Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | HAFC | |
Entity Registrant Name | HANMI FINANCIAL CORPORATION | |
Entity Central Index Key | 0001109242 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 30,394,397 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 000-30421 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4788120 | |
Entity Address, Address Line One | 900 Wilshire Boulevard | |
Entity Address, Address Line Two | Suite 1250 | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90017 | |
City Area Code | 213 | |
Local Phone Number | 382-2200 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 289,006 | $ 352,421 |
Securities available for sale, at fair value (amortized cost of $957,272 and $978,796 as of September 30, 2023 and December 31, 2022, respectively) | 817,242 | 853,838 |
Loans held for sale, at the lower of cost or fair value | 11,767 | 8,043 |
Loans receivable, net of allowance for credit losses of $67,313 and $71,523 as of September 30, 2023 and December 31, 2022, respectively | 5,953,472 | 5,895,610 |
Accrued interest receivable | 20,715 | 18,537 |
Premises and equipment, net | 20,707 | 22,850 |
Customers' liability on acceptances | 1,386 | 328 |
Servicing assets | 7,156 | 7,176 |
Goodwill and other intangible assets, net | 11,131 | 11,225 |
Federal Home Loan Bank ("FHLB") stock, at cost | 16,385 | 16,385 |
Income tax assets | 48,039 | 51,924 |
Bank-owned life insurance | 56,364 | 55,544 |
Prepaid expenses and other assets | 96,770 | 84,381 |
Total assets | 7,350,140 | 7,378,262 |
Deposits: | ||
Noninterest-bearing | 2,161,238 | 2,539,602 |
Interest-bearing | 4,098,834 | 3,628,470 |
Total deposits | 6,260,072 | 6,168,072 |
Accrued interest payable | 50,286 | 7,792 |
Bank's liability on acceptances | 1,386 | 328 |
Borrowings | 162,500 | 350,000 |
Subordinated debentures ($136,800 and $136,800 face amount less unamortized discount and debt issuance costs of $6,940 and $7,391 as of September 30, 2023 and December 31, 2022, respectively) | 129,860 | 129,409 |
Accrued expenses and other liabilities | 82,677 | 85,146 |
Total liabilities | 6,686,781 | 6,740,747 |
Stockholders' equity: | ||
Preferred stock, $0.001 par value; authorized 10,000,000 shares; no shares issued as of September 30, 2023 and December 31, 2022 | ||
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 33,909,457 shares (30,410,582 shares outstanding) and 33,708,234 shares (30,485,621 shares outstanding) as of September 30, 2023 and December 31, 2022, respectively | 34 | 33 |
Additional paid-in capital | 586,169 | 583,410 |
Accumulated other comprehensive loss, net of tax benefit of $40,608 and $35,973 as of September 30, 2023 and December 31, 2022, respectively | (99,422) | (88,985) |
Retained earnings | 308,007 | 269,542 |
Less treasury stock; 3,498,875 shares and 3,222,613 shares as of September 30, 2023 and December 31, 2022, respectively | (131,429) | (126,485) |
Total stockholders' equity | 663,359 | 637,515 |
Total liabilities and stockholders' equity | $ 7,350,140 | $ 7,378,262 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Amortized cost of securities available for sale | $ 957,272 | $ 978,796 |
Loans receivable, allowance for credit losses | 67,313 | 71,523 |
Face amount of subordinated debentures | 136,800 | 136,800 |
Unamortized discount and debt issuance costs | $ 6,940 | $ 7,391 |
Preferred stock par value (in USD per share) | $ 0.001 | $ 0.001 |
Preferred stock authorized (shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (shares) | 0 | 0 |
Common stock par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (shares) | 62,500,000 | 62,500,000 |
Common stock issued (shares) | 33,909,457 | 33,708,234 |
Common stock outstanding (shares) | 30,410,582 | 30,485,621 |
Accumulated other comprehensive (loss) income, tax benefit | $ (40,608) | $ (35,973) |
Treasury stock (shares) | 3,498,875 | 3,222,613 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest and dividend income: | ||||
Interest and fees on loans receivable | $ 85,398 | $ 66,976 | $ 249,888 | $ 180,755 |
Interest on securities | 4,204 | 3,271 | 12,356 | 8,718 |
Dividends on FHLB stock | 317 | 245 | 888 | 735 |
Interest on deposits in other banks | 4,153 | 958 | 9,012 | 1,366 |
Total interest and dividend income | 94,072 | 71,450 | 272,144 | 191,574 |
Interest expense: | ||||
Interest on deposits | 36,818 | 6,567 | 94,431 | 11,038 |
Interest on borrowings | 753 | 349 | 4,755 | 1,056 |
Interest on subordinated debentures | 1,646 | 1,448 | 4,828 | 6,394 |
Total interest expense | 39,217 | 8,364 | 104,014 | 18,488 |
Net interest income before credit loss expense | 54,855 | 63,086 | 168,130 | 173,086 |
Credit loss expense | 5,154 | 563 | 7,210 | 783 |
Net interest income after credit loss expense | 49,701 | 62,523 | 160,920 | 172,303 |
Noninterest income: | ||||
Service charges on deposit accounts | 2,605 | 2,996 | 7,756 | 8,745 |
Trade finance and other service charges and fees | 1,155 | 1,132 | 3,586 | 3,690 |
Gain on sale of Small Business Administration ("SBA") loans | 1,172 | 2,250 | 4,253 | 7,545 |
Other operating income | 6,296 | 2,536 | 11,904 | 6,763 |
Total noninterest income | 11,228 | 8,914 | 27,499 | 26,743 |
Noninterest expense: | ||||
Salaries and employee benefits | 20,361 | 19,365 | 61,336 | 55,861 |
Occupancy and equipment | 4,825 | 4,736 | 13,737 | 13,979 |
Data processing | 3,490 | 3,352 | 10,208 | 9,702 |
Professional fees | 1,568 | 1,249 | 4,278 | 3,909 |
Supplies and communications | 552 | 710 | 1,866 | 1,956 |
Advertising and promotion | 534 | 1,186 | 2,114 | 2,664 |
Other operating expenses | 2,915 | 2,677 | 7,777 | 8,370 |
Total noninterest expense | 34,245 | 33,275 | 101,316 | 96,441 |
Income before tax | 26,684 | 38,162 | 87,103 | 102,605 |
Income tax expense | 7,888 | 10,993 | 25,695 | 29,690 |
Net income | $ 18,796 | $ 27,169 | $ 61,408 | $ 72,915 |
Basic earnings per share | $ 0.62 | $ 0.89 | $ 2.01 | $ 2.39 |
Diluted earnings per share | $ 0.62 | $ 0.89 | $ 2.01 | $ 2.39 |
Weighted-average shares outstanding: | ||||
Basic | 30,251,961 | 30,314,439 | 30,296,991 | 30,289,068 |
Diluted | 30,292,872 | 30,396,762 | 30,338,678 | 30,369,538 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 18,796 | $ 27,169 | $ 61,408 | $ 72,915 |
Unrealized gain (loss) on securities: | ||||
Unrealized holding gain (loss) arising during period | (20,820) | (42,135) | (16,943) | (125,368) |
Unrealized gain (loss) on securities | (20,820) | (42,135) | (16,943) | (125,368) |
Income tax benefit (expense) related to items of other comprehensive income | 6,037 | 12,641 | 5,187 | 37,749 |
Other comprehensive income (loss), net of tax | (14,783) | (29,494) | (11,756) | (87,619) |
Reclassification adjustment for (gains) losses included in net earnings | 1,871 | |||
Income tax (benefit) expense related to reclassification adjustment | (552) | |||
Reclassification adjustment for (gains) losses included in net earnings, net of tax | 1,319 | |||
Other comprehensive income (loss), net of tax | (14,783) | (29,494) | (10,437) | (87,619) |
Total comprehensive income (loss) | $ 4,013 | $ (2,325) | $ 50,971 | $ (14,704) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock - Number of Shares, Shares Issued | Common Stock - Number of Shares, Treasury Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Balance at beginning of period at Dec. 31, 2021 | $ 643,417 | $ 33 | $ (125,753) | $ 580,796 | $ (8,443) | $ 196,784 |
Beginning balance, shares issued (shares) at Dec. 31, 2021 | 33,603,839 | |||||
Beginning balance, treasury stock (shares) at Dec. 31, 2021 | (3,196,578) | |||||
Beginning balance, shares outstanding (shares) at Dec. 31, 2021 | 30,407,261 | |||||
Stock options exercised | 13 | 13 | ||||
Stock options exercised (shares) | 1,050 | 1,050 | ||||
Issuance of awards pursuant to equity incentive plans (shares) | 102,134 | |||||
Share-based compensation expense | 1,886 | 1,886 | ||||
Shares surrendered to satisfy tax liability upon vesting of equity awards | (704) | $ (704) | ||||
Shares surrendered to satisfy tax liability upon vesting of equity awards (shares) | (26,441) | (26,441) | ||||
Cash dividends declared (common stock, $0.25/share, $0.25/share,0.69/shares,0.75/share) | (21,015) | (21,015) | ||||
Net income | 72,915 | 72,915 | ||||
Change in unrealized gain (loss) on securities available for sale, net of income taxes | (87,619) | (87,619) | ||||
Balance at end of period at Sep. 30, 2022 | 608,893 | $ 33 | $ (126,457) | 582,695 | (96,062) | 248,684 |
Ending balance, shares issued (shares) at Sep. 30, 2022 | 33,705,973 | |||||
Ending balance, treasury stock (shares) at Sep. 30, 2022 | (3,221,969) | |||||
Ending balance, shares outstanding (shares) at Sep. 30, 2022 | 30,484,004 | |||||
Balance at beginning of period at Jun. 30, 2022 | 618,296 | $ 33 | $ (126,322) | 582,018 | (66,568) | 229,135 |
Beginning balance, shares issued (shares) at Jun. 30, 2022 | 33,701,784 | |||||
Beginning balance, treasury stock (shares) at Jun. 30, 2022 | (3,218,794) | |||||
Beginning balance, shares outstanding (shares) at Jun. 30, 2022 | 30,482,990 | |||||
Stock options exercised | 13 | 13 | ||||
Stock options exercised, treasury stock (shares) | 1,050 | |||||
Stock options exercised, shares outstanding (shares) | 1,050 | |||||
Issuance of awards pursuant to equity incentive plans (shares) | 4,189 | |||||
Share-based compensation expense | 664 | 664 | ||||
Shares surrendered to satisfy tax liability upon vesting of equity awards | (135) | $ (135) | ||||
Shares surrendered to satisfy tax liability upon vesting of equity awards (shares) | (4,225) | (4,225) | ||||
Cash dividends declared (common stock, $0.25/share, $0.25/share,0.69/shares,0.75/share) | (7,620) | (7,620) | ||||
Net income | 27,169 | 27,169 | ||||
Change in unrealized gain (loss) on securities available for sale, net of income taxes | (29,494) | (29,494) | ||||
Balance at end of period at Sep. 30, 2022 | 608,893 | $ 33 | $ (126,457) | 582,695 | (96,062) | 248,684 |
Ending balance, shares issued (shares) at Sep. 30, 2022 | 33,705,973 | |||||
Ending balance, treasury stock (shares) at Sep. 30, 2022 | (3,221,969) | |||||
Ending balance, shares outstanding (shares) at Sep. 30, 2022 | 30,484,004 | |||||
Balance at beginning of period at Dec. 31, 2022 | $ 637,515 | $ 33 | $ (126,485) | 583,410 | (88,985) | 269,542 |
Beginning balance, shares issued (shares) at Dec. 31, 2022 | 33,708,234 | |||||
Beginning balance, treasury stock (shares) at Dec. 31, 2022 | (3,222,613) | (3,222,613) | ||||
Beginning balance, shares outstanding (shares) at Dec. 31, 2022 | 30,485,621 | |||||
Stock options exercised | $ 821 | 821 | ||||
Stock options exercised (shares) | 50,000 | |||||
Stock options exercised, shares outstanding (shares) | 50,000 | |||||
Issuance of awards pursuant to equity incentive plans | 1 | $ 1 | ||||
Issuance of awards pursuant to equity incentive plans (shares) | 151,223 | |||||
Share-based compensation expense | 1,938 | 1,938 | ||||
Shares surrendered to satisfy tax liability upon vesting of equity awards | (1,599) | $ (1,599) | ||||
Shares surrendered to satisfy tax liability upon vesting of equity awards (shares) | (76,262) | (76,262) | ||||
Repurchase of common stock | (3,345) | $ (3,345) | ||||
Repurchase of common stock (shares) | (200,000) | (200,000) | ||||
Cash dividends declared (common stock, $0.25/share, $0.25/share,0.69/shares,0.75/share) | (22,943) | (22,943) | ||||
Net income | 61,408 | 61,408 | ||||
Change in unrealized gain (loss) on securities available for sale, net of income taxes | (10,437) | (10,437) | ||||
Balance at end of period at Sep. 30, 2023 | $ 663,359 | $ 34 | $ (131,429) | 586,169 | (99,422) | 308,007 |
Ending balance, shares issued (shares) at Sep. 30, 2023 | 33,909,457 | |||||
Ending balance, treasury stock (shares) at Sep. 30, 2023 | (3,498,875) | (3,498,875) | ||||
Ending balance, shares outstanding (shares) at Sep. 30, 2023 | 30,410,582 | |||||
Balance at beginning of period at Jun. 30, 2023 | $ 668,560 | $ 33 | $ (129,126) | 585,391 | (84,639) | 296,901 |
Beginning balance, shares issued (shares) at Jun. 30, 2023 | 33,863,421 | |||||
Beginning balance, treasury stock (shares) at Jun. 30, 2023 | (3,377,633) | |||||
Beginning balance, shares outstanding (shares) at Jun. 30, 2023 | 30,485,788 | |||||
Issuance of awards pursuant to equity incentive plans | 1 | $ 1 | ||||
Issuance of awards pursuant to equity incentive plans (shares) | 46,036 | |||||
Share-based compensation expense | 778 | 778 | ||||
Shares surrendered to satisfy tax liability upon vesting of equity awards | (401) | $ (401) | ||||
Shares surrendered to satisfy tax liability upon vesting of equity awards (shares) | (21,242) | (21,242) | ||||
Repurchase of common stock | (1,902) | $ (1,902) | ||||
Repurchase of common stock (shares) | (100,000) | (100,000) | ||||
Cash dividends declared (common stock, $0.25/share, $0.25/share,0.69/shares,0.75/share) | (7,690) | (7,690) | ||||
Net income | 18,796 | 18,796 | ||||
Change in unrealized gain (loss) on securities available for sale, net of income taxes | (14,783) | (14,783) | ||||
Balance at end of period at Sep. 30, 2023 | $ 663,359 | $ 34 | $ (131,429) | $ 586,169 | $ (99,422) | $ 308,007 |
Ending balance, shares issued (shares) at Sep. 30, 2023 | 33,909,457 | |||||
Ending balance, treasury stock (shares) at Sep. 30, 2023 | (3,498,875) | (3,498,875) | ||||
Ending balance, shares outstanding (shares) at Sep. 30, 2023 | 30,410,582 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock (in usd per share) | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.69 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 61,408 | $ 72,915 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,152 | 10,430 |
Amortization of servicing assets - net | 1,815 | 2,033 |
Share-based compensation expense | 1,938 | 1,886 |
Credit loss expense | 7,210 | 783 |
Loss on sales of securities | 1,871 | |
Gain on sales of SBA loans | (4,253) | (7,545) |
Origination of SBA loans held for sale | (74,888) | (111,915) |
Proceeds from sales of SBA loans | 73,496 | 122,744 |
Change in bank-owned life insurance | (820) | (736) |
Change in prepaid expenses and other assets | (22,644) | (21,443) |
Change in income tax assets | 8,520 | 15,592 |
Valuation adjustment on servicing assets | (385) | |
Change in accrued interest payable and other liabilities | 41,187 | 15,646 |
Net cash provided by (used in) operating activities | 99,607 | 100,390 |
Cash flows from investing activities: | ||
Purchases of securities available for sale | (64,767) | (132,966) |
Proceeds from matured, called and repayment of securities | 74,046 | 84,669 |
Proceeds from sales of securities available for sale | 8,149 | |
Purchases of loans receivable | (11,130) | |
Purchases of premises and equipment | (330) | (1,750) |
Proceeds from disposition of premises and equipment | 7,020 | |
Change in loans receivable, excluding purchases | (64,574) | (641,619) |
Net cash provided by (used in) investing activities | (40,456) | (702,796) |
Cash flows from financing activities: | ||
Change in deposits | 92,000 | 415,107 |
Change in borrowings | (187,500) | (37,501) |
Redemption of subordinated debentures, net of treasury debentures | (87,300) | |
Proceeds from exercise of stock options | 13 | |
Cash paid for employee vested shares surrendered due to employee tax liability | (778) | (704) |
Repurchase of common stock | (3,345) | |
Cash dividends paid | (22,943) | (21,015) |
Net cash provided by (used in) financing activities | (122,566) | 268,600 |
Net increase (decrease) in cash and due from banks | (63,415) | (333,806) |
Cash and due from banks at beginning of year | 352,421 | 608,965 |
Cash and due from banks at end of period | 289,006 | 275,159 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 61,520 | 17,469 |
Income taxes paid | 16,144 | 12,725 |
Non-cash activities: | ||
Transfer of loans receivable to other real estate owned | 117 | |
Income tax benefit (expense) related to items of other comprehensive income | 4,635 | 37,749 |
Change in right-of-use asset obtained in exchange for lease liability | 8,936 | $ 108 |
Cashless exercise of stock options | $ 821 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 18,796 | $ 27,169 | $ 61,408 | $ 72,915 |
Insider Trading Arrangements
Insider Trading Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
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 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Note 1 — Organization and Basis of Presentation Hanmi Financial Corporation (“Hanmi Financial,” the “Company,” “we,” “us” or “our”) is a bank holding company whose primary subsidiary is Hanmi Bank (the “Bank”). Our primary operations are related to traditional banking activities, including the acceptance of deposits and the lending and investing of money by the Bank. In management’s opinion, the accompanying unaudited consolidated financial statements of Hanmi Financial and its subsidiaries reflect all adjustments of a normal and recurring nature that are necessary for a fair presentation of the results for the interim periods ended September 30, 2023, but are not necessarily indicative of the results that will be reported for the entire year or any other interim period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. The unaudited consolidated financial statements are prepared in conformity with GAAP and in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission. Operating results for the three-month or nine-month period ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ended December 31, 2023 or for any other period. The interim information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report on Form 10-K”). The preparation of interim unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions affect the amounts reported in the unaudited financial statements and disclosures provided, and actual results could differ. Recently Issued Accounting Standards FASB ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting : On March 12, 2020, the FASB issued ASU 2020-04 to ease the potential burden in accounting for reference rate reform. The amendments in ASU 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The new guidance provided several optional expedients that reduce costs and complexity of accounting for reference rate reform, including measures to simplify or modify accounting issues resulting from reference rate reform for contract modifications, hedges, and debt securities. FASB ASU 2022-06 , Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848: In March 2021, it was announced LIBOR would cease on June 30, 2023. Because the current relief in Topic 848 may not cover a period of time during which a significant number of modifications may take place, the amendments in this ASU were deferred to December 31, 2024. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition. Accounting Standards Adopted in 2023 FASB ASU 2022-02, Troubled Debt Restructurings ("TDRs") and Vintage Disclosures (Topic 326 ) : The FASB amended the accounting and disclosure requirements for expected credit losses by removing the recognition and measurement guidance on TDRs and enhancing disclosures pertaining to certain loan refinancings and restructurings by creditors made to borrowers experiencing financial difficulty. Additionally, this standard requires disclosure of current-period gross write-offs by year of origination for financing receivables. The adoption of this standard did not have a material effect on the Company’s operating results or financial condition. See "Note 3 - Loans" to the consolidated financial statements for more details. Descriptions of our significant accounting policies are included in Note 1 - Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements in the 2022 Annual Report on Form 10-K. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 2 — Securities The following is a summary of securities available for sale as of the dates indicated: Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gain Loss Value (in thousands) September 30, 2023 U.S. Treasury securities $ 72,561 $ — $ ( 1,639 ) $ 70,922 U.S. government agency and sponsored agency obligations: Mortgage-backed securities - residential 507,922 — ( 85,196 ) 422,726 Mortgage-backed securities - commercial 60,407 — ( 14,441 ) 45,966 Collateralized mortgage obligations 98,595 — ( 12,337 ) 86,258 Debt securities 140,409 — ( 10,490 ) 129,919 Total U.S. government agency and sponsored agency obligations 807,333 — ( 122,464 ) 684,869 Municipal bonds-tax exempt 77,378 — ( 15,927 ) 61,451 Total securities available for sale $ 957,272 $ — $ ( 140,030 ) $ 817,242 December 31, 2022 U.S. Treasury securities $ 49,690 $ — $ ( 1,664 ) $ 48,026 U.S. government agency and sponsored agency obligations: Mortgage-backed securities - residential 540,590 63 ( 75,501 ) 465,152 Mortgage-backed securities - commercial 61,799 — ( 10,507 ) 51,292 Collateralized mortgage obligations 98,236 — ( 12,751 ) 85,485 Debt securities 150,338 — ( 11,839 ) 138,499 Total U.S. government agency and sponsored agency obligations 850,963 63 ( 110,598 ) 740,428 Municipal bonds-tax exempt 78,143 — ( 12,759 ) 65,384 Total securities available for sale $ 978,796 $ 63 $ ( 125,021 ) $ 853,838 The amortized cost and estimated fair value of securities as of September 30, 2023 and December 31, 2022, by contractual or expected maturity, are shown below. Collateralized mortgage obligations are included in the table shown below based on their expected maturities. All other securities are included based on their contractual maturities. September 30, 2023 December 31, 2022 Available for Sale Available for Sale Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value (in thousands) Within one year $ 51,042 $ 50,491 $ 28,665 $ 28,043 Over one year through five years 171,668 159,474 180,322 167,000 Over five years through ten years 75,866 67,227 39,213 35,318 Over ten years 658,696 540,050 730,596 623,477 Total $ 957,272 $ 817,242 $ 978,796 $ 853,838 The following table summarizes debt securities available-for-sale in an unrealized loss position for which an allowance for credit losses has not been recorded at September 30, 2023 and December 31, 2022, aggregated by major security type and length of time in a continuous unrealized loss position: Holding Period Less than 12 Months 12 Months or More Total Gross Estimated Number Gross Estimated Number Gross Estimated Number Unrealized Fair of Unrealized Fair of Unrealized Fair of Loss Value Securities Loss Value Securities Loss Value Securities (in thousands, except number of securities) September 30, 2023 U.S. Treasury securities $ ( 212 ) $ 42,415 15 $ ( 1,427 ) $ 28,507 10 $ ( 1,639 ) $ 70,922 25 U.S. government agency and sponsored agency obligations: Mortgage-backed securities - residential ( 533 ) 19,097 9 ( 84,663 ) 403,629 118 ( 85,196 ) 422,726 127 Mortgage-backed securities - commercial — — — ( 14,441 ) 45,966 15 ( 14,441 ) 45,966 15 Collateralized mortgage obligations ( 405 ) 22,488 6 ( 11,933 ) 63,770 24 ( 12,337 ) 86,258 30 Debt securities ( 58 ) 10,381 3 ( 10,432 ) 119,538 25 ( 10,490 ) 129,919 28 Total U.S. government agency and sponsored agency obligations ( 996 ) 51,966 18 ( 121,469 ) 632,903 182 ( 122,464 ) 684,869 200 Municipal bonds-tax exempt — — — ( 15,927 ) 61,451 19 ( 15,927 ) 61,451 19 Total $ ( 1,208 ) $ 94,381 33 $ ( 138,823 ) $ 722,861 211 $ ( 140,030 ) $ 817,242 244 December 31, 2022 U.S. Treasury securities $ ( 414 ) $ 33,812 14 $ ( 1,250 ) $ 14,215 4 $ ( 1,664 ) $ 48,027 18 U.S. government agency and sponsored agency obligations: Mortgage-backed securities - residential ( 1,712 ) 36,009 18 ( 73,789 ) 424,302 105 ( 75,501 ) 460,311 123 Mortgage-backed securities - commercial ( 84 ) 4,069 1 ( 10,423 ) 47,221 14 ( 10,507 ) 51,290 15 Collateralized mortgage obligations ( 1,011 ) 23,606 8 ( 11,740 ) 61,879 20 ( 12,751 ) 85,485 28 Debt securities ( 1,103 ) 31,714 8 ( 10,736 ) 106,785 22 ( 11,839 ) 138,499 30 Total U.S. government agency and sponsored agency obligations ( 3,910 ) 95,398 35 ( 106,688 ) 640,187 161 ( 110,598 ) 735,585 196 Municipal bonds-tax exempt — — — ( 12,759 ) 65,385 19 ( 12,759 ) 65,385 19 Total $ ( 4,324 ) $ 129,210 49 $ ( 120,697 ) $ 719,787 184 $ ( 125,021 ) $ 848,997 233 The Company evaluates its available-for-sale securities portfolio for impairment on a quarterly basis. The Company did no t recognize unrealized losses in income because it has the ability and the intent to hold and does not expect to be required to sell these securities until the recovery of their cost basis. The quarterly impairment assessment takes into account the changes in the credit quality of these debt securities since acquisition and the likelihood of a credit loss occurring over the life of the securities. In the event that a credit loss is expected to occur in the future, an allowance is established and a corresponding credit loss is recognized. Based on this analysis, as of September 30, 2023, the Company determined that no credit losses were expected to be realized on the tax-exempt municipal bond portfolio. The remainder of the portfolio consists of U.S. Treasury obligations, U.S. government agency securities, and U.S. government sponsored agency securities, all of which have the backing of the U.S. government, and are therefore not expected to incur credit losses. Realized gains and losses on sales of securities and proceeds from sales of securities were as follows for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (in thousands) Gross realized gains on sales of securities $ — $ — $ — $ — Gross realized losses on sales of securities — — ( 1,871 ) — Net realized gains (losses) on sales of securities $ — $ — $ ( 1,871 ) $ — Proceeds from sales of securities $ — $ — $ 8,149 $ — During the nine months ended September 30, 2023, there were $ 1.9 million in net losses in earnings resulting from the sale of $ 8.1 million of securities previously recorded with $ 1.7 million unrealized losses in accumulated other comprehensive income. There were no sales of securities during the three and nine months ended September 30, 2022. Securities available for sale with market values of $ 24.7 million and $ 23.4 million as of September 30, 2023 and December 31, 2022, respectively, were pledged to secure borrowings from the Federal Reserve Bank (“FRB”) Discount Window and the Bank Term Funding Program (“BTFP”). At September 30, 2023 , there were no holdings of securities of any one issuer, other than the U.S. government and its agencies in an amount greater than 10 % of shareholders’ equity. