Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38317 | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 68-0270948 | |
Entity Address, Address Line One | 520 Third St, Fourth Floor | |
Entity Address, City or Town | Santa Rosa | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95401 | |
City Area Code | 844 | |
Local Phone Number | 446-8201 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | LBC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding (in shares) | 51,016,948 | |
Amendment Flag | false | |
Entity Registrant Name | Luther Burbank Corp. | |
Entity Central Index Key | 0001475348 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 579,724 | $ 185,895 |
Available for sale debt securities, at fair value | 535,924 | 607,348 |
Held to maturity debt securities, at amortized cost (fair value of $2,656 and $2,874 at September 30, 2023 and December 31, 2022, respectively) | 3,025 | 3,108 |
Equity securities, at fair value | 10,018 | 10,340 |
Loans receivable, net of allowance for credit losses ("ACL") on loans of $39,885 and $36,685 at September 30, 2023 and December 31, 2022, respectively | 6,787,334 | 6,973,760 |
Accrued interest receivable | 26,049 | 24,306 |
Federal Home Loan Bank ("FHLB") stock, at cost | 44,370 | 32,694 |
Premises and equipment, net | 12,884 | 13,661 |
Goodwill | 3,297 | 3,297 |
Prepaid expenses and other assets | 131,288 | 120,223 |
Total assets | 8,133,913 | 7,974,632 |
Liabilities: | ||
Deposits | 5,760,102 | 5,839,340 |
FHLB advances | 1,426,647 | 1,208,147 |
Junior subordinated deferrable interest debentures | 61,857 | 61,857 |
Senior debt | ||
$95,000 face amount, 6.5% interest rate, due September 30, 2024 (less debt issuance costs of $123 and $215 at September 30, 2023 and December 31, 2022, respectively) | 94,877 | 94,785 |
Accrued interest payable | 10,847 | 3,964 |
Other liabilities and accrued expenses | 84,578 | 84,003 |
Total liabilities | 7,438,908 | 7,292,096 |
Commitments and contingencies (Note 17) | ||
Stockholders' equity: | ||
Preferred stock, no par value; 5,000,000 shares authorized; none issued and outstanding at September 30, 2023 and December 31, 2022, respectively | 0 | 0 |
Common stock, no par value; 100,000,000 shares authorized; 51,027,878 and 51,073,272 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively | 399,313 | 398,988 |
Retained earnings | 339,894 | 317,711 |
Accumulated other comprehensive loss, net of taxes | (44,202) | (34,163) |
Total stockholders' equity | 695,005 | 682,536 |
Total liabilities and stockholders' equity | $ 8,133,913 | $ 7,974,632 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Fair value of held-to-maturity securities | $ 2,656,000 | $ 2,874,000 |
Allowance for credit losses on loans | $ 39,885,000 | $ 36,685,000 |
Preferred stock shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Common stock shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock shares issued (in shares) | 51,027,878 | 51,073,272 |
Common stock shares outstanding (in shares) | 51,027,878 | 51,073,272 |
Senior Unsecured Term Notes, September 2014 | Senior Unsecured Term Notes | ||
Debt Instrument [Line Items] | ||
Principal | $ 95,000,000 | $ 95,000,000 |
Debt interest rate | 6.50% | |
Unamortized debt issuance costs | $ 123,000 | $ 215,000 |
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 fee income: | ||||
Loans | $ 75,116 | $ 62,366 | $ 225,734 | $ 172,911 |
Investment securities | 5,711 | 4,127 | 16,812 | 9,290 |
Cash and cash equivalents | 8,243 | 547 | 20,169 | 812 |
Total interest and fee income | 89,070 | 67,040 | 262,715 | 183,013 |
Interest expense: | ||||
Deposits | 55,099 | 14,085 | 140,423 | 27,018 |
FHLB advances | 11,722 | 5,346 | 34,614 | 12,071 |
Junior subordinated deferrable interest debentures | 1,112 | 560 | 3,086 | 1,220 |
Senior debt | 1,574 | 1,575 | 4,723 | 4,724 |
Total interest expense | 69,507 | 21,566 | 182,846 | 45,033 |
Net interest income before provision for credit losses | 19,563 | 45,474 | 79,869 | 137,980 |
Provision for credit losses | 3,001 | 500 | 3,418 | 500 |
Net interest income after provision for credit losses | 16,562 | 44,974 | 76,451 | 137,480 |
Noninterest income: | ||||
FHLB dividends | 886 | 363 | 2,088 | 1,059 |
Other income | 146 | (94) | 1,070 | (370) |
Total noninterest income | 1,032 | 269 | 3,158 | 689 |
Noninterest expense: | ||||
Compensation and related benefits | 8,527 | 8,857 | 29,316 | 26,146 |
Deposit insurance premium | 960 | 508 | 2,787 | 1,468 |
Professional and regulatory fees | 638 | 639 | 1,573 | 1,812 |
Occupancy | 1,115 | 1,199 | 3,433 | 3,590 |
Depreciation and amortization | 368 | 806 | 1,390 | 2,155 |
Data processing | 1,039 | 1,044 | 2,926 | 3,039 |
Marketing | 860 | 1,211 | 2,554 | 2,194 |
Other expenses | 1,528 | 1,112 | 4,094 | 3,809 |
Total noninterest expense | 15,035 | 15,376 | 48,073 | 44,213 |
Income before provision for income taxes | 2,559 | 29,867 | 31,536 | 93,956 |
Provision for income taxes | 652 | 8,865 | 9,270 | 27,447 |
Net income | $ 1,907 | $ 21,002 | $ 22,266 | $ 66,509 |
Basic earnings per common share (in usd per share) | $ 0.04 | $ 0.41 | $ 0.44 | $ 1.31 |
Diluted earnings per common share (in usd per share) | 0.04 | 0.41 | 0.44 | 1.30 |
Dividends per common share (in usd per share) | $ 0 | $ 0.12 | $ 0 | $ 0.36 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (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 | $ 1,907 | $ 21,002 | $ 22,266 | $ 66,509 |
Unrealized loss on available for sale debt securities: | ||||
Unrealized holding loss arising during the period | (9,516) | (14,855) | (14,181) | (44,970) |
Tax effect | 2,788 | 4,334 | 4,142 | 13,066 |
Total other comprehensive loss, net of tax | (6,728) | (10,521) | (10,039) | (31,904) |
Comprehensive (loss) income | $ (4,821) | $ 10,481 | $ 12,227 | $ 34,605 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive (Loss) Income (Net of Taxes) Available for Sale Securities |
Beginning balance (shares) at Dec. 31, 2021 | 51,682,398 | |||||
Beginning balance at Dec. 31, 2021 | $ 669,133 | $ 406,904 | $ 262,141 | $ 88 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 66,509 | 66,509 | ||||
Other comprehensive loss | (31,904) | (31,904) | ||||
Issuance of restricted stock awards (in shares) | 218,048 | |||||
Settled restricted stock units (in shares) | 10,261 | |||||
Shares withheld to pay taxes on stock based compensation (in shares) | (66,190) | |||||
Shares withheld to pay taxes on stock based compensation | (926) | $ (926) | ||||
Restricted stock forfeitures (in shares) | (37,839) | |||||
Restricted stock forfeitures | (57) | $ (71) | 14 | |||
Stock based compensation expense | 2,152 | $ 2,152 | ||||
Shares repurchased (in shares) | (732,073) | |||||
Shares repurchased | (9,734) | $ (9,734) | ||||
Cash dividends | (18,504) | (18,504) | ||||
Ending balance (shares) at Sep. 30, 2022 | 51,074,605 | |||||
Ending balance at Sep. 30, 2022 | 676,669 | $ 398,325 | 310,160 | (31,816) | ||
Beginning balance (shares) at Jun. 30, 2022 | 51,063,498 | |||||
Beginning balance at Jun. 30, 2022 | 671,622 | $ 397,620 | 295,297 | (21,295) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 21,002 | 21,002 | ||||
Other comprehensive loss | (10,521) | (10,521) | ||||
Issuance of restricted stock awards (in shares) | 11,373 | |||||
Settled restricted stock units (in shares) | 3,502 | |||||
Shares withheld to pay taxes on stock based compensation (in shares) | (3,768) | |||||
Shares withheld to pay taxes on stock based compensation | (51) | $ (51) | ||||
Stock based compensation expense | 756 | $ 756 | ||||
Cash dividends | (6,139) | (6,139) | ||||
Ending balance (shares) at Sep. 30, 2022 | 51,074,605 | |||||
Ending balance at Sep. 30, 2022 | 676,669 | $ 398,325 | 310,160 | (31,816) | ||
Beginning balance (shares) at Dec. 31, 2022 | 51,073,272 | |||||
Beginning balance at Dec. 31, 2022 | 682,536 | $ 398,988 | 317,711 | $ (84) | (34,163) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 22,266 | 22,266 | ||||
Other comprehensive loss | (10,039) | (10,039) | ||||
Issuance of restricted stock awards (in shares) | 42,034 | |||||
Settled restricted stock units (in shares) | 15,426 | |||||
Shares withheld to pay taxes on stock based compensation (in shares) | (99,855) | |||||
Shares withheld to pay taxes on stock based compensation | (1,098) | $ (1,098) | ||||
Restricted stock forfeitures (in shares) | (2,999) | |||||
Restricted stock forfeitures | (2) | $ (3) | 1 | |||
Stock based compensation expense | 1,426 | $ 1,426 | ||||
Ending balance (shares) at Sep. 30, 2023 | 51,027,878 | |||||
Ending balance at Sep. 30, 2023 | 695,005 | $ (84) | $ 399,313 | 339,894 | (44,202) | |
Beginning balance (shares) at Jun. 30, 2023 | 51,027,878 | |||||
Beginning balance at Jun. 30, 2023 | 699,347 | $ 398,834 | 337,987 | (37,474) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,907 | 1,907 | ||||
Other comprehensive loss | (6,728) | (6,728) | ||||
Stock based compensation expense | 479 | $ 479 | ||||
Ending balance (shares) at Sep. 30, 2023 | 51,027,878 | |||||
Ending balance at Sep. 30, 2023 | $ 695,005 | $ (84) | $ 399,313 | $ 339,894 | $ (44,202) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends (in usd per share) | $ 0.12 | $ 0.36 |
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 | $ 22,266 | $ 66,509 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,390 | 2,155 |
Provision for credit losses | 3,418 | 500 |
Amortization of deferred loan costs, net | 4,250 | 11,173 |
Amortization of premiums on investment securities, net | 168 | 552 |
Stock based compensation expense, net of forfeitures | 1,423 | 2,081 |
Change in fair value of mortgage servicing rights | 55 | 190 |
Change in fair value of equity securities | 322 | 1,376 |
Other items, net | 184 | 217 |
Effect of changes in: | ||
Accrued interest receivable | (1,743) | (3,250) |
Accrued interest payable | 6,883 | 832 |
Prepaid expenses and other assets | 7,586 | (12,653) |
Other liabilities and accrued expenses | (188) | 11,483 |
Net cash provided by operating activities | 46,014 | 81,165 |
Cash flows from investing activities: | ||
Proceeds from maturities, paydowns and calls of available for sale debt securities | 57,078 | 108,908 |
Proceeds from maturities and paydowns of held to maturity debt securities | 79 | 684 |
Purchases of available for sale debt securities | 0 | (147,578) |
Net decrease (increase) in loans receivable | 164,785 | (592,313) |
Purchase of FHLB stock, net | 11,676 | 9,283 |
Purchase of premises and equipment | (615) | (325) |
Net cash provided by (used in) investing activities | 209,651 | (639,907) |
Cash flows from financing activities: | ||
Net (decrease) increase in deposits | (79,238) | 256,137 |
Proceeds from long-term FHLB advances | 450,000 | 350,000 |
Repayment of long-term FHLB advances | (350,000) | (100,000) |
Net change in short-term FHLB advances | 118,500 | 200,000 |
Shares withheld for taxes on vested restricted stock | (1,098) | (926) |
Shares repurchased | 0 | (9,734) |
Cash paid for dividends | 0 | (18,490) |
Net cash provided by financing activities | 138,164 | 676,987 |
Increase in cash and cash equivalents | 393,829 | 118,245 |
Cash and cash equivalents, beginning of period | 185,895 | 138,413 |
Cash and cash equivalents, end of period | 579,724 | 256,658 |
Supplemental disclosure of cash flow information: Cash paid during the period for: | ||
Interest | 175,963 | 44,201 |
Income taxes | 203 | 21,987 |
Non-cash investing activity: | ||
Lease liabilities arising from obtaining right-of-use assets | $ 2,978 | $ 15,707 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS | NATURE OF OPERATIONS Organization Luther Burbank Corporation (the ‘‘Company’’), a California corporation headquartered in Santa Rosa, is the bank holding company for its wholly-owned subsidiary, Luther Burbank Savings (the "Bank"), and the Bank's wholly-owned subsidiary, Burbank Investor Services. The Company also owns Burbank Financial Inc., a real estate investment company that provides limited loan administrative support to the Bank, and all the common interests in Luther Burbank Statutory Trusts I and II, entities created to issue trust preferred securities. The Bank conducts its business from its executive offices in Santa Rosa and Gardena, California, and an administrative office in Irvine, California. It has ten full service branches in California located in Sonoma, Marin, Santa Clara, and Los Angeles Counties and one full service branch in Washington located in King County. Additionally, there are several loan production offices located throughout California. On November 13, 2022, the Company entered into an Agreement and Plan of Reorganization (the “Merger Agreement”) with Washington Federal, Inc. (“WAFD”), pursuant to which the Company will merge with and into WAFD (the “Corporate Merger”), with WAFD surviving the Corporate Merger. Promptly following the Corporate Merger, the Company’s wholly-owned bank subsidiary, Luther Burbank Savings, will be merged with and into Washington Federal Bank, dba WaFd Bank, the wholly-owned bank subsidiary of WAFD (“WAFD Bank”), with WAFD Bank as the surviving institution. On May 4, 2023, the shareholders of the Company and WAFD approved the Corporate Merger at their respective special meetings and, on October 13, 2023, the Washington State Department of Financial Institutions granted conditional approval of the merger. Closing of the transaction, which is expected to occur in the fourth quarter of 2023, remains subject to the receipt of approvals from the Federal Deposit Insurance Corporation and the Board of Governors of the Federal Reserve System, along with the satisfaction of other customary closing conditions. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all footnotes as would be necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in stockholders’ equity and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). However, these interim unaudited consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments and accruals) which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in stockholders’ equity and cash flows for the interim periods presented. These unaudited consolidated financial statements have been prepared on a basis consistent with, and should be read in conjunction with, the audited consolidated financial statements as of and for the year ended December 31, 2022, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (the “SEC”), under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”). The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results of operations that may be expected for any other interim period or for the year ending December 31, 2023. The Company’s accounting and reporting policies conform to GAAP and to general practices within the banking industry. Use of Estimates Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated 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 consolidated financial statements and the disclosures provided, and actual results could differ. Reclassifications Certain prior period balances have been reclassified to conform to current year presentation. These reclassifications had no effect on prior year net income or stockholders’ equity. Earnings Per Share ("EPS") Basic earnings per common share represents the amount of earnings for the period available to each share of common stock outstanding during the reporting period. Basic EPS is computed based upon net income divided by the weighted average number of common shares outstanding during the period. In determining the weighted average number of shares outstanding, vested restricted stock units are included. Diluted EPS represents the amount of earnings for the period available to each share of common stock outstanding including common stock that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during each reporting period. Diluted EPS is computed based upon net income divided by the weighted average number of common shares outstanding during each period, adjusted for the effect of dilutive potential common shares, such as restricted stock awards and units, calculated using the treasury stock method. (Dollars in thousands, except share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net income $ 1,907 $ 21,002 $ 22,266 $ 66,509 Weighted average basic common shares outstanding 50,864,217 50,738,479 50,866,536 50,956,972 Add: Dilutive effects of assumed vesting of restricted stock 59,224 155,079 39,864 114,774 Weighted average diluted common shares outstanding 50,923,441 50,893,558 50,906,400 51,071,746 Income per common share: Basic EPS $ 0.04 $ 0.41 $ 0.44 $ 1.31 Diluted EPS $ 0.04 $ 0.41 $ 0.44 $ 1.30 Anti-dilutive shares not included in calculation of diluted earnings per share 3,888 — 18,224 2,493 CECL |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES Available for Sale The following table summarizes the amortized cost and the estimated fair value of available for sale debt securities as of the dates indicated: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value At September 30, 2023: Government and Government Sponsored Entities: Commercial mortgage backed securities ("MBS") and collateralized mortgage obligations ("CMOs") $ 333,497 $ 145 $ (34,736) $ 298,906 Residential MBS and CMOs 205,351 13 (27,239) 178,125 Agency bonds 37,069 76 (137) 37,008 Other asset backed securities ("ABS") 22,344 — (459) 21,885 Total available for sale debt securities $ 598,261 $ 234 $ (62,571) $ 535,924 At December 31, 2022: Government and Government Sponsored Entities: Commercial MBS and CMOs $ 365,207 $ 265 $ (24,736) $ 340,736 Residential MBS and CMOs 221,994 22 (22,632) 199,384 Agency bonds 42,540 189 (99) 42,630 Other ABS 25,763 — (1,165) 24,598 Total available for sale debt securities $ 655,504 $ 476 $ (48,632) $ 607,348 Net unrealized losses on available for sale investment securities are recorded as accumulated other comprehensive loss within stockholders’ equity and totaled $44.2 million and $34.2 million, net of $18.1 million and $14.0 million in tax assets, at September 30, 2023 and December 31, 2022, respectively. There were no sales or transfers of available for sale investment securities and no realized gains or losses on these securities during the three or nine months ended September 30, 2023 or 2022. The following tables summarize the gross unrealized losses and fair value of available for sale debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: September 30, 2023 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Government and Government Sponsored Entities: Commercial MBS and CMOs $ 32,808 $ (357) $ 240,500 $ (34,379) $ 273,308 $ (34,736) Residential MBS and CMOs 2,539 (19) 173,126 (27,220) 175,665 (27,239) Agency bonds 13,285 (29) 12,176 (108) 25,461 (137) Other ABS — — 21,885 (459) 21,885 (459) Total available for sale debt securities $ 48,632 $ (405) $ 447,687 $ (62,166) $ 496,319 $ (62,571) At September 30, 2023, the Company held 58 commercial MBS and CMOs of which 52 were in a loss position and 45 had been in a loss position for twelve months or more. The Company held 88 residential MBS and CMOs of which 86 were in a loss position and 81 had been in a loss position for twelve months or more. The Company held six agency bonds of which four were in a loss position and three had been in a loss position for twelve months or more. The Company held three other ABS of which all three were in a loss position for twelve months or more. December 31, 2022 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Government and Government Sponsored Entities: Commercial MBS and CMOs $ 188,155 $ (6,165) $ 109,255 $ (18,571) $ 297,410 $ (24,736) Residential MBS and CMOs 94,137 (5,912) 99,831 (16,720) 193,968 (22,632) Agency bonds 14,345 (99) — — 14,345 (99) Other ABS 10,804 (580) 13,794 (585) 24,598 (1,165) Total available for sale debt securities $ 307,441 $ (12,756) $ 222,880 $ (35,876) $ 530,321 $ (48,632) At December 31, 2022, the Company held 58 commercial MBS and CMOs of which 50 were in a loss position and 15 had been in a loss position for twelve months or more. The Company held 90 residential MBS and CMOs of which 86 were in a loss position and 14 had been in a loss position for twelve months or more. The Company held six agency bonds of which one was in a loss position for less than twelve months. The Company held three other ABS of which three were in a loss position and two had been in a loss position for twelve months or more. The unrealized losses on the Company’s investments were caused by interest rate changes. In addition, the contractual cash flows of these investments are guaranteed by the U.S. government or agencies sponsored by the U.S. government. Accordingly, it is expected that the securities will not be settled at a price less than amortized cost. Because the decline in market value is attributable to changes in interest rates but not credit quality, and because the Company has the ability and intent to hold those investments until a recovery of fair value, which may be maturity, the Company does not consider these securities to be other-than-temporarily impaired at September 30, 2023 or December 31, 2022. Additionally, the Company had no ACL recorded for available for sale investment securities at September 30, 2023. As of September 30, 2023 and December 31, 2022, there were no holdings of securities of any one issuer in an amount greater than 10% of stockholders' equity, other than the U.S. government and its agencies. Held to Maturity The following table summarizes the amortized cost and estimated fair value of held to maturity investment securities as of the dates indicated: (Dollars in thousands) Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Estimated Fair Value As of September 30, 2023: Government Sponsored