CENTRAL PACIFIC FINANCIAL CORP, 10-Q filed on 4/28/2022
Quarterly Report
v3.22.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2022
Apr. 19, 2022
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2022  
Document Transition Report false  
Entity File Number 001-31567  
Entity Registrant Name CENTRAL PACIFIC FINANCIAL CORP  
Entity Incorporation, State or Country Code HI  
Entity Tax Identification Number 99-0212597  
Entity Address, Address Line One 220 South King Street  
Entity Address, City or Town Honolulu  
Entity Address, State or Province HI  
Entity Address, Postal Zip Code 96813  
City Area Code 808  
Local Phone Number 544-0500  
Title of 12(b) Security Common stock, No Par Value  
Trading Symbol CPF  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   27,551,800
Entity Central Index Key 0000701347  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q1  
Amendment Flag false  
v3.22.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Assets    
Cash and due from banks $ 83,947 $ 81,506
Interest-bearing deposits in other banks 118,183 247,401
Investment securities:    
Available-for-sale debt securities, at fair value 1,199,482 1,631,699
Held-to-maturity debt securities, at amortized cost; fair value of: 329,503 at March 31, 2022 and none at December 31, 2021 329,507 0
Total investment securities 1,528,989 1,631,699
Loans held for sale 4,677 3,531
Loans 5,174,837 5,101,649
Allowance for credit losses (64,754) (68,097)
Loans, net of allowance for credit losses 5,110,083 5,033,552
Premises and equipment, net 79,455 80,354
Accrued interest receivable 16,423 16,709
Investment in unconsolidated entities 31,092 29,679
Mortgage servicing rights 9,480 9,738
Bank-owned life insurance 167,407 169,148
Federal Home Loan Bank stock 8,943 7,964
Right-of-use lease asset 38,435 39,441
Other assets 101,705 68,367
Total assets 7,298,819 7,419,089
Deposits:    
Noninterest-bearing demand 2,269,562 2,291,246
Interest-bearing demand 1,433,284 1,415,277
Savings and money market 2,197,647 2,225,903
Time 698,538 706,732
Total deposits 6,599,031 6,639,158
Long-term debt 105,677 105,616
Lease liability 39,610 40,731
Other liabilities 68,123 75,317
Total liabilities 6,812,441 6,860,822
Equity    
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at March 31, 2022 and December 31, 2021 0 0
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 27,584,929 at March 31, 2022 and 27,714,071 at December 31, 2021 421,153 426,091
Additional paid-in capital 98,270 98,073
Retained earnings 54,252 42,015
Accumulated other comprehensive loss (87,347) (7,960)
Total shareholders' equity 486,328 558,219
Non-controlling interest 50 48
Total equity 486,378 558,267
Total liabilities and equity $ 7,298,819 $ 7,419,089
v3.22.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0 $ 0
Preferred stock, authorized shares 1,000,000 1,000,000
Preferred stock, issued shares 0 0
Preferred stock, outstanding shares 0 0
Common stock, par value (in dollars per share) $ 0 $ 0
Common stock, authorized shares 185,000,000 185,000,000
Common stock, issued shares 27,584,929 27,714,071
Common stock, outstanding shares 27,584,929 27,714,071
Held to maturity, fair value $ 329,503 $ 0
v3.22.1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Interest income:    
Interest and fees on loans $ 44,949 $ 46,074
Interest and dividends on investment securities:    
Taxable interest 7,134 5,106
Tax-exempt interest 651 514
Dividends 21 18
Interest on deposits in other banks 72 10
Dividends on Federal Home Loan Bank stock 59 59
Total interest income 52,886 51,781
Interest on deposits:    
Demand 112 86
Savings and money market 329 274
Time 469 588
Interest on short-term borrowings 0 2
Interest on long-term debt 1,041 1,027
Total interest expense 1,951 1,977
Net interest income 50,935 49,804
(Credit) provision for credit losses (3,195) (821)
Net interest income after provision for credit losses 54,130 50,625
Other operating income:    
Mortgage banking income 1,172 2,970
Service charges on deposit accounts 1,861 1,478
Other service charges and fees 4,488 3,790
Income from fiduciary activities 1,154 1,231
Income from bank-owned life insurance 539 797
Other 337 445
Total other operating income 9,551 10,711
Other operating expense:    
Salaries and employee benefits 20,942 19,827
Net occupancy 3,774 3,764
Equipment 1,082 1,000
Communication 806 769
Legal and professional services 2,626 2,377
Computer software 3,082 3,783
Advertising 1,150 1,658
Other 4,743 4,668
Total other operating expense 38,205 37,846
Income before income taxes 25,476 23,490
Income tax expense 6,038 5,452
Net income $ 19,438 $ 18,038
Per common share data:    
Basic earnings per common share (in dollars per share) $ 0.70 $ 0.64
Diluted earnings per common share (in dollars per share) 0.70 0.64
Cash dividends declared (in dollars per share) $ 0.26 $ 0.23
Shares Used in Computation [Abstract]    
Basic shares (in shares) 27,591,390 28,108,648
Diluted shares (in shares) 27,874,924 28,313,014
v3.22.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Statement of Comprehensive Income [Abstract]    
Net income $ 19,438 $ 18,038
Other comprehensive (loss) income, net of tax:    
Net change in unrealized loss on investment securities (79,450) (17,301)
Net change in unrealized loss on derivatives (37) 0
Defined benefit plans 100 184
Total other comprehensive loss, net of tax (79,387) (17,117)
Comprehensive (loss) income $ (59,949) $ 921
v3.22.1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($)
$ in Thousands
Total
Common Shares Outstanding
Common Stock
Additional Paid-In Capital
Retained Earnings
Accum. Other Comp. Loss
Non- Controlling Interest
Balance (in shares) at Dec. 31, 2020   28,183,340          
Balance at beginning of period at Dec. 31, 2020 $ 546,733   $ 442,635 $ 94,842 $ (10,920) $ 20,128 $ 48
Increase (Decrease) in Shareholders' Equity              
Net income 18,038       18,038    
Other comprehensive loss (17,117)         (17,117)  
Cash dividends declared (6,490)       (6,490)    
Share-based compensation (in shares)   99,190          
Share-based compensation 1,749   870 879      
Balance (in shares) at Mar. 31, 2021   28,282,530          
Balance at end of period at Mar. 31, 2021 $ 542,913   443,505 95,721 628 3,011 48
Balance (in shares) at Dec. 31, 2021 27,714,071 27,714,071          
Balance at beginning of period at Dec. 31, 2021 $ 558,267   426,091 98,073 42,015 (7,960) 48
Increase (Decrease) in Shareholders' Equity              
Net income 19,438       19,438    
Other comprehensive loss (79,387)         (79,387)  
Cash dividends declared (7,201)       (7,201)    
Common stock sold by directors' deferred compensation plan (net shares) 1,114   1,114        
Shares of common stock repurchased and other related costs (in shares)   (234,981)          
Common stock repurchased and retired and other related costs (6,731)   (6,731)        
Share-based compensation (in shares)   105,839          
Share-based compensation 876   679 197      
Non-controlling interest $ 2           2
Balance (in shares) at Mar. 31, 2022 27,584,929 27,584,929          
Balance at end of period at Mar. 31, 2022 $ 486,378   $ 421,153 $ 98,270 $ 54,252 $ (87,347) $ 50
v3.22.1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical)
 3 Months Ended
Mar. 31, 2022
$ / shares
shares
Cash dividends declared (in dollars per share) | $ / shares $ 0.26
Common stock sold by directors' deferred compensation plan, net shares (in shares) | shares 40,670
v3.22.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Cash flows from operating activities:    
Net income $ 19,438 $ 18,038
Adjustments to reconcile net income to net cash provided by operating activities:    
(Credit) provision for credit losses (3,195) (821)
Depreciation and amortization of premises and equipment 1,756 1,608
Non-cash lease expense (benefit) 702 (28)
Cash flows from operating leases (1,506) (1,599)
Loss on disposal of fixed assets 1 32
Amortization of mortgage servicing rights 534 1,232
Net amortization and accretion of premium/discounts on investment securities 1,401 2,391
Share-based compensation expense 197 879
Net gain on sales of residential mortgage loans (769) (2,439)
Proceeds from sales of loans held for sale 31,372 57,439
Originations of loans held for sale (31,749) (43,547)
Equity in earnings of unconsolidated entities (90) (107)
Distributions from unconsolidated entities 66 181
Net decrease (increase) in cash surrender value of bank-owned life insurance 1,741 (898)
Deferred income taxes (26,297) (6,687)
Net tax benefit from share-based compensation 73 131
Net change in other assets and liabilities 15,735 (6,126)
Net cash provided by operating activities 9,410 19,679
Cash flows from investing activities:    
Proceeds from maturities of and calls on investment securities available-for-sale 59,471 80,015
Purchases of investment securities available-for-sale (66,610) (139,785)
Net loan repayments (originations) 6,377 (138,572)
Purchases of loan portfolios (79,713) (36,059)
Purchases of bank-owned life insurance 0 (3,550)
Proceeds from bank-owned life insurance 0 499
Net purchases of premises, equipment and land (858) (8,961)
Contributions to unconsolidated entities (495) (2,736)
Net proceeds from (purchases) redemption of FHLB stock (979) 82
Net cash used in investing activities (82,807) (249,067)
Cash flows from financing activities:    
Net (decrease) increase in deposits (40,127) 412,832
Net decrease in short-term borrowings 0 (22,000)
Cash dividends paid on common stock (7,201) (6,490)
Repurchases of common stock and other related costs (6,731) 0
Net proceeds from issuance of common stock and stock option exercises 679 870
Net cash (used in) provided by financing activities (53,380) 385,212
Net (decrease) increase in cash and cash equivalents (126,777) 155,824
Cash and cash equivalents at beginning of period 328,907 104,067
Cash and cash equivalents at end of period 202,130 259,891
Cash paid during the period for:    
Interest 1,266 1,681
Income taxes 3,283 2,445
Supplemental disclosure of non-cash information:    
Net change in common stock held by directors’ deferred compensation plan (1,114) 0
Net transfer of investment securities available-for-sale to held-to-maturity $ 329,503 $ 0
v3.22.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 3 Months Ended
Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited consolidated financial statements of Central Pacific Financial Corp. and Subsidiaries (herein referred to as the "Company," "we," "us," or "our") have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.