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Loans | Note 3 — Loans Loans Receivable Loans consisted of the following as of the dates indicated: September 30, 2023 December 31, 2022 (in thousands) Real estate loans: Commercial property Retail $ 1,097,650 $ 1,023,608 Hospitality 705,735 646,893 Office 575,319 499,946 Other (1) 1,309,507 1,553,729 Total commercial property loans 3,688,211 3,724,176 Construction 84,804 109,205 Residential (2) 926,326 734,472 Total real estate loans 4,699,341 4,567,853 Commercial and industrial loans (3) 728,792 804,492 Equipment financing agreements 592,652 594,788 Loans receivable 6,020,785 5,967,133 Allowance for credit losses ( 67,313 ) ( 71,523 ) Loans receivable, net $ 5,953,472 $ 5,895,610 (1) Includes mixed-use, multifamily, industrial, gas stations, faith-based facilities, and medical; all other property types represent less than one percent of total loans receivable. (2) Includes $ 2.0 million and $ 2.4 million of home equity loans and lines, and $ 4.2 million and $ 4.6 million of personal loans at September 30, 2023 and December 31, 2022, respectively. (3) At September 30, 2023 and December 31, 2022, Paycheck Protection Program loans were $ 0.2 million and $ 0.9 million, respectively. Accrued interest on loans was $ 17.7 million and $ 16.0 million at September 30, 2023 and December 31, 2022, respectively. At September 30, 2023 and December 31, 2022, loans of $ 2.41 billion and $ 1.99 billion, respectively, were pledged to secure advances from the FHLB. Loans Held for Sale The following is the activity for loans held for sale for the three months ended September 30, 2023 and 2022: Real Estate Commercial and Industrial Total (in thousands) September 30, 2023 Balance at beginning of period $ 5,544 $ 1,749 $ 7,293 Originations and transfers 12,588 13,398 25,986 Sales ( 11,520 ) ( 9,490 ) ( 21,010 ) Principal paydowns and amortization ( 75 ) ( 427 ) ( 502 ) Balance at end of period $ 6,537 $ 5,230 $ 11,767 September 30, 2022 Balance at beginning of period $ 10,976 $ 7,552 $ 18,528 Originations and transfers 23,013 12,198 35,211 Sales ( 27,493 ) ( 16,192 ) ( 43,685 ) Principal paydowns and amortization ( 6 ) ( 4 ) ( 10 ) Balance at end of period $ 6,490 $ 3,554 $ 10,044 Loans held for sale was comprised of $ 11.8 million and $ 8.0 million of the guaranteed portion of SBA 7(a) loans at September 30, 2023 and December 31, 2022, respectively. The following is the activity for loans held for sale for the nine months ended September 30, 2023 and 2022: Real Estate Commercial and Industrial Total (in thousands) September 30, 2023 Balance at beginning of period $ 3,775 $ 4,268 $ 8,043 Originations and transfers 43,468 31,420 74,888 Sales ( 40,630 ) ( 30,022 ) ( 70,652 ) Principal payoffs and amortization ( 76 ) ( 436 ) ( 512 ) Balance at end of period $ 6,537 $ 5,230 $ 11,767 September 30, 2022 Balance at beginning of period $ 6,954 $ 6,388 $ 13,342 Originations and transfers 72,708 39,207 111,915 Sales ( 73,166 ) ( 42,033 ) ( 115,199 ) Principal payoffs and amortization ( 6 ) ( 8 ) ( 14 ) Balance at end of period $ 6,490 $ 3,554 $ 10,044 Allowance for Credit Losses The following table details the information on the allowance for credit losses by portfolio segment as of and for the three months ended September 30, 2023 and 2022: Real Estate Commercial and Industrial Equipment Financing Agreements Total (in thousands) September 30, 2023 Balance at beginning of period $ 43,054 $ 16,028 $ 11,942 71,024 Charge-offs ( 216 ) ( 6,323 ) ( 2,831 ) ( 9,370 ) Recoveries 50 141 301 492 Provision (recovery) for credit losses 948 1,396 2,823 5,167 Ending balance $ 43,836 $ 11,242 $ 12,235 $ 67,313 September 30, 2022 Balance at beginning of period $ 46,112 $ 14,275 $ 12,680 $ 73,067 Charge-offs ( 1,356 ) ( 8 ) ( 716 ) ( 2,080 ) Recoveries 373 228 369 970 Provision (recovery) for credit losses 395 381 ( 1,149 ) ( 373 ) Ending balance $ 45,524 $ 14,876 $ 11,184 $ 71,584 The following table details the information on the allowance for credit losses by portfolio segment as of and for the nine months ended September 30, 2023 and 2022: Real Estate Commercial and Industrial Equipment Financing Agreements Total (in thousands) September 30, 2023 Balance at beginning of period $ 44,026 $ 15,267 $ 12,230 71,523 Charge-offs ( 627 ) ( 6,635 ) ( 7,052 ) ( 14,314 ) Recoveries 180 931 1,131 2,242 Provision (recovery) for credit losses 257 1,679 5,926 7,862 Ending balance $ 43,836 $ 11,242 $ 12,235 $ 67,313 September 30, 2022 Balance at beginning of period $ 48,890 $ 12,418 $ 11,249 $ 72,557 Charge-offs ( 1,886 ) ( 87 ) ( 1,548 ) ( 3,521 ) Recoveries 632 679 1,117 2,428 Provision (recovery) for credit losses ( 2,112 ) 1,866 366 120 Ending balance $ 45,524 $ 14,876 $ 11,184 $ 71,584 The table below illustrates the allowance for credit losses by loan portfolio segment and each loan portfolio segment as a percentage of total loans. September 30, 2023 December 31, 2022 Allowance Amount Percentage of Total Allowance Total Loans Percentage of Total Loans Allowance Amount Percentage of Total Allowance Total Loans Percentage of Total Loans (dollars in thousands) Real estate loans: Commercial property Retail $ 10,083 15.0 % $ 1,097,650 18.3 % $ 7,872 11.0 % $ 1,023,608 17.2 % Hospitality 15,083 22.4 705,735 11.7 13,407 18.7 646,893 10.8 Office 2,884 4.3 575,319 9.6 2,293 3.2 499,946 8.4 Other 8,321 12.3 1,309,507 21.7 13,056 18.3 1,553,729 26.0 Total commercial property loans 36,371 54.0 3,688,211 61.3 36,628 51.2 3,724,176 62.4 Construction 2,594 3.9 84,804 1.4 4,022 5.7 109,205 1.8 Residential 4,871 7.2 926,326 15.4 3,376 4.7 734,472 12.4 Total real estate loans 43,836 65.1 4,699,341 78.1 44,026 61.6 4,567,853 76.6 Commercial and industrial loans 11,242 16.7 728,792 12.1 15,267 21.3 804,492 13.4 Equipment financing agreements 12,235 18.2 592,652 9.8 12,230 17.1 594,788 10.0 Total $ 67,313 100.0 % $ 6,020,785 100.0 % $ 71,523 100.0 % $ 5,967,133 100.0 % The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2023 and December 31, 2022, for which repayment is expected to be obtained through the sale of the underlying collateral. September 30, 2023 December 31, 2022 Amortized Cost Amortized Cost (in thousands) Real estate loans: Commercial property Retail $ 1,637 $ 1,930 Hospitality 333 — Office — — Other 22 256 Total commercial property loans 1,992 2,186 Residential 3 508 Total real estate loans 1,995 2,694 Commercial and industrial loans 4,847 — Total $ 6,842 $ 2,694 Loan Quality Indicators As part of the on-going monitoring of the quality of our loans portfolio, we utilize an internal loan grading system to identify credit risk and assign an appropriate grade (from 1 to 8) for each loan in our portfolio. A third-party loan review is performed at least on an annual basis. Additional adjustments are made when determined to be necessary. The loan grade definitions are as follows: Pass and Pass-Watch: Pass and Pass-Watch loans, grades (1-4), are in compliance with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weaknesses as defined under “Special Mention,” “Substandard” or “Doubtful.” This category is the strongest level of the Bank’s loan grading system. It consists of all performing loans with no identified credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans. Special Mention: A Special Mention loan, grade (5), has potential weaknesses that deserve management’s close attention. If not corrected, these potential weaknesses may result in deterioration of the repayment of the debt and result in a Substandard classification. Loans that have significant actual, not potential, weaknesses are considered more severely classified. Substandard: A Substandard loan, grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A loan graded Substandard is not protected by the sound worth and paying capacity of the borrower, or of the value and type of collateral pledged. With a Substandard loan, there is a distinct possibility that the Bank will sustain some loss if the weaknesses or deficiencies are not corrected. Doubtful: A Doubtful loan, grade (7), is one that has critical weaknesses that would make the collection or liquidation of the full amount due improbable. However, there may be pending events which may work to strengthen the loan, and therefore the amount or timing of a possible loss cannot be determined at the current time. Loss: A loan classified as Loss, grade (8), is considered uncollectible and of such little value that their continuance as active bank assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be possible in the future. Loans classified as Loss will be charged off in a timely manner. Under regulatory guidance, loans graded special mention or worse are considered criticized loans, and loans graded substandard or worse are considered classified loans. Loans by Vintage Year and Risk Rating Term Loans Amortized Cost Basis by Origination Year (1) 2023 2022 2021 2020 2019 Prior Revolving Total (in thousands) September 30, 2023 Real estate loans: Commercial property Risk Rating ` Pass / Pass-Watch $ 511,148 $ 1,013,414 $ 863,200 $ 578,433 $ 384,562 $ 264,284 $ 26,171 $ 3,641,212 Special Mention 5,194 4,032 10,141 4,328 715 1,556 1,700 27,666 Classified 4,430 977 4,936 5,606 3,384 19,333 Total commercial property 520,772 1,018,423 878,277 582,761 390,883 269,224 27,871 3,688,211 YTD gross charge-offs — — — 411 — 216 — 627 YTD net charge-offs — — — 407 — 46 — 453 Construction Risk Rating Pass / Pass-Watch 38,129 — 18,375 — — — — 56,504 Special Mention — — 28,300 — — — — 28,300 Classified — — — — — — — — Total construction 38,129 — 46,675 — — — — 84,804 YTD gross charge-offs — — — — — — — — YTD net charge-offs — — — — — — — — Residential Risk Rating Pass / Pass-Watch 241,830 381,167 160,856 12,791 221 124,047 4,911 925,823 Special Mention — — — — — — 500 500 Classified — — — — — 3 — 3 Total residential 241,830 381,167 160,856 12,791 221 124,050 5,411 926,326 YTD gross charge-offs — — — — — — — — YTD net charge-offs — — — — — ( 6 ) — ( 6 ) Total real estate loans Risk Rating Pass / Pass-Watch 791,107 1,394,581 1,042,431 591,224 384,783 388,331 31,082 4,623,539 Special Mention 5,194 4,032 38,441 4,328 715 1,556 2,200 56,466 Classified 4,430 977 4,936 — 5,606 3,387 — 19,336 Total real estate loans 800,731 1,399,590 1,085,808 595,552 391,104 393,274 33,282 4,699,341 YTD gross charge-offs — — — 411 — 216 — 627 YTD net charge-offs — — — 407 — 40 — 447 Commercial and industrial loans: Risk Rating Pass / Pass-Watch 142,240 176,815 88,316 33,403 11,156 10,047 240,951 702,928 Special Mention — 16,128 — 104 — 3,775 — 20,007 Classified 378 — — 84 46 210 5,139 5,857 Total commercial and industrial loans 142,618 192,943 88,316 33,591 11,202 14,032 246,090 728,792 YTD gross charge-offs — 17 — — 110 388 6,120 6,635 YTD net charge-offs — 5 ( 5 ) — 107 ( 522 ) 6,119 5,704 Equipment financing agreements: Risk Rating Pass / Pass-Watch 174,377 234,753 115,310 29,380 25,457 5,434 — 584,711 Special Mention — — — — — — — — Classified 329 3,630 2,719 167 830 266 — 7,941 Total equipment financing agreements 174,706 238,383 118,029 29,547 26,287 5,700 — 592,652 YTD gross charge-offs 56 3,030 2,732 294 725 215 — 7,052 YTD net charge-offs 56 2,961 2,455 217 335 ( 103 ) — 5,921 Total loans receivable: Risk Rating Pass / Pass-Watch 1,107,724 1,806,149 1,246,057 654,007 421,396 403,812 272,033 5,911,178 Special Mention 5,194 20,160 38,441 4,432 715 5,331 2,200 76,473 Classified 5,137 4,607 7,655 251 6,482 3,863 5,139 33,134 Total loans receivable $ 1,118,055 $ 1,830,916 $ 1,292,153 $ 658,690 $ 428,593 $ 413,006 $ 279,372 $ 6,020,785 YTD gross charge-offs 56 3,047 2,732 705 835 819 6,120 14,314 YTD net charge-offs 56 2,966 2,450 624 442 ( 585 ) 6,119 12,072 (1) Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Term Loans Amortized Cost Basis by Origination Year (1) 2022 2021 2020 2019 2018 Prior Revolving Total December 31, 2022 Real estate loans: Commercial property Risk Rating Pass / Pass-Watch $ 1,184,361 $ 901,029 $ 600,740 $ 404,786 $ 301,950 $ 207,861 $ 50,877 $ 3,651,604 Special Mention 847 13,384 5,857 7,115 — 6,080 1,701 34,984 Classified — — 412 4,312 12,304 20,560 — 37,588 Total commercial property 1,185,208 914,413 607,009 416,213 314,254 234,501 52,578 3,724,176 Construction Risk Rating Pass / Pass-Watch 41,662 67,543 — — — — — 109,205 Special Mention — — — — — — — — Classified — — — — — — — — Total construction 41,662 67,543 — — — — — 109,205 Residential Risk Rating Pass / Pass-Watch 405,975 173,236 13,102 232 731 134,766 5,422 733,464 Special Mention — — — — — — 500 500 Classified 12 — — — — 496 — 508 Total residential 405,987 173,236 13,102 232 731 135,262 5,922 734,472 Total real estate loans Risk Rating Pass / Pass-Watch 1,631,998 1,141,808 613,842 405,018 302,681 342,627 56,299 4,494,273 Special Mention 847 13,384 5,857 7,115 — 6,080 2,201 35,484 Classified 12 — 412 4,312 12,304 21,056 — 38,096 Total real estate loans 1,632,857 1,155,192 620,111 416,445 314,985 369,763 58,500 4,567,853 Commercial and industrial loans: Risk Rating Pass / Pass-Watch 368,778 100,537 39,577 24,117 7,342 12,282 205,951 758,584 Special Mention — 9,285 — — 29 102 34,113 43,529 Classified — — 171 1,097 81 391 639 2,379 Total commercial and industrial loans 368,778 109,822 39,748 25,214 7,452 12,775 240,703 804,492 Equipment financing agreements: Risk Rating Pass / Pass-Watch 305,249 165,313 46,970 52,133 17,608 1,798 — 589,071 Special Mention — — — — — — — — Classified 630 2,542 311 1,581 565 88 — 5,717 Total equipment financing agreements 305,879 167,855 47,281 53,714 18,173 1,886 — 594,788 Total loans receivable: Risk Rating Pass / Pass-Watch 2,306,025 1,407,658 700,389 481,268 327,631 356,707 262,250 5,841,928 Special Mention 847 22,669 5,857 7,115 29 6,182 36,314 79,013 Classified 642 2,542 894 6,990 12,950 21,535 639 46,192 Total loans receivable $ 2,307,514 $ 1,432,869 $ 707,140 $ 495,373 $ 340,610 $ 384,424 $ 299,203 $ 5,967,133 (1) Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Loans by Vintage Year and Payment Performance Term Loans Amortized Cost Basis by Origination Year (1) 2023 2022 2021 2020 2019 Prior Revolving Total (in thousands) September 30, 2023 Real estate loans: Commercial property Payment performance Performing $ 519,135 $ 1,018,423 $ 878,124 $ 582,761 $ 390,800 $ 268,305 $ 27,871 $ 3,685,419 Nonperforming 1,637 — 153 — 83 919 — 2,792 Total commercial property 520,772 1,018,423 878,277 582,761 390,883 269,224 27,871 3,688,211 YTD gross charge-offs — — — 411 — 216 — 627 YTD net charge-offs — — — 407 — 46 — 453 Construction Payment performance Performing 38,129 — 46,675 — — — — 84,804 Nonperforming — — — — — — — — Total construction 38,129 — 46,675 — — — — 84,804 YTD gross charge-offs — — — — — — — — YTD net charge-offs — — — — — — — — Residential Payment performance Performing 241,830 381,167 160,856 12,791 221 124,047 5,411 926,323 Nonperforming — — — — — 3 — 3 Total residential 241,830 381,167 160,856 12,791 221 124,050 5,411 926,326 YTD gross charge-offs — — — — — — — — YTD net charge-offs — — — — — ( 6 ) — ( 6 ) Total real estate loans Payment performance Performing 799,094 1,399,590 1,085,655 595,552 391,021 392,352 33,282 4,696,546 Nonperforming 1,637 — 153 — 83 922 — 2,795 Total real estate loans 800,731 1,399,590 1,085,808 595,552 391,104 393,274 33,282 4,699,341 YTD gross charge-offs — — — 411 — 216 — 627 YTD net charge-offs — — — 407 — 40 — 447 Commercial and industrial loans: Payment performance Performing 142,618 192,943 88,316 33,507 11,202 13,919 241,241 723,746 Nonperforming — — — 84 — 113 4,849 5,046 Total commercial and industrial loans 142,618 192,943 88,316 33,591 11,202 14,032 246,090 728,792 YTD gross charge-offs — 17 — — 110 388 6,120 6,635 YTD net charge-offs — 5 ( 5 ) — 107 ( 522 ) 6,119 5,704 Equipment financing agreements: Payment performance Performing 174,377 234,753 115,310 29,380 25,456 5,434 — 584,710 Nonperforming 329 3,630 2,719 167 831 266 — 7,942 Total equipment financing agreements 174,706 238,383 118,029 29,547 26,287 5,700 — 592,652 YTD gross charge-offs 56 3,030 2,732 294 725 215 — 7,052 YTD net charge-offs 56 2,961 2,455 217 335 ( 103 ) — 5,921 Total loans receivable: Payment performance Performing 1,116,089 1,827,286 1,289,281 658,439 427,679 411,705 274,523 6,005,002 Nonperforming 1,966 3,630 2,872 251 914 1,301 4,849 15,783 Total loans receivable $ 1,118,055 $ 1,830,916 $ 1,292,153 $ 658,690 $ 428,593 $ 413,006 $ 279,372 $ 6,020,785 YTD gross charge-offs 56 3,047 2,732 705 835 819 6,120 14,314 YTD net charge-offs 56 2,966 2,450 624 442 ( 585 ) 6,119 12,072 (1) Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Term Loans Amortized Cost Basis by Origination Year (1) 2022 2021 2020 2019 2018 Prior Revolving Total December 31, 2022 Real estate loans: Commercial property Payment performance Performing $ 1,185,208 $ 914,413 $ 606,597 $ 416,213 $ 312,324 $ 233,643 $ 52,578 $ 3,720,976 Nonperforming — — 412 — 1,930 858 — 3,200 Total commercial property 1,185,208 914,413 607,009 416,213 314,254 234,501 52,578 3,724,176 Construction Payment performance Performing 41,662 67,543 — — — — — 109,205 Nonperforming — — — — — — — — Total construction 41,662 67,543 — — — — — 109,205 Residential Payment performance Performing 405,975 173,236 13,102 232 731 134,766 5,922 733,964 Nonperforming 12 — — — — 496 — 508 Total residential 405,987 173,236 13,102 232 731 135,262 5,922 734,472 Total real estate loans Payment performance Performing 1,632,845 1,155,192 619,699 416,445 313,055 368,409 58,500 4,564,145 Nonperforming 12 — 412 — 1,930 1,354 — 3,708 Total real estate loans 1,632,857 1,155,192 620,111 416,445 314,985 369,763 58,500 4,567,853 Commercial and industrial loans: Payment performance Performing 368,778 109,822 39,577 25,199 7,452 12,539 240,703 804,070 Nonperforming — — 171 15 — 236 — 422 Total commercial and industrial loans 368,778 109,822 39,748 25,214 7,452 12,775 240,703 804,492 Equipment financing agreements: Payment performance Performing 305,249 165,313 46,970 52,133 17,608 1,798 — 589,071 Nonperforming 630 2,542 311 1,581 565 88 — 5,717 Total equipment financing agreements 305,879 167,855 47,281 53,714 18,173 1,886 — 594,788 Total loans receivable: Payment performance Performing 2,306,872 1,430,327 706,246 493,777 338,115 382,746 299,203 5,957,286 Nonperforming 642 2,542 894 1,596 2,495 1,678 — 9,847 Total loans receivable $ 2,307,514 $ 1,432,869 $ 707,140 $ 495,373 $ 340,610 $ 384,424 $ 299,203 $ 5,967,133 (1) Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. The following is an aging analysis of loans, including loans on nonaccrual status, disaggregated by loan class, as of the dates indicated: 30-59 60-89 90 Days Total Current Total (in thousands) September 30, 2023 Real estate loans: Commercial property Retail $ 260 $ — $ — $ 260 $ 1,097,390 $ 1,097,650 Hospitality 153 33 — 186 705,549 705,735 Office — — — — 575,319 575,319 Other 704 — 22 726 1,308,781 1,309,507 Total commercial property loans 1,117 33 22 1,172 3,687,039 3,688,211 Construction — — — — 84,804 84,804 Residential 935 364 3 1,302 925,024 926,326 Total real estate loans 2,052 397 25 2,474 4,696,867 4,699,341 Commercial and industrial loans 384 151 4,849 5,384 723,408 728,792 Equipment financing agreements 6,527 2,195 3,382 12,104 580,548 592,652 Total loans receivable $ 8,963 $ 2,743 $ 8,256 $ 19,962 $ 6,000,823 $ 6,020,785 December 31, 2022 Real estate loans: Commercial property Retail $ — $ — $ — $ — $ 1,023,608 $ 1,023,608 Hospitality — — — — 646,893 646,893 Office — — — — 499,946 499,946 Other — 494 — 494 1,553,235 1,553,729 Total commercial property loans — 494 — 494 3,723,682 3,724,176 Construction — — — — 109,205 109,205 Residential 313 804 7 1,124 733,348 734,472 Total real estate loans 313 1,298 7 1,618 4,566,235 4,567,853 Commercial and industrial loans 77 79 — 156 804,336 804,492 Equipment financing agreements 5,825 1,271 2,949 10,045 584,743 594,788 Total loans receivable $ 6,215 $ 2,648 $ 2,956 $ 11,819 $ 5,955,314 $ 5,967,133 Nonaccrual Loans and Nonperforming Assets The following table represents the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of September 30, 2023 and December 31, 2022. September 30, 2023 Nonaccrual Loans Nonaccrual Loans Loans Total (in thousands) Real estate loans: Commercial property Retail $ 1,849 $ 402 $ — $ 2,251 Hospitality 333 186 — 519 Office — — — — Other 22 — — 22 Total commercial property loans 2,204 588 — 2,792 Construction — — — — Residential 3 — — 3 Total real estate loans 2,207 588 — 2,795 Commercial and industrial loans — 5,046 — 5,046 Equipment financing agreements 848 7,094 — 7,942 Total $ 3,055 $ 12,728 $ — $ 15,783 December 31, 2022 Nonaccrual Loans Nonaccrual Loans Loans Total (in thousands) Real estate loans: Commercial property Retail $ 1,929 $ — $ — $ 1,929 Hospitality — — — — Office — — — — Other 540 731 — 1,271 Total commercial property loans 2,469 731 — 3,200 Construction — — — — Residential 508 — — 508 Total real estate loans 2,977 731 — 3,708 Commercial and industrial loans — 422 — 422 Equipment financing agreements 215 5,502 — 5,717 Total $ 3,192 $ 6,655 $ — $ 9,847 The Company recognized $ 26,000 and $ 5,000 of interest income on nonaccrual loans for the three months ended September 30, 2023 and 2022, respectively. Interest income recognized on nonaccrual loans for the nine months ended September 30, 2023 and 2022 was $ 160,000 and $ 40,000 , respectively. The following table details nonperforming assets as of the dates indicated: September 30, 2023 December 31, 2022 (in thousands) Nonaccrual loans $ 15,783 $ 9,847 Loans receivable 90 days or more past due and still accruing — — Total nonperforming loans receivable 15,783 9,847 Other real estate owned ("OREO") 117 117 Total nonperforming assets $ 15,900 $ 9,964 OREO of $ 0.1 million is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022. Loan Modifications No loans were modified during the three and nine months ended September 30, 2023 or 2022 . |
Servicing Assets
Servicing Assets | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Servicing Assets | Note 4 — Servicing Assets The changes in servicing assets for the three and nine months ended September 30, 2023 and 2022, were as follows: Three Months Ended September 30, 2023 2022 (in thousands) Balance at beginning of period $ 7,352 $ 7,354 Addition related to sale of SBA loans 396 828 Amortization ( 592 ) ( 758 ) Balance at end of period $ 7,156 $ 7,424 Nine Months Ended September 30, 2023 2022 (in thousands) Balance at beginning of period $ 7,176 $ 7,080 Addition related to sale of SBA loans 1,410 2,377 Amortization ( 1,815 ) ( 2,033 ) Change in valuation allowance 385 — Balance at end of period $ 7,156 $ 7,424 At September 30, 2023 and December 31, 2022, we serviced loans sold to unaffiliated parties of $ 531.6 million and $ 523.6 million, respectively. These represented loans that were sold for which the Bank continues to provide servicing. These loans are maintained off-balance sheet and are not included in the loans receivable balance. All of the loans serviced were SBA loans. The Company recorded servicing fee income of $ 1.3 million for the three months ended September 30, 2023 and 2022, and $ 3.9 million and $ 3.7 million for the nine months ended September 30, 2023 and 2022 , respectively. Servicing fee income, net of the amortization of servicing assets, is included in other operating income in the consolidated statements of income. Amortization expense was $ 0.6 million and $ 0.8 million for the three months ended September 30, 2023 and 2022, respectively, and $ 1.8 million and $ 2.0 million for the nine months ended September 30, 2023 and 2022, respectively. The fair value of servicing rights was $ 7.6 million at September 30, 2023 and was determined using discount rates ranging from 15.4 % to 26.8 % and prepayment speeds ranging from 11.9 % to 18.8 %, depending on the stratification of the specific right. The fair value of servicing rights was $ 7.1 million at December 31, 2022 and was determined using discount rates ranging from 21.9 % to 25.3 % and prepayment speeds ranging from 10.8 % to 16.7 %, depending on the stratification of the specific right. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5 — Income Taxes The Company’s income tax expense was $ 7.9 million and $ 11.0 million, representing an effective income tax rate of 29.6 % and 28.8 % for the three months ended September 30, 2023 and 2022, respectively. The Company’s income tax expense was $ 25.7 million and $ 29.7 million, representing an effective income tax rate of 29.5 % and 28.9 % for the nine months ended September 30, 2023 and 2022, respectively. Management concluded that as of September 30, 2023 and December 31, 2022, a valuation allowance of $ 1.3 million was appropriate against certain state net operating loss carry forwards and certain tax credits. For all other deferred tax assets, management believes it was more likely than not these deferred tax assets will be realized principally through future taxable income and reversal of existing taxable temporary differences. Net income tax assets were $ 48.0 million and $ 51.9 million as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023, the Company was subject to examination by various taxing authorities for its federal tax returns for the periods ended after December 31, 2018 and state tax returns for the periods ended after December 31, 2017. During the quarter ended September 30, 2023 , there was no material change to the Company’s uncertain tax positions. The Company does not expect its unrecognized tax positions to change significantly over the next twelve months. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Note 6 — Goodwill and other Intangibles The third-party originator's intangible of $ 0.5 million and goodwill of $ 11.0 million were recorded as a result of the acquisition of an equipment financing agreements portfolio in 2016. The core deposit intangible of $ 2.2 million was recognized for the core deposits acquired in a 2014 acquisition. The Company’s intangible assets were as follows for the periods indicated: September 30, 2023 December 31, 2022 Amortization Gross Accumulated Net Gross Accumulated Net (in thousands) Core deposit intangible 10 years $ 2,213 $ ( 2,116 ) $ 97 $ 2,213 $ ( 2,031 ) $ 182 Third-party originator's intangible 7 years 483 ( 480 ) 3 483 ( 471 ) 12 Goodwill N/A 11,031 — 11,031 11,031 — 11,031 Total intangible assets $ 13,727 $ ( 2,596 ) $ 11,131 $ 13,727 $ ( 2,502 ) $ 11,225 The Company performed an impairment analysis on its goodwill and other intangible assets as of September 30, 2023 and determined there was no impairment. No triggering event occurred as of, or subsequent to September 30, 2023 , that would require a reassessment of goodwill and other intangible assets. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2023 | |
Deposits [Abstract] | |
Deposits | Note 7 — Deposits The scheduled maturities of time deposits are as follows for the periods indicated: At September 30, 2023 Time Other Time Total (in thousands) 2023 $ 432,361 $ 540,642 $ 973,003 2024 597,364 855,244 1,452,608 2025 266 4,803 5,069 2026 263 2,870 3,133 2027 and thereafter — 882 882 Total $ 1,030,254 $ 1,404,441 $ 2,434,695 At December 31, 2022 2023 $ 696,470 $ 1,185,020 $ 1,881,490 2024 — 68,037 68,037 2025 266 3,151 3,417 2026 263 2,430 2,693 2027 and thereafter — 570 570 Total $ 696,999 $ 1,259,208 $ 1,956,207 Accrued interest payable on deposits was $ 50.3 million and $ 7.8 million at September 30, 2023 and December 31, 2022, respectively. Total deposits reclassified to loans due to overdrafts at September 30, 2023 and December 31, 2022 were $ 1.3 million and $ 1.2 million, respectively. |
Borrowings and Subordinated Deb