Entities: Residential MBS $ 2,971 $ — $ (369) $ 2,602 Other investments 54 — — 54 Total held to maturity investment securities $ 3,025 $ — $ (369) $ 2,656 As of December 31, 2022: Government Sponsored Entities: Residential MBS $ 3,047 $ — $ (234) $ 2,813 Other investments 61 — — 61 Total held to maturity investment securities $ 3,108 $ — $ (234) $ 2,874 The following table summarizes the gross unrecognized losses and fair value of held to maturity investment securities, aggregated by investment category and length of time that individual securities have been in a continuous unrecognized loss position: Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrecognized Losses Fair Value Unrecognized Losses Fair Value Unrecognized Losses As of September 30, 2023: Government Sponsored Entities: Residential MBS $ — $ — $ 2,602 $ (369) $ 2,602 $ (369) As of December 31, 2022: Government Sponsored Entities: Residential MBS $ 2,813 $ (234) $ — $ — $ 2,813 $ (234) At September 30, 2023, the Company had seven held to maturity residential MBS of which all seven had been in a loss position for twelve months or more. At December 31, 2022, the Company had seven held to maturity residential MBS of which all seven were in a loss position for less than twelve months. The unrecognized losses on the Company’s held to maturity investments at September 30, 2023 were caused by interest rate changes. In addition, the contractual cash flows of these investments are guaranteed by agencies sponsored by the U.S. government. Accordingly, it is expected that the securities will not be settled at a price less than amortized cost. Because the decline in market value is attributable to changes in interest rates but not credit quality, and because the Company has the ability and intent to hold those investments until maturity, the Company does not consider these securities to be other-than-temporarily impaired at September 30, 2023 or December 31, 2022. Additionally, the Company had no ACL recorded for held to maturity investment securities at September 30, 2023. The following table summarizes the scheduled maturities of available for sale and held to maturity investment securities as of September 30, 2023: September 30, 2023 (Dollars in thousands) Amortized Cost Fair Value Available for sale debt securities One to five years $ 1,451 $ 1,457 Five to ten years 32,762 32,681 Beyond ten years 2,856 2,870 MBS, CMOs and other ABS 561,192 498,916 Total available for sale debt securities $ 598,261 $ 535,924 Held to maturity investments securities Five to ten years $ 54 $ 54 MBS 2,971 2,602 Total held to maturity debt securities $ 3,025 $ 2,656 The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. As such, mortgage backed securities, collateralized mortgage obligations and other asset backed securities are not included in the maturity categories above and instead are shown separately. As of September 30, 2023, securities with an amortized cost totaling $575.3 million were pledged to the FHLB and Federal Reserve Bank of San Francisco ("FRB") to secure borrowing arrangements. See Note 9 for additional information. No securities were pledged as of December 31, 2022. Equity Securities Equity securities consist of investments in a qualified community reinvestment fund. At September 30, 2023 and December 31, 2022, the fair value of equity securities totaled $10.0 million and $10.3 million, respectively. Changes in fair value are recognized in other noninterest income and totaled $(322) thousand during both the three and nine months ended September 30, 2023, compared to $(455) thousand and |
LOANS
LOANS | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
LOANS | LOANS Loans consist of the following: (Dollars in thousands) September 30, December 31, Mortgages on: Multifamily residential $ 4,349,645 $ 4,532,312 Single family residential 2,303,280 2,283,628 Commercial real estate 153,986 172,258 Construction and land 20,308 22,247 Total 6,827,219 7,010,445 Allowance for credit losses on loans (39,885) (36,685) Loans, net $ 6,787,334 $ 6,973,760 Certain loans have been pledged to secure borrowing arrangements (see Note 9). Prior to the Company’s adoption of CECL on January 1, 2023, the Company maintained an allowance for loan losses ("ALLL") in accordance with the probable incurred loss model. The probable incurred loss model was reflective of estimates for loan losses incurred and inherent in the loan portfolio as of the balance sheet date, and did not reflect current estimates of future expected credit losses over the lives of the Company’s loans, as now required by CECL. The following table summarizes activity in and the allocation of the allowance for credit losses by portfolio segment during the three and nine months ended September 30, 2023: Allowance for Credit Losses (Dollars in thousands) Beginning Balance Impact of CECL Adoption Charge-Offs Recoveries Provision Ending Balance Three months ended September 30, 2023 Multifamily residential $ 29,223 $ — $ — $ — $ 2,203 $ 31,426 Single family residential 6,874 — (463) — 718 7,129 Commercial real estate 776 — — — 207 983 Construction and land 341 — — — 6 347 Allowance for credit losses on loans 37,214 — (463) — 3,134 39,885 Allowance for credit losses on off-balance sheet credit exposures 570 — — — (133) 437 Total $ 37,784 $ — $ (463) $ — $ 3,001 $ 40,322 Nine months ended September 30, 2023 Multifamily residential $ 26,417 $ 2,882 $ — $ — $ 2,127 $ 31,426 Single family residential 8,564 (2,472) (463) — 1,500 7,129 Commercial real estate 1,539 (784) — — 228 983 Construction and land 165 282 — — (100) 347 Allowance for credit losses on loans 36,685 (92) (463) — 3,755 39,885 Allowance for credit losses on off-balance sheet credit exposures 563 211 — — (337) 437 Total $ 37,248 $ 119 $ (463) $ — $ 3,418 $ 40,322 The following table summarizes activity in and the allocation of the allowance for loan losses by portfolio segment during the three and nine months ended September 30, 2022: Allowance for Loan Losses (Dollars in thousands) Beginning Balance Charge-Offs Recoveries Provision Ending Balance Three months ended September 30, 2022 Multifamily residential $ 26,007 $ — $ — $ 197 $ 26,204 Single family residential 7,625 — — 532 8,157 Commercial real estate 1,673 — — (130) 1,543 Construction and land 230 — — (99) 131 Total $ 35,535 $ — $ — $ 500 $ 36,035 Nine months ended September 30, 2022 Multifamily residential $ 26,043 $ — $ — $ 161 $ 26,204 Single family residential 7,224 — — 933 8,157 Commercial real estate 2,094 — — (551) 1,543 Construction and land 174 — — (43) 131 Total $ 35,535 $ — $ — $ 500 $ 36,035 The Company assigns a risk rating to all loans and periodically performs detailed reviews of loans to identify credit risks and to assess the overall collectability of the portfolio. During these internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, as well as the financial performance and/or other characteristics of loan collateral. These credit quality indicators are used to assign a risk rating to each individual loan. The risk ratings can be grouped into six major categories, defined as follows: Pass assets are those which are performing according to contract and have no existing or known weaknesses deserving of management’s close attention. The basic underwriting criteria used to approve the loans are still valid, and all payments have essentially been made as planned. Watch assets are expected to have an event occurring in the near future that will lead to a change in risk rating with the change being either favorable or unfavorable. These assets require heightened monitoring of the event by management. Special Mention assets have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Substandard assets are inadequately protected by the current net worth and/or paying capacity of the obligor or by the collateral pledged. These assets have well-defined weaknesses: the primary source of repayment is gone or severely impaired (i.e., bankruptcy or loss of employment) and/or there has been a deterioration in collateral value. In addition, there is the distinct possibility that the Company will sustain some loss, either directly or indirectly (i.e., the cost of monitoring), if the deficiencies are not corrected. A deterioration in collateral value alone does not mandate that an asset be adversely classified if such factor does not indicate that the primary source of repayment is in jeopardy. Doubtful assets have the weaknesses of those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable based on current facts, conditions and values. Loss assets are considered uncollectible and of such little value that their continuance as assets, without establishment of a specific valuation allowance or charge-off, is not warranted. This classification does not necessarily mean that an asset has absolutely no recovery or salvage value; but rather, it is not practical or desirable to defer writing off a basically worthless asset (or portion thereof) even though partial recovery may be affected in the future. The following table presents the internal risk ratings for total loans by portfolio segment of loan and origination year as of September 30, 2023, as well as gross charge-offs for the nine months ended September 30, 2023: (Dollars in thousands) Loans by Origination Year 2023 2022 2021 2020 2019 Prior Total Multifamily residential Pass $ 62,408 $ 1,153,789 $ 1,173,628 $ 702,485 $ 407,302 $ 789,415 $ 4,289,027 Watch — 2,066 11,918 4,784 10,651 8,870 38,289 Special Mention — — — — 1,712 4,135 5,847 Substandard — — — 3,546 3,836 9,100 16,482 Total $ 62,408 $ 1,155,855 $ 1,185,546 $ 710,815 $ 423,501 $ 811,520 $ 4,349,645 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — Single family residential Pass $ 153,229 $ 804,841 $ 706,081 $ 156,946 $ 132,733 $ 325,433 $ 2,279,263 Watch — 1,408 2,687 — 3,774 11,340 19,209 Special Mention — 335 — — 784 556 1,675 Substandard — 1,686 — — — 1,447 3,133 Total $ 153,229 $ 808,270 $ 708,768 $ 156,946 $ 137,291 $ 338,776 $ 2,303,280 Year to date gross charge-offs $ — $ — $ 463 $ — $ — $ — $ 463 Commercial real estate Pass $ — $ 21,892 $ 1,922 $ 11,489 $ 23,963 $ 86,604 $ 145,870 Watch — — — — — 4,100 4,100 Special Mention — — — — 939 2,864 3,803 Substandard — — — — — 213 213 Total $ — $ 21,892 $ 1,922 $ 11,489 $ 24,902 $ 93,781 $ 153,986 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — Construction and land Pass $ — $ 9,397 $ 10,911 $ — $ — $ — $ 20,308 Watch — — — — — — — Special Mention — — — — — — — Substandard — — — — — — — Total $ — $ 9,397 $ 10,911 $ — $ — $ — $ 20,308 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — Total loans Pass $ 215,637 $ 1,989,919 $ 1,892,542 $ 870,920 $ 563,998 $ 1,201,452 $ 6,734,468 Watch — 3,474 14,605 4,784 14,425 24,310 61,598 Special Mention — 335 — — 3,435 7,555 11,325 Substandard — 1,686 — 3,546 3,836 10,760 19,828 Total $ 215,637 $ 1,995,414 $ 1,907,147 $ 879,250 $ 585,694 $ 1,244,077 $ 6,827,219 Year to date gross charge-offs $ — $ — $ 463 $ — $ — $ — $ 463 The following table summarizes the loan portfolio allocated by management’s internal risk ratings at December 31, 2022. (Dollars in thousands) Multifamily Residential Single Family Residential Commercial Real Estate Construction and Land Total Grade: Pass $ 4,469,443 $ 2,269,325 $ 169,711 $ 22,247 $ 6,930,726 Watch 44,436 11,341 1,594 — 57,371 Special mention 2,460 — 953 — 3,413 Substandard 15,973 2,962 — — 18,935 Total $ 4,532,312 $ 2,283,628 $ 172,258 $ 22,247 $ 7,010,445 The following table summarizes an aging analysis of the loan portfolio by the time past due as of the dates indicated below: (Dollars in thousands) 30-59 Days 60-89 Days 90+ Days Total Past Due Current Total As of September 30, 2023: Loans: Multifamily residential $ 3,171 $ 1,381 $ 3,023 $ 7,575 $ 4,342,070 $ 4,349,645 Single family residential 2,307 1,537 2,729 6,573 2,296,707 2,303,280 Commercial real estate — — — — 153,986 153,986 Construction and land — — — — 20,308 20,308 Total $ 5,478 $ 2,918 $ 5,752 $ 14,148 $ 6,813,071 $ 6,827,219 As of December 31, 2022: Loans: Multifamily residential $ — $ — $ 3,023 $ 3,023 $ 4,529,289 $ 4,532,312 Single family residential — — 104 104 2,283,524 2,283,628 Commercial real estate — — — — 172,258 172,258 Construction and land — — — — 22,247 22,247 Total $ — $ — $ 3,127 $ 3,127 $ 7,007,318 $ 7,010,445 As of both September 30, 2023 and December 31, 2022, there were no loans that were past due over 89 days and still accruing interest. Loans that have been classified as collateral dependent are loans where substantially all repayment of the loan is expected to come from the operation of or eventual liquidation of the collateral. Collateral dependent loans are evaluated individually for purposes of measuring the ACL, which is determined based on the estimated fair value of the collateral. Estimates for costs to sell are included in the determination of the ACL when liquidation of the collateral is anticipated. In cases where the loan is well secured and the estimated value of the collateral exceeds the amortized cost of the loan, no ACL is recorded. The following table presents the amortized cost basis of collateral dependent loans by loan type at September 30, 2023. Amortized Cost by Collateral Type Allowance for Credit Losses (Dollars in thousands) Residential Office Industrial Multifamily residential $ 3,494 $ — $ — $ — Single family residential 3,132 — — — Total $ 6,626 $ — $ — $ — The following table summarizes information related to impaired loans at December 31, 2022: (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Multifamily residential $ 485 $ 562 $ — Single family residential 5,580 5,779 — 6,065 6,341 — With an allowance recorded: Multifamily residential 3,024 3,002 600 Single family residential 801 798 25 3,825 3,800 625 Total: Multifamily residential 3,509 3,564 600 Single family residential 6,381 6,577 25 $ 9,890 $ 10,141 $ 625 The following table summarizes information related to impaired loans for the three and nine months ended September 30, 2022: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (Dollars in thousands) Average Recorded Investment Interest Income Cash Basis Interest Average Recorded Investment Interest Income Cash Basis Interest With no related allowance recorded: Multifamily residential $ 847 $ 13 $ 13 $ 712 $ 38 $ 38 Single family residential 6,791 60 32 5,935 140 61 7,638 73 45 6,647 178 99 With an allowance recorded: Single family residential 815 7 — 825 20 — 815 7 — 825 20 — Total: Multifamily residential 847 13 13 712 38 38 Single family residential 7,606 67 32 6,760 160 61 $ 8,453 $ 80 $ 45 $ 7,472 $ 198 $ 99 The following table summarizes the allocation of the allowance for loan losses by impairment methodology as of December 31, 2022: (Dollars in thousands) Multifamily Residential Single Family Residential Commercial Real Estate Construction and Land Total Ending allowance balance allocated to: Loans individually evaluated for impairment $ 600 $ 25 $ — $ — $ 625 Loans collectively evaluated for impairment 25,817 8,539 1,539 165 36,060 Ending balance $ 26,417 $ 8,564 $ 1,539 $ 165 $ 36,685 Loans: Ending balance: individually evaluated for impairment $ 3,509 $ 6,381 $ — $ — $ 9,890 Ending balance: collectively evaluated for impairment 4,528,803 2,277,247 172,258 22,247 7,000,555 Ending balance $ 4,532,312 $ 2,283,628 $ 172,258 $ 22,247 $ 7,010,445 There were no loans experiencing financial difficulty that were modified during the nine months ended September 30, 2023. The Company had no modified loans with a subsequent payment default within the twelve months following their modification during the three or nine months ended September 30, 2023. A loan is considered to be in default once it is 90 days contractually past due under the modified terms. The following table summarizes the recorded investment related to troubled debt restructurings ("TDRs") at December 31, 2022: (Dollars in thousands) Troubled debt restructurings: Single family residential $ 1,211 The Company had allocated $25 thousand of its allowance for loan losses for loans modified in TDRs at December 31, 2022. The Company does not have commitments to lend additional funds to borrowers with loans whose terms have been modified in TDRs. During the nine months ended September 30, 2022, the Company modified the terms of one loan that qualified as a TDR. The following table provides details of this modification: (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Single family residential 1 $ 405 $ 412 Terms of the modification above included suspension of loan payments for six months and a similar extension of the loan term. The TDR above resulted in no increase to the allowance for loan losses and no charge-offs primarily due to collateral support provided by the secondary source of repayment. The Company had no TDRs with a subsequent payment default within the twelve months following their modification during the three or nine months ended September 30, 2022. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. |
NONPERFORMING ASSETS
NONPERFORMING ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
NONPERFORMING ASSETS | NONPERFORMING ASSETS Nonperforming assets include nonperforming loans plus real estate owned. The following table presents the composition of non-accrual loans as of the dates indicated below: September 30, 2023 December 31, 2022 (Dollars in thousands) Non-Accrual Loans with No ACL Non-Accrual Loans Non-Accrual Loans with No ALLL Non-Accrual Loans Multifamily residential $ 3,494 $ 3,494 $ 3,509 $ 3,509 Single family residential 3,132 3,132 2,962 2,962 Total $ 6,626 $ 6,626 $ 6,471 $ 6,471 The allowance for non-accrual loans is based on the CECL cash flow methodology unless the loan is considered collateral dependent. The allowance for collateral dependent loans is determined based on the estimated fair value of the underlying collateral. Interest income on non-accrual loans is subsequently recognized on a cash basis as long as the remaining unpaid principal amount of the loans is deemed to be fully collectible. If there is doubt regarding the collectability of the loan, then any interest payments received are applied to principal. Interest income was recognized on a cash basis on non-accrual loans during the three and nine months ended September 30, 2023 totaling $23 thousand and $69 thousand, respectively, compared to $45 thousand and $99 thousand during the three and nine months ended September 30, 2022, respectively. Contractual interest not recorded on nonperforming loans during the three and nine months ended September 30, 2023 totaled $121 thousand and $362 thousand, respectively, compared to $6 thousand and $30 thousand during the three and nine months ended September 30, 2022, respectively. |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
MORTGAGE SERVICING RIGHTS | MORTGAGE SERVICING RIGHTS Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors, and conducting foreclosure proceedings. Loan servicing income is recorded on the accrual basis and includes servicing fees from investors and certain charges collected from borrowers. Mortgage loans serviced for others are not reported as assets. The principal balances of these loans are as follows: (Dollars in thousands) September 30, December 31, Mortgage loans serviced for: Federal Home Loan Mortgage Corporation ("Freddie Mac") $ 75,631 $ 80,478 Other financial institutions 34,749 37,503 Total mortgage loans serviced for others $ 110,380 $ 117,981 Custodial account balances maintained in connection with serviced loans totaled $360 thousand and $234 thousand at September 30, 2023 and December 31, 2022, respectively. The Company measures servicing rights at fair value at each reporting date and reports changes in the fair value of servicing assets in earnings in the period in which the changes occur. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. Activities for mortgage servicing rights are as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Beginning balance $ 639 $ 779 $ 688 $ 915 Additions — — — — Disposals — — — — Changes in fair value due to changes in assumptions — — — — Other changes in fair value (6) (54) (55) (190) Ending balance $ 633 $ 725 $ 633 $ 725 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases various office premises under long-term operating lease agreements. These leases expire between 2024 and 2033, with certain leases containing five-year renewal options. The Company includes lease extension options in the lease term, if it is reasonably certain the Company will exercise the option, when considering the economic incentive to do so. 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 lease term. All of the Company’s leases are classified as operating leases. The Company records operating lease right-of-use assets and operating lease liabilities on the Company's consolidated statements of financial condition. 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 lease payments over the lease term. The Company uses its incremental borrowing rate at lease commencement to discount lease payments when the rate implicit in the lease is not readily determinable. The Company selected a FHLB advance rate at lease inception based on the lease term and other factors, as a reasonable incremental borrowing rate. In addition, the Company has elected to account for any non-lease components in its leases as part of the associated lease component. The Company also has elected to not recognize short-term leases with an original term of 12 months or less on the Company's consolidated statements of financial condition. Supplemental lease information as of September 30, 2023 and December 31, 2022 is as follows: (Dollars in thousands) September 30, December 31, Operating lease right-of-use assets included in prepaid expenses and other assets $ 13,969 $ 13,244 Operating lease liabilities included in other liabilities and accrued expenses 13,969 13,316 Weighted average remaining lease term (years) of operating leases 4.9 5.1 Weighted average discount rate of operating leases 3.24 % 2.69 % Supplemental lease information for the three and nine months ended September 30, 2023 and 2022 is as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Operating lease costs included in occupancy expense $ 893 $ 911 $ 2,709 $ 2,750 Cash paid for amounts included in the measurement of operating lease liabilities 893 1,019 2,781 3,071 At September 30, 2023, future undiscounted lease payments with initial terms of one year or more are as follows: (Dollars in thousands) October 1 - December 31, 2023 $ 862 2024 3,394 2025 3,050 2026 2,886 2027 2,667 Thereafter 2,425 Total undiscounted lease payments 15,284 Less: Imputed interest (1,315) Net lease liabilities $ 13,969 |