These interim condensed consolidated financial statements and notes should be read in conjunction with the Company's consolidated financial statements and notes thereto filed on Form 10-K for the fiscal year ended December 31, 2021. In the opinion of management, all adjustments necessary for a fair presentation have been made and include all normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

In January 2020, we acquired a 50% ownership interest in a mortgage loan origination and brokerage company, Oahu HomeLoans, LLC. The bank concluded that the investment meets the consolidation requirements under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, "Consolidation." The bank concluded that the entity meets the definition of a variable interest entity and that we are the primary beneficiary of the variable interest entity. Accordingly, the investment has been consolidated into our financial statements. In March 2022, Oahu HomeLoans, LLC was terminated.

We have 50% ownership interests in three other mortgage loan origination and brokerage companies which are accounted for using the equity method and are included in investment in unconsolidated entities: Gentry HomeLoans, LLC, Haseko HomeLoans, LLC and Island Pacific HomeLoans, LLC.

We have low income housing tax credit partnership investments that are accounted for under the proportional amortization method and are included in investment in unconsolidated entities.

During the first quarter of 2022, the Company invested $2.0 million in Swell Financial, Inc. ("Swell"), which included $1.5 million in other intangible assets and services provided in exchange for Swell common stock and $0.5 million in cash in exchange for Swell preferred stock. Swell intends to launch an integrated checking and line-of-credit account in the summer of 2022, with Central Pacific Bank serving as the bank sponsor. The Company does not have the ability to exercise significant influence over Swell and the investment does not have a readily determinable fair value. As a result, the Company determined that the cost method of accounting for the investment was appropriate. The investment is included in investments in unconsolidated entities.

During the second quarter of 2021, the Company committed $2.0 million to the JAM FINTOP Banktech Fund, L.P., an investment fund designed to help develop and accelerate technology adoption at community banks across the United States. The investment is accounted for under the cost method and is also included in investment in unconsolidated entities.

We also have other non-controlling equity investments in affiliates that are accounted for under the cost method and are included in investment in unconsolidated entities.

Our investments in unconsolidated entities accounted for under the equity, proportional amortization and cost methods were $0.2 million, $25.3 million and $5.6 million, respectively, at March 31, 2022 and $0.2 million, $25.9 million and $3.6 million, respectively, at December 31, 2021. Our policy for determining impairment of these investments includes an evaluation of whether a loss in value of an investment is other than temporary. Evidence of a loss in value includes absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment. We perform impairment tests whenever indicators of impairment are present. If
the value of an investment declines and it is considered other than temporary, the investment is written down to its respective fair value in the period in which this determination is made.

The Company sponsors the Central Pacific Bank Foundation, which is not consolidated in the Company's financial statements.

Investment Securities

Investments in debt securities are designated as trading, available-for-sale ("AFS"), or held-to-maturity ("HTM"). Investments in debt securities are designated as HTM only if we have the positive intent and ability to hold these securities to maturity. HTM securities are reported at amortized cost in the consolidated balance sheets. Trading securities are reported at fair value, with changes in fair value included in net income. Debt securities not classified as HTM or trading are classified as AFS and are reported at fair value, with net unrealized gains and losses, net of applicable taxes, excluded from net income and included in accumulated other comprehensive income (loss) ("AOCI").

Transfers of investment securities from AFS to HTM are accounted for at fair value as of the date of the transfer. The difference between the fair value and the par value at the date of transfer is considered a premium or discount and is accounted for accordingly. Any unrealized gain or loss at the date of the transfer is reported in AOCI, and is amortized over the remaining life of the security as an adjustment of yield in a manner consistent with the amortization of any premium or discount, and will offset or mitigate the effect on interest income of the amortization of the premium or discount for that HTM security.

Equity securities with readily determinable fair values are carried at fair value, with changes in fair value included in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment.
The Company classifies its investment securities portfolio into the following major security types: mortgage-backed securities ("MBS"), other debt securities and equity securities. The Company’s MBS portfolio is comprised primarily of residential MBS issued by United States of America ("U.S.") government entities and agencies. These securities are either explicitly or implicitly guaranteed by an agency of the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The remainder of the MBS portfolio are commercial MBS issued by U.S government entities and agencies (which there is no minimum credit rating), non-agency residential MBS (which shall meet a minimum credit rating of AAA) and non-agency commercial MBS (which shall meet a minimum credit rating of BBB and meet minimum internal credit guidelines).

The Company’s other debt securities portfolio is comprised of obligations issued by U.S. government entities and agencies, obligations issued by states and political subdivisions (which shall meet a minimum credit rating of BBB), and corporate bonds (which shall meet a minimum credit rating of BBB-).

Interest income on investment securities includes amortization of premiums and accretion of discounts. We amortize premiums and accrete discounts using the effective interest method over the life of the respective security instrument. Gains and losses on the sale of investment securities are recorded on the trade date and determined using the specific identification method.

A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on non-accrual status is reversed against current period interest income. There were no investment securities on nonaccrual status as of March 31, 2022 and the Company did not reverse any accrued interest against interest income during the three months ended March 31, 2022.

Allowance for Credit Losses (“ACL”) for AFS Debt Securities

AFS debt securities in an unrealized loss position are evaluated for impairment at least quarterly. For AFS debt securities in an unrealized loss position, the Company first assesses whether or not it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the investment security’s amortized cost basis is written down to fair value through net income.

For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In conducting this assessment for debt securities in an unrealized loss position, management evaluates the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the investment security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost
basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in AOCI.

Changes in the ACL are recorded as a provision for (or reversal of) credit losses. Losses are charged against the ACL when management believes the uncollectibility of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

As of March 31, 2022, the declines in market values of our AFS debt securities were primarily attributable to changes in interest rates and volatility in the financial markets. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, we do not believe a credit loss exists and an ACL was not recorded.

The Company has made a policy election to exclude accrued interest receivable from the amortized cost basis of debt securities and report accrued interest receivable together with accrued interest on loans in the consolidated balance sheets. Accrued interest receivable on AFS debt securities totaled $3.6 million and $4.6 million as of March 31, 2022 and December 31, 2021, respectively. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses.

ACL for HTM Debt Securities

Management measures expected credit losses on HTM debt securities on a collective basis by major security type. For pools of such securities with common risk characteristics, the historical lifetime probability of default and severity of loss in the event of default is derived or obtained from external sources. Expected credit losses for these securities are estimated using a loss rate methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts.

Expected credit loss on each security in the HTM portfolio that do not share common risk characteristics with any of the pools of debt securities is individually measured based on net realizable value, or the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the recorded amortized cost basis of the security.

Securities in the HTM portfolio are issued by or contain collateral issued by U.S. government sponsored enterprises ("GSEs") and carry implicit guarantees from the U.S. government. Due to the implicit guarantee and the long history of no credit losses, no allowance for credit losses was recorded for these securities.

Accrued interest on HTM debt securities is reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses.

Accrued interest receivable on HTM debt securities totaled $0.6 million as of March 31, 2022. The Company did not have any accrued interest receivable on HTM debt securities as of December 31, 2021.

Federal Home Loan Bank Stock

We are a member of the Federal Home Loan Bank of Des Moines (the "FHLB"). The bank is required to obtain and hold a specific number of shares of capital stock of the FHLB equal to the sum of a membership investment requirement and an activity-based investment requirement. The securities are reported at cost and are presented separately in the consolidated balance sheets.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost, net of the ACL. Amortized cost is the unpaid principal amount outstanding, net of unamortized purchase premiums and discounts, unamortized deferred loan origination fees and costs and cumulative principal charge-offs. Purchase premiums and discounts are generally amortized into interest income over the contractual terms of the underlying loans using the effective interest method. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the life of the related loan as an adjustment to yield and are typically amortized using the interest method over the contractual term of the loan, adjusted for actual prepayments. Deferred loan fees and costs on loans paid in full are recognized as a component of interest income on loans.

Interest income on loans is accrued at the contractual rate of interest on the unpaid principal balance. Accrued interest receivable on loans totaled $12.2 million and $12.1 million at March 31, 2022 and December 31, 2021, respectively, and is reported together with accrued interest on HTM and AFS debt securities on the consolidated balance sheets. Upon adoption of ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,”
the Company made the accounting policy election to not measure an estimate of credit losses on accrued interest receivable as the Company writes off any uncollectible accrued interest receivable in a timely manner. The Company believes modified loans due to the novel coronavirus disease ("COVID-19") pandemic have distinct risk characteristics that cause them to be monitored and assessed for credit risk differently than their unmodified counterparts. Thus, in the third quarter of 2020, the Company elected to measure a reserve on the accrued interest receivable for loans on active payment forbearance or deferral of $0.2 million, with the offset recorded to provision for credit losses. Due to the significant decline in loans on active forbearance or deferral, the Company reversed the $0.2 million reserve during the second quarter of 2021 and no longer has a reserve on accrued interest receivable as of March 31, 2022.

Nonaccrual Loans

The Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. Commercial, scored small business, automobile and other consumer loans are generally placed on nonaccrual status when principal and/or interest payments are 90 days past due, or earlier should management determine that the borrowers will be unable to meet contractual principal and/or interest obligations, unless the loans are well-secured and in the process of collection. Residential mortgage and home equity loans, are generally placed on nonaccrual status when principal and/or interest payments are 120 days past due, or earlier should management determine that the borrowers will be unable to meet contractual principal and/or interest obligations, unless the loans are well-secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income should management determine that the collectability of such accrued interest is doubtful. All subsequent receipts are applied to principal outstanding and no interest income is recognized unless the financial condition and payment record of the borrowers warrant such recognition and the loan is restored to accrual status. A nonaccrual loan may be restored to an accrual basis when principal and interest payments are current for a predetermined period, normally at least six months, and full payment of principal and interest is reasonably assured.