Borrowings and Subordinated Debentures | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings and Subordinated Debentures | Note 8 — Borrowings and Subordinated Debentures At September 30, 2023, the Bank had $ 50.0 million of overnight advances and $ 112.5 million of term advances at the FHLB with a weighted average interest rate of 5.77 % and 2.77 %, respectively. At December 31, 2022, the Bank had $ 250.0 million of overnight advances and $ 100.0 million of term advances at the FHLB with a weighted average rate of 4.65 % and 0.87 %, respectively. Interest expense on borrowings for the three months ended September 30, 2023 and 2022 was $ 0.8 million and $ 0.3 million, respectively. Interest expense on borrowings for the nine months ended September 30, 2023 and 2022 was $ 4.8 million and $ 1.1 million, respectively. September 30, 2023 December 31, 2022 Outstanding Weighted Outstanding Weighted (dollars in thousands) Overnight advances $ 50,000 5.77 % $ 250,000 4.65 % Advances due within 12 months 37,500 0.40 50,000 0.97 Advances due over 12 months through 24 months 12,500 1.90 37,500 0.40 Advances due over 24 months through 36 months 62,500 4.37 12,500 1.90 Outstanding advances $ 162,500 3.69 % $ 350,000 3.57 % The following is financial data pertaining to FHLB advances: September 30, 2023 December 31, 2022 (dollars in thousands) Weighted-average interest rate at end of period 3.69 % 3.57 % Weighted-average interest rate during the period 3.27 % 1.52 % Average balance of FHLB advances $ 194,505 $ 148,027 Maximum amount outstanding at any month-end $ 450,000 $ 350,000 The Bank maintains a secured credit facility with the FHLB, allowing the Bank to borrow on an overnight and term basis. The Bank had $ 2.41 billion and $ 1.99 billion of loans pledged as collateral with the FHLB as of September 30, 2023 and December 31, 2022, respectively. The remaining available borrowing capacity was $ 1.32 billion and $ 1.07 billion at September 30, 2023 and December 31, 2022, respectively. The Bank also had securities with market values of $ 24.7 million and $ 23.4 million at September 30, 2023 and December 31, 2022, respectively, pledged with the FRB, which provided $ 23.9 million and $ 22.0 million in available borrowing capacity through the Fed Discount Window and the BTFP of September 30, 2023 and December 31, 2022, respectively. On August 20, 2021, the Company issued $ 110.0 million of Fixed-to-Floating Subordinated Notes (“2031 Notes”) with a maturity date of September 1, 2031 . The 2031 Notes have an initial fixed interest rate of 3.75 % per annum, payable semiannually in arrears on March 1 and September 1 of each year, up to but excluding September 1, 2026. From and including September 1, 2026 and thereafter, the 2031 Notes will bear interest at a floating rate per annum equal to the Benchmark rate (which is expected to be the Three-Month Term SOFR) plus 310 basis points, payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year. If the then current three-month term SOFR rate is less than zero, the three-month SOFR will be deemed to be zero. Debt issuance cost was $ 2.1 million, which is being amortized through the 2031 Notes’ maturity date. At September 30, 2023 and December 31, 2022, the balance of the 2031 Notes included in the Company’s Consolidated Balance Sheet, net of issuance cost, was $ 108.3 million and $ 108.2 million, respectively. The Company issued $ 100.0 million of Fixed-to-Floating Subordinated Notes (“2027 Notes”) on March 21, 2017, with a maturity on March 30, 2027 . The 2027 Notes had an initial fixed interest rate of 5.45 % per annum. From and including March 30, 2022 and thereafter, the 2027 Notes would have interest at a floating rate equal to the then current three-month LIBOR, as calculated on each applicable date of determination, plus 3.315 % payable quarterly. On March 30, 2022, the Company redeemed its 2027 Notes. A portion of the redemption was funded with the proceeds from the Company’s 2021 subordinated debt offering. The redemption price for each of the 2027 Notes equaled 100 % of the outstanding principal amount redeemed, plus any accrued and unpaid interest thereon. All interest accrued on the 2027 Notes ceased to accrue on and after March 30, 2022. Upon the redemption, the Company recognized a pre-tax charge of $ 1.1 million for the remaining unamortized debt issuance costs associated with the 2027 Notes. The Company assumed Junior Subordinated Deferrable Interest Debentures (“Subordinated Debentures”) as a result of an acquisition in 2014 with an unpaid principal balance of $ 26.8 million and an estimated fair value of $ 18.5 million. The $ 8.3 million discount is being amortized to interest expense through the debentures’ maturity date of March 15, 2036 . A trust was formed in 2005 which issued $ 26.0 million of Trust Preferred Securities (“TPS”) at a 6.26 % fixed rate for the first five years and a variable rate of three-month LIBOR plus 140 basis points thereafter and invested the proceeds in the Subordinated Debentures. The rate on the TPS at September 30, 2023 was 7.07 %. Beginning September 15, 2023, the variable rate on the TPS changed to three-month SOFR plus approximately 166 basis points, representing the credit spread of 140 basis points and an approximate 26 basis point adjustment to convert three-month LIBOR to three-month SOFR. The TPS will be subject to mandatory redemption if the Subordinated Debentures are repaid by the Company. Interest is payable quarterly , and the Company has the option to defer interest payments on the Subordinated Debentures from time to time for a period not to exceed five consecutive years. At September 30, 2023 and December 31, 2022, the balance of Subordinated Debentures included in the Company’s Consolidated Balance Sheets, net of discount of $ 5.2 million and $ 5.6 million, was $ 21.6 million and $ 21.2 million, respectively. The amortization of discount was $ 106,000 and $ 104,000 for the three months ended September 30, 2023 and 2022, respectively and $ 314,000 and $ 308,000 for the nine months ended September 30, 2023 and 2022 , respectively. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 9 — Earnings Per Share Earnings per share (“EPS”) is calculated on both a basic and a diluted basis. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted from the issuance of common stock that then shared in earnings, excluding common shares in treasury. For diluted EPS, the weighted-average number of common shares includes the impact of unvested performance stock units (“PSUs”) under the treasury method. Unvested restricted stock containing rights to non-forfeitable dividends are considered participating securities prior to vesting and have been included in the earnings allocation in computing basic and diluted EPS under the two-class method. The following table is a reconciliation of the components used to derive basic and diluted EPS for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (dollars in thousands, except per share amounts) Basic EPS Net income $ 18,796 $ 27,169 $ 61,408 $ 72,915 Less: income allocated to unvested restricted stock 117 163 381 408 Income allocated to common shares $ 18,679 $ 27,006 $ 61,027 $ 72,507 Weighted-average shares for basic EPS 30,251,961 30,314,439 30,296,991 30,289,068 Basic EPS (1) $ 0.62 $ 0.89 $ 2.01 $ 2.39 Effect of dilutive stock options and unvested performance stock units 40,910 82,323 41,686 80,470 Diluted EPS Income allocated to common shares $ 18,679 $ 27,006 $ 61,027 $ 72,507 Weighted-average shares for diluted EPS 30,292,872 30,396,762 30,338,678 30,369,538 Diluted EPS (1) $ 0.62 $ 0.89 $ 2.01 $ 2.39 (1) Per share amounts may not be able to be recalculated using net income and weighted-average shares presented above due to rounding. On a weighted-average basis, options to purchase 61,000 shares of common stock were excluded from the calculation of diluted earnings per share for the three and nine months ended September 30, 2023 , because their effect would have been anti-dilutive. There were no anti-dilutive stock options for the three and nine months ended September 30, 2022 . There were 54,765 and 50,460 anti-dilutive unvested PSUs outstanding for the three and nine months ended September 30, 2023, respectively. During the nine months ended September 30, 2023, the Company issued 53,696 PSUs to executive officers from the 2021 Equity Compensation Plan with a fair value of $ 1.1 million. During the nine months ended September 30, 2022, the Company issued 38,036 PSUs to executive officers from the 2021 Equity Compensation Plan with a fair value of $ 1.0 million on the grant date of March 23, 2022 . These units have a three-year cliff vesting period and include dividend equivalent rights. During the nine months ended September 30, 2023 , 35,906 PSUs vested to an executive officer. Total PSUs outstanding as of September 30, 2023 were 134,358 with an aggregate grant fair value of $ 2.9 million. Total PSUs outstanding as of September 30, 2022 were 104,599 with an aggregate grant fair value of $ 2.0 million. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2023 | |
Regulatory Capital Requirements Under Banking Regulations [Abstract] | |
Regulatory Matters | Note 10 — Regulatory Matters Federal bank regulatory agencies require bank holding companies and banks to maintain a minimum ratio of qualifying total capital to risk-weighted assets of 8.0 % and a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0 %. In addition to the risk-based guidelines, federal bank regulatory agencies require bank holding companies and banks to maintain a minimum ratio of Tier 1 capital to average assets, referred to as the leverage ratio, of 4.0 %. In order for banks to be considered “well capitalized,” federal bank regulatory agencies require a minimum ratio of qualifying total capital to risk-weighted assets of 10.0 % and a minimum ratio of Tier 1 capital to risk-weighted assets of 8.0 %. In addition to the risk-based guidelines, federal bank regulatory agencies require depository institutions to maintain a minimum ratio of Tier 1 capital to average assets, referred to as the leverage ratio, of 5.0 %. At September 30, 2023, the Bank’s capital ratios exceeded the minimum requirements for the Bank to be considered “well capitalized” and the Company exceeded all of its applicable minimum regulatory capital ratio requirements. A capital conservation buffer of 2.5 % must be met to avoid limitations on the ability of the Bank and the Company to pay dividends, repurchase shares or pay discretionary bonuses. The Bank's capital conservation buffer was 6.42 % and 5.86 % and the Company's capital conservation buffer was 6.30 % and 5.71 % as of September 30, 2023 and December 31, 2022, respectively. In March 2020, federal banking agencies announced an interim final rule to delay the impact on regulatory capital arising from the implementation of CECL. The interim final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company and the Bank adopted the capital transition relief over the permissible five-year period. The capital ratios of Hanmi Financial and the Bank as of September 30, 2023 and December 31, 2022 were as follows: Minimum Minimum to Be Regulatory Categorized as Actual Requirement “Well Capitalized” Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) September 30, 2023 Total capital (to risk-weighted assets): Hanmi Financial $ 933,916 15.07 % $ 495,714 8.00 % N/A N/A Hanmi Bank $ 893,375 14.42 % $ 495,685 8.00 % $ 619,607 10.00 % Tier 1 capital (to risk-weighted assets): Hanmi Financial $ 761,969 12.30 % $ 371,786 6.00 % N/A N/A Hanmi Bank $ 831,428 13.42 % $ 371,764 6.00 % $ 495,685 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Hanmi Financial $ 740,411 11.95 % $ 278,839 4.50 % N/A N/A Hanmi Bank $ 831,428 13.42 % $ 278,823 4.50 % $ 402,744 6.50 % Tier 1 capital (to average assets): Hanmi Financial $ 761,969 10.27 % $ 296,662 4.00 % N/A N/A Hanmi Bank $ 831,428 11.25 % $ 295,515 4.00 % $ 369,394 5.00 % December 31, 2022 Total capital (to risk-weighted assets): Hanmi Financial $ 901,239 14.49 % $ 497,508 8.00 % N/A N/A Hanmi Bank $ 860,503 13.86 % $ 496,607 8.00 % $ 620,758 10.00 % Tier 1 capital (to risk-weighted assets): Hanmi Financial $ 728,344 11.71 % $ 373,131 6.00 % N/A N/A Hanmi Bank $ 797,608 12.85 % $ 372,455 6.00 % $ 496,607 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Hanmi Financial $ 707,101 11.37 % $ 279,848 4.50 % N/A N/A Hanmi Bank $ 797,608 12.85 % $ 279,341 4.50 % $ 403,493 6.50 % Tier 1 capital (to average assets): Hanmi Financial $ 728,344 10.07 % $ 289,311 4.00 % N/A N/A Hanmi Bank $ 797,608 11.07 % $ 288,110 4.00 % $ 360,137 5.00 % |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 11 — Fair Value Measurements Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures , defines fair value, establishes a framework for measuring fair value including a three-level valuation hierarchy, and expands disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an 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 three-level fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are defined as follows: • Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. • Level 2 - Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. • Level 3 - Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Fair value is used on a recurring basis for certain assets and liabilities in which fair value is the primary basis of accounting. Additionally, fair value is used on a non-recurring basis to evaluate assets or liabilities for impairment or for disclosure purposes. We record securities available for sale at fair value on a recurring basis. Certain other assets, such as loans held for sale, impaired loans, OREO, and core deposit intangible, are recorded at fair value on a non-recurring basis. Non-recurring fair value measurements typically involve assets that are periodically evaluated for impairment and for which any impairment is recorded in the period in which the re-measurement is performed. The following methods and assumptions were used to estimate the fair value of each class of financial instrument below: Securities available for sale - The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges. If quoted prices are not available, fair values are measured using matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities, or other model-based valuation techniques requiring observable inputs other than quoted prices such as yield curve, prepayment speeds, and default rates. Level 1 securities include U.S. Treasury securities that are traded on an active exchange or by dealers or brokers in active over-the-counter markets. The fair value of these securities is determined by quoted prices on an active exchange or over-the-counter market. Level 2 securities primarily include U.S. government agency and sponsored agency mortgage-backed securities, collateralized mortgage obligations and debt securities as well as municipal bonds in markets that are active. In determining the fair value of the securities categorized as Level 2, we obtain reports from nationally recognized broker-dealers detailing the fair value of each investment security held as of each reporting date. The broker-dealers use prices obtained from nationally recognized pricing services to value our fixed income securities. The fair value of the municipal securities is determined based on pricing data provided by nationally recognized pricing services. We review the prices obtained for reasonableness based on our understanding of the marketplace, and also consider any credit issues related to the bonds. As we have not made any adjustments to the market quotes provided to us and as they are based on observable market data, they have been categorized as Level 2 within the fair value hierarchy. Level 3 securities are instruments that are not traded in the market. As such, no observable market data for the instrument is available, which necessitates the use of significant unobservable inputs. Derivatives – The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. Loans held for sale - Loans held for sale includes the guaranteed portion of SBA 7(a) loans carried at the lower of cost or fair value. Management obtains quotes, bids or pricing indication sheets on all or part of the loans directly from the purchasing financial institutions. Premiums received or to be received on the quotes, bids or pricing indication sheets are indicative of the fact that cost is lower than fair value. At September 30, 2023 and December 31, 2022, the entire balance of loans held for sale was recorded at its cost. We record loans held for sale on a nonrecurring basis with Level 2 inputs. Nonperforming loans – Nonaccrual loans receivable and loans 90-days past due and still accruing interest are considered nonperforming for reporting purposes and are measured and recorded at fair value on a non-recurring basis. All nonperforming loans with a carrying balance over $ 250,000 are individually evaluated for the amount of impairment, if any. Nonperforming loans with a carrying balance of $ 250,000 or less are evaluated collectively. However, from time to time, nonrecurring fair value adjustments to collateral dependent nonperforming loans are recorded based on either the current appraised value of the collateral, or management’s judgment and estimation of value reported on older appraisals that are then adjusted based on recent market trends, and result in a Level 3 measurement. OREO - Fair value of OREO is based primarily on third party appraisals, less costs to sell and result in a Level 3 classification of the inputs for determining fair value. Appraisals are required annually and may be updated more frequently as circumstances require and the fair value adjustments are made to OREO based on the updated appraised value of the property. Servicing assets - On a quarterly basis, the Company utilizes a third party service to evaluate servicing assets related to loans sold to unaffiliated parties with servicing retained, and result in a Level 3 classification. Servicing assets are assessed for impairment or increased obligation based on fair value at each reporting date. Other repossessed assets – Fair value of equipment from equipment financing agreements is based primarily on a third party valuation service, less costs to sell and result in a Level 3 classification of the inputs for determining fair value. Valuations are required at the time the asset is repossessed and may be subsequently updated periodically due to the Company’s short-term possession of the asset prior to sale or as circumstances require and the fair value adjustments are made to the asset based on its value prior to sale. Assets and Liabilities Measured at Fair Value on a Recurring Basis As of September 30, 2023 and December 31, 2022, assets and liabilities measured at fair value on a recurring basis are as follows: Level 1 Level 2 Level 3 Significant Observable Quoted Prices in Inputs with No Active Markets Active Market Significant for Identical with Identical Unobservable Assets Characteristics Inputs Total Fair Value (in thousands) September 30, 2023 Assets: Securities available for sale: U.S. Treasury securities $ 70,922 $ — $ — $ 70,922 U.S. government agency and sponsored agency obligations: Mortgage-backed securities - residential — 422,726 — 422,726 Mortgage-backed securities - commercial — 45,966 — 45,966 Collateralized mortgage obligations — 86,258 — 86,258 Debt securities — 129,919 — 129,919 Total U.S. government agency and sponsored agency obligations — 684,869 — 684,869 Municipal bonds-tax exempt — 61,451 — 61,451 Total securities available for sale $ 70,922 $ 746,320 $ — $ 817,242 Derivative financial instruments $ — $ 8,602 $ — $ 8,602 Liabilities: Derivative financial instruments $ — $ 8,493 $ — $ 8,493 December 31, 2022 Assets: Securities available for sale: U.S. Treasury securities $ 48,026 $ — $ — $ 48,026 U.S. government agency and sponsored agency obligations: Mortgage-backed securities - residential — 465,152 — 465,152 Mortgage-backed securities - commercial — 51,292 — 51,292 Collateralized mortgage obligations — 85,485 — 85,485 Debt securities — 138,499 — 138,499 Total U.S. government agency and sponsored agency obligations — 740,428 — 740,428 Municipal bonds-tax exempt — 65,384 — 65,384 Total securities available for sale $ 48,026 $ 805,812 $ — $ 853,838 Derivative financial instruments $ — $ 7,507 $ — $ 7,507 Liabilities: Derivative financial instruments $ — $ 7,375 $ — $ 7,375 Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis As of September 30, 2023 and December 31, 2022, assets and liabilities measured at fair value on a non-recurring basis are as follows: Level 1 Level 2 Level 3 Significant Observable Quoted Prices in Inputs With No Active Markets Active Market Significant for Identical With Identical Unobservable Total Assets Characteristics Inputs (in thousands) September 30, 2023 Assets: Collateral dependent loans (1) $ 6,842 $ — $ — $ 6,842 Other real estate owned 117 — — 117 Repossessed personal property 1,320 — — 1,320 December 31, 2022 Assets: Collateral dependent loans (2) $ 2,694 $ — $ — $ 2,694 Other real estate owned 117 — — 117 Repossessed personal property 467 — — 467 Servicing assets 7,176 — — 7,176 (1) Consisted of real estate loans of $ 2.0 million and commercial and industrial loans of $ 4.8 million, which were secured by real estate and business assets. (2) Consisted of real estate loans of $ 2.7 million. The following table represents quantitative information about Level 3 fair value assumptions for assets measured at fair value on a non-recurring basis at September 30, 2023 and December 31, 2022: Fair Value Valuation Unobservable Range (Weighted (in thousands) September 30, 2023 Collateral dependent loans: Real estate loans: Commercial property Retail $ 1,637 Market approach Adjustments to market data 5 % to 20 % / 15 % (1) Hospitality 333 Market approach Adjustments to market data ( 30 )% to 35 % / ( 3 )% Other 22 Market approach Adjustments to market data ( 25 )% to 5 % / ( 10 %) (1) Residential 3 Market approach Adjustments to market data ( 15 )% to 3 % / ( 6 )% (1) Total real estate loans 1,995 Commercial and industrial loans 4,847 Market approach Adjustments to market data ( 20 )% to 55 % / ( 3 )% (1) Total $ 6,842 Other real estate owned $ 117 Market approach Adjustments to market data ( 10 )% to 5 % / ( 2 )% (1) Repossessed personal property 1,320 Market approach Adjustments to market data (2) December 31, 2022 Collateral dependent loans: Real estate loans: Commercial property Retail $ 1,930 Market approach Adjustments to market data 5 % to 25 % / 16 % (1) Other 256 Market approach Adjustments to market data ( 42 )% to 3 % / ( 24 )% (1) Residential 508 Market approach Adjustments to market data ( 15 )% to 3 % / ( 1 )% (1) Total real estate loans 2,694 Total $ 2,694 Other real estate owned $ 117 Market approach Adjustments to market data ( 20 )% to 20 % / ( 2 )% (1) Repossessed personal property 467 Market approach Adjustments to market data (2) Servicing assets 7,176 Market approach Prepayment rate 11 % to 17 % / 16 % 22 % to 25 % / 22 % (3) (1) Appraisal reports utilize a combination of valuation techniques including a market approach, where prices and other relevant information generated by market transactions involving similar or comparable properties are used to determine the appraised value. Appraisals may include an ‘as is’ and ‘upon completion’ valuation scenarios. Adjustments are routinely made in the appraisal process by third-party appraisers to adjust for differences between the comparable sales and income data. Adjustments also result from the consideration of relevant economic and demographic factors with the potential to affect property values. Also, prospective values are based on the market conditions which exist at the date of inspection combined with informed forecasts based on current trends in supply and demand for the property types under appraisal. Positive adjustments disclosed in this table represent increases to the sales comparison and negative adjustments represent decreases. (2) The equipment is usually too small in value to use a professional appraisal service. The values are determined internally using a combination of auction values, vendor recommendations and sales comparisons depending on the equipment type. Some highly commoditized equipment, such as commercial trucks have services that provide industry values. (3) Fair value is based on a valuation model using the present value of estimated future cash flows, prepayment speeds, default rates, and discount rates. Servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into income over the period of the estimated future net servicing income of the underlying loans. ASC 825, Financial Instruments , requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured on a recurring basis or non-recurring basis are discussed above. The estimated fair value of financial instruments has been determined by using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data in order to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825), among other provisions, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. Other than certain financial instruments for which we had concluded that the carrying amounts approximate fair value, the fair value estimates shown below were based on an exit price notion as of September 30, 2023 , as required by ASU 2016-01. The financial instruments for which we had concluded that the carrying amounts approximate fair value include, cash and due from banks, accrued interest receivable and payable, and noninterest-bearing deposits. The estimated fair values of financial instruments were as follows: September 30, 2023 Carrying Fair Value Amount Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and due from banks $ 289,006 $ 289,006 $ — $ — Securities available for sale 817,242 70,922 746,320 — Loans held for sale 11,767 — 11,721 — Loans receivable, net of allowance for credit losses 5,953,472 — — 5,784,828 Accrued interest receivable 20,715 20,715 — — Financial liabilities: Noninterest-bearing deposits 2,161,238 — 2,161,238 — Interest-bearing deposits 4,098,834 — — 4,098,244 Borrowings and subordinated debentures 292,360 — 159,632 127,334 Accrued interest payable 50,286 50,286 — — December 31, 2022 Carrying Fair Value Amount Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and due from banks $ 352,421 $ 352,421 $ — $ — Securities available for sale 853,838 48,026 805,812 — Loans held for sale 8,043 — 8,423 — Loans receivable, net of allowance for credit losses 5,895,610 — — 5,808,190 Accrued interest receivable 18,537 18,537 — — Financial liabilities: Noninterest-bearing deposits 2,539,602 — 2,539,602 — Interest-bearing deposits 3,628,470 — — 3,623,827 Borrowings and subordinated debentures 479,409 — 345,867 126,828 Accrued interest payable 7,792 7,792 — — The methods and assumptions used to estimate the fair value of each class of financial instruments for which it was practicable to estimate that value are explained below: Cash and due from banks – The carrying amounts of cash and due from banks approximate fair value due to the short-term nature of these instruments (Level 1). Securities – The fair value of securities, consisting of securities available for sale, is generally obtained from market bids for similar or identical securities, from independent securities brokers or dealers, or from other model-based valuation techniques described above (Level 1 and 2). Loans held for sale – Loans held for sale, representing the guaranteed portion of SBA loans, are carried at the lower of aggregate cost or fair market value, as determined based upon quotes, bids or sales contract prices (Level 2). Loans receivable, net of allowance for credit losses – The fair value of loans receivable is estimated based on the discounted cash flow approach. To estimate the fair value of the loans, certain loan characteristics such as account types, remaining terms, annual interest rates or coupons, interest types, past delinquencies, timing of principal and interest payments, current market rates, loan-to-value ratios, loss exposures, and remaining balances are considered. Additionally, the Company’s prior charge-off rates and loss ratios as well as various other assumptions relating to credit, interest, and prepayment risks are used as part of valuing the loan portfolio. Subsequently, the loans were individually evaluated by sorting and pooling them based on loan types, credit risk grades, and payment types. Consistent with the requirements of ASU 2016-01, the fair value of the Company's loans receivable is considered to be an exit price notion as of September 30, 2023 (Level 3). The fair value of collateral dependent loans is estimated based on the net realizable fair value of the collateral or the observable market price of the most recent sale or quoted price from loans held for sale. The Company does not record loans at fair value on a recurring basis. Nonrecurring fair value adjustments to collateral dependent loans are recorded based on the current appraised value of the collateral (Level 3). Accrued interest receivable – The carrying amount of accrued interest receivable approximates its fair value (Level 1). Noninterest-bearing deposits – The fair value of noninterest-bearing deposits is the amount payable on demand at the reporting date (Level 2). Interest-bearing deposits – The fair value of interest-bearing deposits, such as savings accounts, money market checking, and certificates of deposit, is estimated based on discounted cash flows. The cash flows for non-maturity deposits, including savings accounts and money market checking, are estimated based on their historical decaying experiences. The discount rate used for fair valuation is based on interest rates currently being offered by the Bank on comparable deposits as to amount and term (Level 3). Borrowings and subordinated debentures – Borrowings consist of FHLB advances, subordinated debentures and other borrowings. Discounted cash flows based on current market rates for borrowings with similar remaining maturities are used to estimate the fair value of borrowings (Level 2 and 3). Accrued interest payable – The carrying amount of accrued interest payable approximates its fair value (Level 1). |
Off-Balance Sheet Commitments
Off-Balance Sheet Commitments | 9 Months Ended |