QUALIFIED AFFORABLE HOUSING PRO
QUALIFIED AFFORABLE HOUSING PROJECT INVESTMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Federal Home Loan Banks [Abstract] | |
QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS | QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTSThe Company is invested in qualified affordable housing projects that are expected to provide federal and state tax credits in the future. The investments are accounted for using the proportional amortization method. As of September 30, 2023 and December 31, 2022, the Company was committed to invest $19.3 million and $17.9 million, respectively, of which $6.2 million and $4.8 million, respectively, had been funded and was included in prepaid expenses and other assets in the consolidated statements of financial condition. The total unfunded commitments related to the investments totaled $13.1 million at both September 30, 2023 and December 31, 2022 and were included in other liabilities and accrued expenses in the consolidated statements of financial condition. During the three and nine months ended September 30, 2023, the Company recognized amortization expense of $211 thousand and $955 thousand, respectively, and tax benefits related to the investments of $283 thousand and $1.3 million, respectively. During the three and nine months ended September 30, 2022, the Company recognized amortization expense of $130 thousand and $395 thousand, respectively, and tax benefits related to the investments of $200 thousand and $565 thousand, respectively. Amortization expense and tax benefits are included in the provision for income taxes in the unaudited consolidated statements of income. |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2023 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS A summary of deposits at September 30, 2023 and December 31, 2022 is as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Time deposits $ 3,647,822 $ 3,134,373 Money market checking 965,944 908,231 Money market savings 953,306 1,538,008 Interest-bearing demand 122,919 158,068 Noninterest-bearing demand 70,111 100,660 Total $ 5,760,102 $ 5,839,340 The Company had time deposits that met or exceeded the Federal Deposit Insurance Corporation ("FDIC") insurance limit of $250 thousand of $1.5 billion and $1.3 billion at September 30, 2023 and December 31, 2022, respectively. The Company utilizes brokered deposits as an additional source of funding. The Company had brokered deposits of $441.7 million and $455.8 million at September 30, 2023 and December 31, 2022, respectively. Maturities of the Company’s time deposits at September 30, 2023 are summarized as follows: (Dollars in thousands) October 1 - December 31, 2023 $ 1,151,224 2024 2,421,263 2025 63,093 2026 7,868 2027 3,498 Thereafter 876 Total $ 3,647,822 |
FEDERAL HOME LOAN BANK AND FEDE
FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES | 9 Months Ended |
Sep. 30, 2023 | |
Advance from Federal Home Loan Bank [Abstract] | |
FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES | FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES The Bank may borrow from the FHLB, on either a short-term or long-term basis, up to 40% of its assets, provided that adequate collateral has been pledged. As of September 30, 2023, the Bank had pledged various mortgage loans and securities to secure these borrowing arrangements totaling approximately $4.1 billion and $233.5 million, respectively, compared to pledged mortgage loans totaling approximately $4.2 billion as of December 31, 2022. Additionally, the FHLB stock held by the Bank as of both dates further secure these arrangements. The Bank has access to the Loan and Discount Window of the FRB and the FRB's Bank Term Funding Program ("BTFP"). Advances under these programs are subject to the Bank providing qualifying collateral. Mortgage loans totaling approximately $2.6 billion and $904.9 million as of September 30, 2023 and December 31, 2022, respectively, secure the discount window borrowing arrangement. Securities with a current par value totaling $339.9 million secure the BTFP as of September 30, 2023. No securities were pledged to secure FRB borrowings as of December 31, 2022. There were no borrowings outstanding with the FRB as of September 30, 2023 or December 31, 2022. The following table discloses the Bank’s outstanding advances from the FHLB of San Francisco: Outstanding Balances As of September 30, 2023 (Dollars in thousands) September 30, December 31, Minimum Interest Rate Maximum Interest Rate Weighted Average Rate Maturity Dates Fixed rate short-term $ 175,000 $ 56,500 5.77 % 5.77 % 5.77 % October 2023 Fixed rate long-term 1,251,647 1,151,647 0.38 % 7.33 % 3.07 % December 2023 to March 2030 $ 1,426,647 $ 1,208,147 The Bank's available borrowing capacity based on loans and securities pledged to the FHLB and the FRB totaled $2.5 billion and $1.7 billion at September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023 and December 31, 2022, the Bank had aggregate loan balances of $11.4 million and $1.1 billion, respectively, available to pledge to the FHLB and FRB to increase its borrowing capacity. As of September 30, 2023 and December 31, 2022, the Bank pledged as collateral a $62.6 million FHLB letter of credit to Freddie Mac related to our multifamily securitization reimbursement obligation. Short-term borrowings are borrowings with original maturities of 90 days or less. During the three and nine months ended September 30, 2023, there was a maximum amount of short-term borrowings outstanding of $175.0 million for both periods, an average amount outstanding of $6.5 million and $59.5 million, respectively, with a weighted average interest rate of 5.60% and 5.22%, respectively. During the three and nine months ended September 30, 2022, there was a maximum amount of short-term borrowings outstanding of $406.9 million for both periods, an average amount outstanding of $265.3 million and $128.2 million, respectively, with a weighted average interest rate of 2.52% and 2.04%, respectively. The following table summarizes scheduled principal payments on FHLB advances over the next five years as of September 30, 2023: (Dollars in thousands) October 1 - December 31, 2023 $ 275,000 2024 500,000 2025 551,500 2026 100,000 2027 — Thereafter 147 $ 1,426,647 |
JUNIOR SUBORDINATED DEFERRABLE
JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES | JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES The Company formed two wholly-owned trust companies (the ‘‘Trusts’’) which issued guaranteed preferred beneficial interests (the "Trust Securities") in the Company’s junior subordinated deferrable interest debentures (the "Notes"). The Company is not considered the primary beneficiary of the Trusts and therefore, the Trusts are not consolidated in the Company’s financial statements, but rather the junior subordinated debentures are shown as a liability. The Company’s investment in the common securities of the Trusts, totaling $1.9 million, is included in other assets in the consolidated statements of financial condition. The sole asset of the Trusts are the Notes that they hold. The Trusts have invested the proceeds of such Trust Securities in the Notes. Each of the Notes has an interest rate equal to the corresponding Trust Securities distribution rate. The Company has the right to defer payment of interest on the Notes at any time or from time to time for a period not exceeding five years provided that no extension period may extend beyond the stated maturity of the relevant Notes. During any such extension period, distributions on the Trust Securities will also be deferred, and the Company’s ability to pay dividends on its common stock will be restricted. The Company has entered into contractual arrangements which, taken collectively, fully and unconditionally guarantee payment of: (i) accrued and unpaid distributions required to be paid on the Trust Securities; (ii) the redemption price with respect to any Trust Securities called for redemption by the Trusts; and (iii) payments due upon a voluntary or involuntary dissolution, winding up or liquidation of the Trusts. The Trust Securities are mandatorily redeemable upon maturity of the Notes, or upon earlier redemption as provided in the indenture. The Company has the right to redeem the Notes purchased by the Trusts, in whole or in part, on or after the redemption date. As specified in the indenture, if the Notes are redeemed prior to maturity, the redemption price will be the principal amount and any accrued but unpaid interest. The following table is a summary of the outstanding Trust Securities and Notes at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Date Maturity Rate Index Issuer Amount Rate Amount Rate Issued Date (Quarterly Reset) (Dollars in thousands) Luther Burbank Statutory Trust I $ 41,238 7.05 % $ 41,238 6.15 % 3/1/2006 6/15/2036 3 month CME Term SOFR + Tenor Spread Adjustment (0.26%) + 1.38% Luther Burbank Statutory Trust II $ 20,619 7.29 % $ 20,619 6.39 % 3/1/2007 6/15/2037 3 month CME Term SOFR + Tenor Spread Adjustment (0.26%) + 1.62% |
SENIOR DEBT
SENIOR DEBT | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
SENIOR DEBT | SENIOR DEBT In September 2014, the Company issued $95 million in senior unsecured term notes to qualified institutional investors. The following table summarizes information on these notes as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (Dollars in thousands) Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs Maturity Date Fixed Interest Rate Senior Unsecured Term Notes $ 95,000 $ 123 $ 95,000 $ 215 9/30/2024 6.50 % |
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 | DERIVATIVES AND HEDGING ACTIVITIES From time to time, the Company utilizes interest rate swaps and other derivative financial instruments as part of its asset liability management strategy to manage interest rate risk positions. Fair Value Hedges of Interest Rate Risk As of September 30, 2023, the Company held 11 interest rate swaps with a total notional amount of $1.8 billion. The swaps provide a hedge against the interest rate risk associated with both fixed rate loans and hybrid adjustable loans in their fixed rate period. All outstanding swaps are designated as fair value hedges and involve the payment of a fixed rate amount to a counterparty in exchange for the Company receiving a variable rate payment over the life of the swaps without the exchange of the underlying notional amount. Any gain or loss on the derivatives, as well as any offsetting loss or gain on the hedged items attributable to the hedged risk are recognized in interest income on loans. The following table presents the effect of the Company’s interest rate swaps on the unaudited consolidated statements of income for the three and nine months ended September 30, 2023 and 2022: For the Three Months Ended September 30, For the Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Derivative - interest rate swaps: Interest income $ 6,473 $ 2,971 $ 22,773 $ 3,404 Hedged items - loans: Interest loss (63) (77) (92) (125) Net increase in interest income $ 6,410 $ 2,894 $ 22,681 $ 3,279 The following table presents the fair value of the Company’s interest rate swaps, as well as their classification in the consolidated statements of financial condition as of September 30, 2023 and December 31, 2022: Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives (Dollars in thousands) Notional Amount Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: As of September 30, 2023: Interest Rate Swaps $ 1,800,000 Prepaid Expenses and Other Assets $ 32,823 Other Liabilities and Accrued Expenses $ — As of December 31, 2022: Interest Rate Swaps $ 1,850,000 Prepaid Expenses and Other Assets $ 21,323 Other Liabilities and Accrued Expenses $ 2,136 As of September 30, 2023 and December 31, 2022, the following amounts were recorded in the consolidated statements of financial condition related to cumulative basis adjustments for its fair value hedges: Line Item in the Consolidated Statements of Financial Condition in Which the Hedged Items are Included (1) Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (Dollars in thousands) As of September 30, 2023: Loans receivable, net $ 1,766,913 $ (33,087) As of December 31, 2022: Loans receivable, net $ 1,430,641 $ (19,359) |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION The Company’s stock based compensation consists of restricted stock awards ("RSAs") and restricted stock units ("RSUs") granted under the Luther Burbank Corporation Omnibus Equity and Incentive Compensation Plan ("Omnibus Plan"). In connection with its initial public offering ("IPO") in December 2017, the Company granted RSUs in exchange for unvested phantom stock awards related to a then discontinued employee benefit plan that awarded phantom stock to certain key executives and nonemployee directors. The RSUs were granted on a per share basis, with the same vesting schedule and deferral elections that existed for the original phantom stock awards. Post IPO, the Company typically grants RSAs to nonemployee directors and certain employees on an annual basis. RSA grants vest after one year for nonemployee directors and ratably over three All RSAs and RSUs are granted at the fair value of the common stock at the time of the award. RSAs and RSUs are considered fixed awards as the number of shares and fair value are known at the date of grant and the fair value at the grant date is amortized over the vesting and/or service period. Non-cash stock compensation expense recognized for RSAs for the three and nine months ended September 30, 2023 totaled $479 thousand and $1.4 million, respectively, compared to $756 thousand and $2.1 million for the three and nine months ended September 30, 2022. The fair value of RSAs that vested during the nine months ended September 30, 2023 totaled $2.7 million compared to $90 thousand and $2.7 million during the three and nine months ended September 30, 2022, respectively. No RSAs or RSUs vested during the three months ended September 30, 2023. As of September 30, 2023 and December 31, 2022, there was $1.4 million and $2.4 million, respectively, of unrecognized compensation expense related to 229,460 and 414,004 unvested RSAs, respectively, which amounts were expected to be expensed over a weighted average period of 1.17 years and 1.74 years, respectively. As of September 30, 2023 and December 31, 2022, 65,799 and 81,225 shares, respectively, of RSUs were vested and remain unsettled per the original deferral elections. There were no unvested RSUs at September 30, 2023 or December 31, 2022. The following table summarizes share information about RSAs and RSUs: Nine Months Ended September 30, 2023 2022 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Beginning of the period balance 495,229 $ 11.89 581,189 $ 10.56 Shares granted 42,034 11.24 218,048 13.78 Shares settled (239,005) 11.81 (264,836) 10.49 Shares forfeited (2,999) 11.68 (37,839) 11.97 End of the period balance 295,259 $ 11.87 496,562 $ 11.90 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair Value Hierarchy The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Valuations within these levels are based upon: Level 1 - Quoted market prices for identical instruments traded in active exchange markets. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable or can be corroborated by observable market data. Level 3 - Model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect the Company’s estimates of assumptions that market participants would use on pricing the asset or liability. Valuation techniques include management judgment and estimation which may be significant. Because broadly traded markets do not exist for most of the Company’s financial instruments, the fair value calculations attempt to incorporate the effect of current market conditions at a specific time. These determinations are subjective in nature, involve uncertainties and matters of significant judgment and do not include tax ramifications; therefore, the results cannot be determined with precision, substantiated by comparison to independent markets and may not be realized in an actual sale or immediate settlement of the instruments. There may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results. For all of these reasons, the aggregation of the fair value calculations presented herein do not represent, and should not be construed to represent, the underlying value of the Company. Management monitors the availability of observable market data to assess the appropriate classification of assets and liabilities within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. Management evaluates the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total assets, total liabilities, or total earnings. The following methods and assumptions were used to estimate the fair value of financial instruments: For cash and cash equivalents, accrued interest receivable and payable, demand deposits and short-term borrowings, the carrying amount was estimated to be fair value. The fair value of accrued interest receivable/payable balances were determined using inputs and fair value measurements commensurate with the asset or liability from which the accrued interest is generated. Fair values for available for sale and held to maturity debt securities, which include primarily debt securities issued by U.S. government sponsored agencies, were based on quoted market prices for similar securities. Fair values for equity securities, which consist of investments in a qualified community reinvestment fund, were based on quoted market prices. Loans were valued using the exit price notion. The fair value was estimated using market quotes for similar assets or the present value of future cash flows, discounted using a market rate for similar products and giving consideration to estimated prepayment risk and credit risk. The fair value of loans was determined utilizing estimates resulting in a Level 3 classification. The fair value of collateral dependent loans were measured based on the fair value of the collateral at the reporting date, adjusted for selling costs. The fair value of collateral dependent loans was determined utilizing estimates resulting in a Level 3 classification. It was not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability. The fair value of servicing rights was determined using a valuation model that utilizes interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data. The fair values of derivatives were based on valuation models using observable market data as of the measurement date. Fair values for fixed-rate time deposits were estimated using discounted cash flow analyses using interest rates offered at each reporting date by the Company for time deposits with similar remaining maturities. For deposits with no contractual maturity, the fair value was assumed to equal the carrying value. The fair value of FHLB advances was estimated based on discounting the future cash flows using the market rate currently offered for similar terms. The fair value of subordinated debentures was based on an indication of value provided by a third-party broker. For senior debt, the fair value was based on an indication of value provided by a third-party broker. Fair Value of Financial Instruments The carrying and estimated fair values of the Company’s financial instruments were as follows: Fair Level Measurements Using (Dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 As of September 30, 2023: Financial assets: Cash and cash equivalents $ 579,724 $ 579,724 $ 579,724 $ — $ — Debt securities: Available for sale 535,924 535,924 — 535,924 — Held to maturity 3,025 2,656 — 2,656 — Equity securities 10,018 10,018 — 10,018 — Loans receivable, net 6,787,334 6,542,608 — — 6,542,608 Accrued interest receivable 26,049 26,049 965 2,093 22,991 FHLB stock 44,370 N/A N/A N/A N/A Interest rate swaps 32,823 32,823 — 32,823 — Financial liabilities: Deposits $ 5,760,102 $ 5,742,498 $ 1,906,694 $ 3,835,804 $ — FHLB advances 1,426,647 1,390,249 — 1,390,249 — Junior subordinated deferrable interest debentures 61,857 57,602 — 57,602 — Senior debt 94,877 91,768 — 91,768 — Accrued interest payable 10,847 10,847 — 10,847 — As of December 31, 2022: Financial assets: Cash and cash equivalents $ 185,895 $ 185,895 $ 185,895 $ — $ — Debt securities: Available for sale 607,348 607,348 — 607,348 — Held to maturity 3,108 2,874 — 2,874 — Equity securities 10,340 10,340 — 10,340 — Loans receivable, net 6,973,760 6,743,783 — — 6,743,783 Accrued interest receivable 24,306 24,306 58 4,171 20,077 FHLB stock 32,694 N/A N/A N/A N/A Interest rate swaps 21,323 21,323 — 21,323 — Financial liabilities: Deposits $ 5,839,340 $ 5,789,929 $ 2,449,966 $ 3,339,963 $ — FHLB advances 1,208,147 1,153,511 — 1,153,511 — Junior subordinated deferrable interest debentures 61,857 56,967 — 56,967 — Senior debt 94,785 94,652 — 94,652 — Accrued interest payable 3,964 3,964 — 3,964 — Interest rate swaps 2,136 2,136 — 2,136 — These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. Assets and Liabilities Recorded at Fair Value The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring and nonrecurring basis as of September 30, 2023 and December 31, 2022. Recurring Basis The Company is required or permitted to record the following assets and liabilities at fair value on a recurring basis: (Dollars in thousands) Fair Value Level 1 Level 2 Level 3 As of September 30, 2023: Financial Assets: Available for sale debt securities: Government and Government Sponsored Entities: Commercial MBS and CMOs $ 298,906 $ — $ 298,906 $ — Residential MBS and CMOs 178,125 — 178,125 — Agency bonds 37,008 — 37,008 — Other ABS 21,885 — 21,885 — Total available for sale debt securities $ 535,924 $ — $ 535,924 $ — Equity securities $ 10,018 $ — $ 10,018 $ — Mortgage servicing rights 633 — — 633 Interest rate swaps 32,823 — 32,823 — As of December 31, 2022: Financial Assets: Available for sale debt securities: Government and Government Sponsored Entities: Commercial MBS and CMOs $ 340,736 $ — $ 340,736 $ — Residential MBS and CMOs 199,384 — 199,384 — Agency bonds 42,630 — 42,630 — Other ABS 24,598 — 24,598 — Total available for sale debt securities $ 607,348 $ — $ 607,348 $ — Equity securities $ 10,340 $ — $ 10,340 $ — Mortgage servicing rights 688 — — 688 Interest rate swaps 21,323 — 21,323 — Financial Liabilities: Interest rate swaps $ 2,136 $ — $ 2,136 $ — There were no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2023 or 2022. Non-recurring Basis The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a non-recurring basis. These include assets that are measured at the lower of cost or market value that were recognized at fair value which was below cost at the reporting date. |