Troubled Debt Restructuring (“TDR”)

A loan is accounted for and reported as a TDR when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) the Company grants a concession to the borrower experiencing financial difficulty that it would not otherwise consider for a borrower or transaction with similar credit risk characteristics. A restructuring that results in only an insignificant delay in payment is not considered a concession. A delay may be considered insignificant if the payments subject to the delay are insignificant relative to the unpaid principal or collateral value and the contractual amount due, or the delay in timing of the restructured payment period is insignificant relative to the frequency of payments, the debt’s original contractual maturity or original expected duration.

TDRs that are performing and on accrual status as of the date of the modification remain on accrual status. TDRs that are nonperforming as of the date of modification generally remain as nonaccrual until the prospect of future payments in accordance with the modified loan agreement is reasonably assured, generally demonstrated when the borrower maintains compliance with the restructured terms for a predetermined period, normally at least six months. TDRs with temporary below-market concessions remain designated as a TDR regardless of the accrual or performance status until the loan is paid off.

Expected credit losses are estimated on a collective (pool) basis when they share similar risk characteristics. If a TDR financial asset shares similar risk characteristics with other financial assets, it is evaluated with those other financial assets on a collective basis. If it does not share similar risk characteristics with other financial assets, it is evaluated individually. The Company’s ACL reflects all effects of a TDR when an individual asset is specifically identified as a reasonably expected TDR. The Company has determined that a TDR is reasonably expected no later than the point when the lender concludes that modification is the best course of action and it is at least reasonably possible that the troubled borrower will accept some form of concession from the lender to avoid a default. Reasonably expected TDRs and executed TDRs are evaluated to determine the required ACL using the same method as all other loans held for investment, except when the value of a concession cannot be measured using a method other than the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the ACL is determined by discounting the expected future cash flows at the original interest rate of the loan. Based on the underlying risk characteristics, TDRs performing in accordance with their modified contractual terms may be collectively evaluated.

In April 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued a revised interagency statement encouraging financial institutions to work with customers affected by the COVID-19 pandemic and providing additional information regarding loan modifications. The revised interagency statement clarifies the interaction between the interagency statement issued on March 22, 2020 and the temporary relief provided by Section 4013 of the Coronavirus Aid, Relief and Economic Security ("CARES") Act. Section 4013 allows financial institutions to suspend the requirements to classify certain loan modifications as TDRs. The revised statement also provides supervisory interpretations on past due and nonaccrual regulatory reporting of loan modification
programs and regulatory capital. Section 4013 and the interagency guidance were applied by the Company to loan modifications made related to the COVID-19 pandemic as eligible and appropriate. The application of the guidance reduced the number of TDRs that were reported. In December 2020, the Consolidated Appropriations Act, 2021 was signed into law. Section 541 of this legislation, “Extension of Temporary Relief From Troubled Debt Restructurings and Insurer Clarification,” extended Section 4013 of the CARES Act to the earlier of January 1, 2022 or 60 days after the termination of the national emergency declared relating to COVID-19. This relief ended on January 1, 2022.

Future TDRs are indeterminable and will depend on future developments, which are highly uncertain and cannot be predicted, including the economic recovery, market volatility and other actions taken by governmental authorities and other third parties as a result of the pandemic.

ACL for Loans

Under the current expected credit loss methodology, the ACL for loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Our policy is to charge off a loan in the period in which the loan is deemed to be uncollectible and all interest previously accrued but not collected is reversed against current period interest income. We consider a loan to be uncollectible when it is probable that a loss has been incurred and the Company can make a reasonable estimate of the loss. In these instances, the likelihood of and/or timeframe for recovery of the amount due is uncertain, weak, or protracted. Subsequent receipts, if any, are credited first to the remaining principal, then to the ACL for loans as recoveries, and finally to unaccrued interest.

The ACL for loans represents management's estimate of all expected credit losses over the expected life of our existing loan portfolio. Management estimates the ACL balance using relevant available information about the collectability of cash flows, from internal and external sources, including historical information relating to past events, current conditions, and reasonable and supportable forecasts of future economic conditions. When the Company is unable to forecast future economic events, management may revert to historical information.

The Company's methodologies incorporate a reasonable and supportable forecast period of one year and revert to historical loss information on a straight-line basis over a one year reversion period.

The Company maintains an ACL at an appropriate level as of a given balance sheet date to absorb management’s best estimate of expected life of loan credit losses.

Historical credit loss experience provides the basis for the Company’s expected credit loss estimate. Adjustments to historical loss information may be made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated.

The ACL methodology may also consider other adjustments to address changes in conditions, trends, and circumstances such as local industry changes that could have a significant impact on the risk profile of the loan portfolio and provide for adjustments that may not be reflected and/or captured in the historical loss data. These factors include: lending policies, imprecision in forecasting future economic conditions, loan profile, lending staff, problem loan trends, loan review, collateral, credit concentration and other internal and external factors.

The Company uses the Moody’s Analytics Baseline forecast service for its economic forecast assumption. The Moody’s Analytics Baseline forecast includes both National and Hawaii specific economic indicators. The Moody’s Analytics forecast service is widely used in the industry and is reasonable and supportable. It is updated at least monthly and includes a variety of upside and downside economic scenarios from the Baseline. Generally the Company will use the most recent Baseline forecast from Moody’s as of the balance sheet date. During times of economic and market volatility or instability, the Company may include a qualitative factor for forecast imprecision that factors in other potential economic scenarios available by Moody’s Analytics or may apply overrides to its statistical models to enhance the reasonableness of its loss estimates.

The ACL is measured on a collective or pool basis when similar risk characteristics exist. The Company segments its portfolio generally by Federal Financial Institutions Examination Council ("FFIEC") Call Report codes. Loan pools are further segmented by risk utilizing risk ratings or bands of payment delinquency (including TDR or non-accrual status), depending on what is most appropriate for each segment. Additional sub-segmentation may be utilized to identify groups of loans with unique risk characteristics relative to the rest of the portfolio.

The Company relies on a third-party platform which offers multiple methodologies to measure historical life-of-loan losses. The Company has also developed statistical models internally to incorporate future economic conditions and forecast expected credit losses based on various macro-economic indicators such as unemployment and income levels.
The Company has identified the following portfolio segments to measure the allowance for credit losses:
Loan SegmentHistorical Lifetime Loss MethodHistorical
Lookback
Period		Economic
Forecast
Length		Reversion Method
ConstructionProbability of Default/Loss Given Default ("PD/LGD")2008-PresentOne YearOne Year (straight-line basis)
Commercial real estatePD/LGD2008-Present
Multi-family mortgagePD/LGD2008-Present
Commercial, financial and agriculturalPD/LGD2008-Present
Home equity lines of creditLoss-Rate Migration2008-Present
Residential mortgageLoss-Rate Migration2008-Present
Consumer - other revolvingLoss-Rate Migration2008-Present
Consumer - non-revolvingLoss-Rate Migration2008-Present
Purchased Mainland portfolios (Dealer, Other consumer)Weighted-Average Remaining Maturity ("WARM")2008-Present

Below is a description and the risk characteristics of each segment:

Construction loans

Construction loans include both residential and commercial development projects. Each construction project is evaluated for economic viability and construction loans pose higher credit risks than typical secured loans. Financial strength of the borrower, completion risk (the risk that the project will not be completed on time and within budget) and geographic location are the predominant risk characteristics of this segment.

Commercial real estate loans

Commercial real estate loans are secured by commercial properties. The predominant risk characteristic of this segment is operating risk, which is the risk that the borrower will be unable to generate sufficient cash flows from the operation of the property. Interest rate conditions and the commercial real estate market through economic cycles also impact risk levels.

Multi-family mortgage loans

Multi-family mortgage loans can comprise multi-building properties with extensive amenities to a single building with no amenities. The primary risk characteristic of this segment is operating risk or the ability to generate sufficient rental cash flows from the operation of the property within the owner’s strategy and resources.

Commercial, financial and agricultural loans

Loans in this category consist primarily of term loans and lines of credit to small and middle-market businesses and professionals. The predominant risk characteristics of this segment are the cash flows of the business we lend to, global cash flows including guarantor liquidity, as well as economic and market conditions. The borrower’s business is typically regarded as the principal source of repayment, though our underwriting policy and practice generally requires secondary sources of support or collateral to mitigate risk.

Paycheck Protection Program (“PPP”) loans are also in this category and are considered lower risk as they are guaranteed by the Small Business Administration (“SBA”) and may be forgivable in whole or in part in accordance with the requirements of the PPP.

Home equity lines of credit

Home equity lines of credit include fixed or floating interest rate loans and are primarily secured by single family owner-occupied primary residences in Hawaii. They are underwritten based on a minimum FICO score, maximum debt-to-income ratio, and maximum combined loan-to-value ratio. Home equity lines of credit are monitored based on credit score, delinquency, end of draw period and maturity.
Residential mortgage loans

Residential mortgage loans include fixed-rate and adjustable-rate loans secured by single family owner-occupied primary residences in Hawaii. Economic conditions such as unemployment levels, future changes in interest rates and other market factors impact the level of credit risk inherent in the portfolio.

Consumer loans - other revolving

This segment consists of consumer unsecured lines of credit. Its predominant risk characteristics relate to current and projected economic conditions as well as employment and income levels attributed to the borrower.

Consumer loans - non-revolving

This segment consists of consumer non-revolving (term) loans, including auto dealer loans. Its predominant risk characteristics relate to current and projected economic conditions as well as employment and income levels attributed to the borrower.

Purchased consumer portfolios

Credit risk for purchased consumer loans is managed on a pooled basis. The predominant risk characteristics of purchased consumer loans include current and projected economic conditions, employment and income levels, and the quality of purchased consumer loans.

Below is a description of the methodologies mentioned above:

Probability of Default/Loss Given Default ("PD/LGD")

The PD/LGD calculation is based on a cohort methodology whereby loans in the same cohort are tracked over time to identify defaults and corresponding losses. PD/LGD analysis requires a portfolio segmented into pools, and we elected to then further sub-segment by risk characteristics such as Risk Rating, TDR status and Nonaccrual status to measure losses accurately. PD measures the count or dollar amount of loans that defaulted in a given cohort. LGD measures the losses related to the loans that defaulted. Total expected loss rate is calculated using the formula 'PD times LGD'.