Sep. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Off-Balance Sheet Commitments | Note 12 — Off-Balance Sheet Commitments The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk similar to the risk involved with on-balance sheet items. The Bank’s exposure to losses in the event of non-performance by the other party to commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for extending loan facilities to customers. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, was based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, premises and equipment, and income-producing or borrower-occupied properties. The following table shows the distribution of total loan commitments as of the dates indicated: September 30, December 31, 2023 2022 (in thousands) Unused commitments to extend credit $ 848,886 $ 780,543 Standby letters of credit 77,381 71,829 Commercial letters of credit 19,524 19,945 Total commitments $ 945,791 $ 872,317 The allowance for credit losses related to off-balance sheet items was maintained at a level believed to be sufficient to absorb current expected lifetime losses related to these unfunded credit facilities. The determination of the allowance adequacy was based on periodic evaluations of the unfunded credit facilities including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities. Activity in the allowance for credit losses related to off-balance sheet items was as follows for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) Balance at beginning of period $ 2,475 $ 2,313 $ 3,114 $ 2,586 Provision expense (recovery) for credit losses ( 13 ) 936 ( 652 ) 663 Balance at end of period $ 2,462 $ 3,249 $ 2,462 $ 3,249 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Note 13 — Leases The Company enters into leases in the normal course of business primarily for bank branch offices, back-office operations locations, business development offices, information technology data centers and information technology equipment. The Company’s leases have remaining terms ranging from one to thirteen years , some of which include renewal or termination options to extend the lease for up to five years . The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the option. In addition, the Company has elected to account for any non-lease components in its real estate leases as part of the associated lease component. The Company has also elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the Company’s balance sheet. Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the term of the lease. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term. As of September 30, 2023 , the outstanding balances for our right-of-use asset and lease liability were $ 43.0 million and $ 47.0 million, respectively. The outstanding balances of the right-of-use asset and lease liability were $ 40.4 million and $ 44.2 million, respectively, as of December 31, 2022. The right-of-use asset is reported in prepaid expenses and other assets line item and lease liability is reported in accrued expenses and other liabilities line item on the Consolidated Balance Sheets. In determining the discount rates, since most of our leases do not provide an implicit rate, we used our incremental borrowing rate provided by the FHLB of San Francisco based on the information available at the commencement date to calculate the present value of lease payments. At September 30, 2023, future minimum rental commitments under these non-cancelable operating leases, with initial or remaining terms of one year or more, were as follows: Amount (in thousands) 2023 $ 8,659 2024 7,988 2025 6,885 2026 6,248 2027 6,038 Thereafter 16,326 Remaining lease commitments 52,144 Interest ( 5,184 ) Present value of lease liability $ 46,960 Weighted average remaining lease terms for the Company's operating leases were 7.05 years and 7.12 years as of September 30, 2023 and December 31, 2022, respectively. Weighted average discount rates used for the Company's operating leases were 2.92 % and 2.42 % as of September 30, 2023 and December 31, 2022, respectively. Net lease expense recognized for the three months ended September 30, 2023 and 2022 was $ 2.4 million and $ 2.1 million, respectively. Net lease expense recognized for the nine months ended September 30, 2023 and 2022 was $ 6.6 million and $ 6.2 million, respectively. This included operating lease costs of $ 2.3 million and $ 2.0 million for the three months ended September 30, 2023 and 2022, respectively. Operating lease costs were $ 6.5 million and $ 5.9 million for the nine months ended September 30, 2023 and 2022, respectively. Sublease income for operating leases was immaterial for both the nine months ended September 30, 2023 and 2022. Cash paid and included in cash flows from operating activities for amounts used in the measurement of the lease liability of the Company's operating leases was $ 2.3 million and $ 1.9 million for the three months ended September 30, 2023 and 2022, respectively, and $ 6.4 million and $ 5.9 million for the nine months ended September 30, 2023 and 2022, respectively. During the third quarter of 2023, the Company consummated a sale-leaseback transaction pursuant to which it sold a branch building for an aggregate cash purchase price of $ 7.8 million and concurrently agreed to separately lease the property for an initial term of 10 years, with two five year renewal options that the Company may exercise to extend the term of the lease. The pre-tax, net gain recorded associated with the sale of the building was $ 4.0 million, after deducting transaction-related expenses and after removing the branch building from "Premises and equipment, net" on the Balance Sheet. The aggregate annual lease expense associated with this building will be $ 0.4 million for the first 12 months of the lease term. |
Liquidity
Liquidity | 9 Months Ended |
Sep. 30, 2023 | |
Liquidity [Abstract] | |
Liquidity | Note 14 — Liquidity Hanmi Financial As of September 30, 2023, Hanmi Financial had $ 8.7 million in cash on deposit with its bank subsidiary and $ 27.1 million of U.S. Treasury securities at fair value. As of December 31, 2022, the Company had $ 10.6 million in cash on deposit with its bank subsidiary and $ 17.7 million of U.S. Treasury securities at fair value. Management believes that Hanmi Financial, on a stand-alone basis, had adequate liquid assets to meet its current debt obligations. Hanmi Bank The principal objective of our liquidity management program is to maintain the Bank’s ability to meet the day-to-day cash flow requirements of its customers who wish either to withdraw funds or to draw upon credit facilities to meet their cash needs. Management believes that the Bank, on a stand-alone basis, has adequate liquid assets to meet its current obligations. The Bank’s primary funding source will continue to be deposits originating from its branch platform. The Bank’s wholesale funds historically consisted of FHLB advances and brokered deposits. As of September 30, 2023 and December 31, 2022, the Bank had $ 162.5 million and $ 350.0 million, respectively, of FHLB advances, and $ 73.1 million and $ 83.3 million, respectively, of brokered deposits. We monitor the sources and uses of funds on a regular basis to maintain an acceptable liquidity position. The Bank’s primary source of borrowings is the FHLB, from which the Bank is eligible to borrow up to 30 % of its assets. As of September 30, 2023 and December 31, 2022, the total borrowing capacity available, based on pledged collateral was $ 1.61 and $ 1.54 billion, respectively. The remaining available borrowing capacity was $ 1.32 billion and $ 1.07 billion as of September 30, 2023 and December 31, 2022, respectively. The amount that the FHLB is willing to advance differs based on the quality and character of qualifying collateral pledged by the Bank, and the FHLB may adjust the advance rates for qualifying collateral upwards or downwards from time to time. To the extent deposit renewals and deposit growth are not sufficient to fund maturing and withdrawable deposits, repay maturing borrowings, fund existing and future loans, equipment financing agreements and securities, and otherwise fund working capital needs and capital expenditures, the Bank may utilize the remaining borrowing capacity from its FHLB borrowing arrangement. As a means of augmenting its liquidity, the Bank had an available borrowing source of $ 23.9 million from the Federal Reserve Discount Window and the BTFP, to which the Bank pledged securities with a carrying value of $ 24.7 million, with no borrowings as of September 30, 2023. The Bank also maintains a line of credit for repurchase agreements up to $ 100.0 million. The Bank also had three unsecured federal funds lines of credit totaling $ 115.0 million with no outstanding balances as of September 30, 2023 . |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Note 15 — Derivatives and Hedging Activities The Company’s derivative financial instruments consist entirely of interest rate swap agreements between the Company and its customers and other third party counterparties. The Company enters into “back-to-back swap” arrangements whereby the Company executes interest rate swap agreements with its customers and acquires an offsetting swap position from a third party counterparty. These derivative financial statements are accounted for at fair value, with changes in fair value recognized in the Company’s Consolidated Statements of Income. The table below presents the fair value of the Company’s derivative financial instruments as well as their location on the Balance Sheet as of September 30, 2023 and December 31, 2022. As of September 30, 2023 Derivative Assets Derivative Liabilities Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value (in thousands) Derivatives not designated as hedging instruments Interest rate products $ 105,209 Other Assets $ 8,602 $ 105,209 Other Liabilities $ 8,493 Total derivatives not designated as hedging instruments $ 8,602 $ 8,493 As of December 31, 2022 Derivative Assets Derivative Liabilities Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value (in thousands) Derivatives not designated as hedging instruments Interest rate products $ 61,460 Other Assets $ 7,507 $ 61,460 Other Liabilities $ 7,375 Total derivatives not designated as hedging instruments $ 7,507 $ 7,375 The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Income Statement for the nine months ended September 30, 2023 and 2022. Derivatives Not Designated as Hedging Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) Interest rate products Other income $ 62 $ 35 $ ( 23 ) $ 148 Total $ 62 $ 35 $ ( 23 ) $ 148 The Company recognized $ 0.6 million of fee income from its derivative financial instruments for the nine months ended September 30, 2023 . No fee income was earned for the three and nine months ended September 30, 2022. The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 2023 and December 31, 2022. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The derivative assets are located within the prepaid and other assets line item on the Consolidated Balance Sheets and the derivative liabilities are located within the accrued expenses and other liabilities line item on the Consolidated Balance Sheets. Offsetting of Derivative Assets As of September 30, 2023 Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount (in thousands) Derivatives $ 8,602 $ — $ 8,602 $ 8,493 $ 110 $ — Offsetting of Derivative Liabilities As of September 30, 2023 Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Provided Net Amount (in thousands) Derivatives $ 8,493 $ — $ 8,493 $ 8,493 $ — $ — Offsetting of Derivative Assets As of December 31, 2022 Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount (in thousands) Derivatives $ 7,507 $ — $ 7,507 $ 7,375 $ 132 $ — Offsetting of Derivative Liabilities As of December 31, 2022 Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Provided Net Amount (in thousands) Derivatives $ 7,375 $ — $ 7,375 $ 7,375 $ — $ — The Company has agreements with each of its derivative counterparties that contain a provision stating if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. In addition, these agreements may also require the Company to post additional collateral should it fail to maintain its status as a well- or adequately- capitalized institution. As of September 30, 2023 and December 31, 2022, the fair value of derivatives in a net asset position for counterparty transactions, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $ 8.6 million and $ 7.4 million, respectively. As of September 30, 2023, the Company had not posted any collateral with its counterparties related to these agreements and is adequately collateralized since its net asset position was $ 110,000 ( $ 8.6 million of fair value of assets less $ 8.5 million of fair value of liabilities) as of September 30, 2023. As of December 31, 2022, the Company had not posted collateral related to these agreements and was adequately collateralized since its net asset position was $ 132,000 ( $ 7.5 million of fair value of assets less $ 7.4 million of fair value of liabilities). |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16 — Subsequent Events Cash Dividend On October 26, 2023 , the Company announced that the Board of Directors of the Company declared a quarterly cash dividend of $ 0.25 per share to be paid on November 22, 2023 to stockholders of record as of the close of business on November 6, 2023 . |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fair Value Measurements | ASC 820, Fair Value Measurements and Disclosures , defines fair value, establishes a framework for measuring fair value including a three-level valuation hierarchy, and expands disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an 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 three-level fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are defined as follows: • Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. • Level 2 - Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. • Level 3 - Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Fair value is used on a recurring basis for certain assets and liabilities in which fair value is the primary basis of accounting. Additionally, fair value is used on a non-recurring basis to evaluate assets or liabilities for impairment or for disclosure purposes. We record securities available for sale at fair value on a recurring basis. Certain other assets, such as loans held for sale, impaired loans, OREO, and core deposit intangible, are recorded at fair value on a non-recurring basis. Non-recurring fair value measurements typically involve assets that are periodically evaluated for impairment and for which any impairment is recorded in the period in which the re-measurement is performed. The following methods and assumptions were used to estimate the fair value of each class of financial instrument below: Securities available for sale - The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges. If quoted prices are not available, fair values are measured using matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities, or other model-based valuation techniques requiring observable inputs other than quoted prices such as yield curve, prepayment speeds, and default rates. Level 1 securities include U.S. Treasury securities that are traded on an active exchange or by dealers or brokers in active over-the-counter markets. The fair value of these securities is determined by quoted prices on an active exchange or over-the-counter market. Level 2 securities primarily include U.S. government agency and sponsored agency mortgage-backed securities, collateralized mortgage obligations and debt securities as well as municipal bonds in markets that are active. In determining the fair value of the securities categorized as Level 2, we obtain reports from nationally recognized broker-dealers detailing the fair value of each investment security held as of each reporting date. The broker-dealers use prices obtained from nationally recognized pricing services to value our fixed income securities. The fair value of the municipal securities is determined based on pricing data provided by nationally recognized pricing services. We review the prices obtained for reasonableness based on our understanding of the marketplace, and also consider any credit issues related to the bonds. As we have not made any adjustments to the market quotes provided to us and as they are based on observable market data, they have been categorized as Level 2 within the fair value hierarchy. Level 3 securities are instruments that are not traded in the market. As such, no observable market data for the instrument is available, which necessitates the use of significant unobservable inputs. Derivatives – The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. Loans held for sale - Loans held for sale includes the guaranteed portion of SBA 7(a) loans carried at the lower of cost or fair value. Management obtains quotes, bids or pricing indication sheets on all or part of the loans directly from the purchasing financial institutions. Premiums received or to be received on the quotes, bids or pricing indication sheets are indicative of the fact that cost is lower than fair value. At September 30, 2023 and December 31, 2022, the entire balance of loans held for sale was recorded at its cost. We record loans held for sale on a nonrecurring basis with Level 2 inputs. Nonperforming loans – Nonaccrual loans receivable and loans 90-days past due and still accruing interest are considered nonperforming for reporting purposes and are measured and recorded at fair value on a non-recurring basis. All nonperforming loans with a carrying balance over $ 250,000 are individually evaluated for the amount of impairment, if any. Nonperforming loans with a carrying balance of $ 250,000 or less are evaluated collectively. However, from time to time, nonrecurring fair value adjustments to collateral dependent nonperforming loans are recorded based on either the current appraised value of the collateral, or management’s judgment and estimation of value reported on older appraisals that are then adjusted based on recent market trends, and result in a Level 3 measurement. OREO - Fair value of OREO is based primarily on third party appraisals, less costs to sell and result in a Level 3 classification of the inputs for determining fair value. Appraisals are required annually and may be updated more frequently as circumstances require and the fair value adjustments are made to OREO based on the updated appraised value of the property. Servicing assets - On a quarterly basis, the Company utilizes a third party service to evaluate servicing assets related to loans sold to unaffiliated parties with servicing retained, and result in a Level 3 classification. Servicing assets are assessed for impairment or increased obligation based on fair value at each reporting date. Other repossessed assets – Fair value of equipment from equipment financing agreements is based primarily on a third party valuation service, less costs to sell and result in a Level 3 classification of the inputs for determining fair value. Valuations are required at the time the asset is repossessed and may be subsequently updated periodically due to the Company’s short-term possession of the asset prior to sale or as circumstances require and the fair value adjustments are made to the asset based on its value prior to sale. The following table represents quantitative information about Level 3 fair value assumptions for assets measured at fair value on a non-recurring basis at September 30, 2023 and December 31, 2022: Fair Value Valuation Unobservable Range (Weighted (in thousands) September 30, 2023 Collateral dependent loans: Real estate loans: Commercial property Retail $ 1,637 Market approach Adjustments to market data 5 % to 20 % / 15 % (1) Hospitality 333 Market approach Adjustments to market data ( 30 )% to 35 % / ( 3 )% Other 22 Market approach Adjustments to market data ( 25 )% to 5 % / ( 10 %) (1) Residential 3 Market approach Adjustments to market data ( 15 )% to 3 % / ( 6 )% (1) Total real estate loans 1,995 Commercial and industrial loans 4,847 Market approach Adjustments to market data ( 20 )% to 55 % / ( 3 )% (1) Total $ 6,842 Other real estate owned $ 117 Market approach Adjustments to market data ( 10 )% to 5 % / ( 2 )% (1) Repossessed personal property 1,320 Market approach Adjustments to market data (2) December 31, 2022 Collateral dependent loans: Real estate loans: Commercial property Retail $ 1,930 Market approach Adjustments to market data 5 % to 25 % / 16 % (1) Other 256 Market approach Adjustments to market data ( 42 )% to 3 % / ( 24 )% (1) Residential 508 Market approach Adjustments to market data ( 15 )% to 3 % / ( 1 )% (1) Total real estate loans 2,694 Total $ 2,694 Other real estate owned $ 117 Market approach Adjustments to market data ( 20 )% to 20 % / ( 2 )% (1) Repossessed personal property 467 Market approach Adjustments to market data (2) Servicing assets 7,176 Market approach Prepayment rate 11 % to 17 % / 16 % 22 % to 25 % / 22 % (3) (1) Appraisal reports utilize a combination of valuation techniques including a market approach, where prices and other relevant information generated by market transactions involving similar or comparable properties are used to determine the appraised value. Appraisals may include an ‘as is’ and ‘upon completion’ valuation scenarios. Adjustments are routinely made in the appraisal process by third-party appraisers to adjust for differences between the comparable sales and income data. Adjustments also result from the consideration of relevant economic and demographic factors with the potential to affect property values. Also, prospective values are based on the market conditions which exist at the date of inspection combined with informed forecasts based on current trends in supply and demand for the property types under appraisal. Positive adjustments disclosed in this table represent increases to the sales comparison and negative adjustments represent decreases. (2) The equipment is usually too small in value to use a professional appraisal service. The values are determined internally using a combination of auction values, vendor recommendations and sales comparisons depending on the equipment type. Some highly commoditized equipment, such as commercial trucks have services that provide industry values. (3) Fair value is based on a valuation model using the present value of estimated future cash flows, prepayment speeds, default rates, and discount rates. Servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into income over the period of the estimated future net servicing income of the underlying loans. ASC 825, Financial Instruments , requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured on a recurring basis or non-recurring basis are discussed above. The estimated fair value of financial instruments has been determined by using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data in order to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825), among other provisions, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. Other than certain financial instruments for which we had concluded that the carrying amounts approximate fair value, the fair value estimates shown below were based on an exit price notion as of September 30, 2023 , as required by ASU 2016-01. The financial instruments for which we had concluded that the carrying amounts approximate fair value include, cash and due from banks, accrued interest receivable and payable, and noninterest-bearing deposits. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investment Securities Available for Sale | The following is a summary of securities available for sale as of the dates indicated: Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gain Loss Value (in thousands) September 30, 2023 U.S. Treasury securities $ 72,561 $ — $ ( 1,639 ) $ 70,922 U.S. government agency and sponsored agency obligations: Mortgage-backed securities - residential 507,922 — ( 85,196 ) 422,726 Mortgage-backed securities - commercial 60,407 — ( 14,441 ) 45,966 Collateralized mortgage obligations 98,595 — ( 12,337 ) 86,258 Debt securities 140,409 — ( 10,490 ) 129,919 Total U.S. government agency and sponsored agency obligations 807,333 — ( 122,464 ) 684,869 Municipal bonds-tax exempt 77,378 — ( 15,927 ) 61,451 Total securities available for sale $ 957,272 $ — $ ( 140,030 ) $ 817,242 December 31, 2022 U.S. Treasury securities $ 49,690 $ — $ ( 1,664 ) $ 48,026 U.S. government agency and sponsored agency obligations: Mortgage-backed securities - residential 540,590 63 ( 75,501 ) 465,152 Mortgage-backed securities - commercial 61,799 — ( 10,507 ) 51,292 Collateralized mortgage obligations 98,236 — ( 12,751 ) 85,485 Debt securities 150,338 — ( 11,839 ) 138,499 Total U.S. government agency and sponsored agency obligations 850,963 63 ( 110,598 ) 740,428 Municipal bonds-tax exempt 78,143 — ( 12,759 ) 65,384 Total securities available for sale $ 978,796 $ 63 $ ( 125,021 ) $ 853,838 |
Schedule of Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity | The amortized cost and estimated fair value of securities as of September 30, 2023 and December 31, 2022, by contractual or expected maturity, are shown below. Collateralized mortgage obligations are included in the table shown below based on their expected maturities. All other securities are included based on their contractual maturities. September 30, 2023 December 31, 2022 Available for Sale Available for Sale Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value (in thousands) Within one year $ 51,042 $ 50,491 $ 28,665 $ 28,043 Over one year through five years 171,668 159,474 180,322 167,000 Over five years through ten years 75,866 67,227 39,213 35,318 Over ten years 658,696 540,050 730,596 623,477 Total $ 957,272 $ 817,242 $ 978,796 $ 853,838 |
Summary of Debt Securities Available for Sale in an Unrealized Loss Position for Which an Allowance for Credit Losses Has Not Been Recorded | The following table summarizes debt securities available-for-sale in an unrealized loss position for which an allowance for credit losses has not been recorded at September 30, 2023 and December 31, 2022, aggregated by major security type and length of time in a continuous unrealized loss position: Holding Period Less than 12 Months 12 Months or More Total Gross Estimated Number Gross Estimated Number Gross Estimated Number Unrealized Fair of Unrealized Fair of Unrealized Fair of Loss Value Securities Loss Value Securities Loss Value Securities (in thousands, except number of securities) September 30, 2023 U.S. Treasury securities $ ( 212 ) $ 42,415 15 $ ( 1,427 ) $ 28,507 10 $ ( 1,639 ) $ 70,922 25 U.S. government agency and sponsored agency obligations: Mortgage-backed securities - residential ( 533 ) 19,097 9 ( 84,663 ) 403,629 118 ( 85,196 ) 422,726 127 Mortgage-backed securities - commercial — — — ( 14,441 ) 45,966 15 ( 14,441 ) 45,966 15 Collateralized mortgage obligations ( 405 ) 22,488 6 ( 11,933 ) 63,770 24 ( 12,337 ) 86,258 30 Debt securities ( 58 ) 10,381 3 ( 10,432 ) 119,538 25 ( 10,490 ) 129,919 28 Total U.S. government agency and sponsored agency obligations ( 996 ) 51,966 18 ( 121,469 ) 632,903 182 ( 122,464 ) 684,869 200 Municipal bonds-tax exempt — — — ( 15,927 ) 61,451 19 ( 15,927 ) 61,451 19 Total $ ( 1,208 ) $ 94,381 33 $ ( 138,823 ) $ 722,861 211 $ ( 140,030 ) $ 817,242 244 December 31, 2022 U.S. Treasury securities $ ( 414 ) $ 33,812 14 $ ( 1,250 ) $ 14,215 4 $ ( 1,664 ) $ 48,027 18 U.S. government agency and sponsored agency obligations: Mortgage-backed securities - residential ( 1,712 ) 36,009 18 ( 73,789 ) 424,302 105 ( 75,501 ) 460,311 123 Mortgage-backed securities - commercial ( 84 ) 4,069 1 ( 10,423 ) 47,221 14 ( 10,507 ) 51,290 15 Collateralized mortgage obligations ( 1,011 ) 23,606 8 ( 11,740 ) 61,879 20 ( 12,751 ) 85,485 28 Debt securities ( 1,103 ) 31,714 8 ( 10,736 ) 106,785 22 ( 11,839 ) 138,499 30 Total U.S. government agency and sponsored agency obligations ( 3,910 ) 95,398 35 ( 106,688 ) 640,187 161 ( 110,598 ) 735,585 196 Municipal bonds-tax exempt — — — ( 12,759 ) 65,385 19 ( 12,759 ) 65,385 19 Total $ ( 4,324 ) $ 129,210 49 $ ( 120,697 ) $ 719,787 184 $ ( 125,021 ) $ 848,997 233 |
Realized Gains and Losses on Sales of Investment Securities | Realized gains and losses on sales of securities and proceeds from sales of securities were as follows for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (in thousands) Gross realized gains on sales of securities $ — $ — $ — $ — Gross realized losses on sales of securities — — ( 1,871 ) — Net realized gains (losses) on sales of securities $ — $ — $ ( 1,871 ) $ — Proceeds from sales of securities $ — $ — $ 8,149 $ — |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Loans | Loans consisted of the following as of the dates indicated: September 30, 2023 December 31, 2022 (in thousands) Real estate loans: Commercial property Retail $ 1,097,650 $ 1,023,608 Hospitality 705,735 646,893 Office 575,319 499,946 Other (1) 1,309,507 1,553,729 Total commercial property loans 3,688,211 3,724,176 Construction 84,804 109,205 Residential (2) 926,326 734,472 Total real estate loans 4,699,341 4,567,853 Commercial and industrial loans (3) 728,792 804,492 Equipment financing agreements 592,652 594,788 Loans receivable 6,020,785 5,967,133 Allowance for credit losses ( 67,313 ) ( 71,523 ) Loans receivable, net $ 5,953,472 $ 5,895,610 (1) Includes mixed-use, multifamily, industrial, gas stations, faith-based facilities, and medical; all other property types represent less than one percent of total loans receivable. (2) Includes $ 2.0 million and $ 2.4 million of home equity loans and lines, and $ 4.2 million and $ 4.6 million of personal loans at September 30, 2023 and December 31, 2022, respectively. (3) At September 30, 2023 and December 31, 2022, Paycheck Protection Program loans were $ 0.2 million and $ 0.9 million, respectively. |
Activity for Loans Held for Sale | The following is the activity for loans held for sale for the three months ended September 30, 2023 and 2022: Real Estate Commercial and Industrial Total (in thousands) September 30, 2023 Balance at beginning of period $ 5,544 $ 1,749 $ 7,293 Originations and transfers 12,588 13,398 25,986 Sales ( 11,520 ) ( 9,490 ) ( 21,010 ) Principal paydowns and amortization ( 75 ) ( 427 ) ( 502 ) Balance at end of period $ 6,537 $ 5,230 $ 11,767 September 30, 2022 Balance at beginning of period $ 10,976 $ 7,552 $ 18,528 Originations and transfers 23,013 12,198 35,211 Sales ( 27,493 ) ( 16,192 ) ( 43,685 ) Principal paydowns and amortization ( 6 ) ( 4 ) ( 10 ) Balance at end of period $ 6,490 $ 3,554 $ 10,044 The following is the activity for loans held for sale for the nine months ended September 30, 2023 and 2022: Real Estate Commercial and Industrial Total (in thousands) September 30, 2023 Balance at beginning of period $ 3,775 $ 4,268 $ 8,043 Originations and transfers 43,468 31,420 74,888 Sales ( 40,630 ) ( 30,022 ) ( 70,652 ) Principal payoffs and amortization ( 76 ) ( 436 ) ( 512 ) Balance at end of period $ 6,537 $ 5,230 $ 11,767 September 30, 2022 Balance at beginning of period $ 6,954 $ 6,388 $ 13,342 Originations and transfers 72,708 39,207 111,915 Sales ( 73,166 ) ( 42,033 ) ( 115,199 ) Principal payoffs and amortization ( 6 ) ( 8 ) ( 14 ) Balance at end of period $ 6,490 $ 3,554 $ 10,044 |