VARIABLE INTEREST ENTITIES (VIE
VARIABLE INTEREST ENTITIES (VIE) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES (VIE) | VARIABLE INTEREST ENTITIES ("VIE") The Company is involved with VIEs through its loan securitization activities. The Company evaluated its association with VIEs for consolidation purposes. Specifically, a VIE is to be consolidated by its primary beneficiary, the entity that has both the power to direct the activities that most significantly impact the VIE, and a variable interest that could potentially be significant to the VIE. A variable interest is a contractual, ownership or other interest whose value fluctuates with the changes in the value of the VIE's assets and liabilities. The assessment includes an evaluation of the Company's continuing involvement with the VIE and the nature and significance of its variable interests. Multifamily loan securitization With respect to the securitization transaction with Freddie Mac which settled September 27, 2017, the Company's variable interests reside with a reimbursement agreement entered into with Freddie Mac that obligates the Company to reimburse Freddie Mac for defaulted contractual principal and interest payments identified after the ultimate resolution of any defaulted loans. Such reimbursement obligations are not to exceed 10% of the original principal amount of the loans comprising the securitization pool. As part of the securitization transaction, the Company released all servicing obligations and rights to Freddie Mac who was designated as the Master Servicer. As Master Servicer, Freddie Mac appointed the Company with sub-servicing obligations, which include obligations to collect and remit payments of principal and interest, manage payments of taxes and insurance, and otherwise administer the underlying loans. The servicing of defaulted loans and foreclosed loans was assigned to a separate third-party entity, independent of the Company and Freddie Mac. Freddie Mac, in its capacity as Master Servicer, can terminate the Company in its role as sub-servicer and direct such responsibilities accordingly. In evaluating the variable interests and continuing involvement in the VIE, the Company determined that it does not have the power to make significant decisions or direct the activities that most significantly impact the economic performance of the VIE's assets and liabilities. As sub-servicer of the loans, the Company does not have the authority to make significant decisions that influence the value of the VIE's net assets and therefore, is not the primary beneficiary of the VIE. Hence, the Company determined that the VIE associated with the multifamily securitization should not be included in the consolidated financial statements of the Company. |
LOAN SALE AND SECURITIZATION AC
LOAN SALE AND SECURITIZATION ACTIVITIES | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
LOAN SALE AND SECURITIZATION ACTIVITIES | LOAN SALE AND SECURITIZATION ACTIVITIES The Company periodically sells loans as part of its business operations and overall management of liquidity, assets and liabilities, and financial performance. The transfer of loans is executed in securitization or sale transactions. With respect to sale transactions, the Company's continuing involvement may or may not include ongoing servicing responsibilities and general representations and warranties. With respect to securitization sales, the Company executed its first and only transaction to date on September 27, 2017 with Freddie Mac. The transaction involved the sale of $626.0 million in originated multifamily loans through a Freddie Mac sponsored transaction. The Company's continuing involvement includes sub-servicing responsibilities, general representations and warranties, and a limited reimbursement obligation. As sub-servicer for Freddie Mac, the Bank is required to maintain a minimum net worth in accordance with GAAP of not less than $2.0 million. If the Bank's capital were to fall below this threshold, Freddie Mac would have the authority to terminate and assume the Bank’s sub-servicing duties. At September 30, 2023, the Bank’s net worth was $834.5 million which equates to its Tier 1 capital of $875.4 million plus goodwill of $3.3 million less accumulated other comprehensive loss related to net unrealized losses on available for sale securities of $44.2 million. General representations and warranties associated with loan sales and the securitization transaction require the Company to uphold various assertions that pertain to the underlying loans at the time of the transaction, including, but not limited to, compliance with relevant laws and regulations, absence of fraud, enforcement of liens, no environmental damages, and maintenance of relevant environmental insurance. Such representations and warranties are limited to those that do not meet the quality represented at the transaction date and do not pertain to a decline in value or future payment defaults. In circumstances where the Company breaches its representations and warranties, the Company would generally be required to cure such instances through a repurchase or substitution of the subject loan(s). With respect to the securitization transaction, the Company also has continuing involvement through a reimbursement agreement executed with Freddie Mac. To the extent the ultimate resolution of defaulted loans results in contractual principal and interest payments that are deficient, the Company is obligated to reimburse Freddie Mac for such amounts, not to exceed 10% of the original principal amount of the loans comprising the securitization pool at the closing date of September 27, 2017. The following table provides cash flows associated with the Company's loan sale activities: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Proceeds from loan sales $ — $ — $ — $ — Servicing fees 60 75 187 261 The following table provides information about the loans transferred through sales or securitization and not recorded in the consolidated statements of financial condition, for which the Company's continuing involvement includes sub-servicing or servicing responsibilities and/or reimbursement obligations: (Dollars in thousands) Single Family Residential Multifamily Residential As of September 30, 2023: Principal balance of loans $ 10,717 $ 99,663 Loans 90+ days past due — — Charge-offs, net — — As of December 31, 2022: Principal balance of loans $ 11,000 $ 106,981 Loans 90+ days past due — — Charge-offs, net — — |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Financial Instruments with Off-Balance Sheet Risk The Company 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 represent commitments to originate fixed and variable rate loans and loans in process, and involve, to varying degrees, credit risk and interest rate risk in excess of the amount recognized in the Company’s consolidated statements of financial condition. The Company’s exposure to credit loss in the event of nonperformance by the other party for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments to originate loans and lines of credit as it does for on-balance sheet instruments. As it relates to interest rate risk, the Company's exposure is generally limited to increases in interest rates that may result during the short period of time between the commitment and funding of fixed rate credit facilities and adjustable rate credit facilities with initial fixed rate periods. The limited timing risk associated with these credit facilities are considered within the Company's asset liability management process. Commitments to fund loans and lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have expiration dates or other termination clauses. In addition, external market forces may impact the probability of commitments being exercised; therefore, total commitments outstanding do not necessarily represent future cash requirements. At September 30, 2023 and December 31, 2022, the Company had outstanding commitments of approximately $21.0 million and $37.7 million, respectively, for loans. Unfunded commitment reserves totaled $190 thousand and $125 thousand at September 30, 2023 and December 31, 2022, respectively. The Company adopted the CECL accounting standard on January 1, 2023. Upon adoption, the Company increased the allowance for unfunded loan commitments by $330 thousand, which represented the difference between the allowance calculated under the CECL methodology as of January 1, 2023 and the incurred loss methodology as of December 31, 2022. The $330 thousand increase in the allowance for unfunded loan commitments was primarily due to higher lifetime expected losses on unfunded commitments on construction loans under the CECL methodology. Contingencies At present, there are no pending or threatened proceedings against the Company which, if determined adversely, would have a material effect on the Company’s business, financial position, results of operations or cash flows. In the ordinary course of operations, as well as in connection with the pending merger with WAFD, the Company may be party to various legal proceedings. Correspondent Banking Agreements |
NATURE OF OPERATIONS (Policies)
NATURE OF OPERATIONS (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all footnotes as would be necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in stockholders’ equity and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). However, these interim unaudited consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments and accruals) which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in stockholders’ equity and cash flows for the interim periods presented. These unaudited consolidated financial statements have been prepared on a basis consistent with, and should be read in conjunction with, the audited consolidated financial statements as of and for the year ended December 31, 2022, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (the “SEC”), under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”). The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. |
Use of Estimates | Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated 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 consolidated financial statements and the disclosures provided, and actual results could differ. |
Earnings Per Share | Basic earnings per common share represents the amount of earnings for the period available to each share of common stock outstanding during the reporting period. Basic EPS is computed based upon net income divided by the weighted average number of common shares outstanding during the period. In determining the weighted average number of shares outstanding, vested restricted stock units are included. Diluted EPS represents the amount of earnings for the period available to each share of common stock outstanding including common stock that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during each reporting period. Diluted EPS is computed based upon net income divided by the weighted average number of common shares outstanding during each period, adjusted for the effect of dilutive potential common shares, such as restricted stock awards and units, calculated using the treasury stock method. |
New Financial Accounting Standards | The Company adopted CECL using the modified retrospective method for all financial assets measured at cost, including loans, HTM debt securities and off-balance sheet credit exposures. Results for reporting periods beginning January 1, 2023 are reported under ASU 2016-13, while prior period results continue to be reported under the incurred loss model which was the previously applicable GAAP. The Company recorded an increase to its ACL of $119 thousand as a cumulative effect adjustment of adopting ASU 2016-13, with a corresponding decrease in retained earnings, net of $35 thousand in taxes, of $84 thousand. The transition adjustment reflects the results of our model in estimating lifetime expected credit losses on loans, unfunded commitments and other off-balance sheet credit exposures. |
Derivatives | Any gain or loss on the derivatives, as well as any offsetting loss or gain on the hedged items attributable to the hedged risk are recognized in interest income on loans. |
Fair Value Measurements | The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Valuations within these levels are based upon: Level 1 - Quoted market prices for identical instruments traded in active exchange markets. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable or can be corroborated by observable market data. Level 3 - Model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect the Company’s estimates of assumptions that market participants would use on pricing the asset or liability. Valuation techniques include management judgment and estimation which may be significant. Because broadly traded markets do not exist for most of the Company’s financial instruments, the fair value calculations attempt to incorporate the effect of current market conditions at a specific time. These determinations are subjective in nature, involve uncertainties and matters of significant judgment and do not include tax ramifications; therefore, the results cannot be determined with precision, substantiated by comparison to independent markets and may not be realized in an actual sale or immediate settlement of the instruments. There may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results. For all of these reasons, the aggregation of the fair value calculations presented herein do not represent, and should not be construed to represent, the underlying value of the Company. Management monitors the availability of observable market data to assess the appropriate classification of assets and liabilities within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. Management evaluates the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total assets, total liabilities, or total earnings. The following methods and assumptions were used to estimate the fair value of financial instruments: For cash and cash equivalents, accrued interest receivable and payable, demand deposits and short-term borrowings, the carrying amount was estimated to be fair value. The fair value of accrued interest receivable/payable balances were determined using inputs and fair value measurements commensurate with the asset or liability from which the accrued interest is generated. Fair values for available for sale and held to maturity debt securities, which include primarily debt securities issued by U.S. government sponsored agencies, were based on quoted market prices for similar securities. Fair values for equity securities, which consist of investments in a qualified community reinvestment fund, were based on quoted market prices. Loans were valued using the exit price notion. The fair value was estimated using market quotes for similar assets or the present value of future cash flows, discounted using a market rate for similar products and giving consideration to estimated prepayment risk and credit risk. The fair value of loans was determined utilizing estimates resulting in a Level 3 classification. The fair value of collateral dependent loans were measured based on the fair value of the collateral at the reporting date, adjusted for selling costs. The fair value of collateral dependent loans was determined utilizing estimates resulting in a Level 3 classification. It was not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability. The fair value of servicing rights was determined using a valuation model that utilizes interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data. The fair values of derivatives were based on valuation models using observable market data as of the measurement date. Fair values for fixed-rate time deposits were estimated using discounted cash flow analyses using interest rates offered at each reporting date by the Company for time deposits with similar remaining maturities. For deposits with no contractual maturity, the fair value was assumed to equal the carrying value. The fair value of FHLB advances was estimated based on discounting the future cash flows using the market rate currently offered for similar terms. The fair value of subordinated debentures was based on an indication of value provided by a third-party broker. For senior debt, the fair value was based on an indication of value provided by a third-party broker. |
Leases | The Company includes lease extension options in the lease term, if it is reasonably certain the Company will exercise the option, when considering the economic incentive to do so. 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 lease term. All of the Company’s leases are classified as operating leases. The Company records operating lease right-of-use assets and operating lease liabilities on the Company's consolidated statements of financial condition. 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 lease payments over the lease term.The Company uses its incremental borrowing rate at lease commencement to discount lease payments when the rate implicit in the lease is not readily determinable. The Company selected a FHLB advance rate at lease inception based on the lease term and other factors, as a reasonable incremental borrowing rate. In addition, the Company has elected to account for any non-lease components in its leases as part of the associated lease component. The Company also has elected to not recognize short-term leases with an original term of 12 months or less on the Company's consolidated statements of financial condition. |
NATURE OF OPERATIONS (Tables)
NATURE OF OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | (Dollars in thousands, except share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net income $ 1,907 $ 21,002 $ 22,266 $ 66,509 Weighted average basic common shares outstanding 50,864,217 50,738,479 50,866,536 50,956,972 Add: Dilutive effects of assumed vesting of restricted stock 59,224 155,079 39,864 114,774 Weighted average diluted common shares outstanding 50,923,441 50,893,558 50,906,400 51,071,746 Income per common share: Basic EPS $ 0.04 $ 0.41 $ 0.44 $ 1.31 Diluted EPS $ 0.04 $ 0.41 $ 0.44 $ 1.30 Anti-dilutive shares not included in calculation of diluted earnings per share 3,888 — 18,224 2,493 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Debt Securities, Available-for-sale | The following table summarizes the amortized cost and the estimated fair value of available for sale debt securities as of the dates indicated: (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value At September 30, 2023: Government and Government Sponsored Entities: Commercial mortgage backed securities ("MBS") and collateralized mortgage obligations ("CMOs") $ 333,497 $ 145 $ (34,736) $ 298,906 Residential MBS and CMOs 205,351 13 (27,239) 178,125 Agency bonds 37,069 76 (137) 37,008 Other asset backed securities ("ABS") 22,344 — (459) 21,885 Total available for sale debt securities $ 598,261 $ 234 $ (62,571) $ 535,924 At December 31, 2022: Government and Government Sponsored Entities: Commercial MBS and CMOs $ 365,207 $ 265 $ (24,736) $ 340,736 Residential MBS and CMOs 221,994 22 (22,632) 199,384 Agency bonds 42,540 189 (99) 42,630 Other ABS 25,763 — (1,165) 24,598 Total available for sale debt securities $ 655,504 $ 476 $ (48,632) $ 607,348 The following tables summarize the gross unrealized losses and fair value of available for sale debt securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: September 30, 2023 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Government and Government Sponsored Entities: Commercial MBS and CMOs $ 32,808 $ (357) $ 240,500 $ (34,379) $ 273,308 $ (34,736) Residential MBS and CMOs 2,539 (19) 173,126 (27,220) 175,665 (27,239) Agency bonds 13,285 (29) 12,176 (108) 25,461 (137) Other ABS — — 21,885 (459) 21,885 (459) Total available for sale debt securities $ 48,632 $ (405) $ 447,687 $ (62,166) $ 496,319 $ (62,571) December 31, 2022 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Government and Government Sponsored Entities: Commercial MBS and CMOs $ 188,155 $ (6,165) $ 109,255 $ (18,571) $ 297,410 $ (24,736) Residential MBS and CMOs 94,137 (5,912) 99,831 (16,720) 193,968 (22,632) Agency bonds 14,345 (99) — — 14,345 (99) Other ABS 10,804 (580) 13,794 (585) 24,598 (1,165) Total available for sale debt securities $ 307,441 $ (12,756) $ 222,880 $ (35,876) $ 530,321 $ (48,632) |
