |
|
|
Significant Other Observable Inputs (Level 2) |
|
|
Significant Unobservable Inputs (Level 3) |
|
|
Total Losses For the Year Ended December 31, 2024 |
|
|
|
(Dollars in thousands) |
|
Description of assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
28,728 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
28,728 |
|
|
$ |
11 |
|
Construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
SBA |
|
|
1,532 |
|
|
|
— |
|
|
|
— |
|
|
|
1,532 |
|
|
|
49 |
|
SBA - PPP |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial and industrial |
|
|
3,144 |
|
|
|
— |
|
|
|
— |
|
|
|
3,144 |
|
|
|
220 |
|
Dairy & livestock and
agribusiness |
|
|
860 |
|
|
|
— |
|
|
|
— |
|
|
|
860 |
|
|
|
9 |
|
Municipal lease finance
receivables |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
SFR mortgage |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer and other loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other real estate owned |
|
|
10,429 |
|
|
|
— |
|
|
|
— |
|
|
|
10,429 |
|
|
|
2,296 |
|
Total assets |
|
$ |
44,693 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
44,693 |
|
|
$ |
2,585 |
|
Fair Value of Financial Instruments The following disclosure presents estimated fair value of our financial instruments. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to develop the estimates of fair value. Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company may realize in a current market exchange as of June 30, 2025 and December 31, 2024, respectively. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2025 |
|
|
Carrying |
|
|
Estimated Fair Value |
|
|
Amount |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
(Dollars in thousands) |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents |
$ |
738,636 |
|
|
$ |
738,636 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
738,636 |
|
Interest-earning balances due from
depository institutions |
|
11,004 |
|
|
|
— |
|
|
|
11,004 |
|
|
|
— |
|
|
|
11,004 |
|
Investment securities available-for-sale |
|
2,486,306 |
|
|
|
— |
|
|
|
2,486,306 |
|
|
|
— |
|
|
|
2,486,306 |
|
Investment securities held-to-maturity |
|
2,327,230 |
|
|
|
— |
|
|
|
1,934,756 |
|
|
|
— |
|
|
|
1,934,756 |
|
Total loans, net of allowance for credit losses |
|
8,280,498 |
|
|
|
— |
|
|
|
— |
|
|
|
8,100,619 |
|
|
|
8,100,619 |
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
188 |
|
|
|
— |
|
|
|
188 |
|
|
|
— |
|
|
|
188 |
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges: interest rate swaps |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Cash flow hedges: interest rate swaps |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing |
$ |
4,737,695 |
|
|
$ |
— |
|
|
$ |
4,734,567 |
|
|
$ |
— |
|
|
$ |
4,734,567 |
|
Borrowings |
|
904,154 |
|
|
|
— |
|
|
|
871,106 |
|
|
|
— |
|
|
|
871,106 |
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
188 |
|
|
|
— |
|
|
|
188 |
|
|
|
— |
|
|
|
188 |
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges: interest rate swaps |
|
9,585 |
|
|
|
— |
|
|
|
9,585 |
|
|
|
— |
|
|
|
9,585 |
|
Cash flow hedges: interest rate swaps |
|
2,855 |
|
|
|
— |
|
|
|
2,855 |
|
|
|
— |
|
|
|
2,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
|
Carrying |
|
|
Estimated Fair Value |
|
|
Amount |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
(Dollars in thousands) |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents |
$ |
204,698 |
|
|
$ |
204,698 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
204,698 |
|
Interest-earning balances due from
depository institutions |
|
480 |
|
|
|
— |
|
|
|
480 |
|
|
|
— |
|
|
|
480 |
|
Investment securities available-for-sale |
|
2,542,115 |
|
|
|
— |
|
|
|
2,542,115 |
|
|
|
— |
|
|
|
2,542,115 |
|
Investment securities held-to-maturity |
|
2,379,668 |
|
|
|
— |
|
|
|
1,954,345 |
|
|
|
— |
|
|
|
1,954,345 |
|
Total loans, net of allowance for credit losses |
|
8,456,310 |
|
|
|
— |
|
|
|
— |
|
|
|
8,149,801 |
|
|
|
8,149,801 |
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
30 |
|
|
|
— |
|
|
|
30 |
|
|
|
— |
|
|
|
30 |
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges: interest rate swaps |
|
7,222 |
|
|
|
— |
|
|
|
7,222 |
|
|
|
— |
|
|
|
7,222 |
|
Cash flow hedges: interest rate swaps |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing |
$ |
4,911,285 |
|
|
$ |
— |
|
|
$ |
4,908,070 |
|
|
$ |
— |
|
|
$ |
4,908,070 |
|
Borrowings |
|
761,887 |
|
|
|
— |
|
|
|
716,566 |
|
|
|
— |
|
|
|
716,566 |
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
30 |
|
|
|
— |
|
|
|
30 |
|
|
|
— |
|
|
|
30 |
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges: interest rate swaps |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Cash flow hedges: interest rate swaps |
|
517 |
|
|
|
— |
|
|
|
517 |
|
|
|
— |
|
|
|
517 |
|
The fair value estimates presented herein are based on pertinent information available to management as of June 30, 2025 and December 31, 2024. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date, and therefore, current estimates of fair value may differ significantly from the amounts presented above.
|