Loss-Rate Migration

Loss-rate migration analysis is a cohort-based approach that measures cumulative net charge-offs over a defined time-horizon to calculate a loss rate that will be applied to the loan pool. Loss-rate migration analysis requires the portfolio to be segmented into pools then further sub-segmented by risk characteristics such as days past due, delinquency counters, TDR status and Nonaccrual status to measure loss rates accurately. The key inputs to run a loss-rate migration analysis are the length and frequency of the migration period, the dates for the migration periods to start and the number of migration periods used for the analysis. For each migration period, the analysis will determine the outstanding balance in each segment and/or sub-segment at the start of each period. These loans will then be followed for the length of the migration period to identify the amount of associated charge-offs and recoveries. A loss rate for each migration period is calculated using the formula 'net charge-offs over the period divided by beginning loan balance'.

Weighted-Average Remaining Maturity ("WARM")

Under the WARM methodology, lifetime losses are calculated by determining the remaining life of the loan pool and then applying a loss rate which includes a forecast component over this remaining life. The methodology considers historical loss experience as well as a loss forecast expectation to estimate credit losses for the remaining balance of the loan pool. The calculated loss rate is applied to the contractual term (adjusted for prepayments) to determine the loan pool’s current expected credit losses.

Other

If a loan ceases to share similar risk characteristics with other loans in its segment, it will be moved to a different pool sharing similar risk characteristics. Loans that do not share risk characteristics are evaluated on an individual basis based on the fair value of the collateral or other approaches such as discounted cash flow (“DCF”) techniques. Loans evaluated individually are not included in the collective evaluation.
Determining the Term

Expected credit losses are estimated over the contractual term of the loans and are adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. If such renewal options or extensions are present, these options are evaluated in determining the contractual term.

Reserve for Off-Balance Sheet Credit Exposures

The Company maintains a separate and distinct reserve for off-balance-sheet credit exposures which is included in other liabilities on the Company’s consolidated balance sheets. The Company estimates the amount of expected losses by calculating a commitment usage factor for letters of credit, non-revolving lines of credit, and revolving lines of credit over the remaining life during which the Company is exposed to credit risk via a contractual obligation to extend credit.

Letters of credit are generally unlikely to advance since they are typically in place only to ensure various forms of performance of the borrowers. Many of the letters of credit are cash secured. Non-revolving lines of credit are determined to be likely to advance as these are typically construction lines. Meanwhile, the likelihood of revolving lines of credit advancing varies with each individual borrower. Therefore, the future usage of each line was estimated based on the average line utilization of the revolving line of credit portfolio as a whole.

The reserve for off-balance-sheet credit exposures also applies the loss factors for each loan type used in the ACL for loans methodology, which is based on historical losses, economic conditions and reasonable and supportable forecasts. The reserve for off-balance sheet credit exposures is recorded as a provision for credit losses on off-balance sheet credit exposures in the provision for credit losses.

Purchased Credit Deteriorated (“PCD”) Financial Assets

The Company has purchased financial assets, none of which were credit deteriorated since origination at the time of purchase. The Company does not purchase any financial assets that are greater than 30 days delinquent at the time of purchase.

PCD financial assets, if any, are recorded at the amount paid. An ACL for PCD financial assets will be determined using the same methodology as other financial assets. The initial ACL determined on a collective basis is allocated to individual financial assets. The sum of the financial asset’s purchase price and the ACL becomes its initial amortized cost. The difference between the initial amortized costs basis and the par value of the financial asset is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL are recorded through the provision for credit losses.
v3.22.1
RECENT ACCOUNTING PRONOUNCEMENTS
 3 Months Ended
Mar. 31, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]  
RECENT ACCOUNTING PRONOUNCEMENTS 2. RECENT ACCOUNTING PRONOUNCEMENTS
 
Accounting Standards Adopted in 2022

In May 2021, the FASB issued ASU No. 2021-04, "Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options". ASU 2021-04 addresses issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options. ASU 2021-04 is effective for fiscal years beginning after December 15, 2021 and interim periods within those fiscal years, with early adoption permitted. The Company adopted ASU 2021-04 effective January 1, 2022 and it did not have a material impact on our consolidated financial statements.

In July 2021, the FASB issued ASU No. 2021-05, "Leases (Topic 842), Lessors—Certain Leases with Variable Lease Payments". ASU 2021-05 updates guidance in Topic 842, to restore long-standing accounting practice for certain sales-type leases with variable payments. ASU 2021-05 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company adopted ASU 2021-05 effective January 1, 2022 and it did not have an impact on our consolidated financial statements as the Company does not have sale-type leases with variable payments.
Impact of Other Recently Issued Accounting Pronouncements on Future Filings

In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848)." This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. Entities can (1) elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can also (2) elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. Finally, entities can (3) make a one-time election to sell and/or reclassify held-to-maturity (“HTM”) debt securities that reference an interest rate affected by reference rate reform. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848)," which clarifies that all derivative instruments affected by the changes to interest rates used for discounting, margining or contract price alignment, regardless of whether they reference LIBOR or another rate expected to be discontinued as a result of reference rate reform, an entity may apply certain practical expedients in Topic 848. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company will elect optional expedients above for applicable contract modifications and hedge accounting for hedging relationships that meet the stated criteria.

In March 2022, the FASB issued ASU No. 2022-01, "Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method". ASU 2022-01 updates guidance in Topic 815, to expand the current last-of-layer method, which will allow multiple hedged layers to be designated for a single closed portfolio of financial assets or one or more beneficial interests secured by a portfolio of financial instruments on a prospective basis. ASU 2022-01 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is in the process of evaluating the provisions of this ASU and its effects on our consolidated financial statements, however we currently do not use the last-of-layer hedge accounting method.

In March 2022, the FASB issued ASU No. 2022-02, "Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures". ASU 2022-02 updates guidance in Topic 326, to eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty and to require entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is in the process of evaluating the provisions of this ASU and its effects on our consolidated financial statements and plans on making the adoption for the upcoming effective fiscal period.
v3.22.1
INVESTMENT SECURITIES
 3 Months Ended
Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES
3. INVESTMENT SECURITIES

The amortized cost, gross unrealized gains and losses, fair value and related ACL on HTM and AFS debt securities are as follows:
(dollars in thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value		ACL
March 31, 2022    
Held-to-maturity:
Debt securities:
States and political subdivisions$41,730 $— $(1)$41,729 $— 
Mortgage-backed securities:
Residential - U.S. Government-sponsored entities$287,777 $— $(3)$287,774 $— 
Total held-to-maturity securities$329,507 $— $(4)$329,503 $— 
Available-for-sale:    
Debt securities:    
States and political subdivisions$178,137 $487 $(14,443)$164,181 $— 
Corporate securities36,561 — (3,507)33,054 — 
U.S. Treasury obligations and direct obligations of U.S Government agencies33,275 120 (1,224)32,171 — 
Mortgage-backed securities:    
Residential - U.S. Government-sponsored entities926,988 220 (69,010)858,198 — 
Residential - Non-government agencies11,088 101 (281)10,908 — 
Commercial - U.S. Government-sponsored entities63,074 17 (3,733)59,358 — 
Commercial - Non-government agencies41,333 279 — 41,612 — 
Total available-for-sale securities$1,290,456 $1,224 $(92,198)$1,199,482 $— 

(dollars in thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value		ACL
December 31, 2021    
Available-for-sale:    
Debt securities:    
States and political subdivisions$235,521 $3,156 $(1,849)$236,828 $— 
Corporate securities41,687 24 (1,065)40,646 — 
U.S. Treasury obligations and direct obligations of U.S Government agencies35,833 69 (568)35,334 — 
Mortgage-backed securities: 
Residential - U.S. Government-sponsored entities1,213,910 4,899 (19,993)1,198,816 — 
Residential - Non-government agencies11,942 335 (64)12,213 — 
Commercial - U.S. Government-sponsored entities66,287 756 (1,194)65,849 — 
Commercial - Non-government agencies41,328 685 — 42,013 — 
Total available-for-sale securities$1,646,508 $9,924 $(24,733)$1,631,699 $— 

During the three months ended March 31, 2022, the Company transferred 41 investment securities that were classified as AFS to HTM. The investment securities had an amortized cost basis of $361.8 million and a fair market value of $329.5 million. On the date of transfer, these securities had a total net unrealized loss of $32.3 million. There was no impact to net income as a result of the reclassification. This transfer was to mitigate the potential future impact to capital through accumulated other comprehensive loss in consideration of a rising interest rate environment and the impact of rising rates on the market value of the investment securities. The Company believes that it maintains sufficient liquidity for future business needs and it has the positive intent and ability to hold these securities to maturity.
The amortized cost and estimated fair value of our HTM and AFS debt securities at March 31, 2022 are shown below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
 March 31, 2022
(dollars in thousands)Amortized CostFair Value
Held-to-maturity:  
Debt securities:
Due after ten years$41,730 $41,729 
Mortgage-backed securities:  
Residential - U.S. Government-sponsored entities287,777 287,774 
Total held-to-maturity securities$329,507 $329,503 
Available-for-sale:  
Debt securities:
Due in one year or less$5,614 $5,607 
Due after one year through five years20,250 20,432 
Due after five years through ten years83,032 78,488 
Due after ten years139,077 124,879 
Mortgage-backed securities:
Residential - U.S. Government-sponsored entities926,988 858,198 
Residential - Non-government agencies11,088 10,908 
Commercial - U.S. Government-sponsored entities63,074 59,358 
Commercial - Non-government agencies41,333 41,612 
Total available-for-sale securities$1,290,456 $1,199,482 

The Company did not sell any investment securities during the three months ended March 31, 2022 and 2021.

Investment securities with fair value of $408.3 million and $455.8 million at March 31, 2022 and December 31, 2021, respectively, were pledged to secure public funds on deposit and other short-term borrowings.