Schedule of Held-to-maturity Securities | The following table summarizes the amortized cost and estimated fair value of held to maturity investment securities as of the dates indicated: (Dollars in thousands) Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Estimated Fair Value As of September 30, 2023: Government Sponsored Entities: Residential MBS $ 2,971 $ — $ (369) $ 2,602 Other investments 54 — — 54 Total held to maturity investment securities $ 3,025 $ — $ (369) $ 2,656 As of December 31, 2022: Government Sponsored Entities: Residential MBS $ 3,047 $ — $ (234) $ 2,813 Other investments 61 — — 61 Total held to maturity investment securities $ 3,108 $ — $ (234) $ 2,874 The following table summarizes the gross unrecognized losses and fair value of held to maturity investment securities, aggregated by investment category and length of time that individual securities have been in a continuous unrecognized loss position: Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrecognized Losses Fair Value Unrecognized Losses Fair Value Unrecognized Losses As of September 30, 2023: Government Sponsored Entities: Residential MBS $ — $ — $ 2,602 $ (369) $ 2,602 $ (369) As of December 31, 2022: Government Sponsored Entities: Residential MBS $ 2,813 $ (234) $ — $ — $ 2,813 $ (234) |
Schedule of Debt Maturities of Available-for-sale and Held-to-maturity Securities | The following table summarizes the scheduled maturities of available for sale and held to maturity investment securities as of September 30, 2023: September 30, 2023 (Dollars in thousands) Amortized Cost Fair Value Available for sale debt securities One to five years $ 1,451 $ 1,457 Five to ten years 32,762 32,681 Beyond ten years 2,856 2,870 MBS, CMOs and other ABS 561,192 498,916 Total available for sale debt securities $ 598,261 $ 535,924 Held to maturity investments securities Five to ten years $ 54 $ 54 MBS 2,971 2,602 Total held to maturity debt securities $ 3,025 $ 2,656 |
LOANS (Tables)
LOANS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Loans Receivable | Loans consist of the following: (Dollars in thousands) September 30, December 31, Mortgages on: Multifamily residential $ 4,349,645 $ 4,532,312 Single family residential 2,303,280 2,283,628 Commercial real estate 153,986 172,258 Construction and land 20,308 22,247 Total 6,827,219 7,010,445 Allowance for credit losses on loans (39,885) (36,685) Loans, net $ 6,787,334 $ 6,973,760 |
Schedule Allowance for Loan Losses | The following table summarizes activity in and the allocation of the allowance for credit losses by portfolio segment during the three and nine months ended September 30, 2023: Allowance for Credit Losses (Dollars in thousands) Beginning Balance Impact of CECL Adoption Charge-Offs Recoveries Provision Ending Balance Three months ended September 30, 2023 Multifamily residential $ 29,223 $ — $ — $ — $ 2,203 $ 31,426 Single family residential 6,874 — (463) — 718 7,129 Commercial real estate 776 — — — 207 983 Construction and land 341 — — — 6 347 Allowance for credit losses on loans 37,214 — (463) — 3,134 39,885 Allowance for credit losses on off-balance sheet credit exposures 570 — — — (133) 437 Total $ 37,784 $ — $ (463) $ — $ 3,001 $ 40,322 Nine months ended September 30, 2023 Multifamily residential $ 26,417 $ 2,882 $ — $ — $ 2,127 $ 31,426 Single family residential 8,564 (2,472) (463) — 1,500 7,129 Commercial real estate 1,539 (784) — — 228 983 Construction and land 165 282 — — (100) 347 Allowance for credit losses on loans 36,685 (92) (463) — 3,755 39,885 Allowance for credit losses on off-balance sheet credit exposures 563 211 — — (337) 437 Total $ 37,248 $ 119 $ (463) $ — $ 3,418 $ 40,322 The following table summarizes activity in and the allocation of the allowance for loan losses by portfolio segment during the three and nine months ended September 30, 2022: Allowance for Loan Losses (Dollars in thousands) Beginning Balance Charge-Offs Recoveries Provision Ending Balance Three months ended September 30, 2022 Multifamily residential $ 26,007 $ — $ — $ 197 $ 26,204 Single family residential 7,625 — — 532 8,157 Commercial real estate 1,673 — — (130) 1,543 Construction and land 230 — — (99) 131 Total $ 35,535 $ — $ — $ 500 $ 36,035 Nine months ended September 30, 2022 Multifamily residential $ 26,043 $ — $ — $ 161 $ 26,204 Single family residential 7,224 — — 933 8,157 Commercial real estate 2,094 — — (551) 1,543 Construction and land 174 — — (43) 131 Total $ 35,535 $ — $ — $ 500 $ 36,035 |
Schedule of Loan Portfolio by Internal Risk Indicators | The following table presents the internal risk ratings for total loans by portfolio segment of loan and origination year as of September 30, 2023, as well as gross charge-offs for the nine months ended September 30, 2023: (Dollars in thousands) Loans by Origination Year 2023 2022 2021 2020 2019 Prior Total Multifamily residential Pass $ 62,408 $ 1,153,789 $ 1,173,628 $ 702,485 $ 407,302 $ 789,415 $ 4,289,027 Watch — 2,066 11,918 4,784 10,651 8,870 38,289 Special Mention — — — — 1,712 4,135 5,847 Substandard — — — 3,546 3,836 9,100 16,482 Total $ 62,408 $ 1,155,855 $ 1,185,546 $ 710,815 $ 423,501 $ 811,520 $ 4,349,645 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — Single family residential Pass $ 153,229 $ 804,841 $ 706,081 $ 156,946 $ 132,733 $ 325,433 $ 2,279,263 Watch — 1,408 2,687 — 3,774 11,340 19,209 Special Mention — 335 — — 784 556 1,675 Substandard — 1,686 — — — 1,447 3,133 Total $ 153,229 $ 808,270 $ 708,768 $ 156,946 $ 137,291 $ 338,776 $ 2,303,280 Year to date gross charge-offs $ — $ — $ 463 $ — $ — $ — $ 463 Commercial real estate Pass $ — $ 21,892 $ 1,922 $ 11,489 $ 23,963 $ 86,604 $ 145,870 Watch — — — — — 4,100 4,100 Special Mention — — — — 939 2,864 3,803 Substandard — — — — — 213 213 Total $ — $ 21,892 $ 1,922 $ 11,489 $ 24,902 $ 93,781 $ 153,986 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — Construction and land Pass $ — $ 9,397 $ 10,911 $ — $ — $ — $ 20,308 Watch — — — — — — — Special Mention — — — — — — — Substandard — — — — — — — Total $ — $ 9,397 $ 10,911 $ — $ — $ — $ 20,308 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — Total loans Pass $ 215,637 $ 1,989,919 $ 1,892,542 $ 870,920 $ 563,998 $ 1,201,452 $ 6,734,468 Watch — 3,474 14,605 4,784 14,425 24,310 61,598 Special Mention — 335 — — 3,435 7,555 11,325 Substandard — 1,686 — 3,546 3,836 10,760 19,828 Total $ 215,637 $ 1,995,414 $ 1,907,147 $ 879,250 $ 585,694 $ 1,244,077 $ 6,827,219 Year to date gross charge-offs $ — $ — $ 463 $ — $ — $ — $ 463 The following table summarizes the loan portfolio allocated by management’s internal risk ratings at December 31, 2022. (Dollars in thousands) Multifamily Residential Single Family Residential Commercial Real Estate Construction and Land Total Grade: Pass $ 4,469,443 $ 2,269,325 $ 169,711 $ 22,247 $ 6,930,726 Watch 44,436 11,341 1,594 — 57,371 Special mention 2,460 — 953 — 3,413 Substandard 15,973 2,962 — — 18,935 Total $ 4,532,312 $ 2,283,628 $ 172,258 $ 22,247 $ 7,010,445 |
Schedule or Past Due Loans Receivable | The following table summarizes an aging analysis of the loan portfolio by the time past due as of the dates indicated below: (Dollars in thousands) 30-59 Days 60-89 Days 90+ Days Total Past Due Current Total As of September 30, 2023: Loans: Multifamily residential $ 3,171 $ 1,381 $ 3,023 $ 7,575 $ 4,342,070 $ 4,349,645 Single family residential 2,307 1,537 2,729 6,573 2,296,707 2,303,280 Commercial real estate — — — — 153,986 153,986 Construction and land — — — — 20,308 20,308 Total $ 5,478 $ 2,918 $ 5,752 $ 14,148 $ 6,813,071 $ 6,827,219 As of December 31, 2022: Loans: Multifamily residential $ — $ — $ 3,023 $ 3,023 $ 4,529,289 $ 4,532,312 Single family residential — — 104 104 2,283,524 2,283,628 Commercial real estate — — — — 172,258 172,258 Construction and land — — — — 22,247 22,247 Total $ — $ — $ 3,127 $ 3,127 $ 7,007,318 $ 7,010,445 |
Schedule Of Collateral Dependent Loans By Collateral Type | The following table presents the amortized cost basis of collateral dependent loans by loan type at September 30, 2023. Amortized Cost by Collateral Type Allowance for Credit Losses (Dollars in thousands) Residential Office Industrial Multifamily residential $ 3,494 $ — $ — $ — Single family residential 3,132 — — — Total $ 6,626 $ — $ — $ — |
Schedule of Impaired Loans Receivables | The following table summarizes information related to impaired loans at December 31, 2022: (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Multifamily residential $ 485 $ 562 $ — Single family residential 5,580 5,779 — 6,065 6,341 — With an allowance recorded: Multifamily residential 3,024 3,002 600 Single family residential 801 798 25 3,825 3,800 625 Total: Multifamily residential 3,509 3,564 600 Single family residential 6,381 6,577 25 $ 9,890 $ 10,141 $ 625 The following table summarizes information related to impaired loans for the three and nine months ended September 30, 2022: Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (Dollars in thousands) Average Recorded Investment Interest Income Cash Basis Interest Average Recorded Investment Interest Income Cash Basis Interest With no related allowance recorded: Multifamily residential $ 847 $ 13 $ 13 $ 712 $ 38 $ 38 Single family residential 6,791 60 32 5,935 140 61 7,638 73 45 6,647 178 99 With an allowance recorded: Single family residential 815 7 — 825 20 — 815 7 — 825 20 — Total: Multifamily residential 847 13 13 712 38 38 Single family residential 7,606 67 32 6,760 160 61 $ 8,453 $ 80 $ 45 $ 7,472 $ 198 $ 99 The following table summarizes the allocation of the allowance for loan losses by impairment methodology as of December 31, 2022: (Dollars in thousands) Multifamily Residential Single Family Residential Commercial Real Estate Construction and Land Total Ending allowance balance allocated to: Loans individually evaluated for impairment $ 600 $ 25 $ — $ — $ 625 Loans collectively evaluated for impairment 25,817 8,539 1,539 165 36,060 Ending balance $ 26,417 $ 8,564 $ 1,539 $ 165 $ 36,685 Loans: Ending balance: individually evaluated for impairment $ 3,509 $ 6,381 $ — $ — $ 9,890 Ending balance: collectively evaluated for impairment 4,528,803 2,277,247 172,258 22,247 7,000,555 Ending balance $ 4,532,312 $ 2,283,628 $ 172,258 $ 22,247 $ 7,010,445 |
Schedule of Modified Loans | |
Schedule of Troubled Debt Restructurings | The following table summarizes the recorded investment related to troubled debt restructurings ("TDRs") at December 31, 2022: (Dollars in thousands) Troubled debt restructurings: Single family residential $ 1,211 During the nine months ended September 30, 2022, the Company modified the terms of one loan that qualified as a TDR. The following table provides details of this modification: (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Single family residential 1 $ 405 $ 412 |
NONPERFORMING ASSETS (Tables)
NONPERFORMING ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Nonperforming Assets | The following table presents the composition of non-accrual loans as of the dates indicated below: September 30, 2023 December 31, 2022 (Dollars in thousands) Non-Accrual Loans with No ACL Non-Accrual Loans Non-Accrual Loans with No ALLL Non-Accrual Loans Multifamily residential $ 3,494 $ 3,494 $ 3,509 $ 3,509 Single family residential 3,132 3,132 2,962 2,962 Total $ 6,626 $ 6,626 $ 6,471 $ 6,471 |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Schedule of Mortgage Loans Serviced for Others | The principal balances of these loans are as follows: (Dollars in thousands) September 30, December 31, Mortgage loans serviced for: Federal Home Loan Mortgage Corporation ("Freddie Mac") $ 75,631 $ 80,478 Other financial institutions 34,749 37,503 Total mortgage loans serviced for others $ 110,380 $ 117,981 |
Schedule of Changes in Servicing Assets | Activities for mortgage servicing rights are as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Beginning balance $ 639 $ 779 $ 688 $ 915 Additions — — — — Disposals — — — — Changes in fair value due to changes in assumptions — — — — Other changes in fair value (6) (54) (55) (190) Ending balance $ 633 $ 725 $ 633 $ 725 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Lease Information | Supplemental lease information as of September 30, 2023 and December 31, 2022 is as follows: (Dollars in thousands) September 30, December 31, Operating lease right-of-use assets included in prepaid expenses and other assets $ 13,969 $ 13,244 Operating lease liabilities included in other liabilities and accrued expenses 13,969 13,316 Weighted average remaining lease term (years) of operating leases 4.9 5.1 Weighted average discount rate of operating leases 3.24 % 2.69 % Supplemental lease information for the three and nine months ended September 30, 2023 and 2022 is as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Operating lease costs included in occupancy expense $ 893 $ 911 $ 2,709 $ 2,750 Cash paid for amounts included in the measurement of operating lease liabilities 893 1,019 2,781 3,071 |
Schedule of Future Undiscounted Lease Payments | At September 30, 2023, future undiscounted lease payments with initial terms of one year or more are as follows: (Dollars in thousands) October 1 - December 31, 2023 $ 862 2024 3,394 2025 3,050 2026 2,886 2027 2,667 Thereafter 2,425 Total undiscounted lease payments 15,284 Less: Imputed interest (1,315) Net lease liabilities $ 13,969 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deposits [Abstract] | |
Schedule of Deposits | A summary of deposits at September 30, 2023 and December 31, 2022 is as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Time deposits $ 3,647,822 $ 3,134,373 Money market checking 965,944 908,231 Money market savings 953,306 1,538,008 Interest-bearing demand 122,919 158,068 Noninterest-bearing demand 70,111 100,660 Total $ 5,760,102 $ 5,839,340 |
Schedule of Certificate Account Maturities | Maturities of the Company’s time deposits at September 30, 2023 are summarized as follows: (Dollars in thousands) October 1 - December 31, 2023 $ 1,151,224 2024 2,421,263 2025 63,093 2026 7,868 2027 3,498 Thereafter 876 Total $ 3,647,822 |
FEDERAL HOME LOAN BANK AND FE_2
FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Advance from Federal Home Loan Bank [Abstract] | |
Schedule of FHLB Advances | The following table discloses the Bank’s outstanding advances from the FHLB of San Francisco: Outstanding Balances As of September 30, 2023 (Dollars in thousands) September 30, December 31, Minimum Interest Rate Maximum Interest Rate Weighted Average Rate Maturity Dates Fixed rate short-term $ 175,000 $ 56,500 5.77 % 5.77 % 5.77 % October 2023 Fixed rate long-term 1,251,647 1,151,647 0.38 % 7.33 % 3.07 % December 2023 to March 2030 $ 1,426,647 $ 1,208,147 The following table summarizes scheduled principal payments on FHLB advances over the next five years as of September 30, 2023: (Dollars in thousands) October 1 - December 31, 2023 $ 275,000 2024 500,000 2025 551,500 2026 100,000 2027 — Thereafter 147 $ 1,426,647 |
JUNIOR SUBORDINATED DEFERRABL_2
JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Trust Securities | The following table is a summary of the outstanding Trust Securities and Notes at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Date Maturity Rate Index Issuer Amount Rate Amount Rate Issued Date (Quarterly Reset) (Dollars in thousands) Luther Burbank Statutory Trust I $ 41,238 7.05 % $ 41,238 6.15 % 3/1/2006 6/15/2036 3 month CME Term SOFR + Tenor Spread Adjustment (0.26%) + 1.38% Luther Burbank Statutory Trust II $ 20,619 7.29 % $ 20,619 6.39 % 3/1/2007 6/15/2037 3 month CME Term SOFR + Tenor Spread Adjustment (0.26%) + 1.62% |
SENIOR DEBT (Tables)
SENIOR DEBT (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes information on these notes as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (Dollars in thousands) Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs Maturity Date Fixed Interest Rate Senior Unsecured Term Notes $ 95,000 $ 123 $ 95,000 $ 215 9/30/2024 6.50 % |
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 Interest Rate Swap on the Consolidated Statements of Income | The following table presents the effect of the Company’s interest rate swaps on the unaudited consolidated statements of income for the three and nine months ended September 30, 2023 and 2022: For the Three Months Ended September 30, For the Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Derivative - interest rate swaps: Interest income $ 6,473 $ 2,971 $ 22,773 $ 3,404 Hedged items - loans: Interest loss (63) (77) (92) (125) Net increase in interest income $ 6,410 $ 2,894 $ 22,681 $ 3,279 |
Schedule of Interest Rate Swap on Consolidated Balance Sheet | The following table presents the fair value of the Company’s interest rate swaps, as well as their classification in the consolidated statements of financial condition as of September 30, 2023 and December 31, 2022: Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives (Dollars in thousands) Notional Amount Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: As of September 30, 2023: Interest Rate Swaps $ 1,800,000 Prepaid Expenses and Other Assets $ 32,823 Other Liabilities and Accrued Expenses $ — As of December 31, 2022: Interest Rate Swaps $ 1,850,000 Prepaid Expenses and Other Assets $ 21,323 Other Liabilities and Accrued Expenses $ 2,136 |
Schedule of Amounts Recorded on the Balance Sheet Related to Cumulative Adjustments on Fair Value Hedges | As of September 30, 2023 and December 31, 2022, the following amounts were recorded in the consolidated statements of financial condition related to cumulative basis adjustments for its fair value hedges: Line Item in the Consolidated Statements of Financial Condition in Which the Hedged Items are Included (1) Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (Dollars in thousands) As of September 30, 2023: Loans receivable, net $ 1,766,913 $ (33,087) As of December 31, 2022: Loans receivable, net $ 1,430,641 $ (19,359) |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Activity | The following table summarizes share information about RSAs and RSUs: Nine Months Ended September 30, 2023 2022 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Beginning of the period balance 495,229 $ 11.89 581,189 $ 10.56 Shares granted 42,034 11.24 218,048 13.78 Shares settled (239,005) 11.81 (264,836) 10.49 Shares forfeited (2,999) 11.68 (37,839) 11.97 End of the period balance 295,259 $ 11.87 496,562 $ 11.90 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities | The carrying and estimated fair values of the Company’s financial instruments were as follows: Fair Level Measurements Using (Dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 As of September 30, 2023: Financial assets: Cash and cash equivalents $ 579,724 $ 579,724 $ 579,724 $ — $ — Debt securities: Available for sale 535,924 535,924 — 535,924 — Held to maturity 3,025 2,656 — 2,656 — Equity securities 10,018 10,018 — 10,018 — Loans receivable, net 6,787,334 6,542,608 — — 6,542,608 Accrued interest receivable 26,049 26,049 965 2,093 22,991 FHLB stock 44,370 N/A N/A N/A N/A Interest rate swaps 32,823 32,823 — 32,823 — Financial liabilities: Deposits $ 5,760,102 $ 5,742,498 $ 1,906,694 $ 3,835,804 $ — FHLB advances 1,426,647 1,390,249 — 1,390,249 — Junior subordinated deferrable interest debentures 61,857 57,602 — 57,602 — Senior debt 94,877 91,768 — 91,768 — Accrued interest payable 10,847 10,847 — 10,847 — As of December 31, 2022: Financial assets: Cash and cash equivalents $ 185,895 $ 185,895 $ 185,895 $ — $ — Debt securities: Available for sale 607,348 607,348 — 607,348 — Held to maturity 3,108 2,874 — 2,874 — Equity securities 10,340 10,340 — 10,340 — Loans receivable, net 6,973,760 6,743,783 — — 6,743,783 Accrued interest receivable 24,306 24,306 58 4,171 20,077 FHLB stock 32,694 N/A N/A N/A N/A Interest rate swaps 21,323 21,323 — 21,323 — Financial liabilities: Deposits $ 5,839,340 $ 5,789,929 $ 2,449,966 $ 3,339,963 $ — FHLB advances 1,208,147 1,153,511 — 1,153,511 — Junior subordinated deferrable interest debentures 61,857 56,967 — 56,967 — Senior debt 94,785 94,652 — 94,652 — Accrued interest payable 3,964 3,964 — 3,964 — Interest rate swaps 2,136 2,136 — 2,136 — |
Schedule of Fair Value of Assets Measured on a Recurring Basis | The Company is required or permitted to record the following assets and liabilities at fair value on a recurring basis: (Dollars in thousands) Fair Value Level 1 Level 2 Level 3 As of September 30, 2023: Financial Assets: Available for sale debt securities: Government and Government Sponsored Entities: Commercial MBS and CMOs $ 298,906 $ — $ 298,906 $ — Residential MBS and CMOs 178,125 — 178,125 — Agency bonds 37,008 — 37,008 — Other ABS 21,885 — 21,885 — Total available for sale debt securities $ 535,924 $ — $ 535,924 $ — Equity securities $ 10,018 $ — $ 10,018 $ — Mortgage servicing rights 633 — — 633 Interest rate swaps 32,823 — 32,823 — As of December 31, 2022: Financial Assets: Available for sale debt securities: Government and Government Sponsored Entities: Commercial MBS and CMOs $ 340,736 $ — $ 340,736 $ — Residential MBS and CMOs 199,384 — 199,384 — Agency bonds 42,630 — 42,630 — Other ABS 24,598 — 24,598 — Total available for sale debt securities $ 607,348 $ — $ 607,348 $ — Equity securities $ 10,340 $ — $ 10,340 $ — Mortgage servicing rights 688 — — 688 Interest rate swaps 21,323 — 21,323 — Financial Liabilities: Interest rate swaps $ 2,136 $ — $ 2,136 $ — |