Allowance for Credit Losses by Portfolio Segment | The following table details the information on the allowance for credit losses by portfolio segment as of and for the three months ended September 30, 2023 and 2022: Real Estate Commercial and Industrial Equipment Financing Agreements Total (in thousands) September 30, 2023 Balance at beginning of period $ 43,054 $ 16,028 $ 11,942 71,024 Charge-offs ( 216 ) ( 6,323 ) ( 2,831 ) ( 9,370 ) Recoveries 50 141 301 492 Provision (recovery) for credit losses 948 1,396 2,823 5,167 Ending balance $ 43,836 $ 11,242 $ 12,235 $ 67,313 September 30, 2022 Balance at beginning of period $ 46,112 $ 14,275 $ 12,680 $ 73,067 Charge-offs ( 1,356 ) ( 8 ) ( 716 ) ( 2,080 ) Recoveries 373 228 369 970 Provision (recovery) for credit losses 395 381 ( 1,149 ) ( 373 ) Ending balance $ 45,524 $ 14,876 $ 11,184 $ 71,584 The following table details the information on the allowance for credit losses by portfolio segment as of and for the nine months ended September 30, 2023 and 2022: Real Estate Commercial and Industrial Equipment Financing Agreements Total (in thousands) September 30, 2023 Balance at beginning of period $ 44,026 $ 15,267 $ 12,230 71,523 Charge-offs ( 627 ) ( 6,635 ) ( 7,052 ) ( 14,314 ) Recoveries 180 931 1,131 2,242 Provision (recovery) for credit losses 257 1,679 5,926 7,862 Ending balance $ 43,836 $ 11,242 $ 12,235 $ 67,313 September 30, 2022 Balance at beginning of period $ 48,890 $ 12,418 $ 11,249 $ 72,557 Charge-offs ( 1,886 ) ( 87 ) ( 1,548 ) ( 3,521 ) Recoveries 632 679 1,117 2,428 Provision (recovery) for credit losses ( 2,112 ) 1,866 366 120 Ending balance $ 45,524 $ 14,876 $ 11,184 $ 71,584 The table below illustrates the allowance for credit losses by loan portfolio segment and each loan portfolio segment as a percentage of total loans. September 30, 2023 December 31, 2022 Allowance Amount Percentage of Total Allowance Total Loans Percentage of Total Loans Allowance Amount Percentage of Total Allowance Total Loans Percentage of Total Loans (dollars in thousands) Real estate loans: Commercial property Retail $ 10,083 15.0 % $ 1,097,650 18.3 % $ 7,872 11.0 % $ 1,023,608 17.2 % Hospitality 15,083 22.4 705,735 11.7 13,407 18.7 646,893 10.8 Office 2,884 4.3 575,319 9.6 2,293 3.2 499,946 8.4 Other 8,321 12.3 1,309,507 21.7 13,056 18.3 1,553,729 26.0 Total commercial property loans 36,371 54.0 3,688,211 61.3 36,628 51.2 3,724,176 62.4 Construction 2,594 3.9 84,804 1.4 4,022 5.7 109,205 1.8 Residential 4,871 7.2 926,326 15.4 3,376 4.7 734,472 12.4 Total real estate loans 43,836 65.1 4,699,341 78.1 44,026 61.6 4,567,853 76.6 Commercial and industrial loans 11,242 16.7 728,792 12.1 15,267 21.3 804,492 13.4 Equipment financing agreements 12,235 18.2 592,652 9.8 12,230 17.1 594,788 10.0 Total $ 67,313 100.0 % $ 6,020,785 100.0 % $ 71,523 100.0 % $ 5,967,133 100.0 % |
Summary of Amortized Cost Basis of Collateral Dependent Loans By Class of Loans | The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2023 and December 31, 2022, for which repayment is expected to be obtained through the sale of the underlying collateral. September 30, 2023 December 31, 2022 Amortized Cost Amortized Cost (in thousands) Real estate loans: Commercial property Retail $ 1,637 $ 1,930 Hospitality 333 — Office — — Other 22 256 Total commercial property loans 1,992 2,186 Residential 3 508 Total real estate loans 1,995 2,694 Commercial and industrial loans 4,847 — Total $ 6,842 $ 2,694 |
Credit Quality of Loan Portfolio | Term Loans Amortized Cost Basis by Origination Year (1) 2023 2022 2021 2020 2019 Prior Revolving Total (in thousands) September 30, 2023 Real estate loans: Commercial property Risk Rating ` Pass / Pass-Watch $ 511,148 $ 1,013,414 $ 863,200 $ 578,433 $ 384,562 $ 264,284 $ 26,171 $ 3,641,212 Special Mention 5,194 4,032 10,141 4,328 715 1,556 1,700 27,666 Classified 4,430 977 4,936 5,606 3,384 19,333 Total commercial property 520,772 1,018,423 878,277 582,761 390,883 269,224 27,871 3,688,211 YTD gross charge-offs — — — 411 — 216 — 627 YTD net charge-offs — — — 407 — 46 — 453 Construction Risk Rating Pass / Pass-Watch 38,129 — 18,375 — — — — 56,504 Special Mention — — 28,300 — — — — 28,300 Classified — — — — — — — — Total construction 38,129 — 46,675 — — — — 84,804 YTD gross charge-offs — — — — — — — — YTD net charge-offs — — — — — — — — Residential Risk Rating Pass / Pass-Watch 241,830 381,167 160,856 12,791 221 124,047 4,911 925,823 Special Mention — — — — — — 500 500 Classified — — — — — 3 — 3 Total residential 241,830 381,167 160,856 12,791 221 124,050 5,411 926,326 YTD gross charge-offs — — — — — — — — YTD net charge-offs — — — — — ( 6 ) — ( 6 ) Total real estate loans Risk Rating Pass / Pass-Watch 791,107 1,394,581 1,042,431 591,224 384,783 388,331 31,082 4,623,539 Special Mention 5,194 4,032 38,441 4,328 715 1,556 2,200 56,466 Classified 4,430 977 4,936 — 5,606 3,387 — 19,336 Total real estate loans 800,731 1,399,590 1,085,808 595,552 391,104 393,274 33,282 4,699,341 YTD gross charge-offs — — — 411 — 216 — 627 YTD net charge-offs — — — 407 — 40 — 447 Commercial and industrial loans: Risk Rating Pass / Pass-Watch 142,240 176,815 88,316 33,403 11,156 10,047 240,951 702,928 Special Mention — 16,128 — 104 — 3,775 — 20,007 Classified 378 — — 84 46 210 5,139 5,857 Total commercial and industrial loans 142,618 192,943 88,316 33,591 11,202 14,032 246,090 728,792 YTD gross charge-offs — 17 — — 110 388 6,120 6,635 YTD net charge-offs — 5 ( 5 ) — 107 ( 522 ) 6,119 5,704 Equipment financing agreements: Risk Rating Pass / Pass-Watch 174,377 234,753 115,310 29,380 25,457 5,434 — 584,711 Special Mention — — — — — — — — Classified 329 3,630 2,719 167 830 266 — 7,941 Total equipment financing agreements 174,706 238,383 118,029 29,547 26,287 5,700 — 592,652 YTD gross charge-offs 56 3,030 2,732 294 725 215 — 7,052 YTD net charge-offs 56 2,961 2,455 217 335 ( 103 ) — 5,921 Total loans receivable: Risk Rating Pass / Pass-Watch 1,107,724 1,806,149 1,246,057 654,007 421,396 403,812 272,033 5,911,178 Special Mention 5,194 20,160 38,441 4,432 715 5,331 2,200 76,473 Classified 5,137 4,607 7,655 251 6,482 3,863 5,139 33,134 Total loans receivable $ 1,118,055 $ 1,830,916 $ 1,292,153 $ 658,690 $ 428,593 $ 413,006 $ 279,372 $ 6,020,785 YTD gross charge-offs 56 3,047 2,732 705 835 819 6,120 14,314 YTD net charge-offs 56 2,966 2,450 624 442 ( 585 ) 6,119 12,072 (1) Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Term Loans Amortized Cost Basis by Origination Year (1) 2022 2021 2020 2019 2018 Prior Revolving Total December 31, 2022 Real estate loans: Commercial property Risk Rating Pass / Pass-Watch $ 1,184,361 $ 901,029 $ 600,740 $ 404,786 $ 301,950 $ 207,861 $ 50,877 $ 3,651,604 Special Mention 847 13,384 5,857 7,115 — 6,080 1,701 34,984 Classified — — 412 4,312 12,304 20,560 — 37,588 Total commercial property 1,185,208 914,413 607,009 416,213 314,254 234,501 52,578 3,724,176 Construction Risk Rating Pass / Pass-Watch 41,662 67,543 — — — — — 109,205 Special Mention — — — — — — — — Classified — — — — — — — — Total construction 41,662 67,543 — — — — — 109,205 Residential Risk Rating Pass / Pass-Watch 405,975 173,236 13,102 232 731 134,766 5,422 733,464 Special Mention — — — — — — 500 500 Classified 12 — — — — 496 — 508 Total residential 405,987 173,236 13,102 232 731 135,262 5,922 734,472 Total real estate loans Risk Rating Pass / Pass-Watch 1,631,998 1,141,808 613,842 405,018 302,681 342,627 56,299 4,494,273 Special Mention 847 13,384 5,857 7,115 — 6,080 2,201 35,484 Classified 12 — 412 4,312 12,304 21,056 — 38,096 Total real estate loans 1,632,857 1,155,192 620,111 416,445 314,985 369,763 58,500 4,567,853 Commercial and industrial loans: Risk Rating Pass / Pass-Watch 368,778 100,537 39,577 24,117 7,342 12,282 205,951 758,584 Special Mention — 9,285 — — 29 102 34,113 43,529 Classified — — 171 1,097 81 391 639 2,379 Total commercial and industrial loans 368,778 109,822 39,748 25,214 7,452 12,775 240,703 804,492 Equipment financing agreements: Risk Rating Pass / Pass-Watch 305,249 165,313 46,970 52,133 17,608 1,798 — 589,071 Special Mention — — — — — — — — Classified 630 2,542 311 1,581 565 88 — 5,717 Total equipment financing agreements 305,879 167,855 47,281 53,714 18,173 1,886 — 594,788 Total loans receivable: Risk Rating Pass / Pass-Watch 2,306,025 1,407,658 700,389 481,268 327,631 356,707 262,250 5,841,928 Special Mention 847 22,669 5,857 7,115 29 6,182 36,314 79,013 Classified 642 2,542 894 6,990 12,950 21,535 639 46,192 Total loans receivable $ 2,307,514 $ 1,432,869 $ 707,140 $ 495,373 $ 340,610 $ 384,424 $ 299,203 $ 5,967,133 (1) Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Loans by Vintage Year and Payment Performance Term Loans Amortized Cost Basis by Origination Year (1) 2023 2022 2021 2020 2019 Prior Revolving Total (in thousands) September 30, 2023 Real estate loans: Commercial property Payment performance Performing $ 519,135 $ 1,018,423 $ 878,124 $ 582,761 $ 390,800 $ 268,305 $ 27,871 $ 3,685,419 Nonperforming 1,637 — 153 — 83 919 — 2,792 Total commercial property 520,772 1,018,423 878,277 582,761 390,883 269,224 27,871 3,688,211 YTD gross charge-offs — — — 411 — 216 — 627 YTD net charge-offs — — — 407 — 46 — 453 Construction Payment performance Performing 38,129 — 46,675 — — — — 84,804 Nonperforming — — — — — — — — Total construction 38,129 — 46,675 — — — — 84,804 YTD gross charge-offs — — — — — — — — YTD net charge-offs — — — — — — — — Residential Payment performance Performing 241,830 381,167 160,856 12,791 221 124,047 5,411 926,323 Nonperforming — — — — — 3 — 3 Total residential 241,830 381,167 160,856 12,791 221 124,050 5,411 926,326 YTD gross charge-offs — — — — — — — — YTD net charge-offs — — — — — ( 6 ) — ( 6 ) Total real estate loans Payment performance Performing 799,094 1,399,590 1,085,655 595,552 391,021 392,352 33,282 4,696,546 Nonperforming 1,637 — 153 — 83 922 — 2,795 Total real estate loans 800,731 1,399,590 1,085,808 595,552 391,104 393,274 33,282 4,699,341 YTD gross charge-offs — — — 411 — 216 — 627 YTD net charge-offs — — — 407 — 40 — 447 Commercial and industrial loans: Payment performance Performing 142,618 192,943 88,316 33,507 11,202 13,919 241,241 723,746 Nonperforming — — — 84 — 113 4,849 5,046 Total commercial and industrial loans 142,618 192,943 88,316 33,591 11,202 14,032 246,090 728,792 YTD gross charge-offs — 17 — — 110 388 6,120 6,635 YTD net charge-offs — 5 ( 5 ) — 107 ( 522 ) 6,119 5,704 Equipment financing agreements: Payment performance Performing 174,377 234,753 115,310 29,380 25,456 5,434 — 584,710 Nonperforming 329 3,630 2,719 167 831 266 — 7,942 Total equipment financing agreements 174,706 238,383 118,029 29,547 26,287 5,700 — 592,652 YTD gross charge-offs 56 3,030 2,732 294 725 215 — 7,052 YTD net charge-offs 56 2,961 2,455 217 335 ( 103 ) — 5,921 Total loans receivable: Payment performance Performing 1,116,089 1,827,286 1,289,281 658,439 427,679 411,705 274,523 6,005,002 Nonperforming 1,966 3,630 2,872 251 914 1,301 4,849 15,783 Total loans receivable $ 1,118,055 $ 1,830,916 $ 1,292,153 $ 658,690 $ 428,593 $ 413,006 $ 279,372 $ 6,020,785 YTD gross charge-offs 56 3,047 2,732 705 835 819 6,120 14,314 YTD net charge-offs 56 2,966 2,450 624 442 ( 585 ) 6,119 12,072 (1) Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Term Loans Amortized Cost Basis by Origination Year (1) 2022 2021 2020 2019 2018 Prior Revolving Total December 31, 2022 Real estate loans: Commercial property Payment performance Performing $ 1,185,208 $ 914,413 $ 606,597 $ 416,213 $ 312,324 $ 233,643 $ 52,578 $ 3,720,976 Nonperforming — — 412 — 1,930 858 — 3,200 Total commercial property 1,185,208 914,413 607,009 416,213 314,254 234,501 52,578 3,724,176 Construction Payment performance Performing 41,662 67,543 — — — — — 109,205 Nonperforming — — — — — — — — Total construction 41,662 67,543 — — — — — 109,205 Residential Payment performance Performing 405,975 173,236 13,102 232 731 134,766 5,922 733,964 Nonperforming 12 — — — — 496 — 508 Total residential 405,987 173,236 13,102 232 731 135,262 5,922 734,472 Total real estate loans Payment performance Performing 1,632,845 1,155,192 619,699 416,445 313,055 368,409 58,500 4,564,145 Nonperforming 12 — 412 — 1,930 1,354 — 3,708 Total real estate loans 1,632,857 1,155,192 620,111 416,445 314,985 369,763 58,500 4,567,853 Commercial and industrial loans: Payment performance Performing 368,778 109,822 39,577 25,199 7,452 12,539 240,703 804,070 Nonperforming — — 171 15 — 236 — 422 Total commercial and industrial loans 368,778 109,822 39,748 25,214 7,452 12,775 240,703 804,492 Equipment financing agreements: Payment performance Performing 305,249 165,313 46,970 52,133 17,608 1,798 — 589,071 Nonperforming 630 2,542 311 1,581 565 88 — 5,717 Total equipment financing agreements 305,879 167,855 47,281 53,714 18,173 1,886 — 594,788 Total loans receivable: Payment performance Performing 2,306,872 1,430,327 706,246 493,777 338,115 382,746 299,203 5,957,286 Nonperforming 642 2,542 894 1,596 2,495 1,678 — 9,847 Total loans receivable $ 2,307,514 $ 1,432,869 $ 707,140 $ 495,373 $ 340,610 $ 384,424 $ 299,203 $ 5,967,133 (1) Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. |
Analysis of Past Due Loans, Including Loans on Nonaccrual Status, Disaggregated by Loan Class | The following is an aging analysis of loans, including loans on nonaccrual status, disaggregated by loan class, as of the dates indicated: 30-59 60-89 90 Days Total Current Total (in thousands) September 30, 2023 Real estate loans: Commercial property Retail $ 260 $ — $ — $ 260 $ 1,097,390 $ 1,097,650 Hospitality 153 33 — 186 705,549 705,735 Office — — — — 575,319 575,319 Other 704 — 22 726 1,308,781 1,309,507 Total commercial property loans 1,117 33 22 1,172 3,687,039 3,688,211 Construction — — — — 84,804 84,804 Residential 935 364 3 1,302 925,024 926,326 Total real estate loans 2,052 397 25 2,474 4,696,867 4,699,341 Commercial and industrial loans 384 151 4,849 5,384 723,408 728,792 Equipment financing agreements 6,527 2,195 3,382 12,104 580,548 592,652 Total loans receivable $ 8,963 $ 2,743 $ 8,256 $ 19,962 $ 6,000,823 $ 6,020,785 December 31, 2022 Real estate loans: Commercial property Retail $ — $ — $ — $ — $ 1,023,608 $ 1,023,608 Hospitality — — — — 646,893 646,893 Office — — — — 499,946 499,946 Other — 494 — 494 1,553,235 1,553,729 Total commercial property loans — 494 — 494 3,723,682 3,724,176 Construction — — — — 109,205 109,205 Residential 313 804 7 1,124 733,348 734,472 Total real estate loans 313 1,298 7 1,618 4,566,235 4,567,853 Commercial and industrial loans 77 79 — 156 804,336 804,492 Equipment financing agreements 5,825 1,271 2,949 10,045 584,743 594,788 Total loans receivable $ 6,215 $ 2,648 $ 2,956 $ 11,819 $ 5,955,314 $ 5,967,133 |
Schedule of Amortized Cost Basis of Loans on Nonaccrual Status and Loans Past Due 90 Days and Still Accruing | The following table represents the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of September 30, 2023 and December 31, 2022. September 30, 2023 Nonaccrual Loans Nonaccrual Loans Loans Total (in thousands) Real estate loans: Commercial property Retail $ 1,849 $ 402 $ — $ 2,251 Hospitality 333 186 — 519 Office — — — — Other 22 — — 22 Total commercial property loans 2,204 588 — 2,792 Construction — — — — Residential 3 — — 3 Total real estate loans 2,207 588 — 2,795 Commercial and industrial loans — 5,046 — 5,046 Equipment financing agreements 848 7,094 — 7,942 Total $ 3,055 $ 12,728 $ — $ 15,783 December 31, 2022 Nonaccrual Loans Nonaccrual Loans Loans Total (in thousands) Real estate loans: Commercial property Retail $ 1,929 $ — $ — $ 1,929 Hospitality — — — — Office — — — — Other 540 731 — 1,271 Total commercial property loans 2,469 731 — 3,200 Construction — — — — Residential 508 — — 508 Total real estate loans 2,977 731 — 3,708 Commercial and industrial loans — 422 — 422 Equipment financing agreements 215 5,502 — 5,717 Total $ 3,192 $ 6,655 $ — $ 9,847 |
Non-Performing Assets | The following table details nonperforming assets as of the dates indicated: September 30, 2023 December 31, 2022 (in thousands) Nonaccrual loans $ 15,783 $ 9,847 Loans receivable 90 days or more past due and still accruing — — Total nonperforming loans receivable 15,783 9,847 Other real estate owned ("OREO") 117 117 Total nonperforming assets $ 15,900 $ 9,964 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Summary of Changes in Servicing Assets | The changes in servicing assets for the three and nine months ended September 30, 2023 and 2022, were as follows: Three Months Ended September 30, 2023 2022 (in thousands) Balance at beginning of period $ 7,352 $ 7,354 Addition related to sale of SBA loans 396 828 Amortization ( 592 ) ( 758 ) Balance at end of period $ 7,156 $ 7,424 Nine Months Ended September 30, 2023 2022 (in thousands) Balance at beginning of period $ 7,176 $ 7,080 Addition related to sale of SBA loans 1,410 2,377 Amortization ( 1,815 ) ( 2,033 ) Change in valuation allowance 385 — Balance at end of period $ 7,156 $ 7,424 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill and Other Intangible Assets | The Company’s intangible assets were as follows for the periods indicated: September 30, 2023 December 31, 2022 Amortization Gross Accumulated Net Gross Accumulated Net (in thousands) Core deposit intangible 10 years $ 2,213 $ ( 2,116 ) $ 97 $ 2,213 $ ( 2,031 ) $ 182 Third-party originator's intangible 7 years 483 ( 480 ) 3 483 ( 471 ) 12 Goodwill N/A 11,031 — 11,031 11,031 — 11,031 Total intangible assets $ 13,727 $ ( 2,596 ) $ 11,131 $ 13,727 $ ( 2,502 ) $ 11,225 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deposits [Abstract] | |
Scheduled Maturities of Time Deposits | The scheduled maturities of time deposits are as follows for the periods indicated: At September 30, 2023 Time Other Time Total (in thousands) 2023 $ 432,361 $ 540,642 $ 973,003 2024 597,364 855,244 1,452,608 2025 266 4,803 5,069 2026 263 2,870 3,133 2027 and thereafter — 882 882 Total $ 1,030,254 $ 1,404,441 $ 2,434,695 At December 31, 2022 2023 $ 696,470 $ 1,185,020 $ 1,881,490 2024 — 68,037 68,037 2025 266 3,151 3,417 2026 263 2,430 2,693 2027 and thereafter — 570 570 Total $ 696,999 $ 1,259,208 $ 1,956,207 |
Borrowings and Subordinated D_2
Borrowings and Subordinated Debentures (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | September 30, 2023 December 31, 2022 Outstanding Weighted Outstanding Weighted (dollars in thousands) Overnight advances $ 50,000 5.77 % $ 250,000 4.65 % Advances due within 12 months 37,500 0.40 50,000 0.97 Advances due over 12 months through 24 months 12,500 1.90 37,500 0.40 Advances due over 24 months through 36 months 62,500 4.37 12,500 1.90 Outstanding advances $ 162,500 3.69 % $ 350,000 3.57 % |
Summary of Financial Data Pertaining to Federal Home Loan Bank Advances | The following is financial data pertaining to FHLB advances: September 30, 2023 December 31, 2022 (dollars in thousands) Weighted-average interest rate at end of period 3.69 % 3.57 % Weighted-average interest rate during the period 3.27 % 1.52 % Average balance of FHLB advances $ 194,505 $ 148,027 Maximum amount outstanding at any month-end $ 450,000 $ 350,000 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Components Used to Derive Basic and Diluted EPS | The following table is a reconciliation of the components used to derive basic and diluted EPS for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (dollars in thousands, except per share amounts) Basic EPS Net income $ 18,796 $ 27,169 $ 61,408 $ 72,915 Less: income allocated to unvested restricted stock 117 163 381 408 Income allocated to common shares $ 18,679 $ 27,006 $ 61,027 $ 72,507 Weighted-average shares for basic EPS 30,251,961 30,314,439 30,296,991 30,289,068 Basic EPS (1) $ 0.62 $ 0.89 $ 2.01 $ 2.39 Effect of dilutive stock options and unvested performance stock units 40,910 82,323 41,686 80,470 Diluted EPS Income allocated to common shares $ 18,679 $ 27,006 $ 61,027 $ 72,507 Weighted-average shares for diluted EPS 30,292,872 30,396,762 30,338,678 30,369,538 Diluted EPS (1) $ 0.62 $ 0.89 $ 2.01 $ 2.39 (1) Per share amounts may not be able to be recalculated using net income and weighted-average shares presented above due to rounding. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Regulatory Capital Requirements Under Banking Regulations [Abstract] | |
Capital Ratios of Hanmi Financial and Bank | The capital ratios of Hanmi Financial and the Bank as of September 30, 2023 and December 31, 2022 were as follows: Minimum Minimum to Be Regulatory Categorized as Actual Requirement “Well Capitalized” Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) September 30, 2023 Total capital (to risk-weighted assets): Hanmi Financial $ 933,916 15.07 % $ 495,714 8.00 % N/A N/A Hanmi Bank $ 893,375 14.42 % $ 495,685 8.00 % $ 619,607 10.00 % Tier 1 capital (to risk-weighted assets): Hanmi Financial $ 761,969 12.30 % $ 371,786 6.00 % N/A N/A Hanmi Bank $ 831,428 13.42 % $ 371,764 6.00 % $ 495,685 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Hanmi Financial $ 740,411 11.95 % $ 278,839 4.50 % N/A N/A Hanmi Bank $ 831,428 13.42 % $ 278,823 4.50 % $ 402,744 6.50 % Tier 1 capital (to average assets): Hanmi Financial $ 761,969 10.27 % $ 296,662 4.00 % N/A N/A Hanmi Bank $ 831,428 11.25 % $ 295,515 4.00 % $ 369,394 5.00 % December 31, 2022 Total capital (to risk-weighted assets): Hanmi Financial $ 901,239 14.49 % $ 497,508 8.00 % N/A N/A Hanmi Bank $ 860,503 13.86 % $ 496,607 8.00 % $ 620,758 10.00 % Tier 1 capital (to risk-weighted assets): Hanmi Financial $ 728,344 11.71 % $ 373,131 6.00 % N/A N/A Hanmi Bank $ 797,608 12.85 % $ 372,455 6.00 % $ 496,607 8.00 % Common equity Tier 1 capital (to risk-weighted assets) Hanmi Financial $ 707,101 11.37 % $ 279,848 4.50 % N/A N/A Hanmi Bank $ 797,608 12.85 % $ 279,341 4.50 % $ 403,493 6.50 % Tier 1 capital (to average assets): Hanmi Financial $ 728,344 10.07 % $ 289,311 4.00 % N/A N/A Hanmi Bank $ 797,608 11.07 % $ 288,110 4.00 % $ 360,137 5.00 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | As of September 30, 2023 and December 31, 2022, assets and liabilities measured at fair value on a recurring basis are as follows: Level 1 Level 2 Level 3 Significant Observable Quoted Prices in Inputs with No Active Markets Active Market Significant for Identical with Identical Unobservable Assets Characteristics Inputs Total Fair Value (in thousands) September 30, 2023 Assets: Securities available for sale: U.S. Treasury securities $ 70,922 $ — $ — $ 70,922 U.S. government agency and sponsored agency obligations: Mortgage-backed securities - residential — 422,726 — 422,726 Mortgage-backed securities - commercial — 45,966 — 45,966 Collateralized mortgage obligations — 86,258 — 86,258 Debt securities — 129,919 — 129,919 Total U.S. government agency and sponsored agency obligations — 684,869 — 684,869 Municipal bonds-tax exempt — 61,451 — 61,451 Total securities available for sale $ 70,922 $ 746,320 $ — $ 817,242 Derivative financial instruments $ — $ 8,602 $ — $ 8,602 Liabilities: Derivative financial instruments $ — $ 8,493 $ — $ 8,493 December 31, 2022 Assets: Securities available for sale: U.S. Treasury securities $ 48,026 $ — $ — $ 48,026 U.S. government agency and sponsored agency obligations: Mortgage-backed securities - residential — 465,152 — 465,152 Mortgage-backed securities - commercial — 51,292 — 51,292 Collateralized mortgage obligations — 85,485 — 85,485 Debt securities — 138,499 — 138,499 Total U.S. government agency and sponsored agency obligations — 740,428 — 740,428 Municipal bonds-tax exempt — 65,384 — 65,384 Total securities available for sale $ 48,026 $ 805,812 $ — $ 853,838 Derivative financial instruments $ — $ 7,507 $ — $ 7,507 Liabilities: Derivative financial instruments $ — $ 7,375 $ — $ 7,375 |
Assets and Liabilities Measured at Fair Value on Non-Recurring Basis | As of September 30, 2023 and December 31, 2022, assets and liabilities measured at fair value on a non-recurring basis are as follows: Level 1 Level 2 Level 3 Significant Observable Quoted Prices in Inputs With No Active Markets Active Market Significant for Identical With Identical Unobservable Total Assets Characteristics Inputs (in thousands) September 30, 2023 Assets: Collateral dependent loans (1) $ 6,842 $ — $ — $ 6,842 Other real estate owned 117 — — 117 Repossessed personal property 1,320 — — 1,320 December 31, 2022 Assets: Collateral dependent loans (2) $ 2,694 $ — $ — $ 2,694 Other real estate owned 117 — — 117 Repossessed personal property 467 — — 467 Servicing assets 7,176 — — 7,176 (1) Consisted of real estate loans of $ 2.0 million and commercial and industrial loans of $ 4.8 million, which were secured by real estate and business assets. (2) Consisted of real estate loans of $ 2.7 million. |
Quantitative Information about Level 3 Fair Value Assumptions for Assets Measured at Fair Value on Non-Recurring Basis | The following table represents quantitative information about Level 3 fair value assumptions for assets measured at fair value on a non-recurring basis at September 30, 2023 and December 31, 2022: Fair Value Valuation Unobservable Range (Weighted (in thousands) September 30, 2023 Collateral dependent loans: Real estate loans: Commercial property Retail $ 1,637 Market approach Adjustments to market data 5 % to 20 % / 15 % (1) Hospitality 333 Market approach Adjustments to market data ( 30 )% to 35 % / ( 3 )% Other 22 Market approach Adjustments to market data ( 25 )% to 5 % / ( 10 %) (1) Residential 3 Market approach Adjustments to market data ( 15 )% to 3 % / ( 6 )% (1) Total real estate loans 1,995 Commercial and industrial loans 4,847 Market approach Adjustments to market data ( 20 )% to 55 % / ( 3 )% (1) Total $ 6,842 Other real estate owned $ 117 Market approach Adjustments to market data ( 10 )% to 5 % / ( 2 )% (1) Repossessed personal property 1,320 Market approach Adjustments to market data (2) December 31, 2022 Collateral dependent loans: Real estate loans: Commercial property Retail $ 1,930 Market approach Adjustments to market data 5 % to 25 % / 16 % (1) Other 256 Market approach Adjustments to market data ( 42 )% to 3 % / ( 24 )% (1) Residential 508 Market approach Adjustments to market data ( 15 )% to 3 % / ( 1 )% (1) Total real estate loans 2,694 Total $ 2,694 Other real estate owned $ 117 Market approach Adjustments to market data ( 20 )% to 20 % / ( 2 )% (1) Repossessed personal property 467 Market approach Adjustments to market data (2) Servicing assets 7,176 Market approach Prepayment rate 11 % to 17 % / 16 % 22 % to 25 % / 22 % (3) (1) Appraisal reports utilize a combination of valuation techniques including a market approach, where prices and other relevant information generated by market transactions involving similar or comparable properties are used to determine the appraised value. Appraisals may include an ‘as is’ and ‘upon completion’ valuation scenarios. Adjustments are routinely made in the appraisal process by third-party appraisers to adjust for differences between the comparable sales and income data. Adjustments also result from the consideration of relevant economic and demographic factors with the potential to affect property values. Also, prospective values are based on the market conditions which exist at the date of inspection combined with informed forecasts based on current trends in supply and demand for the property types under appraisal. Positive adjustments disclosed in this table represent increases to the sales comparison and negative adjustments represent decreases. (2) The equipment is usually too small in value to use a professional appraisal service. The values are determined internally using a combination of auction values, vendor recommendations and sales comparisons depending on the equipment type. Some highly commoditized equipment, such as commercial trucks have services that provide industry values. (3) Fair value is based on a valuation model using the present value of estimated future cash flows, prepayment speeds, default rates, and discount rates. Servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into income over the period of the estimated future net servicing income of the underlying loans. |
Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments were as follows: September 30, 2023 Carrying Fair Value Amount Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and due from banks $ 289,006 $ 289,006 $ — $ — Securities available for sale 817,242 70,922 746,320 — Loans held for sale 11,767 — 11,721 — Loans receivable, net of allowance for credit losses 5,953,472 — — 5,784,828 Accrued interest receivable 20,715 20,715 — — Financial liabilities: Noninterest-bearing deposits 2,161,238 — 2,161,238 — Interest-bearing deposits 4,098,834 — — 4,098,244 Borrowings and subordinated debentures 292,360 — 159,632 127,334 Accrued interest payable 50,286 50,286 — — December 31, 2022 Carrying Fair Value Amount Level 1 Level 2 Level 3 (in thousands) Financial assets: Cash and due from banks $ 352,421 $ 352,421 $ — $ — Securities available for sale 853,838 48,026 805,812 — Loans held for sale 8,043 — 8,423 — Loans receivable, net of allowance for credit losses 5,895,610 — — 5,808,190 Accrued interest receivable 18,537 18,537 — — Financial liabilities: Noninterest-bearing deposits 2,539,602 — 2,539,602 — Interest-bearing deposits 3,628,470 — — 3,623,827 Borrowings and subordinated debentures 479,409 — 345,867 126,828 Accrued interest payable 7,792 7,792 — — |
Off-Balance Sheet Commitments (
Off-Balance Sheet Commitments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Distribution of Total Loan Commitments | The following table shows the distribution of total loan commitments as of the dates indicated: September 30, December 31, 2023 2022 (in thousands) Unused commitments to extend credit $ 848,886 $ 780,543 Standby letters of credit 77,381 71,829 Commercial letters of credit 19,524 19,945 Total commitments $ 945,791 $ 872,317 |
Allowance for Credit Losses Related to Off-Balance Sheet Items | Activity in the allowance for credit losses related to off-balance sheet items was as follows for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) Balance at beginning of period $ 2,475 $ 2,313 $ 3,114 $ 2,586 Provision expense (recovery) for credit losses ( 13 ) 936 ( 652 ) 663 Balance at end of period $ 2,462 $ 3,249 $ 2,462 $ 3,249 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Future Minimum Rental Commitments Under Non-cancelable Operating Leases | At September 30, 2023, future minimum rental commitments under these non-cancelable operating leases, with initial or remaining terms of one year or more, were as follows: Amount (in thousands) 2023 $ 8,659 2024 7,988 2025 6,885 2026 6,248 2027 6,038 Thereafter 16,326 Remaining lease commitments 52,144 Interest ( 5,184 ) Present value of lease liability $ 46,960 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Financial Instruments as well as their Location on Balance Sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as their location on the Balance Sheet as of September 30, 2023 and December 31, 2022. As of September 30, 2023 Derivative Assets Derivative Liabilities Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value (in thousands) Derivatives not designated as hedging instruments Interest rate products $ 105,209 Other Assets $ 8,602 $ 105,209 Other Liabilities $ 8,493 Total derivatives not designated as hedging instruments $ 8,602 $ 8,493 As of December 31, 2022 Derivative Assets Derivative Liabilities Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value (in thousands) Derivatives not designated as hedging instruments Interest rate products $ 61,460 Other Assets $ 7,507 $ 61,460 Other Liabilities $ 7,375 Total derivatives not designated as hedging instruments $ 7,507 $ 7,375 |
Effect of Derivative Financial Instruments that are Not Designated as Hedging Instruments on Income Statement | The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Income Statement for the nine months ended September 30, 2023 and 2022. Derivatives Not Designated as Hedging Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) Interest rate products Other income $ 62 $ 35 $ ( 23 ) $ 148 Total $ 62 $ 35 $ ( 23 ) $ 148 |
Summary of Gross Presentation, Effects of Offsetting and a Net Presentation of Derivatives | The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 2023 and December 31, 2022. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The derivative assets are located within the prepaid and other assets line item on the Consolidated Balance Sheets and the derivative liabilities are located within the accrued expenses and other liabilities line item on the Consolidated Balance Sheets. Offsetting of Derivative Assets As of September 30, 2023 Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount (in thousands) Derivatives $ 8,602 $ — $ 8,602 $ 8,493 $ 110 $ — Offsetting of Derivative Liabilities As of September 30, 2023 Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Provided Net Amount (in thousands) Derivatives $ 8,493 $ — $ 8,493 $ 8,493 $ — $ — Offsetting of Derivative Assets As of December 31, 2022 Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount (in thousands) Derivatives $ 7,507 $ — $ 7,507 $ 7,375 $ 132 $ — Offsetting of Derivative Liabilities As of December 31, 2022 Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Provided Net Amount (in thousands) Derivatives $ 7,375 $ — $ 7,375 $ 7,375 $ — $ — |
Securities - Summary of Investm
Securities - Summary of Investment Securities Available for Sale (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 957,272 | $ 978,796 |
Gross Unrealized Gain | 63 | |
Gross Unrealized Loss | (140,030) | (125,021) |
Estimated Fair Value | 817,242 | 853,838 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 72,561 | 49,690 |
Gross Unrealized Loss | (1,639) | (1,664) |
Estimated Fair Value | 70,922 | 48,026 |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 507,922 | 540,590 |
Gross Unrealized Gain | 63 | |
Gross Unrealized Loss | (85,196) | (75,501) |
Estimated Fair Value | 422,726 | 465,152 |
Mortgage-backed securities - commercial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 60,407 | 61,799 |
Gross Unrealized Loss | (14,441) | (10,507) |
Estimated Fair Value | 45,966 | 51,292 |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 98,595 | 98,236 |
Gross Unrealized Loss | (12,337) | (12,751) |
Estimated Fair Value | 86,258 | 85,485 |
Debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 140,409 | 150,338 |
Gross Unrealized Loss | (10,490) | (11,839) |
Estimated Fair Value | 129,919 | 138,499 |
Total U.S. government agency and sponsored agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 807,333 | 850,963 |
Gross Unrealized Gain | 63 | |
Gross Unrealized Loss | (122,464) | (110,598) |
Estimated Fair Value | 684,869 | 740,428 |
Municipal bonds-tax exempt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 77,378 | 78,143 |
Gross Unrealized Loss | (15,927) | (12,759) |
Estimated Fair Value | $ 61,451 | $ 65,384 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-Sale Within one year, Amortized Cost | $ 51,042 | $ 28,665 |
Available-for-Sale Over one year through five years, Amortized Cost | 171,668 | 180,322 |
Available-for-Sale Over five years through ten years, Amortized Cost | 75,866 | 39,213 |
Available-for-Sale Over ten years, Amortized Cost | 658,696 | 730,596 |
Amortized Cost | 957,272 | 978,796 |
Available-for-Sale Within one year, Estimated Fair Value | 50,491 | 28,043 |
Available-for-Sale Over one year through five years, Estimated Fair Value | 159,474 | 167,000 |
Available-for-Sale Over five years through ten years, Estimated Fair Value | 67,227 | 35,318 |
Available-for-Sale Over ten years, Estimated Fair Value | 540,050 | 623,477 |
Estimated fair value | $ 817,242 | $ 853,838 |
Securities - Summary of Debt Se
Securities - Summary of Debt Securities Available for Sale in an Unrealized Loss Position for Which an Allowance for Credit Losses Has Not Been Recorded (Detail) $ in Thousands | Sep. 30, 2023 USD ($) Security | Dec. 31, 2022 USD ($) Security |
Summary of Investment Holdings [Line Items] | ||
Available-for-Sale Within One Year, Gross Unrealized Loss | $ (1,208) | $ (4,324) |
Available-for-Sale Within One Year, Estimated Fair Value | $ 94,381 | $ 129,210 |
Available-for-Sale Within One Year, Number of Securities | Security | 33 | 49 |
Available-for-Sale More than One Year, Gross Unrealized Loss | $ (138,823) | $ (120,697) |
Available-for-Sale More than One Year, Estimated Fair Value | $ 722,861 | $ 719,787 |
Available-for-Sale More than One Year, Number of Securities | Security | 211 | 184 |
Available-for-Sale, Gross Unrealized Loss | $ (140,030) | $ (125,021) |
Available-for-Sale, Estimated Fair Value | $ 817,242 | $ 848,997 |
Available-for-Sale, Number of Securities | Security | 244 | 233 |
U.S. Treasury securities | ||
Summary of Investment Holdings [Line Items] | ||
Available-for-Sale Within One Year, Gross Unrealized Loss | $ (212) | $ (414) |
Available-for-Sale Within One Year, Estimated Fair Value | $ 42,415 | $ 33,812 |
Available-for-Sale Within One Year, Number of Securities | Security | 15 | 14 |
Available-for-Sale More than One Year, Gross Unrealized Loss | $ (1,427) | $ (1,250) |
Available-for-Sale More than One Year, Estimated Fair Value | $ 28,507 | $ 14,215 |
Available-for-Sale More than One Year, Number of Securities | Security | 10 | 4 |
Available-for-Sale, Gross Unrealized Loss | $ (1,639) | $ (1,664) |
Available-for-Sale, Estimated Fair Value | $ 70,922 | $ 48,027 |
Available-for-Sale, Number of Securities | Security | 25 | 18 |
Mortgage-backed securities - residential | ||
Summary of Investment Holdings [Line Items] | ||
Available-for-Sale Within One Year, Gross Unrealized Loss | $ (533) | $ (1,712) |
Available-for-Sale Within One Year, Estimated Fair Value | $ 19,097 | $ 36,009 |
Available-for-Sale Within One Year, Number of Securities | Security | 9 | 18 |
Available-for-Sale More than One Year, Gross Unrealized Loss | $ (84,663) | $ (73,789) |
Available-for-Sale More than One Year, Estimated Fair Value | $ 403,629 | $ 424,302 |
Available-for-Sale More than One Year, Number of Securities | Security | 118 | 105 |
Available-for-Sale, Gross Unrealized Loss | $ (85,196) | $ (75,501) |
Available-for-Sale, Estimated Fair Value | $ 422,726 | $ 460,311 |
Available-for-Sale, Number of Securities | Security | 127 | 123 |
Mortgage-backed securities - commercial | ||
Summary of Investment Holdings [Line Items] | ||
Available-for-Sale Within One Year, Gross Unrealized Loss | $ (84) | |
Available-for-Sale Within One Year, Estimated Fair Value | $ 4,069 | |
Available-for-Sale Within One Year, Number of Securities | Security | 1 | |
Available-for-Sale More than One Year, Gross Unrealized Loss | $ (14,441) | $ (10,423) |
Available-for-Sale More than One Year, Estimated Fair Value | $ 45,966 | $ 47,221 |
Available-for-Sale More than One Year, Number of Securities | Security | 15 | 14 |
Available-for-Sale, Gross Unrealized Loss | $ (14,441) | $ (10,507) |
Available-for-Sale, Estimated Fair Value | $ 45,966 | $ 51,290 |
Available-for-Sale, Number of Securities | Security | 15 | 15 |
Collateralized mortgage obligations | ||
Summary of Investment Holdings [Line Items] | ||
Available-for-Sale Within One Year, Gross Unrealized Loss | $ (405) | $ (1,011) |
Available-for-Sale Within One Year, Estimated Fair Value | $ 22,488 | $ 23,606 |
Available-for-Sale Within One Year, Number of Securities | Security | 6 | 8 |
Available-for-Sale More than One Year, Gross Unrealized Loss | $ (11,933) | $ (11,740) |
Available-for-Sale More than One Year, Estimated Fair Value | $ 63,770 | $ 61,879 |
Available-for-Sale More than One Year, Number of Securities | Security | 24 | 20 |
Available-for-Sale, Gross Unrealized Loss | $ (12,337) | $ (12,751) |
Available-for-Sale, Estimated Fair Value | $ 86,258 | $ 85,485 |
Available-for-Sale, Number of Securities | Security | 30 | 28 |
Debt securities | ||
Summary of Investment Holdings [Line Items] | ||
Available-for-Sale Within One Year, Gross Unrealized Loss | $ (58) | $ (1,103) |
Available-for-Sale Within One Year, Estimated Fair Value | $ 10,381 | $ 31,714 |
Available-for-Sale Within One Year, Number of Securities | Security | 3 | 8 |
Available-for-Sale More than One Year, Gross Unrealized Loss | $ (10,432) | $ (10,736) |
Available-for-Sale More than One Year, Estimated Fair Value | $ 119,538 | $ 106,785 |
Available-for-Sale More than One Year, Number of Securities | Security | 25 | 22 |
Available-for-Sale, Gross Unrealized Loss | $ (10,490) | $ (11,839) |
Available-for-Sale, Estimated Fair Value | $ 129,919 | $ 138,499 |
Available-for-Sale, Number of Securities | Security | 28 | 30 |
Total U.S. government agency and sponsored agency obligations | ||
Summary of Investment Holdings [Line Items] | ||
Available-for-Sale Within One Year, Gross Unrealized Loss | $ (996) | $ (3,910) |
Available-for-Sale Within One Year, Estimated Fair Value | $ 51,966 | $ 95,398 |
Available-for-Sale Within One Year, Number of Securities | Security | 18 | 35 |
Available-for-Sale More than One Year, Gross Unrealized Loss | $ (121,469) | $ (106,688) |
Available-for-Sale More than One Year, Estimated Fair Value | $ 632,903 | $ 640,187 |
Available-for-Sale More than One Year, Number of Securities | Security | 182 | 161 |
Available-for-Sale, Gross Unrealized Loss | $ (122,464) | $ (110,598) |
Available-for-Sale, Estimated Fair Value | $ 684,869 | $ 735,585 |
Available-for-Sale, Number of Securities | Security | 200 | 196 |
Municipal bonds-tax exempt | ||
Summary of Investment Holdings [Line Items] | ||
Available-for-Sale More than One Year, Gross Unrealized Loss | $ (15,927) | $ (12,759) |
Available-for-Sale More than One Year, Estimated Fair Value | $ 61,451 | $ 65,385 |
Available-for-Sale More than One Year, Number of Securities | Security | 19 | 19 |
Available-for-Sale, Gross Unrealized Loss | $ (15,927) | $ (12,759) |
Available-for-Sale, Estimated Fair Value | $ 61,451 | $ 65,385 |
Available-for-Sale, Number of Securities | Security | 19 | 19 |
Securities - Additional Informa
Securities - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales of securities | $ 0 | $ 8,149,000 | $ 0 | |
Net losses in earnings resulting from sale of securities | (1,871,000) | |||
Net unrealized losses recorded in accumulated other comprehensive income | 1,700,000 | |||
Unrealized loss on securities | 0 | |||
Available for sale securities pledged as collateral | 24,700,000 | $ 23,400,000 | ||
Unrealized losses on securities | $ 1,871,000 | |||
Minimum | U.S. Government and its Agencies | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Holdings of securities as percentage of share holders' equity | 10% |
Securities - Realized Gains and
Securities - Realized Gains and Losses on Sales of Investment Securities (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross realized losses on sales of securities | $ (1,871,000) | ||
Net realized gains (losses) on sales of securities | (1,871,000) | ||
Proceeds from sales of securities | $ 0 | $ 8,149,000 | $ 0 |
Loans - Loans (Detail)
Loans - Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | $ 6,020,785 | $ 5,967,133 |
Allowance for credit losses | (67,313) | (71,523) |
Loans receivable, net | 5,953,472 | 5,895,610 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 926,326 | 734,472 |
Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 4,699,341 | 4,567,853 |
Allowance for credit losses | (43,836) | (44,026) |
Real Estate | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 1,097,650 | 1,023,608 |
Allowance for credit losses | (10,083) | (7,872) |
Real Estate | Hospitality | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 705,735 | 646,893 |
Allowance for credit losses | (15,083) | (13,407) |
Real Estate | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 575,319 | 499,946 |
Real Estate | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 1,309,507 | 1,553,729 |
Real Estate | Total commercial property loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 3,688,211 | 3,724,176 |
Allowance for credit losses | (36,371) | (36,628) |
Real Estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 84,804 | 109,205 |
Allowance for credit losses | (2,594) | (4,022) |
Real Estate | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 926,326 | 734,472 |
Allowance for credit losses | (4,871) | (3,376) |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 728,792 | 804,492 |
Allowance for credit losses | (11,242) | (15,267) |
Equipment Financing Agreements | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 592,652 | 594,788 |
Allowance for credit losses | $ (12,235) | $ (12,230) |
Loans - Loans (Detail) (Parenth
Loans - Loans (Detail) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | $ 6,020,785 | $ 5,967,133 |
Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 4,699,341 | 4,567,853 |
Real Estate | Home Equity Loans and Lines - Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | 2,000 | 2,400 |
Real Estate | Personal Loans - Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans receivable | $ 4,200 | $ 4,600 |
Loans - Additional Information
Loans - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 USD ($) Loan | Sep. 30, 2022 USD ($) Loan | Sep. 30, 2023 USD ($) Loan | Sep. 30, 2022 USD ($) Loan | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Accrued interest on loans | $ 20,715,000 | $ 20,715,000 | $ 18,537,000 | |||||
Loans receivable | 6,020,785,000 | 6,020,785,000 | 5,967,133,000 | |||||
Loans held for sale, at the lower of cost or fair value | 11,767,000 | $ 10,044,000 | 11,767,000 | $ 10,044,000 | $ 7,293,000 | 8,043,000 | $ 18,528,000 | $ 13,342,000 |
Gains on sale of second draw PPP loans | 4,253,000 | 7,545,000 | ||||||
Proceeds from sale of second draw PPP loans | 21,010,000 | 43,685,000 | 70,652,000 | 115,199,000 | ||||
Interest income on nonaccrual loans | $ 26,000 | $ 5,000 | $ 160,000 | $ 40,000 | ||||
Number of loan modified | Loan | 0 | 0 | 0 | 0 | ||||
Past due loans receivable | $ 19,962,000 | $ 19,962,000 | 11,819,000 | |||||
Other real estate owned ("OREO") | 117,000 | 117,000 | 117,000 | |||||
Loans Pledged to Secure Advances | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans receivable | 2,410,000,000 | 2,410,000,000 | 1,990,000,000 | |||||
Payment Protection Program | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans receivable | 200,000 | 200,000 | 900,000 | |||||
SBA Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans held for sale, at the lower of cost or fair value | 11,800,000 | 11,800,000 | 8,000,000 | |||||
Prepaid Expenses and Other Assets | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Other real estate owned ("OREO") | 100,000 | 100,000 | 100,000 | |||||
Loans | Accrued Interest | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Accrued interest on loans | $ 17,700,000 | $ 17,700,000 | $ 16,000,000 |
Loans - Activity for Loans Held
Loans - Activity for Loans Held for Sale (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Reclassification From Portfolio Loans To Loans Held For Sale [Roll Forward] | ||||
Balance at beginning of period | $ 7,293 | $ 18,528 | $ 8,043 | $ 13,342 |
Originations and transfers | 25,986 | 35,211 | 74,888 | 111,915 |
Sales | (21,010) | (43,685) | (70,652) | (115,199) |
Principal paydowns and amortization | (502) | (10) | 512 | (14) |
Balance at end of period | 11,767 | 10,044 | 11,767 | 10,044 |
Real Estate | ||||
Financing Receivable, Reclassification From Portfolio Loans To Loans Held For Sale [Roll Forward] | ||||
Balance at beginning of period | 5,544 | 10,976 | 3,775 | 6,954 |
Originations and transfers | 12,588 | 23,013 | 43,468 | 72,708 |
Sales | (11,520) | (27,493) | (40,630) | (73,166) |
Principal paydowns and amortization | 75 | 6 | 76 | (6) |
Balance at end of period | 6,537 | 6,490 | 6,537 | 6,490 |
Commercial and Industrial | ||||
Financing Receivable, Reclassification From Portfolio Loans To Loans Held For Sale [Roll Forward] | ||||
Balance at beginning of period | 1,749 | 7,552 | 4,268 | 6,388 |
Originations and transfers | 13,398 | 12,198 | 31,420 | 39,207 |
Sales | (9,490) | (16,192) | (30,022) | (42,033) |
Principal paydowns and amortization | 427 | (4) | 436 | 8 |
Balance at end of period | $ 5,230 | $ 3,554 | $ 5,230 | $ 3,554 |
Loans - Allowance for Credit Lo
Loans - Allowance for Credit Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning balance | $ 71,523 | ||||
Ending balance | $ 67,313 | 67,313 | |||
Non-PCI Loans and Leases | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning balance | 67,313 | $ 71,024 | $ 73,067 | 71,523 | $ 72,557 |
Chargeoffs | (9,370) | (2,080) | (14,314) | (3,521) | |
Recoveries | 492 | 970 | 2,242 | 2,428 | |
Provision (recovery) for credit losses | 5,167 | (373) | 7,862 | 120 | |
Ending balance | 67,313 | 67,313 | 71,584 | 67,313 | 71,584 |
Real Estate | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning balance | 44,026 | ||||
Ending balance | 43,836 | 43,836 | |||
Real Estate | Non-PCI Loans and Leases | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning balance | 43,054 | 46,112 | 44,026 | 48,890 | |
Chargeoffs | (216) | (1,356) | (627) | (1,886) | |
Recoveries | 50 | 373 | 180 | 632 | |
Provision (recovery) for credit losses | 948 | 395 | 257 | (2,112) | |
Ending balance | 43,836 | 43,054 | 45,524 | 43,836 | 45,524 |
Commercial and Industrial | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning balance | 15,267 | ||||
Ending balance | 11,242 | 11,242 | |||
Commercial and Industrial | Non-PCI Loans and Leases | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning balance | 16,028 | 14,275 | 15,267 | 12,418 | |
Chargeoffs | (6,323) | (8) | (6,635) | (87) | |
Recoveries | 141 | 228 | 931 | 679 | |
Provision (recovery) for credit losses | 1,396 | 381 | 1,679 | 1,866 | |
Ending balance | 11,242 | 16,028 | 14,876 | 11,242 | 14,876 |
Equipment Financing Agreements | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning balance | 12,230 | ||||
Ending balance | 12,235 | 12,235 | |||
Equipment Financing Agreements | Non-PCI Loans and Leases | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning balance | 11,942 | 12,680 | 12,230 | 11,249 | |
Chargeoffs | (2,831) | (716) | (7,052) | (1,548) | |
Recoveries | 301 | 369 | 1,131 | 1,117 | |
Provision (recovery) for credit losses | 2,823 | (1,149) | 5,926 | 366 | |
Ending balance | $ 12,235 | $ 11,942 | $ 11,184 | $ 12,235 | $ 11,184 |
Loans - Allowance for Credit _2
Loans - Allowance for Credit Losses by Portfolio Segment as a Percentage of Recorded Total Allowance for Credit Losses and Aggregate Recorded Investment of Loans Receivable (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance Amount | $ 67,313 | $ 71,523 |
Percentage of Total Allowance | 100% | 100% |
Total Loans | $ 6,020,785 | $ 5,967,133 |
Percentage of Total Loans | 100% | 100% |
Residential | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Loans | $ 926,326 | $ 734,472 |
Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance Amount | $ 43,836 | $ 44,026 |
Percentage of Total Allowance | 65.10% | 61.60% |
Total Loans | $ 4,699,341 | $ 4,567,853 |
Percentage of Total Loans | 78.10% | 76.60% |
Real Estate | Retail | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance Amount | $ 10,083 | $ 7,872 |
Percentage of Total Allowance | 15% | 11% |
Total Loans | $ 1,097,650 | $ 1,023,608 |
Percentage of Total Loans | 18.30% | 17.20% |
Real Estate | Hospitality | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance Amount | $ 15,083 | $ 13,407 |
Percentage of Total Allowance | 22.40% | 18.70% |
Total Loans | $ 705,735 | $ 646,893 |
Percentage of Total Loans | 11.70% | 10.80% |
Real Estate | Office | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance Amount | $ 2,884 | $ 2,293 |
Percentage of Total Allowance | 4.30% | 3.20% |
Total Loans | $ 575,319 | $ 499,946 |
Percentage of Total Loans | 9.60% | 8.40% |
Real Estate | Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance Amount | $ 8,321 | $ 13,056 |
Percentage of Total Allowance | 12.30% | 18.30% |
Total Loans | $ 1,309,507 | $ 1,553,729 |
Percentage of Total Loans | 21.70% | 26% |
Real Estate | Total commercial property loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance Amount | $ 36,371 | $ 36,628 |
Percentage of Total Allowance | 54% | 51.20% |
Total Loans | $ 3,688,211 | $ 3,724,176 |
Percentage of Total Loans | 61.30% | 62.40% |
Real Estate | Construction | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance Amount | $ 2,594 | $ 4,022 |
Percentage of Total Allowance | 3.90% | 5.70% |
Total Loans | $ 84,804 | $ 109,205 |
Percentage of Total Loans | 1.40% | 1.80% |
Real Estate | Residential | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance Amount | $ 4,871 | $ 3,376 |
Percentage of Total Allowance | 7.20% | 4.70% |
Total Loans | $ 926,326 | $ 734,472 |
Percentage of Total Loans | 15.40% | 12.40% |
Commercial and Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance Amount | $ 11,242 | $ 15,267 |
Percentage of Total Allowance | 16.70% | 21.30% |
Total Loans | $ 728,792 | $ 804,492 |
Percentage of Total Loans | 12.10% | 13.40% |
Equipment Financing Agreements | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance Amount | $ 12,235 | $ 12,230 |
Percentage of Total Allowance | 18.20% | 17.10% |
Total Loans | $ 592,652 | $ 594,788 |
Percentage of Total Loans | 9.80% | 10% |
Loans - Summary of Amortized Co
Loans - Summary of Amortized Cost Basis of Collateral Dependent Loans By Class of Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Amortized Cost | $ 6,842 | $ 2,694 |
Real Estate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Amortized Cost | 1,995 | 2,694 |
Real Estate | Retail | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Amortized Cost | 1,637 | 1,930 |
Real Estate | Hospitality | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Amortized Cost | 333 | |
Real Estate | Other | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Amortized Cost | 22 | 256 |
Real Estate | Total commercial property loans | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Amortized Cost | 1,992 | 2,186 |
Real Estate | Residential | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Amortized Cost | 3 | $ 508 |
Commercial and Industrial | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Amortized Cost | $ 4,847 |
Loans - Loans by Vintage Year a
Loans - Loans by Vintage Year and Risk Rating (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | $ 1,118,055 | $ 2,307,514 |
2023 - YTD gross | 56 | |
2023 - YTD net | 56 | |
2022 | 1,830,916 | 1,432,869 |
2022 - YTD gross | 3,047 | |
2022 - YTD Net | 2,966 | |
2021 | 1,292,153 | 707,140 |
2021 - YTD gross | 2,732 | |
2021 - YTD net | 2,450 | |
2020 | 658,690 | 495,373 |
2020 - YTD gross | 705 | |
2020 - YTD net | 624 | |
2019 | 428,593 | 340,610 |
2019 - YTD gross | 835 | |
2019 - YTD net | 442 | |
Prior | 413,006 | 384,424 |
Prior - Gross | 819 | |
Prior - Net | (585) | |
Revolving Loans Amortized Cost Basis | 279,372 | 299,203 |
Revolving Loans Amortized Cost Basis - YTD gross | 6,120 | |
Revolving Loans Amortized Cost Basis - YTD net | 6,119 | |
Loans receivable | 6,020,785 | 5,967,133 |
Loans receivable gross chargeoff | 14,314 | |
Loans receivable net chargeoff | 12,072 | |
Pass/Pass-Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 1,107,724 | 2,306,025 |
2022 | 1,806,149 | 1,407,658 |
2021 | 1,246,057 | 700,389 |
2020 | 654,007 | 481,268 |
2019 | 421,396 | 327,631 |
Prior | 403,812 | 356,707 |
Revolving Loans Amortized Cost Basis | 272,033 | 262,250 |
Loans receivable | 5,911,178 | 5,841,928 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 5,194 | 847 |
2022 | 20,160 | 22,669 |
2021 | 38,441 | 5,857 |
2020 | 4,432 | 7,115 |
2019 | 715 | 29 |
Prior | 5,331 | 6,182 |
Revolving Loans Amortized Cost Basis | 2,200 | 36,314 |
Loans receivable | 76,473 | 79,013 |
Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 5,137 | 642 |
2022 | 4,607 | 2,542 |
2021 | 7,655 | 894 |
2020 | 251 | 6,990 |
2019 | 6,482 | 12,950 |
Prior | 3,863 | 21,535 |
Revolving Loans Amortized Cost Basis | 5,139 | 639 |
Loans receivable | 33,134 | 46,192 |
Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 926,326 | 734,472 |
Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 800,731 | 1,632,857 |
2022 | 1,399,590 | 1,155,192 |
2021 | 1,085,808 | 620,111 |
2020 | 595,552 | 416,445 |
2020 - YTD gross | 411 | |
2020 - YTD net | 407 | |
2019 | 391,104 | 314,985 |
Prior | 393,274 | 369,763 |
Prior - Gross | 216 | |
Prior - Net | 40 | |
Revolving Loans Amortized Cost Basis | 33,282 | 58,500 |
Loans receivable | 4,699,341 | 4,567,853 |
Loans receivable gross chargeoff | 627 | |
Loans receivable net chargeoff | 447 | |
Real Estate | Pass/Pass-Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 791,107 | 1,631,998 |
2022 | 1,394,581 | 1,141,808 |
2021 | 1,042,431 | 613,842 |
2020 | 591,224 | 405,018 |
2019 | 384,783 | 302,681 |
Prior | 388,331 | 342,627 |
Revolving Loans Amortized Cost Basis | 31,082 | 56,299 |
Loans receivable | 4,623,539 | 4,494,273 |
Real Estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 5,194 | 847 |
2022 | 4,032 | 13,384 |
2021 | 38,441 | 5,857 |
2020 | 4,328 | 7,115 |