At March 31, 2022 and December 31, 2021, there were no holdings of investment securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders' equity.
There were a total of 273 and 153 debt securities which were in an unrealized loss position, without an ACL, at March 31, 2022 and December 31, 2021, respectively. The following tables summarize AFS debt securities which were in an unrealized loss position at March 31, 2022 and December 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position.
 Less Than 12 Months12 Months or LongerTotal
(dollars in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
March 31, 2022      
Debt securities:      
States and political subdivisions$163,055 $(12,432)$9,445 $(2,012)$172,500 $(14,444)
Corporate securities4,696 (325)28,358 (3,182)33,054 (3,507)
U.S. Treasury obligations and direct obligations of U.S Government agencies4,808 (54)19,215 (1,170)24,023 (1,224)
Mortgage-backed securities:      
Residential - U.S. Government-sponsored entities951,100 (50,975)170,132 (18,038)1,121,232 (69,013)
Residential - Non-government agencies6,336 (137)852 (144)7,188 (281)
Commercial - U.S. Government-sponsored entities36,944 (1,104)14,579 (2,629)51,523 (3,733)
Total temporarily impaired securities$1,166,939 $(65,027)$242,581 $(27,175)$1,409,520 $(92,202)

 Less Than 12 Months12 Months or LongerTotal
(dollars in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
December 31, 2021      
Debt securities:      
States and political subdivisions$79,360 $(1,252)$10,864 $(597)$90,224 $(1,849)
Corporate securities8,633 (235)21,960 (830)30,593 (1,065)
U.S. Treasury obligations and direct obligations of U.S Government agencies16,103 (415)10,891 (153)26,994 (568)
Mortgage-backed securities:      
Residential - U.S. Government-sponsored entities926,570 (15,883)114,747 (4,110)1,041,317 (19,993)
Residential - Non-government agencies— — 938 (64)938 (64)
Commercial - U.S. Government-sponsored entities6,313 (205)16,281 (989)22,594 (1,194)
Total temporarily impaired securities$1,036,979 $(17,990)$175,681 $(6,743)$1,212,660 $(24,733)

The Company has evaluated its AFS investment securities that are in an unrealized loss position and has determined that the unrealized losses on the Company's investment securities are unrelated to credit quality and are primarily attributable to changes in interest rates and volatility in the financial markets since purchase. Investment securities in an unrealized loss position are evaluated on at least a quarterly basis, and include evaluating the changes in the investment securities' ratings issued by rating agencies and changes in the financial condition of the issuer. For mortgage-related securities, delinquency and loss information with respect to the underlying collateral, changes in levels of subordination for the Company's particular position within the repayment structure, and remaining credit enhancement as compared to projected credit losses of the security are also evaluated. All of the investment securities in an unrealized loss position continue to be rated investment grade by one or more major rating agencies. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, the Company has not recorded an ACL and unrealized losses on these securities have not been recognized into income.

Visa Class B Common Stock

As of March 31, 2022, the Company owns 34,631 shares of Class B common stock of Visa, Inc. ("Visa"). These shares were received in 2008 as part of Visa's initial public offering ("IPO"). These shares are transferable only under limited circumstances until they can be converted into shares of the publicly traded Class A common stock. This conversion will not occur until the resolution of certain litigation, which is indemnified by Visa members. Since its IPO, Visa has funded a litigation reserve to settle these litigation claims. At its discretion, Visa may continue to increase the litigation reserve based upon a change in the
conversion ratio of each member bank’s restricted Class B common stock to unrestricted Class A common stock. Due to the existing transfer restriction and the uncertainty of the outcome of the Visa litigation, the Company has determined that the Visa Class B common stock does not have a readily determinable fair value and chooses to carry the shares on the Company's consolidated balance sheets at zero cost basis.
v3.22.1
LOANS AND CREDIT QUALITY
 3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
LOANS AND CREDIT QUALITY
4. LOANS AND CREDIT QUALITY
 
Loans, excluding loans held for sale, net of ACL under ASC 326 as of March 31, 2022 and December 31, 2021 consisted of the following:
(dollars in thousands)March 31, 2022December 31, 2021
Commercial, financial and agricultural:
Small Business Administration Paycheck Protection Program$45,938 $94,850 
Other544,732 530,383 
Real estate:
Construction123,767 123,351 
Residential mortgage1,873,405 1,875,200 
Home equity674,625 635,721 
Commercial mortgage1,245,423 1,222,138 
Consumer669,194 624,115 
Gross loans5,177,084 5,105,758 
Net deferred fees(2,247)(4,109)
Total loans, net of deferred fees and costs5,174,837 5,101,649 
Allowance for credit losses(64,754)(68,097)
Total loans, net of allowance for credit losses$5,110,083 $5,033,552 

There are different types of risk characteristics for the loans in each portfolio segment. The construction and real estate segment's predominant risk characteristics are the collateral and the geographic location of the property collateralizing the loan, as well as the operating cash flow for the commercial real estate properties. The commercial, financial and agricultural segment's predominant risk characteristics are the cash flows of the business we lend to, the global cash flows and liquidity of the guarantors of such losses, as well as economic and market conditions. The consumer segment's predominant risk characteristics are employment and income levels as they relate to the consumer.

The bank is a Small Business Administration ("SBA") approved lender and actively participated in assisting customers with loan applications for the SBA’s Paycheck Protection Program, or PPP, which was part of the CARES Act. PPP loans have a two or five-year term and earn interest at 1%. The SBA paid the originating bank a processing fee ranging from 1% to 5%, based on the size of the loan, which the Company is recognizing over the life of the loan.

The SBA began accepting submissions for the initial round of PPP loans on April 3, 2020. In April 2020, the Paycheck Protection Program and Health Care Enhancement Act added an additional round of funding for the PPP. In June 2020, the Paycheck Protection Program Flexibility Act of 2020 was enacted, which among other things, gave borrowers additional time and flexibility to use PPP loan proceeds. Through the end of the second round in August 2020, the Company funded over 7,200 PPP loans totaling $558.9 million and received gross processing fees of $21.2 million. In December 2020, the Consolidated Appropriations Act, 2021 was passed which among other things, included a third round of funding and a new simplified forgiveness procedure for PPP loans of $150,000 or less. During 2021, the Company funded over 4,600 loans totaling $320.9 million in the third round, which ended on May 31, 2021, and received additional gross processing fees of $18.4 million.

The Company received forgiveness payments from the SBA and paydowns from borrowers totaling over $846.8 million as of March 31, 2022. A total outstanding balance of $45.9 million and net deferred fees of $1.7 million remain as of March 31, 2022. Although the Company believes that the majority of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program, there could be risks and liabilities by the Company that cannot be determined at this time.

The Company did not transfer any loans to the held-for-sale category during the three months ended March 31, 2022 and 2021.

The Company did not sell any loans originally held for investment during the three months ended March 31, 2022 and 2021.
The Company has purchased loan portfolios, none of which were credit deteriorated since origination at the time of purchase.

The following table presents loans purchased by class for the periods presented:
(dollars in thousands)U.S. Mainland Consumer - UnsecuredU.S. Mainland Consumer - AutomobileTotal
Three Months Ended March 31, 2022
Purchases:
Outstanding balance$48,142 $34,024 $82,166 
(Discount) premium(4,367)1,914 (2,453)
Purchase price$43,775 $35,938 $79,713 
Three Months Ended March 31, 2021
Purchases:
Outstanding balance$22,534 $12,990 $35,524 
(Discount) premium(131)666 535 
Purchase price$22,403 $13,656 $36,059 

Collateral-Dependent Loans

In accordance with ASC 326, a loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table presents the amortized cost basis of collateral-dependent loans by class, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of March 31, 2022 and December 31, 2021:
(dollars in thousands)Secured by
1-4 Family
Residential
Properties		Secured by
Nonfarm
Nonresidential
Properties		Secured by
Real Estate
and Business
 Assets		TotalAllocated
ACL
March 31, 2022
Real estate:
Residential mortgage$6,665 $— $— $6,665 $— 
Home equity820 — — 820 — 
Total$7,485 $— $— $7,485 $— 

(dollars in thousands)Secured by
1-4 Family
Residential
Properties		Secured by
Nonfarm
Nonresidential
Properties		Secured by
Real Estate
and Business
 Assets		TotalAllocated
ACL
December 31, 2021
Real estate:
Residential mortgage$8,391 $— $— $8,391 $— 
Home equity786 — — 786 — 
Total$9,177 $— $— $9,177 $— 
Foreclosure Proceedings

The Company had $1.0 million and $0.7 million of residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure at March 31, 2022 and December 31, 2021, respectively.

The Company did not foreclose on any loans during the three months ended March 31, 2022 and 2021.

The Company did not sell any foreclosed properties during the three months ended March 31, 2022 and 2021.
Nonaccrual and Past Due Loans
 
For all loan types, the Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. The following tables present by class, the aging of the recorded investment in past due loans as of March 31, 2022 and December 31, 2021. The following tables also present the amortized cost of loans on nonaccrual status for which there was no related ACL under ASC 326 as of March 31, 2022 and December 31, 2021.
(dollars in thousands)Accruing
Loans
30 - 59 Days
Past Due		Accruing
Loans
60 - 89 Days
Past Due		Accruing
Loans
Greater 
Than
90 Days
Past Due		Nonaccrual
Loans		Total
Past Due
and
Nonaccrual		Loans and
Leases
Not
Past Due		TotalNonaccrual
Loans
With
No ACL
March 31, 2022       
Commercial, financial and agricultural:
SBA PPP$— $— $— $— $— $44,231 $44,231 $— 
Other710 323 592 293 1,918 542,498 544,416 — 
Real estate:  
Construction— — — — — 123,317 123,317 — 
Residential mortgage7,512 4,538 111 3,804 15,965 1,858,083 1,874,048 3,804 
Home equity135 138 — 820 1,093 675,233 676,326 820 
Commercial mortgage— — — — — 1,243,499 1,243,499 — 
Consumer3,113 555 621 419 4,708 664,292 669,000 — 
Total$11,470 $5,554 $1,324 $5,336 $23,684 $5,151,153 $5,174,837 $4,624 

(dollars in thousands)Accruing
Loans
30 - 59 Days
Past Due		Accruing
Loans
60 - 89 Days
Past Due		Accruing
Loans
Greater 
Than
90 Days
Past Due		Nonaccrual
Loans		Total
Past Due
and
Nonaccrual		Loans and
Leases
Not
Past Due		TotalNonaccrual
Loans
With
No ACL
December 31, 2021       
Commercial, financial and agricultural:
SBA PPP$— $— $— $— $— $91,327 $91,327 $— 
Other970 604 945 183 2,702 527,419 530,121 — 
Real estate:  
Construction638 — — — 638 122,229 122,867 — 
Residential mortgage5,315 — — 4,623 9,938 1,866,042 1,875,980 4,623 
Home equity234 — 44 786 1,064 636,185 637,249 786 
Commercial mortgage— — — — — 1,220,204 1,220,204 — 
Consumer2,444 712 374 289 3,819 620,082 623,901 — 
Total$9,601 $1,316 $1,363 $5,881 $18,161 $5,083,488 $5,101,649 $5,409 

In accordance with the "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised)" issued in April 2020, loans with deferrals granted because of COVID-19 were not considered past due and/or reported as nonaccrual if deemed collectible during the deferral period. This relief ended on January 1, 2022.