Schedule of Fair Value of Liabilities Measured on a Recurring Basis | The Company is required or permitted to record the following assets and liabilities at fair value on a recurring basis: (Dollars in thousands) Fair Value Level 1 Level 2 Level 3 As of September 30, 2023: Financial Assets: Available for sale debt securities: Government and Government Sponsored Entities: Commercial MBS and CMOs $ 298,906 $ — $ 298,906 $ — Residential MBS and CMOs 178,125 — 178,125 — Agency bonds 37,008 — 37,008 — Other ABS 21,885 — 21,885 — Total available for sale debt securities $ 535,924 $ — $ 535,924 $ — Equity securities $ 10,018 $ — $ 10,018 $ — Mortgage servicing rights 633 — — 633 Interest rate swaps 32,823 — 32,823 — As of December 31, 2022: Financial Assets: Available for sale debt securities: Government and Government Sponsored Entities: Commercial MBS and CMOs $ 340,736 $ — $ 340,736 $ — Residential MBS and CMOs 199,384 — 199,384 — Agency bonds 42,630 — 42,630 — Other ABS 24,598 — 24,598 — Total available for sale debt securities $ 607,348 $ — $ 607,348 $ — Equity securities $ 10,340 $ — $ 10,340 $ — Mortgage servicing rights 688 — — 688 Interest rate swaps 21,323 — 21,323 — Financial Liabilities: Interest rate swaps $ 2,136 $ — $ 2,136 $ — |
LOAN SALE AND SECURITIZATION _2
LOAN SALE AND SECURITIZATION ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Schedule of Cash Flows From Loan Sale Activities | The following table provides cash flows associated with the Company's loan sale activities: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Proceeds from loan sales $ — $ — $ — $ — Servicing fees 60 75 187 261 |
Schedule of Loans Transfered Through Sale or Securitization | The following table provides information about the loans transferred through sales or securitization and not recorded in the consolidated statements of financial condition, for which the Company's continuing involvement includes sub-servicing or servicing responsibilities and/or reimbursement obligations: (Dollars in thousands) Single Family Residential Multifamily Residential As of September 30, 2023: Principal balance of loans $ 10,717 $ 99,663 Loans 90+ days past due — — Charge-offs, net — — As of December 31, 2022: Principal balance of loans $ 11,000 $ 106,981 Loans 90+ days past due — — Charge-offs, net — — |
NATURE OF OPERATIONS - Narrativ
NATURE OF OPERATIONS - Narrative (Details) $ in Thousands | Sep. 30, 2023 USD ($) branch | Jun. 30, 2023 USD ($) | Jan. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | $ 39,885 | $ 36,685 | |||||
Cumulative effect of change in accounting principal | (695,005) | $ (699,347) | (682,536) | $ (676,669) | $ (671,622) | $ (669,133) | |
Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of change in accounting principal | $ (339,894) | $ (337,987) | $ (317,711) | $ (310,160) | $ (295,297) | $ (262,141) | |
Retained Earnings | Accounting Standards Update 2016-13 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | $ (119) | ||||||
Cumulative effect of change in accounting principal | 119 | ||||||
Effect of change in accounting principal, tax | 35 | ||||||
Cumulative effect of change in accounting principal, net of tax | $ (84) | ||||||
Sonoma, Marin, Santa Clara, and Los Angeles Counties | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Number of full service branches | branch | 10 | ||||||
King County, Washington | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Number of full service branches | branch | 1 |
NATURE OF OPERATIONS - Earnings
NATURE OF OPERATIONS - Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Net income | $ 1,907 | $ 21,002 | $ 22,266 | $ 66,509 |
Weighted average common shares outstanding - basic (in shares) | 50,864,217 | 50,738,479 | 50,866,536 | 50,956,972 |
Add: Dilutive effects of assumed vesting of restricted stock (in shares) | 59,224 | 155,079 | 39,864 | 114,774 |
Weighted average common shares outstanding - diluted (in shares) | 50,923,441 | 50,893,558 | 50,906,400 | 51,071,746 |
Basic earnings per common share (in usd per share) | $ 0.04 | $ 0.41 | $ 0.44 | $ 1.31 |
Diluted earnings per common share (in usd per share) | $ 0.04 | $ 0.41 | $ 0.44 | $ 1.30 |
Anti-dilutive shares not included in calculation of diluted earnings per share (in shares) | 3,888 | 0 | 18,224 | 2,493 |
INVESTMENT SECURITIES - Availab
INVESTMENT SECURITIES - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 598,261 | $ 655,504 |
Gross Unrealized Gains | 234 | 476 |
Gross Unrealized Losses | (62,571) | (48,632) |
Estimated Fair Value | 535,924 | 607,348 |
Fair Value | ||
Less than 12 Months | 48,632 | 307,441 |
12 Months or More | 447,687 | 222,880 |
Total | 496,319 | 530,321 |
Unrealized Losses | ||
Less than 12 Months | (405) | (12,756) |
12 Months or More | (62,166) | (35,876) |
Total | (62,571) | (48,632) |
Commercial mortgage backed securities ("MBS") and collateralized mortgage obligations ("CMOs") | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 333,497 | 365,207 |
Gross Unrealized Gains | 145 | 265 |
Gross Unrealized Losses | (34,736) | (24,736) |
Estimated Fair Value | 298,906 | 340,736 |
Fair Value | ||
Less than 12 Months | 32,808 | 188,155 |
12 Months or More | 240,500 | 109,255 |
Total | 273,308 | 297,410 |
Unrealized Losses | ||
Less than 12 Months | (357) | (6,165) |
12 Months or More | (34,379) | (18,571) |
Total | (34,736) | (24,736) |
Residential MBS and CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 205,351 | 221,994 |
Gross Unrealized Gains | 13 | 22 |
Gross Unrealized Losses | (27,239) | (22,632) |
Estimated Fair Value | 178,125 | 199,384 |
Fair Value | ||
Less than 12 Months | 2,539 | 94,137 |
12 Months or More | 173,126 | 99,831 |
Total | 175,665 | 193,968 |
Unrealized Losses | ||
Less than 12 Months | (19) | (5,912) |
12 Months or More | (27,220) | (16,720) |
Total | (27,239) | (22,632) |
Agency bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 37,069 | 42,540 |
Gross Unrealized Gains | 76 | 189 |
Gross Unrealized Losses | (137) | (99) |
Estimated Fair Value | 37,008 | 42,630 |
Fair Value | ||
Less than 12 Months | 13,285 | 14,345 |
12 Months or More | 12,176 | 0 |
Total | 25,461 | 14,345 |
Unrealized Losses | ||
Less than 12 Months | (29) | (99) |
12 Months or More | (108) | 0 |
Total | (137) | (99) |
Other ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 22,344 | 25,763 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (459) | (1,165) |
Estimated Fair Value | 21,885 | 24,598 |
Fair Value | ||
Less than 12 Months | 0 | 10,804 |
12 Months or More | 21,885 | 13,794 |
Total | 21,885 | 24,598 |
Unrealized Losses | ||
Less than 12 Months | 0 | (580) |
12 Months or More | (459) | (585) |
Total | $ (459) | $ (1,165) |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) security | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||||||||
Cumulative effect of change in accounting principal | $ | $ 695,005,000 | $ 676,669,000 | $ 695,005,000 | $ 676,669,000 | $ 699,347,000 | $ 682,536,000 | $ 671,622,000 | $ 669,133,000 |
Debt securities, available-for-sale, realized gain | $ | 0 | 0 | 0 | 0 | ||||
Debt securities, available-for-sale, realized loss | $ | 0 | 0 | 0 | 0 | ||||
Debt securities, available-for-sale, amortized cost | $ | 598,261,000 | 598,261,000 | 655,504,000 | |||||
Equity securities, at fair value | $ | 10,018,000 | 10,018,000 | $ 10,340,000 | |||||
Asset Pledged as Collateral | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Debt securities, available-for-sale, amortized cost | $ | $ 575,300,000 | $ 575,300,000 | ||||||
Commercial mortgage backed securities ("MBS") and collateralized mortgage obligations ("CMOs") | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Debt securities, available-for-sale, unrealized loss position, number of positions | 52 | 52 | 50 | |||||
Debt securities, available-for-sale, number of positions | 58 | 58 | 58 | |||||
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, number of positions | 45 | 45 | 15 | |||||
Debt securities, available-for-sale, amortized cost | $ | $ 333,497,000 | $ 333,497,000 | $ 365,207,000 | |||||
Residential MBS | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Debt securities, available-for-sale, unrealized loss position, number of positions | 86 | 86 | 86 | |||||
Debt securities, available-for-sale, number of positions | 88 | 88 | 90 | |||||
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, number of positions | 81 | 81 | 14 | |||||
Held-to-maturity securities, number of positions | 7 | 7 | 7 | |||||
Held-to-maturity securities, unrealized loss position, number of positions | 7 | |||||||
Held-to-maturity securities, unrealized loss position 12 months or more, number of positions | 7 | 7 | ||||||
Debt securities, available-for-sale, amortized cost | $ | $ 205,351,000 | $ 205,351,000 | $ 221,994,000 | |||||
Agency bonds | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Debt securities, available-for-sale, unrealized loss position, number of positions | 4 | 4 | 1 | |||||
Debt securities, available-for-sale, number of positions | 6 | 6 | 6 | |||||
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, number of positions | 3 | 3 | ||||||
Debt securities, available-for-sale, amortized cost | $ | $ 37,069,000 | $ 37,069,000 | $ 42,540,000 | |||||
Other ABS | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Debt securities, available-for-sale, unrealized loss position, number of positions | 3 | |||||||
Debt securities, available-for-sale, number of positions | 3 | 3 | 3 | |||||
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, number of positions | 3 | 3 | 2 | |||||
Debt securities, available-for-sale, amortized cost | $ | $ 22,344,000 | $ 22,344,000 | $ 25,763,000 | |||||
CRA Qualified Investment Fund | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Equity securities, at fair value | $ | 10,000,000 | 10,000,000 | 10,300,000 | |||||
Changes in fair value | $ | (322,000) | (455,000) | (322,000) | (1,400,000) | ||||
Accumulated Other Comprehensive (Loss) Income (Net of Taxes) Available for Sale Securities | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Cumulative effect of change in accounting principal | $ | (44,202,000) | $ (31,816,000) | (44,202,000) | $ (31,816,000) | $ (37,474,000) | (34,163,000) | $ (21,295,000) | $ 88,000 |
Unrealized gain on available-for-sale investment securities tax liability | $ | $ (18,100,000) | $ (18,100,000) | $ (14,000,000) |
INVESTMENT SECURITIES - Held-to
INVESTMENT SECURITIES - Held-to-maturity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 3,025 | $ 3,108 |
Gross Unrecognized Gains | 0 | 0 |
Gross Unrecognized Losses | (369) | (234) |
Estimated Fair Value | 2,656 | 2,874 |
Residential MBS and CMOs | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,971 | 3,047 |
Gross Unrecognized Gains | 0 | 0 |
Gross Unrecognized Losses | (369) | (234) |
Estimated Fair Value | 2,602 | 2,813 |
Fair Value | ||
Less than 12 Months | 0 | 2,813 |
12 Months or More | 2,602 | 0 |
Total | 2,602 | 2,813 |
Unrealized Losses | ||
Less than 12 Months | 0 | (234) |
12 Months or More | (369) | 0 |
Total | (369) | (234) |
Other investments | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 54 | 61 |
Gross Unrecognized Gains | 0 | 0 |
Gross Unrecognized Losses | 0 | 0 |
Estimated Fair Value | $ 54 | $ 61 |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Schedule of Investment Securities Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
One to five years | $ 1,451 | |
Five to ten years | 32,762 | |
Beyond ten years | 2,856 | |
Amortized Cost | 598,261 | $ 655,504 |
Fair Value | ||
One to five years | 1,457 | |
Five to ten years | 32,681 | |
Beyond ten years | 2,870 | |
Fair Value | 535,924 | 607,348 |
Amortized Cost | ||
Five to ten years | 54 | |
Amortized Cost | 3,025 | 3,108 |
Fair Value | ||
Five to ten years | 54 | |
Estimated Fair Value | 2,656 | $ 2,874 |
MBS, CMOs and other ABS | ||
Amortized Cost | ||
MBS, CMOs and other ABS | 561,192 | |
Fair Value | ||
MBS, CMOs and other ABS | 498,916 | |
MBS | ||
Amortized Cost | ||
MBS | 2,971 | |
Fair Value | ||
MBS | $ 2,602 |
LOANS - Loans Receivable (Detai
LOANS - Loans Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment, gross | $ 6,827,219 | $ 7,010,445 | ||||
Allowance for credit losses on loans | (39,885) | $ (37,214) | (36,685) | $ (36,035) | $ (35,535) | $ (35,535) |
Loans, net | 6,787,334 | 6,973,760 | ||||
Multifamily residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment, gross | 4,349,645 | 4,532,312 | ||||
Allowance for credit losses on loans | (31,426) | (29,223) | (26,417) | (26,204) | (26,007) | (26,043) |
Multifamily residential | Permanent mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment, gross | 4,349,645 | 4,532,312 | ||||
Single family residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment, gross | 2,303,280 | 2,283,628 | ||||
Allowance for credit losses on loans | (7,129) | (6,874) | (8,564) | (8,157) | (7,625) | (7,224) |
Single family residential | Permanent mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment, gross | 2,303,280 | 2,283,628 | ||||
Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment, gross | 153,986 | 172,258 | ||||
Allowance for credit losses on loans | (983) | $ (776) | (1,539) | $ (1,543) | $ (1,673) | $ (2,094) |
Commercial real estate | Permanent mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment, gross | 153,986 | 172,258 | ||||
Construction and land | Permanent mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment, gross | $ 20,308 | $ 22,247 |
LOANS - Allowance for Loan Loss
LOANS - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | $ 37,214 | $ 35,535 | $ 36,685 | $ 35,535 |
Charge-Offs | 463 | 0 | 463 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 3,134 | 500 | 3,755 | 500 |
Ending Balance | 39,885 | 36,035 | 39,885 | 36,035 |
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||||
Beginning Balance | 570 | 563 | ||
Charge-Offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision | (133) | (337) | ||
Ending Balance | 437 | 437 | ||
Financing Receivable and Off-Balance Sheet, Credit Loss [Roll Forward] | ||||
Beginning Balance | 37,784 | 37,248 | ||
Charge-Offs | (463) | (463) | ||
Recoveries | 0 | 0 | ||
Provision | 3,001 | 3,418 | ||
Ending Balance | 40,322 | 40,322 | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | (92) | |||
Multifamily residential | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 29,223 | 26,007 | 26,417 | 26,043 |
Charge-Offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 2,203 | 197 | 2,127 | 161 |
Ending Balance | 31,426 | 26,204 | 31,426 | 26,204 |
Multifamily residential | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 2,882 | |||
Single family residential | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 6,874 | 7,625 | 8,564 | 7,224 |
Charge-Offs | 463 | 0 | 463 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 718 | 532 | 1,500 | 933 |
Ending Balance | 7,129 | 8,157 | 7,129 | 8,157 |
Single family residential | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | (2,472) | |||
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 776 | 1,673 | 1,539 | 2,094 |
Charge-Offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 207 | (130) | 228 | (551) |
Ending Balance | 983 | 1,543 | 983 | 1,543 |
Commercial real estate | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | (784) | |||
Construction and land | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 341 | 230 | 165 | 174 |
Charge-Offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 6 | (99) | (100) | (43) |
Ending Balance | $ 347 | $ 131 | 347 | $ 131 |
Construction and land | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 282 | |||
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward] | ||||
Beginning Balance | 211 | |||
Financing Receivable and Off-Balance Sheet, Credit Loss [Roll Forward] | ||||
Beginning Balance | $ 119 |
LOANS - Portfolio Allocated by
LOANS - Portfolio Allocated by Internal Risk Ratings (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | $ 215,637 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 1,995,414 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 1,907,147 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 879,250 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 585,694 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 1,244,077 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 6,827,219 | $ 7,010,445 |
Gross charge-offs by origination year | 463 | |
Origination Date 2023 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Origination Date 2022 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Origination Date 2021 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 463 | |
Origination Date 2020 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Origination Date 2019 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Origination Date Prior to 2019 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 215,637 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 1,989,919 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 1,892,542 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 870,920 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 563,998 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 1,201,452 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 6,734,468 | 6,930,726 |
Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 3,474 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 14,605 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 4,784 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 14,425 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 24,310 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 61,598 | 57,371 |
Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 335 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 3,435 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 7,555 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 11,325 | 3,413 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 1,686 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 3,546 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 3,836 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 10,760 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 19,828 | 18,935 |
Multifamily residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 62,408 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 1,155,855 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 1,185,546 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 710,815 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 423,501 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 811,520 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 4,349,645 | 4,532,312 |
Gross charge-offs by origination year | 0 | |
Multifamily residential | Origination Date 2023 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Multifamily residential | Origination Date 2022 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Multifamily residential | Origination Date 2021 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Multifamily residential | Origination Date 2020 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Multifamily residential | Origination Date 2019 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Multifamily residential | Origination Date Prior to 2019 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Multifamily residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 62,408 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 1,153,789 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 1,173,628 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 702,485 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 407,302 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 789,415 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 4,289,027 | 4,469,443 |
Multifamily residential | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 2,066 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 11,918 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 4,784 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 10,651 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 8,870 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 38,289 | 44,436 |
Multifamily residential | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 1,712 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 4,135 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 5,847 | 2,460 |
Multifamily residential | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 3,546 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 3,836 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 9,100 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 16,482 | 15,973 |
Single family residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 153,229 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 808,270 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 708,768 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 156,946 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 137,291 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 338,776 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 2,303,280 | 2,283,628 |
Gross charge-offs by origination year | 463 | |