2019 | 715 | |
Prior | 1,556 | 6,080 |
Revolving Loans Amortized Cost Basis | 2,200 | 2,201 |
Loans receivable | 56,466 | 35,484 |
Real Estate | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 4,430 | 12 |
2022 | 977 | |
2021 | 4,936 | 412 |
2020 | 4,312 | |
2019 | 5,606 | 12,304 |
Prior | 3,387 | 21,056 |
Loans receivable | 19,336 | 38,096 |
Real Estate | Total commercial property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 520,772 | 1,185,208 |
2022 | 1,018,423 | 914,413 |
2021 | 878,277 | 607,009 |
2020 | 582,761 | 416,213 |
2020 - YTD gross | 411 | |
2020 - YTD net | 407 | |
2019 | 390,883 | 314,254 |
Prior | 269,224 | 234,501 |
Prior - Gross | 216 | |
Prior - Net | 46 | |
Revolving Loans Amortized Cost Basis | 27,871 | 52,578 |
Loans receivable | 3,688,211 | 3,724,176 |
Loans receivable gross chargeoff | 627 | |
Loans receivable net chargeoff | 453 | |
Real Estate | Total commercial property loans | Pass/Pass-Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 511,148 | 1,184,361 |
2022 | 1,013,414 | 901,029 |
2021 | 863,200 | 600,740 |
2020 | 578,433 | 404,786 |
2019 | 384,562 | 301,950 |
Prior | 264,284 | 207,861 |
Revolving Loans Amortized Cost Basis | 26,171 | 50,877 |
Loans receivable | 3,641,212 | 3,651,604 |
Real Estate | Total commercial property loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 5,194 | 847 |
2022 | 4,032 | 13,384 |
2021 | 10,141 | 5,857 |
2020 | 4,328 | 7,115 |
2019 | 715 | |
Prior | 1,556 | 6,080 |
Revolving Loans Amortized Cost Basis | 1,700 | 1,701 |
Loans receivable | 27,666 | 34,984 |
Real Estate | Total commercial property loans | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 4,430 | |
2022 | 977 | |
2021 | 4,936 | 412 |
2020 | 4,312 | |
2019 | 5,606 | 12,304 |
Prior | 3,384 | 20,560 |
Loans receivable | 19,333 | 37,588 |
Real Estate | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 38,129 | 41,662 |
2022 | 67,543 | |
2021 | 46,675 | |
Loans receivable | 84,804 | 109,205 |
Real Estate | Construction | Pass/Pass-Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 38,129 | 41,662 |
2022 | 67,543 | |
2021 | 18,375 | |
Loans receivable | 56,504 | 109,205 |
Real Estate | Construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 28,300 | |
Loans receivable | 28,300 | |
Real Estate | Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 241,830 | 405,987 |
2022 | 381,167 | 173,236 |
2021 | 160,856 | 13,102 |
2020 | 12,791 | 232 |
2019 | 221 | 731 |
Prior | 124,050 | 135,262 |
Prior - Net | (6) | |
Revolving Loans Amortized Cost Basis | 5,411 | 5,922 |
Loans receivable | 926,326 | 734,472 |
Loans receivable net chargeoff | (6) | |
Real Estate | Residential | Pass/Pass-Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 241,830 | 405,975 |
2022 | 381,167 | 173,236 |
2021 | 160,856 | 13,102 |
2020 | 12,791 | 232 |
2019 | 221 | 731 |
Prior | 124,047 | 134,766 |
Revolving Loans Amortized Cost Basis | 4,911 | 5,422 |
Loans receivable | 925,823 | 733,464 |
Real Estate | Residential | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Revolving Loans Amortized Cost Basis | 500 | 500 |
Loans receivable | 500 | 500 |
Real Estate | Residential | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 12 | |
Prior | 3 | 496 |
Loans receivable | 3 | 508 |
Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 142,618 | 368,778 |
2022 | 192,943 | 109,822 |
2022 - YTD gross | 17 | |
2022 - YTD Net | 5 | |
2021 | 88,316 | 39,748 |
2021 - YTD net | (5) | |
2020 | 33,591 | 25,214 |
2019 | 11,202 | 7,452 |
2019 - YTD gross | 110 | |
2019 - YTD net | 107 | |
Prior | 14,032 | 12,775 |
Prior - Gross | 388 | |
Prior - Net | (522) | |
Revolving Loans Amortized Cost Basis | 246,090 | 240,703 |
Revolving Loans Amortized Cost Basis - YTD gross | 6,120 | |
Revolving Loans Amortized Cost Basis - YTD net | 6,119 | |
Loans receivable | 728,792 | 804,492 |
Loans receivable gross chargeoff | 6,635 | |
Loans receivable net chargeoff | 5,704 | |
Commercial and Industrial | Pass/Pass-Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 142,240 | 368,778 |
2022 | 176,815 | 100,537 |
2021 | 88,316 | 39,577 |
2020 | 33,403 | 24,117 |
2019 | 11,156 | 7,342 |
Prior | 10,047 | 12,282 |
Revolving Loans Amortized Cost Basis | 240,951 | 205,951 |
Loans receivable | 702,928 | 758,584 |
Commercial and Industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 16,128 | 9,285 |
2020 | 104 | |
2019 | 29 | |
Prior | 3,775 | 102 |
Revolving Loans Amortized Cost Basis | 34,113 | |
Loans receivable | 20,007 | 43,529 |
Commercial and Industrial | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 378 | |
2021 | 171 | |
2020 | 84 | 1,097 |
2019 | 46 | 81 |
Prior | 210 | 391 |
Revolving Loans Amortized Cost Basis | 5,139 | 639 |
Loans receivable | 5,857 | 2,379 |
Equipment Financing Agreements | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 174,706 | 305,879 |
2023 - YTD gross | 56 | |
2023 - YTD net | 56 | |
2022 | 238,383 | 167,855 |
2022 - YTD gross | 3,030 | |
2022 - YTD Net | 2,961 | |
2021 | 118,029 | 47,281 |
2021 - YTD gross | 2,732 | |
2021 - YTD net | 2,455 | |
2020 | 29,547 | 53,714 |
2020 - YTD gross | 294 | |
2020 - YTD net | 217 | |
2019 | 26,287 | 18,173 |
2019 - YTD gross | 725 | |
2019 - YTD net | 335 | |
Prior | 5,700 | 1,886 |
Prior - Gross | 215 | |
Prior - Net | (103) | |
Loans receivable | 592,652 | 594,788 |
Loans receivable gross chargeoff | 7,052 | |
Loans receivable net chargeoff | 5,921 | |
Equipment Financing Agreements | Pass/Pass-Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 174,377 | 305,249 |
2022 | 234,753 | 165,313 |
2021 | 115,310 | 46,970 |
2020 | 29,380 | 52,133 |
2019 | 25,457 | 17,608 |
Prior | 5,434 | 1,798 |
Loans receivable | 584,711 | 589,071 |
Equipment Financing Agreements | Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 329 | 630 |
2022 | 3,630 | 2,542 |
2021 | 2,719 | 311 |
2020 | 167 | 1,581 |
2019 | 830 | 565 |
Prior | 266 | 88 |
Loans receivable | $ 7,941 | $ 5,717 |
Loans - Loans by Vintage Year_2
Loans - Loans by Vintage Year and Payment Performance (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | $ 1,118,055 | $ 2,307,514 |
2023 - YTD gross | 56 | |
2023 - YTD net | 56 | |
2022 | 1,830,916 | 1,432,869 |
2022 - YTD gross | 3,047 | |
2022 - YTD Net | 2,966 | |
2021 | 1,292,153 | 707,140 |
2021 - YTD gross | 2,732 | |
2021 - YTD net | 2,450 | |
2020 | 658,690 | 495,373 |
2020 - YTD gross | 705 | |
2020 - YTD net | 624 | |
2019 | 428,593 | 340,610 |
2019 - YTD gross | 835 | |
2019 - YTD net | 442 | |
Prior | 413,006 | 384,424 |
Prior - Gross | 819 | |
Prior - Net | (585) | |
Revolving Loans Amortized Cost Basis | 279,372 | 299,203 |
Revolving Loans Amortized Cost Basis - YTD gross | 6,120 | |
Revolving Loans Amortized Cost Basis - YTD net | 6,119 | |
Loans receivable | 6,020,785 | 5,967,133 |
Loans receivable gross chargeoff | 14,314 | |
Loans receivable net chargeoff | 12,072 | |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 1,116,089 | 2,306,872 |
2022 | 1,827,286 | 1,430,327 |
2021 | 1,289,281 | 706,246 |
2020 | 658,439 | 493,777 |
2019 | 427,679 | 338,115 |
Prior | 411,705 | 382,746 |
Revolving Loans Amortized Cost Basis | 274,523 | 299,203 |
Loans receivable | 6,005,002 | 5,957,286 |
Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 1,966 | 642 |
2022 | 3,630 | 2,542 |
2021 | 2,872 | 894 |
2020 | 251 | 1,596 |
2019 | 914 | 2,495 |
Prior | 1,301 | 1,678 |
Revolving Loans Amortized Cost Basis | 4,849 | |
Loans receivable | 15,783 | 9,847 |
Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 926,326 | 734,472 |
Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 800,731 | 1,632,857 |
2022 | 1,399,590 | 1,155,192 |
2021 | 1,085,808 | 620,111 |
2020 | 595,552 | 416,445 |
2020 - YTD gross | 411 | |
2020 - YTD net | 407 | |
2019 | 391,104 | 314,985 |
Prior | 393,274 | 369,763 |
Prior - Gross | 216 | |
Prior - Net | 40 | |
Revolving Loans Amortized Cost Basis | 33,282 | 58,500 |
Loans receivable | 4,699,341 | 4,567,853 |
Loans receivable gross chargeoff | 627 | |
Loans receivable net chargeoff | 447 | |
Real Estate | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 799,094 | 1,632,845 |
2022 | 1,399,590 | 1,155,192 |
2021 | 1,085,655 | 619,699 |
2020 | 595,552 | 416,445 |
2019 | 391,021 | 313,055 |
Prior | 392,352 | 368,409 |
Revolving Loans Amortized Cost Basis | 33,282 | 58,500 |
Loans receivable | 4,696,546 | 4,564,145 |
Real Estate | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 1,637 | 12 |
2021 | 153 | 412 |
2019 | 83 | 1,930 |
Prior | 922 | 1,354 |
Loans receivable | 2,795 | 3,708 |
Real Estate | Total commercial property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 520,772 | 1,185,208 |
2022 | 1,018,423 | 914,413 |
2021 | 878,277 | 607,009 |
2020 | 582,761 | 416,213 |
2020 - YTD gross | 411 | |
2020 - YTD net | 407 | |
2019 | 390,883 | 314,254 |
Prior | 269,224 | 234,501 |
Prior - Gross | 216 | |
Prior - Net | 46 | |
Revolving Loans Amortized Cost Basis | 27,871 | 52,578 |
Loans receivable | 3,688,211 | 3,724,176 |
Loans receivable gross chargeoff | 627 | |
Loans receivable net chargeoff | 453 | |
Real Estate | Total commercial property loans | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 519,135 | 1,185,208 |
2022 | 1,018,423 | 914,413 |
2021 | 878,124 | 606,597 |
2020 | 582,761 | 416,213 |
2019 | 390,800 | 312,324 |
Prior | 268,305 | 233,643 |
Revolving Loans Amortized Cost Basis | 27,871 | 52,578 |
Loans receivable | 3,685,419 | 3,720,976 |
Real Estate | Total commercial property loans | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 1,637 | |
2021 | 153 | 412 |
2019 | 83 | 1,930 |
Prior | 919 | 858 |
Loans receivable | 2,792 | 3,200 |
Real Estate | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 38,129 | 41,662 |
2022 | 67,543 | |
2021 | 46,675 | |
Loans receivable | 84,804 | 109,205 |
Real Estate | Construction | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 38,129 | 41,662 |
2022 | 67,543 | |
2021 | 46,675 | |
Loans receivable | 84,804 | 109,205 |
Real Estate | Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 241,830 | 405,987 |
2022 | 381,167 | 173,236 |
2021 | 160,856 | 13,102 |
2020 | 12,791 | 232 |
2019 | 221 | 731 |
Prior | 124,050 | 135,262 |
Prior - Net | (6) | |
Revolving Loans Amortized Cost Basis | 5,411 | 5,922 |
Loans receivable | 926,326 | 734,472 |
Loans receivable net chargeoff | (6) | |
Real Estate | Residential | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 241,830 | 405,975 |
2022 | 381,167 | 173,236 |
2021 | 160,856 | 13,102 |
2020 | 12,791 | 232 |
2019 | 221 | 731 |
Prior | 124,047 | 134,766 |
Revolving Loans Amortized Cost Basis | 5,411 | 5,922 |
Loans receivable | 926,323 | 733,964 |
Real Estate | Residential | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 12 | |
Prior | 3 | 496 |
Loans receivable | 3 | 508 |
Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 142,618 | 368,778 |
2022 | 192,943 | 109,822 |
2022 - YTD gross | 17 | |
2022 - YTD Net | 5 | |
2021 | 88,316 | 39,748 |
2021 - YTD net | (5) | |
2020 | 33,591 | 25,214 |
2019 | 11,202 | 7,452 |
2019 - YTD gross | 110 | |
2019 - YTD net | 107 | |
Prior | 14,032 | 12,775 |
Prior - Gross | 388 | |
Prior - Net | (522) | |
Revolving Loans Amortized Cost Basis | 246,090 | 240,703 |
Revolving Loans Amortized Cost Basis - YTD gross | 6,120 | |
Revolving Loans Amortized Cost Basis - YTD net | 6,119 | |
Loans receivable | 728,792 | 804,492 |
Loans receivable gross chargeoff | 6,635 | |
Loans receivable net chargeoff | 5,704 | |
Commercial and Industrial | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 142,618 | 368,778 |
2022 | 192,943 | 109,822 |
2021 | 88,316 | 39,577 |
2020 | 33,507 | 25,199 |
2019 | 11,202 | 7,452 |
Prior | 13,919 | 12,539 |
Revolving Loans Amortized Cost Basis | 241,241 | 240,703 |
Loans receivable | 723,746 | 804,070 |
Commercial and Industrial | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 171 | |
2020 | 84 | 15 |
Prior | 113 | 236 |
Revolving Loans Amortized Cost Basis | 4,849 | |
Loans receivable | 5,046 | 422 |
Equipment Financing Agreements | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 174,706 | 305,879 |
2023 - YTD gross | 56 | |
2023 - YTD net | 56 | |
2022 | 238,383 | 167,855 |
2022 - YTD gross | 3,030 | |
2022 - YTD Net | 2,961 | |
2021 | 118,029 | 47,281 |
2021 - YTD gross | 2,732 | |
2021 - YTD net | 2,455 | |
2020 | 29,547 | 53,714 |
2020 - YTD gross | 294 | |
2020 - YTD net | 217 | |
2019 | 26,287 | 18,173 |
2019 - YTD gross | 725 | |
2019 - YTD net | 335 | |
Prior | 5,700 | 1,886 |
Prior - Gross | 215 | |
Prior - Net | (103) | |
Loans receivable | 592,652 | 594,788 |
Loans receivable gross chargeoff | 7,052 | |
Loans receivable net chargeoff | 5,921 | |
Equipment Financing Agreements | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 174,377 | 305,249 |
2022 | 234,753 | 165,313 |
2021 | 115,310 | 46,970 |
2020 | 29,380 | 52,133 |
2019 | 25,456 | 17,608 |
Prior | 5,434 | 1,798 |
Loans receivable | 584,710 | 589,071 |
Equipment Financing Agreements | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 329 | 630 |
2022 | 3,630 | 2,542 |
2021 | 2,719 | 311 |
2020 | 167 | 1,581 |
2019 | 831 | 565 |
Prior | 266 | 88 |
Loans receivable | $ 7,942 | $ 5,717 |
Loans - Analysis of Past Due Lo
Loans - Analysis of Past Due Loans, Including Loans on Nonaccrual Status, Disaggregated by Loan Class, Non-PCI (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | $ 19,962 | $ 11,819 |
Total Loans | 6,020,785 | 5,967,133 |
Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 1,302 | 1,124 |
Total Loans | 926,326 | 734,472 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 8,963 | 6,215 |
30-59 Days Past Due | Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 935 | 313 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 2,743 | 2,648 |
60-89 Days Past Due | Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 364 | 804 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 8,256 | 2,956 |
90 Days or More Past Due | Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 3 | 7 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 6,000,823 | 5,955,314 |
Current | Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 925,024 | 733,348 |
Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 2,474 | 1,618 |
Total Loans | 4,699,341 | 4,567,853 |
Real Estate | Retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 260 | |
Total Loans | 1,097,650 | 1,023,608 |
Real Estate | Hospitality | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 186 | |
Total Loans | 705,735 | 646,893 |
Real Estate | Office | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 575,319 | 499,946 |
Real Estate | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 726 | 494 |
Total Loans | 1,309,507 | 1,553,729 |
Real Estate | Total commercial property loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 1,172 | 494 |
Total Loans | 3,688,211 | 3,724,176 |
Real Estate | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 84,804 | 109,205 |
Real Estate | Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 926,326 | 734,472 |
Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 2,052 | 313 |
Real Estate | 30-59 Days Past Due | Retail | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 260 | |
Real Estate | 30-59 Days Past Due | Hospitality | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 153 | |
Real Estate | 30-59 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 704 | |
Real Estate | 30-59 Days Past Due | Total commercial property loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 1,117 | |
Real Estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 397 | 1,298 |
Real Estate | 60-89 Days Past Due | Hospitality | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 33 | |
Real Estate | 60-89 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 494 | |
Real Estate | 60-89 Days Past Due | Total commercial property loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 33 | 494 |
Real Estate | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 25 | 7 |
Real Estate | 90 Days or More Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 22 | |
Real Estate | 90 Days or More Past Due | Total commercial property loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 22 | |
Real Estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 4,696,867 | 4,566,235 |
Real Estate | Current | Retail | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,097,390 | 1,023,608 |
Real Estate | Current | Hospitality | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 705,549 | 646,893 |
Real Estate | Current | Office | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 575,319 | 499,946 |
Real Estate | Current | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 1,308,781 | 1,553,235 |
Real Estate | Current | Total commercial property loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 3,687,039 | 3,723,682 |
Real Estate | Current | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 84,804 | 109,205 |
Commercial and Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 5,384 | 156 |
Total Loans | 728,792 | 804,492 |
Commercial and Industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 384 | 77 |
Commercial and Industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 151 | 79 |
Commercial and Industrial | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 4,849 | |
Commercial and Industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | 723,408 | 804,336 |
Equipment Financing Agreements | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 12,104 | 10,045 |
Total Loans | 592,652 | 594,788 |
Equipment Financing Agreements | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 6,527 | 5,825 |
Equipment Financing Agreements | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 2,195 | 1,271 |
Equipment Financing Agreements | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due loans receivable | 3,382 | 2,949 |
Equipment Financing Agreements | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans | $ 580,548 | $ 584,743 |
Loans - Schedule of Amortized C
Loans - Schedule of Amortized Cost Basis of Loans on Nonaccrual Status and Loans Past Due 90 Days and Still Accruing (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans With No Allowance for Credit Losses | $ 3,055 | $ 3,192 |
Nonaccrual Loans With Allowance for Credit Losses | 12,728 | 6,655 |
Total Nonperforming Loans | 15,783 | 9,847 |
Real Estate | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans With No Allowance for Credit Losses | 2,207 | 2,977 |
Nonaccrual Loans With Allowance for Credit Losses | 588 | 731 |
Total Nonperforming Loans | 2,795 | 3,708 |
Real Estate | Retail | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans With No Allowance for Credit Losses | 1,849 | 1,929 |
Nonaccrual Loans With Allowance for Credit Losses | 402 | |
Total Nonperforming Loans | 2,251 | 1,929 |
Real Estate | Hospitality | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans With No Allowance for Credit Losses | 333 | |
Nonaccrual Loans With Allowance for Credit Losses | 186 | |
Total Nonperforming Loans | 519 | |
Real Estate | Other | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans With No Allowance for Credit Losses | 22 | 540 |
Nonaccrual Loans With Allowance for Credit Losses | 731 | |
Total Nonperforming Loans | 22 | 1,271 |
Real Estate | Total commercial property loans | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans With No Allowance for Credit Losses | 2,204 | 2,469 |
Nonaccrual Loans With Allowance for Credit Losses | 588 | 731 |
Total Nonperforming Loans | 2,792 | 3,200 |
Real Estate | Residential | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans With No Allowance for Credit Losses | 3 | 508 |
Total Nonperforming Loans | 3 | 508 |
Equipment Financing Agreements | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans With No Allowance for Credit Losses | 848 | 215 |
Nonaccrual Loans With Allowance for Credit Losses | 7,094 | 5,502 |
Total Nonperforming Loans | 7,942 | 5,717 |
Commercial and Industrial | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans With Allowance for Credit Losses | 5,046 | 422 |
Total Nonperforming Loans | $ 5,046 | $ 422 |
Loans - Non-Performing Assets (
Loans - Non-Performing Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Nonaccrual loans | $ 15,783 | $ 9,847 |
Total Nonperforming Loans | 15,783 | 9,847 |
Other real estate owned ("OREO") | 117 | 117 |
Total nonperforming assets | $ 15,900 | $ 9,964 |
Servicing Assets - Summary of C
Servicing Assets - Summary of Changes in Servicing Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Transfers and Servicing [Abstract] | ||||
Balance at beginning of period | $ 7,352 | $ 7,354 | $ 7,176 | $ 7,080 |
Addition related to sale of SBA loans | 396 | 828 | 1,410 | 2,377 |
Amortization | (592) | (758) | (1,815) | (2,033) |
Change in valuation allowance | 385 | |||
Balance at end of period | $ 7,156 | $ 7,424 | $ 7,156 | $ 7,424 |
Servicing Assets - Additional I
Servicing Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items] | |||||
Serviced loans sold to unaffiliated parties | $ 531,600 | $ 531,600 | $ 523,600 | ||
Servicing fee income | $ 1,300 | $ 1,300 | $ 3,900 | $ 3,700 | |
Contractually Specified Servicing Fee Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other Operating Income | Noninterest Income, Other Operating Income | Noninterest Income, Other Operating Income | Noninterest Income, Other Operating Income | |
Amortization expense | $ 600 | $ 800 | $ 1,815 | $ 2,033 | |
Fair value of servicing rights | $ 7,600 | $ 7,600 | $ 7,100 | ||
Minimum | |||||
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items] | |||||
Discount rates ranging | 15.40% | 21.90% | |||
Prepayment speeds | 11.90% | 10.80% | |||
Maximum | |||||
Risks Inherent In Servicing Assets And Servicing Liabilities [Line Items] | |||||
Discount rates ranging | 26.80% | 25.30% | |||
Prepayment speeds | 18.80% | 16.70% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Provision (benefit) for income taxes for continuing operations | $ 7,888,000 | $ 10,993,000 | $ 25,695,000 | $ 29,690,000 | |
Effective income tax rate | 29.60% | 28.80% | 29.50% | 28.90% | |
Valuation allowance | $ 1,300,000 | $ 1,300,000 | $ 1,300,000 | ||
Income tax assets | 48,039,000 | $ 48,039,000 | $ 51,924,000 | ||
Change in uncertain tax positions | $ 0 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Oct. 27, 2016 | Aug. 31, 2014 | Sep. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of goodwill and other intangible assets | $ 0 | ||
Goodwill and other intangible assets triggering event | No triggering event occurred as of, or subsequent to September 30, 2023, that would require a reassessment of goodwill and other intangible assets. | ||
CBI Merger | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 11,000,000 | ||
CBI Merger | Third-party originator's intangible | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 500,000 | ||
CBI Merger | Core deposit intangible | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 2,200,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Summary of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (2,596) | $ (2,502) |
Net carrying amount, excluding goodwill | 11,131 | |
Goodwill | 11,031 | 11,031 |
Gross carrying amount | 13,727 | 13,727 |
Net carrying amount | $ 11,131 | 11,225 |
Core deposit intangible | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 10 years | |
Gross carrying amount, excluding goodwill | $ 2,213 | 2,213 |
Accumulated amortization | (2,116) | (2,031) |
Net carrying amount, excluding goodwill | $ 97 | 182 |
Third-party originator's intangible | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 7 years | |
Gross carrying amount, excluding goodwill | $ 483 | 483 |
Accumulated amortization | (480) | (471) |
Net carrying amount, excluding goodwill | $ 3 | $ 12 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Time Deposits (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Restricted Cash And Cash Equivalents Items [Line Items] | ||
2023 | $ 973,003 | $ 1,881,490 |
2024 | 1,452,608 | 68,037 |
2025 | 5,069 | 3,417 |
2026 | 3,133 | 2,693 |
2027 and thereafter | 882 | 570 |
Total | 2,434,695 | 1,956,207 |
Time Deposits of $250,000 or More | ||
Restricted Cash And Cash Equivalents Items [Line Items] | ||
2023 | 432,361 | 696,470 |
2024 | 597,364 | 0 |
2025 | 266 | 266 |
2026 | 263 | 263 |
Total | 1,030,254 | 696,999 |
Other Time Deposits | ||
Restricted Cash And Cash Equivalents Items [Line Items] | ||
2023 | 540,642 | 1,185,020 |
2024 | 855,244 | 68,037 |
2025 | 4,803 | 3,151 |
2026 | 2,870 | 2,430 |
2027 and thereafter | 882 | 570 |
Total | $ 1,404,441 | $ 1,259,208 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Accrued interest payable on deposits | $ 50.3 | $ 7.8 |
Total deposits reclassified to loans due to overdrafts | $ 1.3 | $ 1.2 |
Borrowings and Subordinated D_3
Borrowings and Subordinated Debentures - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Aug. 20, 2021 | Mar. 21, 2017 | Dec. 31, 2005 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||||||||
Overnight advances from federal home loan banks | $ 50,000,000 | $ 50,000,000 | $ 250,000,000 | ||||||
Overnight advances (percent) | 5.77% | 5.77% | 4.65% | ||||||
Advances from the FHLB | $ 112,500,000 | $ 112,500,000 | $ 100,000,000 | ||||||
Weighted average interest rate of outstanding advances (percent) | 2.77% | 2.77% | 0.87% | ||||||
Interest expense on borrowings | $ 753,000 | $ 349,000 | $ 4,755,000 | $ 1,056,000 | |||||
Pledged loans receivable, carrying value | 2,410,000,000 | 2,410,000,000 | $ 1,990,000,000 | ||||||
Remaining available borrowing capacity | 1,320,000,000 | 1,320,000,000 | 1,070,000,000 | ||||||
Loans pledged with FRB | 24,700,000 | 24,700,000 | 23,400,000 | ||||||
Borrowing capacity through Fed Discount Window | 23,900,000 | 23,900,000 | 22,000,000 | ||||||
Subordinated debentures issued | 136,800,000 | 136,800,000 | 136,800,000 | ||||||
Debt instrument, maturity date | Sep. 01, 2031 | Mar. 30, 2027 | |||||||
2031 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Subordinated debentures issued | $ 110,000,000 | ||||||||
Fixed interest rate | 3.75% | ||||||||
Amortization of debt issuance costs | $ 2,100,000 | ||||||||
Debt issuance costs, net | $ 108,300,000 | $ 108,300,000 | 108,200,000 | ||||||
2027 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Subordinated debentures issued | $ 100,000,000 | ||||||||
Fixed interest rate | 5.45% | ||||||||
Percentage of redemption price of outstanding principal amount. | 100% | 100% | |||||||
Unamortized debt issuance cost | $ 1,100,000 | $ 1,100,000 | |||||||
Subordinated debentures | Central Bancorp, Inc | |||||||||
Debt Instrument [Line Items] | |||||||||
Subordinated debentures issued | $ 26,000,000 | ||||||||
Debt instrument, maturity date | Mar. 15, 2036 | ||||||||
Fixed interest rate | 6.26% | 7.07% | 7.07% | ||||||
Debt outstanding, net of issuance cost | $ 21,600,000 | $ 21,600,000 | 21,200,000 | ||||||
Unpaid principal balance | $ 26,800,000 | ||||||||
Estimated fair value | 18,500,000 | ||||||||
Debt instrument discount | 5,200,000 | $ 5,200,000 | $ 5,600,000 | $ 8,300,000 | |||||
Frequency of interest payment | quarterly | ||||||||
Term for the initial fixed interest rate | 5 years | ||||||||
Optional interest payment deferral period (not to exceed) | 5 years | ||||||||
Variable interest rate basis | three-month LIBOR plus 140 basis points | ||||||||
Amortization of subordinated debentures | $ 106,000 | $ 104,000 | $ 314,000,000 | $ 308,000,000 | |||||
Benchmark Rate | 2031 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 3.10% | ||||||||
3-month London Interbank Offered Rate (LIBOR) | 2027 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 3.315% | ||||||||
3-month London Interbank Offered Rate (LIBOR) | Subordinated debentures | Central Bancorp, Inc | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 1.40% | ||||||||
3-Month Secured Overnight Financing Rate (SOFR ) | Subordinated debentures | Central Bancorp, Inc | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 1.66% | ||||||||
3-Month Secured Overnight Financing Rate (SOFR ) | Credit Spread | Subordinated debentures | Central Bancorp, Inc | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 1.40% | ||||||||
3-Month Secured Overnight Financing Rate (SOFR ) | Adjustment to Convert 3-month LIBOR to 3-month SOFR | Subordinated debentures | Central Bancorp, Inc | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 0.26% |
Borrowings and Subordinated D_4
Borrowings and Subordinated Debentures - Schedule of Borrowings (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Outstanding Balance | ||
Overnight advances | $ 50,000 | $ 250,000 |
Outstanding advances | $ 112,500 | $ 100,000 |
Weighted Average Rate | ||
Overnight advances (percent) | 5.77% | 4.65% |
Outstanding advances (percent) | 3.69% | 3.57% |
FHLB of San Francisco | ||
Outstanding Balance | ||