Troubled Debt Restructurings

Troubled debt restructurings ("TDRs") included in nonperforming assets at March 31, 2022 consisted of five Hawaii residential mortgage loans with a principal balance of $1.1 million. There were $3.9 million of TDRs still accruing interest at March 31, 2022, $0.1 million of which were more than 90 days delinquent. At December 31, 2021, there were $4.9 million of TDRs still accruing interest, none of which were more than 90 days delinquent.

The Company offers various types of concessions when modifying a loan. Concessions made to the original contractual terms of the loan typically consists of the deferral of interest and/or principal payments due to deterioration in the borrowers' financial condition. In these cases, the principal balance on the TDR had matured and/or was in default at the time of restructure, and there were no commitments to lend additional funds to the borrower during the three months ended March 31, 2022 and 2021.
The Company did not modify any loans during the three months ended March 31, 2022. The Company modified one commercial, financial and agricultural loan totaling $0.6 million during the three months ended March 31,2021. The loan was paid off during the three months ended June 30, 2021.
(dollars in thousands)Number of
Contracts		Recorded
Investment
(as of Period End)		Increase in the
ACL
Three Months Ended March 31, 2021
Commercial, financial and agricultural - Other1 $560 $— 
Total1 $560 $— 

No loans were modified as a TDR within the previous twelve months that subsequently defaulted during the three months ended March 31, 2022 and 2021.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans by credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk rating of loans. Loans not meeting the following criteria that are analyzed individually as part of the described process are considered to be pass-rated loans.

Special Mention. Loans classified as special mention, while still adequately protected by the borrower's capital adequacy and payment capability, exhibit distinct weakening trends and/or elevated levels of exposure to external conditions. If left unchecked or uncorrected, these potential weaknesses may result in deteriorated prospects of repayment. These exposures require management's close attention so as to avoid becoming undue or unwarranted credit exposures.

Substandard. Loans classified as substandard are inadequately protected by the borrower's current financial condition and payment capability or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the orderly repayment of debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimated loss is deferred until its more exact status may be determined.

Loss. Loans classified as loss are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Losses are taken in the period in which they surface as uncollectible.

The following table presents the amortized cost basis of the Company's loans by class, credit quality indicator and origination year as of March 31, 2022 and December 31, 2021. Revolving loans converted to term as of and during the three months ended March 31, 2022 and 2021 were not material to the total loan portfolio.
Amortized Cost of Term Loans by Origination Year
(dollars in thousands)20222021202020192018PriorAmortized Cost of Revolving LoansTotal
March 31, 2022
Commercial, financial and agricultural - SBA PPP:
Risk Rating
Pass$— $41,446 $2,785 $— $— $— $— $44,231 
Subtotal— 41,446 2,785 — — — — 44,231 
Commercial, financial and agricultural - Other:
Risk Rating
Pass22,335 116,423 62,923 53,061 50,404 135,034 78,849 519,029 
Special Mention1,720 615 260 2,557 97 8,259 175 13,683 
Substandard— — 1,592 320 617 8,425 750 11,704 
Subtotal24,055 117,038 64,775 55,938 51,118 151,718 79,774 544,416 
Construction:
Risk Rating
Pass1,386 40,722 28,751 3,165 26,372 20,169 1,841 122,406 
Substandard— — — — 911 — — 911 
Subtotal1,386 40,722 28,751 3,165 27,283 20,169 1,841 123,317 
Residential mortgage:
Risk Rating
Pass75,178 664,439 461,369 169,718 70,625 427,838 — 1,869,167 
Substandard— — 967 — — 3,914 — 4,881 
Subtotal75,178 664,439 462,336 169,718 70,625 431,752 — 1,874,048 
Home equity:
Risk Rating
Pass17,421 25,375 12,329 8,607 9,230 9,598 592,763 675,323 
Special Mention— — — — — — 183 183 
Substandard— — 175 — 79 566 — 820 
Subtotal17,421 25,375 12,504 8,607 9,309 10,164 592,946 676,326 
Commercial mortgage:
Risk Rating
Pass58,265 227,168 122,565 142,287 121,026 517,380 9,183 1,197,874 
Special Mention— 1,174 — 5,736 1,020 9,655 — 17,585 
Substandard— — — 1,737 10,227 16,076 — 28,040 
Subtotal58,265 228,342 122,565 149,760 132,273 543,111 9,183 1,243,499 
Consumer:
Risk Rating
Pass74,303 315,526 85,061 78,307 35,064 23,082 56,454 667,797 
Special Mention— — — 163 — — — 163 
Substandard— 60 44 178 83 495 — 860 
Loss— — — — — 180 — 180 
Subtotal74,303 315,586 85,105 78,648 35,147 23,757 56,454 669,000 
Total$250,608 $1,432,948 $778,821 $465,836 $325,755 $1,180,671 $740,198 $5,174,837 
Amortized Cost of Term Loans by Origination Year
(dollars in thousands)20212020201920182017PriorAmortized Cost of Revolving LoansTotal
December 31, 2021
Commercial, financial and agricultural - SBA PPP:
Risk Rating
Pass$84,254 $7,073 $— $— $— $— $— $91,327 
Subtotal84,254 7,073 — — — — — 91,327 
Commercial, financial and agricultural - Other:
Risk Rating
Pass$122,729 $68,021 $56,531 $52,375 $31,817 $93,957 $79,131 $504,561 
Special Mention1,441 1,278 2,443 96 8,671 354 — 14,283 
Substandard— 982 393 682 6,623 1,847 750 11,277 
Subtotal124,170 70,281 59,367 53,153 47,111 96,158 79,881 530,121 
Construction:
Risk Rating
Pass35,236 25,430 3,196 28,333 288 20,090 9,376 121,949 
Substandard— — — 918 — — — 918 
Subtotal35,236 25,430 3,196 29,251 288 20,090 9,376 122,867 
Residential mortgage:
Risk Rating
Pass670,011 478,891 180,687 75,820 92,394 372,539 42 1,870,384 
Special Mention— 973 — — — — — 973 
Substandard— — — 577 881 3,165 — 4,623 
Subtotal670,011 479,864 180,687 76,397 93,275 375,704 42 1,875,980 
Home equity:
Risk Rating
Pass26,479 13,008 10,329 10,593 480 7,743 567,600 636,232 
Special Mention— — — — — — 187 187 
Substandard— 176 — 79 — 575 — 830 
Subtotal26,479 13,184 10,329 10,672 480 8,318 567,787 637,249 
Commercial mortgage:
Risk Rating
Pass229,108 126,169 146,584 126,014 153,041 387,751 9,472 1,178,139 
Special Mention— — 3,106 3,219 283 9,455 — 16,063 
Substandard— — 1,760 8,050 1,784 14,408 — 26,002 
Subtotal229,108 126,169 151,450 137,283 155,108 411,614 9,472 1,220,204 
Consumer:
Risk Rating
Pass308,326 96,066 91,194 41,995 20,719 9,446 55,311 623,057 
Special Mention— — 181 — 10 7 — 198 
Substandard10 35 128 80 19 221 — 493 
Loss— — — — — 153 — 153 
Subtotal308,336 96,101 91,503 42,075 20,748 9,827 55,311 623,901 
Total$1,477,594 $818,102 $496,532 $348,831 $317,010 $921,711 $721,869 $5,101,649 
The following tables present the Company's loans by class and credit quality indicator as of March 31, 2022 and December 31, 2021:
(dollars in thousands)PassSpecial MentionSubstandardLossSubtotalNet Deferred Fees and CostsTotal
March 31, 2022      
Commercial, financial and agricultural: SBA PPP$45,938 $— $— $— $45,938 $(1,707)$44,231 
Commercial, financial and agricultural: Other519,345 13,683 11,704 — 544,732 (316)544,416 
Real estate:  
Construction122,856 — 911 — 123,767 (450)123,317 
Residential mortgage1,868,524 — 4,881 — 1,873,405 643 1,874,048 
Home equity673,622 183 820 — 674,625 1,701 676,326 
Commercial mortgage1,199,798 17,585 28,040 — 1,245,423 (1,924)1,243,499 
Consumer667,991 163 860 180 669,194 (194)669,000 
Total$5,098,074 $31,614 $47,216 $180 $5,177,084 $(2,247)$5,174,837 

(dollars in thousands)PassSpecial MentionSubstandardLossSubtotalNet Deferred Fees and CostsTotal
December 31, 2021      
Commercial, financial and agricultural: SBA PPP$94,850 $— $— $— $94,850 $(3,523)$91,327 
Commercial, financial and agricultural: Other504,823 14,283 11,277 — 530,383 (262)530,121 
Real estate:  
Construction122,433 — 918 — 123,351 (484)122,867 
Residential mortgage1,869,604 973 4,623 — 1,875,200 780 1,875,980 
Home equity634,704 187 830 — 635,721 1,528 637,249 
Commercial mortgage1,180,074 16,062 26,002 — 1,222,138 (1,934)1,220,204 
Consumer623,271 181 510 153 624,115 (214)623,901 
Total$5,029,759 $31,686 $44,160 $153 $5,105,758 $(4,109)$5,101,649 
v3.22.1
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURE
 3 Months Ended
Mar. 31, 2022
ALLOWANCE FOR LOAN AND LEASE LOSSES  
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURE
5. ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURES

The following table presents by class, the activity in the ACL for loans under ASC 326 during the three months ended March 31, 2022 and March 31, 2021:
 Commercial, Financial and AgriculturalReal Estate 
(dollars in thousands)SBA PPPOtherConstructionResidential MortgageHome EquityCommercial MortgageConsumerTotal
Three Months Ended March 31, 2022
Beginning balance$77 $10,314 $3,908 $12,463 $4,509 $18,411 $18,415 $68,097 
(Credit) provision for credit losses on loans(41)(848)(72)(1,532)132 (2,356)1,786 (2,931)
Subtotal36 9,466 3,836 10,931 4,641 16,055 20,201 65,166 
Charge-offs— 254 — — — — 1,216 1,470 
Recoveries— 350 — 112 — — 596 1,058 
Net charge-offs (recoveries)— (96)— (112)— — 620 412 
Ending balance$36 $9,562 $3,836 $11,043 $4,641 $16,055 $19,581 $64,754 
Three Months Ended March 31, 2021
Beginning balance$304 $18,717 $4,277 $16,484 $5,449 $22,163 $15,875 $83,269 
(Credit) provision for credit losses on loans185 (2,733)770 (1,233)(207)563 1,681 (974)
Subtotal489 15,984 5,047 15,251 5,242 22,726 17,556 82,295 
Charge-offs— 609 — — — — 1,098 1,707 
Recoveries— 89 — 106 9 8 753 965 
Net charge-offs (recoveries)— 520 — (106)(9)(8)345 742 
Ending balance$489 $15,464 $5,047 $15,357 $5,251 $22,734 $17,211 $81,553 
The following table presents the activity in the reserve for off-balance sheet credit exposures, included in other liabilities, during the three months ended March 31, 2022 and March 31, 2021.
(dollars in thousands)
Three Months Ended March 31, 2022
Beginning balance$4,804 
(Credit) provision for off-balance sheet credit exposures(264)
Ending balance$4,540 
Three Months Ended March 31, 2021
Beginning balance$4,884 
Provision for off-balance sheet credit exposures153 
Ending balance$5,037 

In accordance with GAAP, other real estate assets are not included in our assessment of the ACL.

In the three months ended March 31, 2022, our provision for credit losses was a credit of $3.2 million, which consisted of a credit to the provision for credit losses on loans of $2.9 million and a credit to the provision for credit losses on off-balance sheet credit exposures of $0.3 million.

In the three months ended March 31, 2021, our provision for credit loss was a credit of $0.8 million, which consisted of a credit to the provision for credit losses on loans of $1.0 million, offset by a debit to the provision for credit losses on off-balance sheet credit exposures of $0.2 million.
v3.22.1
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES
 3 Months Ended
Mar. 31, 2022
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]  
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES
6. INVESTMENTS IN UNCONSOLIDATED ENTITIES

The components of the Company's investments in unconsolidated entities were as follows:
(dollars in thousands)March 31, 2022December 31, 2021
Investments in low income housing tax credit partnerships, net of amortization$25,309 $25,916 
Investments in common securities of statutory trusts1,547 1,547 
Investments in affiliates187 162 
Other4,049 2,054 
Total$31,092 $29,679 

The Company invests in low-income housing tax credit ("LIHTC") and other partnerships. The Company had commitments to fund LIHTC partnerships totaling $30.3 million and $30.3 million as of March 31, 2022 and December 31, 2021, respectively. Unfunded commitments related to LIHTC partnerships of $14.3 million and $14.3 million as of March 31, 2022 and December 31, 2021, respectively, are recorded in other liabilities in the Company's consolidated balance sheets. The investments are accounted for under the proportional amortization method and are included in investments in unconsolidated entities in the Company's consolidated balance sheets.

During the first quarter of 2022, the Company invested $2.0 million in Swell Financial, Inc. ("Swell"), which included $1.5 million in other intangible assets and services provided in exchange for Swell common stock and $0.5 million in cash in exchange for Swell preferred stock. Swell intends to launch an integrated checking and line-of-credit account in the summer of 2022, with Central Pacific Bank serving as the bank sponsor. The Company does not have the ability to exercise significant influence over Swell and the investment does not have a readily determinable fair value. As a result, the Company determined that the cost method of accounting for the investment was appropriate. The investment is included in investments in unconsolidated entities.

During the second quarter of 2021, the Company committed $2.0 million to the JAM FINTOP Banktech Fund, L.P., an investment fund designed to help develop and accelerate technology adoption at community banks across the United States. The Company had $1.7 million and $1.7 million in unfunded commitments related to the investment as of March 31, 2022 and December 31, 2021, respectively, which are recorded in other liabilities. The investment is accounted for under the cost method and is included in investment in unconsolidated entities.

The expected payments for the unfunded commitments as of March 31, 2022 for the remainder of fiscal year 2022, the next five succeeding fiscal years and all years thereafter are as follows:
(dollars in thousands)
Year Ending December 31, LIHTC partnershipsOther partnershipsTotal
2022 (remainder)$6,071 $1,653 $7,724 
20238,128 — 8,128 
202426 — 26 
20256 — 6 
20266 — 6 
20276 — 6 
Thereafter32 — 32 
Total unfunded commitments$14,275 $1,653 $15,928 

The following table presents amortization and tax credits recognized associated with our investments in LIHTC partnerships for the three months ended March 31, 2022 and March 31, 2021:

(dollars in thousands)Three Months Ended
March 31, 2022		Three Months Ended
March 31, 2021
Proportional amortization method:
Amortization expense recognized in income tax expense$607 $407 
Tax credits recognized in income tax expense709 474 
v3.22.1
MORTGAGE SERVICING RIGHTS
 3 Months Ended
Mar. 31, 2022
OTHER INTANGIBLE ASSETS  
MORTGAGE SERVICING RIGHTS
7. MORTGAGE SERVICING RIGHTS
 
The following table presents changes in mortgage servicing rights for the periods presented:
(dollars in thousands)Mortgage
Servicing
Rights
Balance, January 1, 2022$9,738 
Additions276 
Amortization(534)
Balance, March 31, 2022$9,480 
Balance, January 1, 2021$11,865 
Additions461 
Amortization(1,232)
Balance, March 31, 2021$11,094 

Income generated as the result of new mortgage servicing rights is reported as gains on sales of loans and totaled $0.3 million for the three months ended March 31, 2022, compared to $0.5 million for the three months ended March 31, 2021.

Amortization of mortgage servicing rights totaled $0.5 million for the three months ended March 31, 2022, compared to $1.2 million for the three months ended March 31, 2021.

The following tables present the fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights:
Three Months EndedThree Months Ended
(dollars in thousands)March 31, 2022March 31, 2021
Fair market value, beginning of period$10,504 $12,003 
Fair market value, end of period11,166 11,673 
Weighted average discount rate9.5 %9.6 %
Weighted average prepayment speed assumption18.3 %17.5 %
The gross carrying value and accumulated amortization related to our mortgage servicing rights are presented below:
 March 31, 2022December 31, 2021
(dollars in thousands)Gross
Carrying
Value		Accumulated
Amortization		Net
Carrying
Value		Gross
Carrying
Value		Accumulated
Amortization		Net
Carrying
Value
Mortgage servicing rights$72,526 $(63,046)$9,480 $72,250 $(62,512)$9,738 

Based on the mortgage servicing rights held as of March 31, 2022, estimated amortization expense for the remainder of fiscal year 2022, the next five succeeding fiscal years and all years thereafter are as follows:
(dollars in thousands)
Year Ending December 31,
2022 (remainder)$1,671 
20231,837 
20241,506 
20251,231 
20261,026 
2027852 
Thereafter1,357 
Total$9,480 
We perform an impairment assessment of our mortgage servicing rights whenever events or changes in circumstance indicate that the carrying value of the asset may not be recoverable.
v3.22.1
DERIVATIVES
 3 Months Ended
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES
8. DERIVATIVES

We utilize various designated and undesignated derivative financial instruments to reduce our exposure to movements in interest rates. We measure all derivatives at fair value on our consolidated balance sheet. In each reporting period, we record the derivative instruments in other assets or other liabilities depending on whether the derivatives are in an asset or liability position. For derivative instruments that are designated as cash flow hedging instruments, we record the effective portion of the changes in the fair value of the derivative in AOCI, net of tax, until earnings are affected by the variability of cash flows of the hedged transaction. We immediately recognize the portion of the gain or loss in the fair value of the derivative that represents hedge ineffectiveness in current period earnings. For derivative instruments that are not designated as hedging instruments, changes in the fair value of the derivative are included in current period earnings.

Interest Rate Lock and Forward Sale Commitments

We enter into interest rate lock commitments on certain mortgage loans that are intended to be sold. To manage interest rate risk on interest rate lock commitments, we also enter into forward loan sale commitments. The interest rate locks and forward loan sale commitments are accounted for as undesignated derivatives and are recorded at their respective fair values in other assets or other liabilities, with changes in fair value recorded in current period earnings. These instruments serve to reduce our exposure to movements in interest rates. At March 31, 2022, we were a party to interest rate lock and forward sale commitments on $0.9 million and $5.7 million of mortgage loans, respectively.

Risk Participation Agreements

In the first and fourth quarters of 2020, we entered into credit risk participation agreements ("RPA") with financial institution counterparties for interest rate swaps related to loans in which we participate. The risk participation agreements entered into by us and a participant bank provide credit protection to the financial institution counterparties should the borrowers fail to perform on their interest rate derivative contracts with the financial institutions.