Single family residential | Origination Date 2023 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Single family residential | Origination Date 2022 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Single family residential | Origination Date 2021 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 463 | |
Single family residential | Origination Date 2020 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Single family residential | Origination Date 2019 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Single family residential | Origination Date Prior to 2019 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Single family residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 153,229 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 804,841 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 706,081 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 156,946 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 132,733 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 325,433 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 2,279,263 | 2,269,325 |
Single family residential | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 1,408 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 2,687 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 3,774 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 11,340 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 19,209 | 11,341 |
Single family residential | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 335 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 784 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 556 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 1,675 | 0 |
Single family residential | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 1,686 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 1,447 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 3,133 | 2,962 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 21,892 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 1,922 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 11,489 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 24,902 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 93,781 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 153,986 | 172,258 |
Gross charge-offs by origination year | 0 | |
Commercial real estate | Origination Date 2023 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Commercial real estate | Origination Date 2022 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Commercial real estate | Origination Date 2021 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Commercial real estate | Origination Date 2020 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Commercial real estate | Origination Date 2019 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Commercial real estate | Origination Date Prior to 2019 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 21,892 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 1,922 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 11,489 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 23,963 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 86,604 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 145,870 | 169,711 |
Commercial real estate | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 4,100 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 4,100 | 1,594 |
Commercial real estate | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 939 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 2,864 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 3,803 | 953 |
Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 213 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 213 | 0 |
Construction and land | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 9,397 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 10,911 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 20,308 | 22,247 |
Gross charge-offs by origination year | 0 | |
Construction and land | Origination Date 2023 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Construction and land | Origination Date 2022 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Construction and land | Origination Date 2021 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Construction and land | Origination Date 2020 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Construction and land | Origination Date 2019 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Construction and land | Origination Date Prior to 2019 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross charge-offs by origination year | 0 | |
Construction and land | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 9,397 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 10,911 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 20,308 | 22,247 |
Construction and land | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
Construction and land | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
Construction and land | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, originated, more than 5 years before current fiscal year | 0 | |
Financing receivable, excluding accrued interest, before allowance for credit loss | $ 0 | $ 0 |
LOANS - Aging Analysis (Details
LOANS - Aging Analysis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | $ 6,827,219 | $ 7,010,445 |
Total Past Due | 6,626 | 6,471 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 14,148 | 3,127 |
30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 5,478 | 0 |
60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 2,918 | 0 |
90+ Days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 5,752 | 3,127 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 6,813,071 | 7,007,318 |
Multifamily residential | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 4,349,645 | 4,532,312 |
Total Past Due | 3,494 | 3,509 |
Multifamily residential | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,575 | 3,023 |
Multifamily residential | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 3,171 | 0 |
Multifamily residential | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 1,381 | 0 |
Multifamily residential | 90+ Days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 3,023 | 3,023 |
Multifamily residential | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 4,342,070 | 4,529,289 |
Single family residential | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 2,303,280 | 2,283,628 |
Total Past Due | 3,132 | 2,962 |
Single family residential | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 6,573 | 104 |
Single family residential | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 2,307 | 0 |
Single family residential | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 1,537 | 0 |
Single family residential | 90+ Days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 2,729 | 104 |
Single family residential | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 2,296,707 | 2,283,524 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 153,986 | 172,258 |
Commercial real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial real estate | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
Commercial real estate | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
Commercial real estate | 90+ Days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
Commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 153,986 | 172,258 |
Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 20,308 | 22,247 |
Construction and land | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Construction and land | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
Construction and land | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
Construction and land | 90+ Days | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | 0 |
Construction and land | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, excluding accrued interest, before allowance for credit loss | $ 20,308 | $ 22,247 |
LOANS - Impaired Loans (Details
LOANS - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | |
Recorded Investment | |||
With no related allowance recorded | $ 6,065 | ||
With an allowance recorded | 3,825 | ||
Total | 9,890 | ||
Unpaid Principal Balance | |||
With no related allowance recorded | 6,341 | ||
With an allowance recorded | 3,800 | ||
Total | 10,141 | ||
Related Allowance | 625 | ||
Impaired Financing Receivable, Average Recorded Investment | |||
With no related allowance recorded | $ 7,638 | $ 6,647 | |
With an allowance recorded | 815 | 825 | |
Total | 8,453 | 7,472 | |
Impaired Financing Receivable, Interest Income | |||
With no related allowance recorded | 73 | 178 | |
With an allowance recorded | 7 | 20 | |
Total | 80 | 198 | |
Impaired Financing Receivable, Cash Basis Interest Income | |||
With no related allowance recorded | 45 | 99 | |
With an allowance recorded | 0 | 0 | |
Total | 45 | 99 | |
Multifamily residential | |||
Recorded Investment | |||
With no related allowance recorded | 485 | ||
With an allowance recorded | 3,024 | ||
Total | 3,509 | ||
Unpaid Principal Balance | |||
With no related allowance recorded | 562 | ||
With an allowance recorded | 3,002 | ||
Total | 3,564 | ||
Related Allowance | 600 | ||
Impaired Financing Receivable, Average Recorded Investment | |||
With no related allowance recorded | 847 | 712 | |
Total | 847 | 712 | |
Impaired Financing Receivable, Interest Income | |||
With no related allowance recorded | 13 | 38 | |
Total | 13 | 38 | |
Impaired Financing Receivable, Cash Basis Interest Income | |||
With no related allowance recorded | 13 | 38 | |
Total | 13 | 38 | |
Single family residential | |||
Recorded Investment | |||
With no related allowance recorded | 5,580 | ||
With an allowance recorded | 801 | ||
Total | 6,381 | ||
Unpaid Principal Balance | |||
With no related allowance recorded | 5,779 | ||
With an allowance recorded | 798 | ||
Total | 6,577 | ||
Related Allowance | $ 25 | ||
Impaired Financing Receivable, Average Recorded Investment | |||
With no related allowance recorded | 6,791 | 5,935 | |
With an allowance recorded | 815 | 825 | |
Total | 7,606 | 6,760 | |
Impaired Financing Receivable, Interest Income | |||
With no related allowance recorded | 60 | 140 | |
With an allowance recorded | 7 | 20 | |
Total | 67 | 160 | |
Impaired Financing Receivable, Cash Basis Interest Income | |||
With no related allowance recorded | 32 | 61 | |
With an allowance recorded | 0 | 0 | |
Total | $ 32 | $ 61 |
LOANS - Collateral Dependent Lo
LOANS - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing receivable, excluding accrued interest, before allowance for credit loss | $ 6,827,219 | $ 7,010,445 | ||||
Allowance for Credit Losses | 39,885 | $ 37,214 | 36,685 | $ 36,035 | $ 35,535 | $ 35,535 |
Collateral Dependent Loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for Credit Losses | 0 | |||||
Residential Mortgage | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing receivable, excluding accrued interest, before allowance for credit loss | 6,626 | |||||
Office Building | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | |||||
Industrial Property | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | |||||
Multifamily residential | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing receivable, excluding accrued interest, before allowance for credit loss | 4,349,645 | 4,532,312 | ||||
Allowance for Credit Losses | 31,426 | 29,223 | 26,417 | 26,204 | 26,007 | 26,043 |
Multifamily residential | Collateral Dependent Loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for Credit Losses | 0 | |||||
Multifamily residential | Residential Mortgage | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing receivable, excluding accrued interest, before allowance for credit loss | 3,494 | |||||
Multifamily residential | Office Building | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | |||||
Multifamily residential | Industrial Property | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | |||||
Single family residential | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing receivable, excluding accrued interest, before allowance for credit loss | 2,303,280 | 2,283,628 | ||||
Allowance for Credit Losses | 7,129 | 6,874 | 8,564 | 8,157 | 7,625 | 7,224 |
Single family residential | Collateral Dependent Loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for Credit Losses | 0 | |||||
Single family residential | Residential Mortgage | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing receivable, excluding accrued interest, before allowance for credit loss | 3,132 | |||||
Single family residential | Office Building | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | |||||
Single family residential | Industrial Property | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing receivable, excluding accrued interest, before allowance for credit loss | 0 | |||||
Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing receivable, excluding accrued interest, before allowance for credit loss | 153,986 | 172,258 | ||||
Allowance for Credit Losses | 983 | 776 | 1,539 | 1,543 | 1,673 | 2,094 |
Construction and land | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing receivable, excluding accrued interest, before allowance for credit loss | 20,308 | 22,247 | ||||
Allowance for Credit Losses | $ 347 | $ 341 | $ 165 | $ 131 | $ 230 | $ 174 |
LOANS - Allowance for Loan Lo_2
LOANS - Allowance for Loan Losses by Impairment Methodology (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans individually evaluated for impairment | $ 625 | |||||
Loans collectively evaluated for impairment | 36,060 | |||||
Allowance for Credit Losses | $ 39,885 | $ 37,214 | 36,685 | $ 36,035 | $ 35,535 | $ 35,535 |
Ending balance: individually evaluated for impairment | 9,890 | |||||
Ending balance: collectively evaluated for impairment | 7,000,555 | |||||
Ending balance | 7,010,445 | |||||
Multifamily residential | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans individually evaluated for impairment | 600 | |||||
Loans collectively evaluated for impairment | 25,817 | |||||
Allowance for Credit Losses | 31,426 | 29,223 | 26,417 | 26,204 | 26,007 | 26,043 |
Ending balance: individually evaluated for impairment | 3,509 | |||||
Ending balance: collectively evaluated for impairment | 4,528,803 | |||||
Ending balance | 4,532,312 | |||||
Single family residential | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans individually evaluated for impairment | 25 | |||||
Loans collectively evaluated for impairment | 8,539 | |||||
Allowance for Credit Losses | 7,129 | 6,874 | 8,564 | 8,157 | 7,625 | 7,224 |
Ending balance: individually evaluated for impairment | 6,381 | |||||
Ending balance: collectively evaluated for impairment | 2,277,247 | |||||
Ending balance | 2,283,628 | |||||
Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans individually evaluated for impairment | 0 | |||||
Loans collectively evaluated for impairment | 1,539 | |||||
Allowance for Credit Losses | 983 | 776 | 1,539 | 1,543 | 1,673 | 2,094 |
Ending balance: individually evaluated for impairment | 0 | |||||
Ending balance: collectively evaluated for impairment | 172,258 | |||||
Ending balance | 172,258 | |||||
Construction and land | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans individually evaluated for impairment | 0 | |||||
Loans collectively evaluated for impairment | 165 | |||||
Allowance for Credit Losses | $ 347 | $ 341 | 165 | $ 131 | $ 230 | $ 174 |
Ending balance: individually evaluated for impairment | 0 | |||||
Ending balance: collectively evaluated for impairment | 22,247 | |||||
Ending balance | $ 22,247 |
LOANS - Troubled Debt Restructu
LOANS - Troubled Debt Restructurings (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 loan | Sep. 30, 2022 loan | Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) loan | Dec. 31, 2022 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | loan | 1 | ||||
Financing Receivable, Modified in Period, Amount | $ 0 | ||||
Modifications, suspension of loan payments, term | 6 months | ||||
Allowance for credit loss, increase from troubled debt restructuring | $ 0 | ||||
Impaired, troubled debt restructuring, write-down | $ 0 | ||||
Subsequent default, number of loans | loan | 0 | 0 | 0 | 0 | |
Single family residential | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Recorded investment | $ 1,211,000 | ||||
Related allowance | $ 25,000 | ||||
Number of Contracts | loan | 1 | ||||
Pre-Modification Outstanding Recorded Investment | $ 405,000 | ||||
Financing Receivable, Modified in Period, Amount | $ 412,000 |
NONPERFORMING ASSETS - Schedule
NONPERFORMING ASSETS - Schedule of Nonperforming Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-Accrual Loans with No ACL | $ 6,626 | $ 6,471 |
Non-Accrual Loans | 6,626 | 6,471 |
Multifamily residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-Accrual Loans with No ACL | 3,494 | 3,509 |
Non-Accrual Loans | 3,494 | 3,509 |
Single family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-Accrual Loans with No ACL | 3,132 | 2,962 |
Non-Accrual Loans | $ 3,132 | $ 2,962 |
NONPERFORMING ASSETS - Narrativ
NONPERFORMING ASSETS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Receivables [Abstract] | ||||
Interest income recognized on non-accrual loans | $ 23 | $ 45 | $ 69 | $ 99 |
Contractual interest not accrued during the quarter | $ 121 | $ 6 | $ 362 | $ 30 |
MORTGAGE SERVICING RIGHTS - Mor
MORTGAGE SERVICING RIGHTS - Mortgage Loans Serviced for Others (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Loans Serviced for Others [Line Items] | ||
Total mortgage loans serviced for others | $ 110,380 | $ 117,981 |
Federal Home Loan Mortgage Corporation ("Freddie Mac") | ||
Schedule of Loans Serviced for Others [Line Items] | ||
Total mortgage loans serviced for others | 75,631 | 80,478 |
Other financial institutions | ||
Schedule of Loans Serviced for Others [Line Items] | ||
Total mortgage loans serviced for others | $ 34,749 | $ 37,503 |
MORTGAGE SERVICING RIGHTS - Nar
MORTGAGE SERVICING RIGHTS - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Custodial account balances maintained in connection with serviced loans | $ 360 | $ 234 |
Discount rate used to calculate fair value of MSRs | 10% | 10% |
Default rate used to calculate fair value of MSRs | 5% | 5% |
Minimum | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Prepayment speed rate used to calculate fair value of MSRs | 7% | 3.50% |
Maximum | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Prepayment speed rate used to calculate fair value of MSRs | 46.90% | 32.30% |
Weighted Average | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Prepayment speed rate used to calculate fair value of MSRs | 31.80% | 23% |
MORTGAGE SERVICING RIGHTS - M_2
MORTGAGE SERVICING RIGHTS - Mortgage Servicing Rights Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | $ 639 | $ 779 | $ 688 | $ 915 |
Additions | 0 | 0 | 0 | 0 |
Disposals | 0 | 0 | 0 | 0 |
Changes in fair value due to changes in assumptions | 0 | 0 | 0 | 0 |
Other changes in fair value | (6) | (54) | (55) | (190) |
Ending balance | $ 633 | $ 725 | $ 633 | $ 725 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Sep. 30, 2023 |
Leases [Abstract] | |
Renewal term | 5 years |
LEASES - Supplemental Lease Inf
LEASES - Supplemental Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Leases [Abstract] | |||||
Operating lease right-of-use assets included in prepaid expenses and other assets | $ 13,969 | $ 13,969 | $ 13,244 | ||
Operating lease liabilities included in other liabilities and accrued expenses | $ 13,969 | $ 13,969 | $ 13,316 | ||
Weighted average remaining lease term (years) of operating leases | 4 years 10 months 24 days | 4 years 10 months 24 days | 5 years 1 month 6 days | ||
Weighted average discount rate of operating leases | 3.24% | 3.24% | 2.69% | ||
Operating lease costs included in occupancy expense | $ 893 | $ 911 | $ 2,709 | $ 2,750 | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 893 | $ 1,019 | $ 2,781 | $ 3,071 |
LEASES - Schedule of Lease Paym
LEASES - Schedule of Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
October 1 - December 31, 2023 | $ 862 | |
2024 | 3,394 | |
2025 | 3,050 | |
2026 | 2,886 | |
2027 | 2,667 | |
Thereafter | 2,425 | |
Total undiscounted lease payments | 15,284 | |
Less: Imputed interest | 1,315 | |
Net lease liabilities | $ 13,969 | $ 13,316 |
QUALIFIED AFFORABLE HOUSING P_2
QUALIFIED AFFORABLE HOUSING PROJECT INVESTMENTS (Details) - 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 | |
Federal Home Loan Banks [Abstract] | |||||
Qualified affordable housing project investments, commitment | $ 19,300 | $ 19,300 | $ 17,900 | ||
Payments for affordable housing programs | 6,200 | 4,800 | |||
Qualified affordable housing project investments, unfunded commitment | 13,100 | 13,100 | $ 13,100 | ||
Amortization method qualified affordable housing project investments, amortization | 211 | $ 130 | 955 | $ 395 | |
Affordable Housing Tax Credits and Other Tax Benefits, Amount | $ 283 | $ 200 | $ 1,300 | $ 565 |
DEPOSITS - Deposits (Details)
DEPOSITS - Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deposits, by Type [Abstract] | ||
Time deposits | $ 3,647,822 | $ 3,134,373 |
Money market savings | 953,306 | 1,538,008 |
Money market checking | 965,944 | 908,231 |
Interest-bearing demand | 122,919 | 158,068 |
Noninterest-bearing demand | 70,111 | 100,660 |
Deposits | $ 5,760,102 | $ 5,839,340 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Deposits [Abstract] | ||
Certificates of deposit that meet or exceed FDIC insurance limit | $ 1,500 | $ 1,300 |
Brokered deposits | $ 441.7 | $ 455.8 |
DEPOSITS - Maturities (Details)