Overnight advances | $ 50,000 | $ 250,000 |
Advances due within 12 months | 37,500 | 50,000 |
Advances due over 12 months through 24 months | 12,500 | 37,500 |
Advances due over 24 months through 36 months | 62,500 | 12,500 |
Outstanding advances | $ 162,500 | $ 350,000 |
Weighted Average Rate | ||
Overnight advances (percent) | 5.77% | 4.65% |
Advances due within 12 months (percent) | 0.40% | 0.97% |
Advances due over 12 months through 24 months (percent) | 1.90% | 0.40% |
Advances due over 24 months through 36 months (percent) | 4.37% | 1.90% |
Outstanding advances (percent) | 3.69% | 3.57% |
Borrowings and Subordinated D_5
Borrowings and Subordinated Debentures - Summary of Financial Data Pertaining to Federal Home Loan Bank Advances (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Federal Home Loan Banks [Abstract] | ||
Weighted-average interest rate at end of period | 3.69% | 3.57% |
Weighted-average interest rate during the period | 3.27% | 1.52% |
Average balance of FHLB advances | $ 194,505,000 | $ 148,027,000 |
Maximum amount outstanding at any month-end | $ 450,000,000 | $ 350,000,000 |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation of Components Used to Derive Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 18,796 | $ 27,169 | $ 61,408 | $ 72,915 |
Less: income allocated to unvested restricted stock | 117 | 163 | 381 | 408 |
Income allocated to common shares | $ 18,679 | $ 27,006 | $ 61,027 | $ 72,507 |
Weighted-average shares for basic EPS | 30,251,961 | 30,314,439 | 30,296,991 | 30,289,068 |
Basic EPS | $ 0.62 | $ 0.89 | $ 2.01 | $ 2.39 |
Effect of dilutive stock options and unvested performance stock units | 40,910 | 82,323 | 41,686 | 80,470 |
Income allocated to common shares | $ 18,679 | $ 27,006 | $ 61,027 | $ 72,507 |
Weighted-average shares for diluted EPS | 30,292,872 | 30,396,762 | 30,338,678 | 30,369,538 |
Diluted EPS | $ 0.62 | $ 0.89 | $ 2.01 | $ 2.39 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Share-based compensation expense | $ 1,938 | $ 1,886 | ||
Performance Stock Units (PSU) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted earnings per share | 54,765 | 50,460 | ||
Performance Stock Units (PSU) [Member] | 2021 Equity Compensation Plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total fair value of the PSUs | $ 1,100 | $ 1,000 | ||
Share-based compensation arrangement by share-based payment award, additional shares issued | 53,696 | 38,036 | ||
Stock options, expiration term from date of grant | 3 years | |||
Share Based Compensation shares vested to executive officer | 35,906 | |||
Share-based compensation arrangement by share based payment award, performance stock units outstanding | 134,358 | 104,599 | 134,358 | 104,599 |
Share-based compensation arrangement by share based payment award, performance stock units aggregate grant fair value | $ 2,900 | $ 2,000 | ||
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive securities excluded from calculation of diluted earnings per share | 61,000 | 61,000 | ||
Antidilutive securities excluded from calculation of diluted earnings per share | 0 | 0 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Detail) | Sep. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2019 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Minimum ratio of qualifying total capital to risk-weighted assets | 0.080 | ||
Minimum ratio of Tier 1 capital to risk-weighted assets | 0.060 | ||
Leverage ratio | 0.040 | 0.04 | |
Minimum ratio of qualifying total capital to risk-weighted assets for well capitalized | 0.100 | ||
Minimum ratio of Tier 1 capital to average assets for well capitalized | 0.080 | ||
Capital conservation buffer (percent) | 6.30% | 5.71% | 2.50% |
Hanmi Bank | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Minimum ratio of qualifying total capital to risk-weighted assets | 0.08 | 0.08 | |
Minimum ratio of Tier 1 capital to risk-weighted assets | 0.06 | 0.06 | |
Leverage ratio | 0.04 | ||
Minimum ratio of qualifying total capital to risk-weighted assets for well capitalized | 0.10 | 0.10 | |
Minimum ratio of Tier 1 capital to average assets for well capitalized | 0.08 | 0.08 | |
Capital conservation buffer (percent) | 6.42% | 5.86% | |
Depository Institutions | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Leverage ratio | 0.050 |
Regulatory Matters - Capital Ra
Regulatory Matters - Capital Ratios of Hanmi Financial and Bank (Detail) $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Minimum Regulatory Requirement Ratio for Total capital to risk-weighted assets | 0.080 | |
Minimum Regulatory Requirement Ratio for Tier 1 capital to risk-weighted assets | 0.060 | |
Minimum Regulatory Requirement Ratio for Tier 1 capital to average assets | 0.040 | 0.04 |
Minimum to Be Categorized as Well Capitalized Ratio, Total capital to risk-weighted assets | 0.100 | |
Minimum to Be Categorized as Well Capitalized Ratio, Tier 1 capital to risk-weighted assets | 0.080 | |
Hanmi Financial | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Actual Capital, Total capital to risk-weighted assets | $ 933,916 | $ 901,239 |
Actual Capital, Tier 1 capital to risk-weighted assets | 761,969 | 728,344 |
Actual Capital, Common equity Tier 1 capital to risk-weighted assets | 740,411 | 707,101 |
Actual Capital, Tier 1 capital to average assets | $ 761,969 | $ 728,344 |
Actual Capital Ratio, Total capital to risk-weighted assets | 0.1507 | 0.1449 |
Actual Capital Ratio, Tier 1 capital to risk-weighted assets | 0.123 | 0.1171 |
Actual Capital Ratio, Common equity Tier 1 capital to risk-weighted assets | 0.1195 | 0.1137 |
Actual Capital Ratio, Tier 1 capital to average assets | 0.1027 | 0.1007 |
Minimum Regulatory Requirement Capital, Total capital to risk-weighted assets | $ 495,714 | $ 497,508 |
Minimum Regulatory Requirement Capital, Tier 1 capital to risk-weighted assets | 371,786 | 373,131 |
Minimum Regulatory Requirement Capital, Common equity Tier 1 capital to risk-weighted assets | 278,839 | 279,848 |
Minimum Regulatory Requirement Capital, Tier 1 capital to average assets | $ 296,662 | $ 289,311 |
Minimum Regulatory Requirement Ratio for Total capital to risk-weighted assets | 0.08 | 0.08 |
Minimum Regulatory Requirement Ratio for Tier 1 capital to risk-weighted assets | 0.06 | 0.06 |
Minimum Regulatory Requirement Ratio for Common equity Tier 1 capital to risk-weighted assets | 4.50% | 4.50% |
Minimum Regulatory Requirement Ratio for Tier 1 capital to average assets | 0.04 | |
Hanmi Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Actual Capital, Total capital to risk-weighted assets | $ 893,375 | $ 860,503 |
Actual Capital, Tier 1 capital to risk-weighted assets | 831,428 | 797,608 |
Actual Capital, Common equity Tier 1 capital to risk-weighted assets | 831,428 | 797,608 |
Actual Capital, Tier 1 capital to average assets | $ 831,428 | $ 797,608 |
Actual Capital Ratio, Total capital to risk-weighted assets | 0.1442 | 0.1386 |
Actual Capital Ratio, Tier 1 capital to risk-weighted assets | 0.1342 | 0.1285 |
Actual Capital Ratio, Common equity Tier 1 capital to risk-weighted assets | 0.1342 | 0.1285 |
Actual Capital Ratio, Tier 1 capital to average assets | 0.1125 | 0.1107 |
Minimum Regulatory Requirement Capital, Total capital to risk-weighted assets | $ 495,685 | $ 496,607 |
Minimum Regulatory Requirement Capital, Tier 1 capital to risk-weighted assets | 371,764 | 372,455 |
Minimum Regulatory Requirement Capital, Common equity Tier 1 capital to risk-weighted assets | 278,823 | 279,341 |
Minimum Regulatory Requirement Capital, Tier 1 capital to average assets | $ 295,515 | $ 288,110 |
Minimum Regulatory Requirement Ratio for Total capital to risk-weighted assets | 0.08 | 0.08 |
Minimum Regulatory Requirement Ratio for Tier 1 capital to risk-weighted assets | 0.06 | 0.06 |
Minimum Regulatory Requirement Ratio for Common equity Tier 1 capital to risk-weighted assets | 4.50% | 4.50% |
Minimum Regulatory Requirement Ratio for Tier 1 capital to average assets | 0.04 | |
Minimum to Be Categorized as Well Capitalized Capital, Total capital to risk-weighted assets | $ 619,607 | $ 620,758 |
Minimum to Be Categorized as Well Capitalized Capital, Tier 1 capital to risk-weighted assets | 495,685 | 496,607 |
Minimum to Be Categorized as Well Capitalized Capital, Common equity Tier 1 capital to risk-weighted average | 402,744 | 403,493 |
Minimum to Be Categorized as Well Capitalized Capital, Tier 1 capital to average assets | $ 369,394 | $ 360,137 |
Minimum to Be Categorized as Well Capitalized Ratio, Total capital to risk-weighted assets | 0.10 | 0.10 |
Minimum to Be Categorized as Well Capitalized Ratio, Tier 1 capital to risk-weighted assets | 0.08 | 0.08 |
Minimum to Be Categorized as Well Capitalized Ratio, Common equity Tier 1 capital to risk-weighted assets | 6.50% | 6.50% |
Minimum to Be Categorized as Well Capitalized Ratio, Tier 1 capital to average assets | 0.05 | 0.05 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Sep. 30, 2023 USD ($) |
Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unpaid principal balance of Non-accrual Non-PCI loans individually evaluated for amount of impairment | $ 250,000 |
Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unpaid principal balance of Non-accrual Non-PCI loans and leases reviewed collectively | $ 250,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 817,242 | $ 853,838 |
Derivative financial instruments, Assets | $ 8,600 | $ 7,500 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets | Prepaid Expense and Other Assets |
Derivative financial instruments, Liabilities | $ 8,500 | $ 7,400 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 70,922 | $ 48,026 |
Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 86,258 | 85,485 |
Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 129,919 | 138,499 |
Total U.S. government agency and sponsored agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 684,869 | 740,428 |
Municipal bonds-tax exempt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 61,451 | 65,384 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 817,242 | 853,838 |
Recurring Basis | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 70,922 | 48,026 |
Recurring Basis | Derivative financial instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, Assets | 8,602 | 7,507 |
Derivative financial instruments, Liabilities | 8,493 | 7,375 |
Recurring Basis | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 86,258 | 85,485 |
Recurring Basis | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 129,919 | 138,499 |
Recurring Basis | Total U.S. government agency and sponsored agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 684,869 | 740,428 |
Recurring Basis | Municipal bonds-tax exempt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 61,451 | 65,384 |
Recurring Basis | Mortgage-backed securities - commercial | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 45,966 | 51,292 |
Recurring Basis | Mortgage-backed securities - residential | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 422,726 | 465,152 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 70,922 | 48,026 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 70,922 | 48,026 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Derivative financial instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, Assets | 0 | 0 |
Derivative financial instruments, Liabilities | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Total U.S. government agency and sponsored agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Municipal bonds-tax exempt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Mortgage-backed securities - commercial | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets | Mortgage-backed securities - residential | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 746,320 | 805,812 |
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Derivative financial instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, Assets | 8,602 | 7,507 |
Derivative financial instruments, Liabilities | 8,493 | 7,375 |
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 86,258 | 85,485 |
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 129,919 | 138,499 |
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Total U.S. government agency and sponsored agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 684,869 | 740,428 |
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Municipal bonds-tax exempt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 61,451 | 65,384 |
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Mortgage-backed securities - commercial | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 45,966 | 51,292 |
Recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | Mortgage-backed securities - residential | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 422,726 | 465,152 |
Recurring Basis | Significant Unobservable Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs | Derivative financial instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, Assets | 0 | 0 |
Derivative financial instruments, Liabilities | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs | Total U.S. government agency and sponsored agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs | Municipal bonds-tax exempt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs | Mortgage-backed securities - commercial | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs | Mortgage-backed securities - residential | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 0 | $ 0 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Servicing assets | $ 7,156 | $ 7,352 | $ 7,176 | $ 7,424 | $ 7,354 | $ 7,080 | ||
Non-recurring Basis | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Collateral dependent loans | 6,842 | [1] | 2,694 | [2] | ||||
Other real estate owned | 117 | 117 | ||||||
Repossessed personal property | 1,320 | 467 | ||||||
Servicing assets | 7,176 | |||||||
Non-recurring Basis | Quoted Prices in Active Markets for Identical Assets | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Collateral dependent loans | 0 | [1] | 0 | [2] | ||||
Other real estate owned | 0 | 0 | ||||||
Repossessed personal property | 0 | 0 | ||||||
Servicing assets | 0 | |||||||
Non-recurring Basis | Significant Observable Inputs with No Active Market with Identical Characteristics | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Collateral dependent loans | 0 | [1] | 0 | [2] | ||||
Other real estate owned | 0 | 0 | ||||||
Repossessed personal property | 0 | 0 | ||||||
Servicing assets | 0 | |||||||
Non-recurring Basis | Significant Unobservable Inputs | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Collateral dependent loans | 6,842 | [1] | 2,694 | [2] | ||||
Other real estate owned | 117 | 117 | ||||||
Repossessed personal property | $ 1,320 | 467 | ||||||
Servicing assets | $ 7,176 | |||||||
[1] Consisted of real estate loans of $ 2.0 million and commercial and industrial loans of $ 4.8 million, which were secured by real estate and business assets. Consisted of real estate loans of $ 2.7 million. |
Fair Value Measurements - Ass_3
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans receivable | $ 5,953,472 | $ 5,895,610 |
Non-recurring Basis | Real estate loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans receivable | 2,000 | $ 2,700 |
Non-recurring Basis | Commercial and Industrial Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans receivable | $ 4,800 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Level 3 Fair Value Assumptions for Assets Measured at Fair Value on Non-Recurring Basis (Detail) - Significant Unobservable Inputs - Non-recurring Basis $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 6,842 | $ 2,694 |
Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,995 | 2,694 |
Commercial and Industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 4,847 | |
Alternative Investment, Valuation Technique [Extensible List] | us-gaap:MarketApproachValuationTechniqueMember | |
Minimum | Commercial and Industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | (0.020) | |
Maximum | Commercial and Industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 0.055 | |
Weighted Average | Commercial and Industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | (0.003) | |
Retail | Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 1,637 | $ 1,930 |
Alternative Investment, Valuation Technique [Extensible List] | us-gaap:MarketApproachValuationTechniqueMember | us-gaap:MarketApproachValuationTechniqueMember |
Retail | Minimum | Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 0.005 | 0.005 |
Retail | Maximum | Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 0.020 | 0.025 |
Retail | Weighted Average | Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 0.015 | 0.016 |
Hospitality | Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 333 | |
Alternative Investment, Valuation Technique [Extensible List] | us-gaap:MarketApproachValuationTechniqueMember | |
Hospitality | Minimum | Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | (0.030) | |
Hospitality | Maximum | Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 0.035 | |
Hospitality | Weighted Average | Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | (0.003) | |
Other | Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 22 | $ 256 |
Alternative Investment, Valuation Technique [Extensible List] | us-gaap:MarketApproachValuationTechniqueMember | us-gaap:MarketApproachValuationTechniqueMember |
Other | Minimum | Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | (0.025) | (0.042) |
Other | Maximum | Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 0.005 | 0.003 |
Other | Weighted Average | Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | (0.010) | (0.024) |
Residential | Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 3 | $ 508 |
Alternative Investment, Valuation Technique [Extensible List] | us-gaap:MarketApproachValuationTechniqueMember | us-gaap:MarketApproachValuationTechniqueMember |
Residential | Minimum | Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | (0.015) | (0.015) |
Residential | Maximum | Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 0.003 | 0.003 |
Residential | Weighted Average | Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | (0.006) | (0.001) |
Repossessed Personal Property | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 1,320 | $ 467 |
Alternative Investment, Valuation Technique [Extensible List] | us-gaap:MarketApproachValuationTechniqueMember | us-gaap:MarketApproachValuationTechniqueMember |
Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 117 | $ 117 |
Alternative Investment, Valuation Technique [Extensible List] | us-gaap:MarketApproachValuationTechniqueMember | us-gaap:MarketApproachValuationTechniqueMember |
Other Real Estate Owned | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | (0.010) | (0.020) |
Other Real Estate Owned | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 0.005 | 0.020 |
Other Real Estate Owned | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | (0.002) | (0.002) |
Servicing Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 7,176 | |
Alternative Investment, Valuation Technique [Extensible List] | us-gaap:MarketApproachValuationTechniqueMember | |
Servicing Assets | Minimum | Prepayment Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 0.011 | |
Servicing Assets | Minimum | Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 0.022 | |
Servicing Assets | Maximum | Prepayment Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 0.017 | |
Servicing Assets | Maximum | Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 0.025 | |
Servicing Assets | Weighted Average | Prepayment Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 0.016 | |
Servicing Assets | Weighted Average | Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 0.022 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Cash and due from banks | $ 289,006 | $ 352,421 |
Securities available for sale | 817,242 | 853,838 |
Loans held for sale | 11,767 | 8,043 |
Loans receivable, net of allowance for credit losses | 5,953,472 | 5,895,610 |
Accrued interest receivable | 20,715 | 18,537 |
Financial liabilities: | ||
Noninterest-bearing deposits | 2,161,238 | 2,539,602 |
Interest-bearing deposits | 4,098,834 | 3,628,470 |
Borrowings and subordinated debentures | 292,360 | 479,409 |
Accrued interest payable | 50,286 | 7,792 |
Quoted Prices in Active Markets for Identical Assets | Fair Value | ||
Financial assets: | ||
Cash and due from banks | 289,006 | 352,421 |
Securities available for sale | 70,922 | 48,026 |
Loans held for sale | 0 | 0 |
Loans receivable, net of allowance for credit losses | 0 | 0 |
Accrued interest receivable | 20,715 | 18,537 |
Financial liabilities: | ||
Noninterest-bearing deposits | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Borrowings and subordinated debentures | 0 | 0 |
Accrued interest payable | 50,286 | 7,792 |
Significant Observable Inputs with No Active Market with Identical Characteristics | Fair Value | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Securities available for sale | 746,320 | 805,812 |
Loans held for sale | 11,721 | 8,423 |
Loans receivable, net of allowance for credit losses | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Noninterest-bearing deposits | 2,161,238 | 2,539,602 |
Interest-bearing deposits | 0 | 0 |
Borrowings and subordinated debentures | 159,632 | 345,867 |
Accrued interest payable | 0 | 0 |
Significant Unobservable Inputs | Fair Value | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans receivable, net of allowance for credit losses | 5,784,828 | 5,808,190 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Noninterest-bearing deposits | 0 | 0 |
Interest-bearing deposits | 4,098,244 | 3,623,827 |
Borrowings and subordinated debentures | 127,334 | 126,828 |
Accrued interest payable | $ 0 | $ 0 |
Off-Balance Sheet Commitments -
Off-Balance Sheet Commitments - Distribution of Total Loan Commitments (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Loss Contingencies [Line Items] | ||
Total commitments | $ 945,791 | $ 872,317 |
Unused Commitments to Extend Credit | ||
Loss Contingencies [Line Items] | ||
Total commitments | 848,886 | 780,543 |
Standby letters of credit | ||
Loss Contingencies [Line Items] | ||
Total commitments | 77,381 | 71,829 |
Commercial letters of credit | ||
Loss Contingencies [Line Items] | ||
Total commitments | $ 19,524 | $ 19,945 |
Off-Balance Sheet Commitments_2
Off-Balance Sheet Commitments - Allowance for Credit Losses Related to Off-Balance Sheet Items (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | ||||
Balance at beginning of period | $ 2,475 | $ 2,313 | $ 3,114 | $ 2,586 |
Provision expense (recovery) for credit losses | (13) | 936 | (652) | 663 |
Balance at end of period | $ 2,462 | $ 3,249 | $ 2,462 | $ 3,249 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |||||
Right-of-use assets | $ 43,000 | $ 43,000 | $ 40,400 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other assets | Prepaid expenses and other assets | Prepaid expenses and other assets | ||
Total lease liabilities - Operating leases | $ 46,960 | $ 46,960 | $ 44,200 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | ||
Weighted average remaining lease term | 7 years 18 days | 7 years 18 days | 7 years 1 month 13 days | ||
Weighted average discount rate (percent) | 2.92% | 2.92% | 2.42% | ||
Aggregate cash purchase price | $ 7,800 | $ 7,800 | |||
Sale of the building lease | 4,000 | ||||
Net lease expense | 2,400 | $ 2,100 | 6,600 | $ 6,200 | |
Aggregate annual lease expense | 400 | ||||
Operating lease costs | 2,300 | 2,000 | 6,500 | 5,900 | |
Cash paid for amounts included in the measurement of Company's operating lease liabilities | $ 2,300 | $ 1,900 | $ 6,400 | $ 5,900 | |
Lease term | 10 years | ||||
Sale lease back renewal option | with two five year | ||||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease remaining term | 1 year | 1 year | |||
Finance lease remaining term | 1 year | 1 year | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease remaining term | 13 years | 13 years | |||
Finance lease remaining term | 13 years | 13 years | |||
Operating lease extension term | 5 years | 5 years | |||
Finance lease extension term | 5 years | 5 years |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Commitments Under Non-cancelable Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 | $ 8,659 | |
2024 | 7,988 | |
2025 | 6,885 | |
2026 | 6,248 | |
2027 | 6,038 | |
Thereafter | 16,326 | |
Remaining lease commitments | 52,144 | |
Interest | (5,184) | |
Present value of lease liability | $ 46,960 | $ 44,200 |
Liquidity - Additional Informat
Liquidity - Additional Information (Detail) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Line of Credit Facility [Line Items] | ||
Amount available from borrowing source | $ 23,900,000 | $ 22,000,000 |
Borrowings | 0 | |
Line of credit | 115,000,000 | |
Hanmi Bank | ||
Line of Credit Facility [Line Items] | ||
Cash on deposit with bank subsidiary | 8,700,000 | 10,600,000 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 162,500,000 | 350,000,000 |
Broker deposits | $ 73,100,000 | 83,300,000 |
Percentage of borrowings from FHLB (up to) | 30% | |
Total borrowing capacity based on pledged collateral | $ 1,610,000,000 | 1,540,000,000 |
Borrowing capacity available based on pledged collateral | 1,320,000,000 | 1,070,000,000 |
Amount available from borrowing source | 23,900,000 | |
Carrying value for loans pledged by Bank | 24,700,000 | |
Borrowings | 0 | |
Maximum borrowing capacity of line of credit | 100,000,000 | |
U.S. Treasury securities | Hanmi Bank | ||
Line of Credit Facility [Line Items] | ||
Debt securities fair value | $ 27,100,000 | $ 17,700,000 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Schedule of Fair Value of Derivative Financial Instruments as well as their Location on Balance Sheet (Detail) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives Fair Value [Line Items] | ||
Total derivative assets | $ 8,602,000 | $ 7,507,000 |
Total derivative liabilities | 8,493,000 | 7,375,000 |
Not Designated as Hedging Instrument | Interest Rate Products | ||
Derivatives Fair Value [Line Items] | ||
Notional Amount | 105,209,000 | 61,460,000 |
Total derivative assets | 8,602,000 | 7,507,000 |
Total derivative liabilities | $ 8,493,000 | $ 7,375,000 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Effect of Derivative Financial Instruments that are Not Designated as Hedging Instruments on Income Statement (Detail) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ 62 | $ 35 | $ (23) | $ 148 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other Operating Income | Noninterest Income, Other Operating Income | Noninterest Income, Other Operating Income | Noninterest Income, Other Operating Income |
Interest Rate Products | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ 62 | $ 35 | $ (23) | $ 148 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Derivative [Line Items] | ||||
Fair value of derivatives in net asset position | $ 8,600,000 | $ 7,400,000 | ||
Net asset and liability position | 110,000 | 132,000 | ||
Derivative fair value of liabilities | 8,500,000 | 7,400,000 | ||
Derivative fair value of assets | 8,600,000 | $ 7,500,000 | ||
Other Income | ||||
Derivative [Line Items] | ||||
Fee income | $ 0 | $ 600,000 | $ 0 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Summary of Gross Presentation, Effects of Offsetting and a Net Presentation of Derivatives (Detail) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets, Offsetting of Derivative Assets | $ 8,602 | $ 7,507 |
Net Amounts of Assets presented in the Consolidated Balance Sheets, Offsetting of Derivative Assets | 8,602 | 7,507 |
Gross Amounts of Recognized Liabilities, Offsetting of Derivative Liabilities | 8,493 | 7,375 |
Net Amounts of Liabilities presented in the Consolidated Balance Sheets, Offsetting of Derivative Liabilities | 8,493 | 7,375 |
Derivative Liabilities, Financial Instruments | ||
Derivatives Fair Value [Line Items] | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Liabilities, Net Amount | 8,493 | 7,375 |
Derivative Assets, Financial Instruments | ||
Derivatives Fair Value [Line Items] | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Assets, Net Amount | 8,493 | 7,375 |
Derivative Assets, Cash Collateral Received | ||
Derivatives Fair Value [Line Items] | ||
Gross Amounts Not Offset in the Consolidated Balance Sheets, Derivative Assets, Net Amount | $ 110 | $ 132 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Events | Oct. 26, 2023 $ / shares |
Subsequent Event [Line Items] | |
Dividend declared date | Oct. 26, 2023 |
Cash dividend per share | $ 0.25 |
Dividend payable date | Nov. 22, 2023 |
Dividend payable record date | Nov. 06, 2023 |