DEPOSITS - Maturities (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Maturities of Time Deposits, Twelve months ending March 31, | |
October 1 - December 31, 2023 | $ 1,151,224 |
2024 | 2,421,263 |
2025 | 63,093 |
2026 | 7,868 |
2027 | 3,498 |
Thereafter | 876 |
Time Deposits | $ 3,647,822 |
FEDERAL HOME LOAN BANK AND FE_3
FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | |||||
FHLB advances, maximum percentage of assets | 40% | 40% | |||
Loans held for investment, gross | $ 7,010,445,000 | ||||
Debt securities, available-for-sale, amortized cost | $ 598,261,000 | $ 598,261,000 | 655,504,000 | ||
Borrowing capacity based on pledged loans to the FRB and FHLB | 2,500,000,000 | 2,500,000,000 | 1,700,000,000 | ||
Loans available to be pledged as collateral | 11,400,000 | 11,400,000 | 1,100,000,000 | ||
Maximum short-term debt outstanding during period | 175,000,000 | $ 406,900,000 | 175,000,000 | $ 406,900,000 | |
Average short-term debt outstanding during period | $ 6,500,000 | $ 265,300,000 | $ 59,500,000 | $ 128,200,000 | |
Weighted average interest rate | 5.60% | 2.52% | 5.22% | 2.04% | |
Asset Pledged as Collateral | |||||
Short-term Debt [Line Items] | |||||
Debt securities, available-for-sale, amortized cost | $ 575,300,000 | $ 575,300,000 | |||
FHLB Advances | |||||
Short-term Debt [Line Items] | |||||
Letters of credit pledged as collateral | 62,600,000 | 62,600,000 | 62,600,000 | ||
FHLB Advances | Asset Pledged as Collateral | |||||
Short-term Debt [Line Items] | |||||
Loans held for investment, gross | 4,100,000,000 | 4,100,000,000 | 4,200,000,000 | ||
Debt securities, available-for-sale, amortized cost | 233,500,000 | 233,500,000 | |||
FRB Advances | |||||
Short-term Debt [Line Items] | |||||
Borrowings outstanding | 0 | 0 | 0 | ||
FRB Advances | Asset Pledged as Collateral | |||||
Short-term Debt [Line Items] | |||||
Loans held for investment, gross | 2,600,000,000 | 2,600,000,000 | 904,900,000 | ||
Debt securities, available-for-sale, amortized cost | $ 339,900,000 | $ 339,900,000 | $ 0 |
FEDERAL HOME LOAN BANK AND FE_4
FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES - FHLB Advances (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Outstanding Balances | $ 1,426,647 | $ 1,208,147 |
FHLB of San Francisco | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Outstanding Balances | 1,426,647 | 1,208,147 |
FHLB of San Francisco | Fixed rate short-term | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Outstanding Balances | $ 175,000 | 56,500 |
FHLB of San Francisco | Fixed rate short-term | Minimum | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Interest rate | 5.77% | |
FHLB of San Francisco | Fixed rate short-term | Maximum | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Interest rate | 5.77% | |
FHLB of San Francisco | Fixed rate short-term | Weighted Average | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Interest rate | 5.77% | |
FHLB of San Francisco | Fixed rate long-term | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Outstanding Balances | $ 1,251,647 | $ 1,151,647 |
FHLB of San Francisco | Fixed rate long-term | Minimum | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Interest rate | 0.38% | |
FHLB of San Francisco | Fixed rate long-term | Maximum | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Interest rate | 7.33% | |
FHLB of San Francisco | Fixed rate long-term | Weighted Average | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Interest rate | 3.07% |
FEDERAL HOME LOAN BANK AND FE_5
FEDERAL HOME LOAN BANK AND FEDERAL RESERVE BANK ADVANCES - Schedule of Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Outstanding advances from FHLB | $ 1,426,647 | $ 1,208,147 |
FHLB of San Francisco | ||
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
October 1 - December 31, 2023 | 275,000 | |
2024 | 500,000 | |
2025 | 551,500 | |
2026 | 100,000 | |
2027 | 0 | |
Thereafter | 147 | |
Outstanding advances from FHLB | $ 1,426,647 | $ 1,208,147 |
JUNIOR SUBORDINATED DEFERRABL_3
JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) trust | |
Investment Holdings [Line Items] | |
Number of wholly-owned trust companies | trust | 2 |
Trusts | |
Investment Holdings [Line Items] | |
Investment in common securities | $ | $ 1.9 |
Trust Preferred Securities Subject to Mandatory Redemption | Trusts | |
Investment Holdings [Line Items] | |
Interest deferment period (not exceeding) | 5 years |
JUNIOR SUBORDINATED DEFERRABL_4
JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES - Schedule of Trusts (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Amount | $ 61,857 | $ 61,857 |
Trust Preferred Securities Subject to Mandatory Redemption | Luther Burbank Statutory Trust I | Trusts | ||
Debt Instrument [Line Items] | ||
Amount | $ 41,238 | $ 41,238 |
Rate | 7.05% | 6.15% |
Trust Preferred Securities Subject to Mandatory Redemption | Luther Burbank Statutory Trust I | Trusts | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Rate Index (Quarterly Reset) | 1.38% | |
Trust Preferred Securities Subject to Mandatory Redemption | Luther Burbank Statutory Trust II | Trusts | ||
Debt Instrument [Line Items] | ||
Amount | $ 20,619 | $ 20,619 |
Rate | 7.29% | 6.39% |
Trust Preferred Securities Subject to Mandatory Redemption | Luther Burbank Statutory Trust II | Trusts | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Rate Index (Quarterly Reset) | 1.62% |
SENIOR DEBT - Narrative (Detail
SENIOR DEBT - Narrative (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2014 |
Senior Unsecured Term Notes, September 2014 | Senior Unsecured Term Notes | |||
Debt Instrument [Line Items] | |||
Principal | $ 95,000,000 | $ 95,000,000 | $ 95,000,000 |
SENIOR DEBT - Schedule of Debt
SENIOR DEBT - Schedule of Debt (Details) - Senior Unsecured Term Notes, September 2014 - Senior Unsecured Term Notes - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2014 |
Debt Instrument [Line Items] | |||
Principal | $ 95,000,000 | $ 95,000,000 | $ 95,000,000 |
Unamortized Debt Issuance Costs | $ 123,000 | $ 215,000 | |
Fixed Interest Rate | 6.50% |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITIES - Narrative (Details) - Designated as Hedging Instrument - Interest Rate Swap | Sep. 30, 2023 USD ($) instrument | Dec. 31, 2022 USD ($) |
Derivative [Line Items] | ||
Closed portfolio loans used in hedging relationship | $ 4,400,000,000 | $ 3,900,000,000 |
Fair Value Hedging | ||
Derivative [Line Items] | ||
Notional amounts | $ 1,800,000,000 | $ 1,850,000,000 |
Fair Value Hedging | 11 Derivative Instruments Held | ||
Derivative [Line Items] | ||
Number of agreements entered into | instrument | 11 | |
Notional amounts | $ 1,800,000,000 |
DERIVATIVES AND HEDGING ACTIV_4
DERIVATIVES AND HEDGING ACTIVITIES - Schedule of Interest Rate Swap on Consolidated Statement of Income (Details) - Interest Rate Swap - Designated as Hedging Instrument - Fair Value Hedging - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Net increase in interest income | $ 6,410 | $ 2,894 | $ 22,681 | $ 3,279 |
Interest Income on Loans | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative - interest rate swap, interest income | 6,473 | 2,971 | 22,773 | 3,404 |
Hedged items - loans, interest income | $ (63) | $ (77) | $ (92) | $ (125) |
DERIVATIVES AND HEDGING ACTIV_5
DERIVATIVES AND HEDGING ACTIVITIES - Schedule of Interest Rate Swap on Consolidated Balance Sheet (Details) - Interest Rate Swap - Designated as Hedging Instrument - Fair Value Hedging - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 1,800,000,000 | $ 1,850,000,000 |
Prepaid Expenses and Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 32,823,000 | 21,323,000 |
Other Liabilities and Accrued Expenses | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | $ 0 | $ 2,136,000 |
DERIVATIVES AND HEDGING ACTIV_6
DERIVATIVES AND HEDGING ACTIVITIES - Schedule of Amounts Recorded on the Balance Sheet Related to Cumulative Adjustments on Fair Value Hedges (Details) - Interest Rate Swap - Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets | $ (33,087) | $ (19,359) |
Fair Value Hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of the Hedged Assets | $ 1,766,913 | $ 1,430,641 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for new awards (in shares) | 3,360,000 | 3,360,000 | |||
Common stock available for grant (in shares) | 1,643,433 | 1,643,433 | 1,682,468 | ||
RSUs and RSAs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 479 | $ 756 | $ 1,400 | $ 2,100 | |
Fair value of awards vested | 0 | $ 90 | 2,700 | $ 2,700 | |
Unrecognized compensation expense | $ 1,400 | $ 1,400 | $ 2,400 | ||
Restricted stock awards or units granted (in shares) | 229,460 | 229,460 | 414,004 | ||
Period of recognition for unrecognized compensation expense | 1 year 2 months 1 day | 1 year 8 months 26 days | |||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock units vested (in shares) | 65,799 | 65,799 | 81,225 | ||
Non-employee directors | Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Minimum | Employees | Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Maximum | Employees | Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years |
STOCK BASED COMPENSATION - Awar
STOCK BASED COMPENSATION - Awards Activity (Details) - RSUs and RSAs - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Number of Shares | ||
Beginning of the period balance (in shares) | 495,229 | 581,189 |
Shares granted (in shares) | 42,034 | 218,048 |
Shares settled (in shares) | (239,005) | (264,836) |
Shares forfeited (in shares) | (2,999) | (37,839) |
End of the period balance (in shares) | 295,259 | 496,562 |
Weighted Average Grant Date Fair Value | ||
Beginning of the period balance (in usd per share) | $ 11.89 | $ 10.56 |
Shares granted (in usd per share) | 11.24 | 13.78 |
Shares settled (in usd per share) | 11.81 | 10.49 |
Shares forfeited (in usd per share) | 11.68 | 11.97 |
End of the period balance (in usd per share) | $ 11.87 | $ 11.90 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt securities: | ||
Available for sale debt securities, at fair value | $ 535,924 | $ 607,348 |
Held to maturity | 2,656 | 2,874 |
Equity securities | 10,018 | 10,340 |
Carrying Amount | ||
Financial Assets: | ||
Cash and cash equivalents | 579,724 | 185,895 |
Debt securities: | ||
Available for sale debt securities, at fair value | 535,924 | 607,348 |
Held to maturity | 3,025 | 3,108 |
Equity securities | 10,018 | 10,340 |
Loans receivable, net | 6,787,334 | 6,973,760 |
Accrued interest receivable | 26,049 | 24,306 |
FHLB stock | 44,370 | 32,694 |
Interest rate swaps | 32,823 | 21,323 |
Financial liabilities: | ||
Deposits | 5,760,102 | 5,839,340 |
FHLB advances | 1,426,647 | 1,208,147 |
Junior subordinated deferrable interest debentures | 61,857 | 61,857 |
Senior debt | 94,877 | 94,785 |
Accrued interest payable | 10,847 | 3,964 |
Interest rate swaps | 2,136 | |
Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 579,724 | 185,895 |
Debt securities: | ||
Available for sale debt securities, at fair value | 535,924 | 607,348 |
Held to maturity | 2,656 | 2,874 |
Equity securities | 10,018 | 10,340 |
Loans receivable, net | 6,542,608 | 6,743,783 |
Accrued interest receivable | 26,049 | 24,306 |
Interest rate swaps | 32,823 | 21,323 |
Financial liabilities: | ||
Deposits | 5,742,498 | 5,789,929 |
FHLB advances | 1,390,249 | 1,153,511 |
Junior subordinated deferrable interest debentures | 57,602 | 56,967 |
Senior debt | 91,768 | 94,652 |
Accrued interest payable | 10,847 | 3,964 |
Interest rate swaps | 2,136 | |
Fair Value | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 579,724 | 185,895 |
Debt securities: | ||
Available for sale debt securities, at fair value | 0 | 0 |
Held to maturity | 0 | 0 |
Equity securities | 0 | 0 |
Loans receivable, net | 0 | 0 |
Accrued interest receivable | 965 | 58 |
Interest rate swaps | 0 | 0 |
Financial liabilities: | ||
Deposits | 1,906,694 | 2,449,966 |
FHLB advances | 0 | 0 |
Junior subordinated deferrable interest debentures | 0 | 0 |
Senior debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate swaps | 0 | |
Fair Value | Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Debt securities: | ||
Available for sale debt securities, at fair value | 535,924 | 607,348 |
Held to maturity | 2,656 | 2,874 |
Equity securities | 10,018 | 10,340 |
Loans receivable, net | 0 | 0 |
Accrued interest receivable | 2,093 | 4,171 |
Interest rate swaps | 32,823 | 21,323 |
Financial liabilities: | ||
Deposits | 3,835,804 | 3,339,963 |
FHLB advances | 1,390,249 | 1,153,511 |
Junior subordinated deferrable interest debentures | 57,602 | 56,967 |
Senior debt | 91,768 | 94,652 |
Accrued interest payable | 10,847 | 3,964 |
Interest rate swaps | 2,136 | |
Fair Value | Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Debt securities: | ||
Available for sale debt securities, at fair value | 0 | 0 |
Held to maturity | 0 | 0 |
Equity securities | 0 | 0 |
Loans receivable, net | 6,542,608 | 6,743,783 |
Accrued interest receivable | 22,991 | 20,077 |
Interest rate swaps | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Junior subordinated deferrable interest debentures | 0 | 0 |
Senior debt | 0 | 0 |
Accrued interest payable | $ 0 | 0 |
Interest rate swaps | $ 0 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Recorded at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Financial Assets: | ||||||
Available for sale debt securities, at fair value | $ 535,924 | $ 607,348 | ||||
Equity securities | 10,018 | 10,340 | ||||
Mortgage servicing rights | 633 | $ 639 | 688 | $ 725 | $ 779 | $ 915 |
Commercial mortgage backed securities ("MBS") and collateralized mortgage obligations ("CMOs") | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 298,906 | 340,736 | ||||
Residential MBS | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 178,125 | 199,384 | ||||
Agency bonds | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 37,008 | 42,630 | ||||
Other ABS | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 21,885 | 24,598 | ||||
Fair Value | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 535,924 | 607,348 | ||||
Equity securities | 10,018 | 10,340 | ||||
Interest rate swaps | 32,823 | 21,323 | ||||
Financial liabilities: | ||||||
Interest rate swaps | 2,136 | |||||
Fair Value | Level 1 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 0 | 0 | ||||
Equity securities | 0 | 0 | ||||
Interest rate swaps | 0 | 0 | ||||
Financial liabilities: | ||||||
Interest rate swaps | 0 | |||||
Fair Value | Level 2 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 535,924 | 607,348 | ||||
Equity securities | 10,018 | 10,340 | ||||
Interest rate swaps | 32,823 | 21,323 | ||||
Financial liabilities: | ||||||
Interest rate swaps | 2,136 | |||||
Fair Value | Level 3 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 0 | 0 | ||||
Equity securities | 0 | 0 | ||||
Interest rate swaps | 0 | 0 | ||||
Financial liabilities: | ||||||
Interest rate swaps | 0 | |||||
Fair Value | Recurring Basis | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 535,924 | 607,348 | ||||
Equity securities | 10,018 | 10,340 | ||||
Mortgage servicing rights | 633 | 688 | ||||
Interest rate swaps | 32,823 | 21,323 | ||||
Financial liabilities: | ||||||
Interest rate swaps | 2,136 | |||||
Fair Value | Recurring Basis | Level 1 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 0 | 0 | ||||
Equity securities | 0 | 0 | ||||
Mortgage servicing rights | 0 | 0 | ||||
Interest rate swaps | 0 | 0 | ||||
Financial liabilities: | ||||||
Interest rate swaps | 0 | |||||
Fair Value | Recurring Basis | Level 2 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 535,924 | 607,348 | ||||
Equity securities | 10,018 | 10,340 | ||||
Mortgage servicing rights | 0 | 0 | ||||
Interest rate swaps | 32,823 | 21,323 | ||||
Financial liabilities: | ||||||
Interest rate swaps | 2,136 | |||||
Fair Value | Recurring Basis | Level 3 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 0 | 0 | ||||
Equity securities | 0 | 0 | ||||
Mortgage servicing rights | 633 | 688 | ||||
Interest rate swaps | 0 | 0 | ||||
Financial liabilities: | ||||||
Interest rate swaps | 0 | |||||
Fair Value | Recurring Basis | Commercial mortgage backed securities ("MBS") and collateralized mortgage obligations ("CMOs") | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 298,906 | 340,736 | ||||
Fair Value | Recurring Basis | Commercial mortgage backed securities ("MBS") and collateralized mortgage obligations ("CMOs") | Level 1 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 0 | 0 | ||||
Fair Value | Recurring Basis | Commercial mortgage backed securities ("MBS") and collateralized mortgage obligations ("CMOs") | Level 2 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 298,906 | 340,736 | ||||
Fair Value | Recurring Basis | Commercial mortgage backed securities ("MBS") and collateralized mortgage obligations ("CMOs") | Level 3 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 0 | 0 | ||||
Fair Value | Recurring Basis | Residential MBS | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 178,125 | 199,384 | ||||
Fair Value | Recurring Basis | Residential MBS | Level 1 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 0 | 0 | ||||
Fair Value | Recurring Basis | Residential MBS | Level 2 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 178,125 | 199,384 | ||||
Fair Value | Recurring Basis | Residential MBS | Level 3 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 0 | 0 | ||||
Fair Value | Recurring Basis | Agency bonds | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 37,008 | 42,630 | ||||
Fair Value | Recurring Basis | Agency bonds | Level 1 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 0 | 0 | ||||
Fair Value | Recurring Basis | Agency bonds | Level 2 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 37,008 | 42,630 | ||||
Fair Value | Recurring Basis | Agency bonds | Level 3 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 0 | 0 | ||||
Fair Value | Recurring Basis | Other ABS | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 21,885 | 24,598 | ||||
Fair Value | Recurring Basis | Other ABS | Level 1 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 0 | 0 | ||||
Fair Value | Recurring Basis | Other ABS | Level 2 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | 21,885 | 24,598 | ||||
Fair Value | Recurring Basis | Other ABS | Level 3 | ||||||
Financial Assets: | ||||||
Available for sale debt securities, at fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Level 3 | Single family residential | Nonrecurring Basis | Collateral Dependent Loans | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Loans receivable, net | $ 463 |
VARIABLE INTEREST ENTITIES (V_2
VARIABLE INTEREST ENTITIES (VIE) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | |||
Liabilities | $ 7,438,908 | $ 7,292,096 | |
Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Maximum loss exposure as a percentage of original principal amount | 10% | ||
Maximum loss exposure | $ 62,600 | ||
Liabilities | $ 247 | $ 439 | |
Variable Interest Entity, Not Primary Beneficiary | Cumulative Effect, Period of Adoption, Adjustment | |||
Variable Interest Entity [Line Items] | |||
Liabilities | $ (119) |
LOAN SALE AND SECURITIZATION _3
LOAN SALE AND SECURITIZATION ACTIVITIES - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | Sep. 27, 2017 | |
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | |||
Minimum net worth | $ 2,000 | ||
Actual net worth | 834,500 | ||
Tier 1 Leverage Ratio | 875,400 | ||
Goodwill | 3,297 | $ 3,297 | |
Accumulated other comprehensive loss, net of taxes | $ (44,202) | $ (34,163) | |
Multifamily Loan Securitization | |||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | |||
Maximum loss exposure as a percentage of original principal amount | 10% | ||
Loans receivable | Multifamily residential | Permanent mortgages | |||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | |||
Amount of loans sold | $ 626,000 |
LOAN SALE AND SECURITIZATION _4
LOAN SALE AND SECURITIZATION ACTIVITIES - Cash Flow from Sale of Loans (Details) - 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] | ||||
Proceeds from loan sales | $ 0 | $ 0 | $ 0 | $ 0 |
Servicing fees | $ 60 | $ 75 | $ 187 | $ 261 |
LOAN SALE AND SECURITIZATION _5
LOAN SALE AND SECURITIZATION ACTIVITIES - Loans Transferred Through Loans or Securitization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Single family residential | |||
Derecognized Assets, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||
Principal balance of loans | $ 10,717 | $ 11,000 | |
Loans 90+ days past due | 0 | 0 | |
Charge-offs, net | $ 0 | 0 | |
Multifamily residential | |||
Derecognized Assets, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | |||
Principal balance of loans | 99,663 | 106,981 | |
Loans 90+ days past due | 0 | $ 0 | |
Charge-offs, net | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) | Sep. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Operating Leased Assets [Line Items] | |||
Cash balances held at other institutions that exceed FDIC insured limits | $ 800,000 | $ 25,000,000 | |
Federal Funds | Line of Credit | |||
Operating Leased Assets [Line Items] | |||
Maximum borrowing capacity | 25,000,000 | 50,000,000 | |
Commitments to Extend Credit | |||
Operating Leased Assets [Line Items] | |||
Real estate loan funding commitments | 21,000,000 | 37,700,000 | |
Unfunded Loan Commitment | |||
Operating Leased Assets [Line Items] | |||
Reserve recorded on real estate loan funding commitments | $ 190,000 | $ 125,000 | |
Unfunded Loan Commitment | Cumulative Effect, Period of Adoption, Adjustment | |||
Operating Leased Assets [Line Items] | |||
Reserve recorded on real estate loan funding commitments | $ 330,000 |