Back-to-Back Swap Agreements

The Company established a program whereby it originates a variable rate loan and enters into a variable-to-fixed interest rate swap with the customer. The Company also enters into an equal and offsetting swap with a highly rated third-party financial institution. These "back-to-back swap agreements" are intended to offset each other and allow the Company to originate a variable rate loan, while providing a contract for fixed interest payments for the customer. The net cash flow for the Company is equal to the interest income received from a variable rate loan originated with the customer. These back-to-back swap agreements are free-standing derivatives and are recorded at fair value on our consolidated balance sheet in other assets or other liabilities. During the three months ended March 31, 2022, the Company had swap agreements with its borrowers with a total notional amount of $32.9 million, offset by swap agreements with third party financial institutions with a total notional amount of $32.9 million. As of March 31, 2022, the Company was in a net cash receive position of $1.7 million for collateral of the back-to-back swap agreements.

Interest Rate Swaps

During the first quarter of 2022, the Company entered into a forward starting interest rate swap, with an effective date of March 31, 2024. This transaction had a notional amount totaling $115.5 million as of March 31, 2022, and was designated as a fair value hedge of certain municipal debt securities. The Company will pay the counterparty a fixed rate of 2.095% and will receive a floating rate based on the Federal Funds effective rate. The fair value hedge has a maturity date of March 31, 2029.

The interest rate swap is carried on the Company’s consolidated balance sheet at its fair value in other assets (when the fair value is positive) or in other liabilities (when the fair value is negative). The changes in the fair value of the interest rate swap are recorded in interest income. The unrealized gains or losses due to changes in fair value of the hedged debt securities due to changes in benchmark interest rates are recorded as an adjustment to the hedged debt securities and offset in the same interest income line item.
The following table presents the location of all assets and liabilities associated with our derivative instruments within the consolidated balance sheets:
Derivative Financial Instruments Not Designated as Hedging InstrumentsAsset DerivativesLiability Derivatives
Fair Value atFair Value at
(dollars in thousands)Balance Sheet LocationMarch 31,
2022		December 31,
2021		March 31,
2022		December 31,
2021
Interest rate lock and forward sale commitmentsOther assets / other liabilities$149 $5 $5 $4 
Risk participation agreementsOther assets / other liabilities— — — 16 
Back-to-back swap agreementsOther assets / other liabilities1,624 435 1,624 435 
Derivative Financial Instruments Designated as Hedging InstrumentsAsset DerivativesLiability Derivatives
Fair Value atFair Value at
(dollars in thousands)Balance Sheet LocationMarch 31,
2022		December 31,
2021		March 31,
2022		December 31,
2021
Interest rate swapOther assets / other liabilities$— $— $50 $— 

The following table presents the impact of derivative instruments and their location within the consolidated statements of income:
Derivative Financial Instruments
Not Designated as Hedging Instruments		Location of Gain (Loss)
Recognized in
Earnings on Derivatives		Amount of Gain (Loss)
Recognized in
Earnings on Derivatives
(dollars in thousands)
Three Months Ended March 31, 2022 
Interest rate lock and forward sale commitmentsMortgage banking income143 
Loans held for saleOther income(63)
Risk participation agreementsOther service charges and fees16 
Back-to-back swap agreementsOther service charges and fees— 
Three Months Ended March 31, 2021 
Interest rate lock and forward sale commitmentsMortgage banking income180 
Loans held for saleOther income(1)
Risk participation agreementsOther service charges and fees— 
Back-to-back swap agreementsOther service charges and fees31 
v3.22.1
SHORT-TERM BORROWINGS AND LONG-TERM DEBT
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
SHORT-TERM BORROWINGS AND LONG-TERM DEBT 9. SHORT-TERM BORROWINGS AND LONG-TERM DEBT
Federal Home Loan Bank Advances and Other Borrowings

The bank is a member of the Federal Home Loan Bank of Des Moines (the "FHLB") and maintained a $1.92 billion line of credit as of March 31, 2022, compared to $1.83 billion at December 31, 2021. At March 31, 2022, $1.89 billion was undrawn under this arrangement, compared to $1.80 billion at December 31, 2021. There were no short-term borrowings under this arrangement at March 31, 2022 and at December 31, 2021. Letters of credit under this arrangement that are used to collateralize certain government deposits totaled $32.2 million at March 31, 2022, compared to $32.2 million at December 31, 2021. There were no long-term borrowings under this arrangement at March 31, 2022 and December 31, 2021. FHLB advances and standby letters of credit available at March 31, 2022 were secured by certain real estate loans with a carrying value of $2.81 billion in accordance with the collateral provisions of the Advances, Security and Deposit Agreement with the FHLB.

At March 31, 2022 and December 31, 2021, our bank had additional unused borrowings available at the Federal Reserve discount window of $84.3 million and $55.4 million, respectively. As of March 31, 2022 and December 31, 2021, certain commercial and commercial real estate loans with a carrying value totaling $129.1 million and $131.0 million, respectively,
were pledged as collateral on our line of credit with the Federal Reserve discount window. The Federal Reserve does not have the right to sell or repledge these loans.

Subordinated Debentures

In September 2004, we created a wholly-owned statutory trust, CPB Capital Trust IV ("Trust IV"). Trust IV issued $30.0 million in floating rate trust preferred securities bearing an interest rate of three-month LIBOR plus 2.45% and maturing on December 15, 2034. The principal assets of Trust IV are $30.9 million of the Company's junior subordinated debentures with an identical interest rate and maturity as the Trust IV trust preferred securities. Trust IV issued $0.9 million of common securities to the Company.

In December 2004, we created a wholly-owned statutory trust, CPB Statutory Trust V ("Trust V"). Trust V issued $20.0 million in floating rate trust preferred securities bearing an interest rate of three-month LIBOR plus 1.87% and maturing on December 15, 2034. The principal assets of Trust V are $20.6 million of the Company's junior subordinated debentures with an identical interest rate and maturity as the Trust V trust preferred securities. Trust V issued $0.6 million of common securities to the Company.

At March 31, 2022 and December 31, 2021, the Company had the following junior subordinated debentures outstanding, which is recorded in long-term debt on the Company's consolidated balance sheets:
(dollars in thousands)March 31, 2022
Name of TrustSubordinated DebenturesInterest Rate
Trust IV$30,928 Three month LIBOR + 2.45%
Trust V20,619 Three month LIBOR + 1.87%
Total$51,547 
December 31, 2021
Name of TrustSubordinated DebenturesInterest Rate
Trust IV$30,928 Three month LIBOR + 2.45%
Trust V20,619 Three month LIBOR + 1.87%
Total$51,547 

The Company is not considered the primary beneficiary of Trusts IV and V, therefore the trusts are not considered a variable interest entity and are not consolidated in the Company's financial statements. Rather the subordinated debentures are shown as a liability on the Company's consolidated balance sheets. The Company's investment in the common securities of the trusts are included in investment in unconsolidated entities in the Company's consolidated balance sheets.

The floating trust preferred securities, the junior subordinated debentures that are the assets of Trusts IV and V and the common securities issued by Trusts IV and V are redeemable in whole or in part on any interest payment date on or after December 15, 2009 for Trust IV and V, or at any time in whole but not in part within 90 days following the occurrence of certain events. Our obligations with respect to the issuance of the trust preferred securities constitute a full and unconditional guarantee by the Company of each trust's obligations with respect to its trust preferred securities. Subject to certain exceptions and limitations, we may elect from time to time to defer interest payments on the subordinated debentures, which would result in a deferral of distribution payments on the related trust preferred securities, for up to 20 consecutive quarterly periods without default or penalty.

The subordinated debentures may be included in Tier 1 capital, with certain limitations applicable, under current regulatory guidelines and interpretations.
Subordinated Notes

As of March 31, 2022 and December 31, 2021, the Company had the following subordinated notes outstanding:

(Dollars in thousands)March 31, 2022
NameAmount of Subordinated NotesInterest Rate
October 2020 Private Placement$55,000 
4.75% for the first five years. Resets quarterly thereafter to the then current three-month SOFR plus 456 basis points.
(Dollars in thousands)December 31, 2021
Name of TrustAmount of Subordinated DebenturesInterest Rate
October 2020 Private Placement$55,000 
4.75% for the first five years. Resets quarterly thereafter to the then current three-month SOFR plus 456 basis points.

On October 20, 2020, the Company completed a $55.0 million private placement of ten-year fixed-to-floating rate subordinated notes, which will be used to support regulatory capital ratios and for general corporate purposes. The Company exchanged the privately placed notes for registered notes with the same terms and in the same aggregate principal amount at the end of the fourth quarter of 2020. The Notes bear a fixed interest rate of 4.75% for the first five years and will reset quarterly thereafter for the remaining five years to the then current three-month Secured Overnight Financing Rate ("SOFR"), as published by the Federal Reserve Bank of New York, plus 456 basis points.
 
The subordinated notes may be included in Tier 2 capital, with certain limitations applicable, under current regulatory guidelines and interpretations. The subordinated notes had a carrying value of $54.1 million, net of unamortized debt issuance costs of $0.9 million, at March 31, 2022.
v3.22.1
REVENUE FROM CONTRACTS WITH CUSTOMERS
 3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS
10. REVENUE FROM CONTRACTS WITH CUSTOMERS

The following presents the Company's other operating income, segregated by revenue streams that are in-scope and out-of-scope of ASC 606, "Revenue from Contracts with Customers" for the three months ended March 31, 2022 and 2021:
Three Months Ended
March 31,
(dollars in thousands)20222021
Other operating income:
In-scope of ASC 606
Mortgage banking income$235 $838 
Service charges on deposit accounts1,861 1,478 
Other service charges and fees3,863 3,178 
Income on fiduciary activities1,154 1,231 
In-scope other operating income7,113 6,725 
Out-of-scope other operating income2,438 3,986 
Total other operating income$9,551 $10,711 
v3.22.1
SHARE-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2022
Share-based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION
11. SHARE-BASED COMPENSATION

Restricted Stock Units

Under the Company's 2013 Stock Compensation Plan, we award restricted and performance stock awards and units to our non-officer directors and certain senior management personnel. The awards typically vest over a three or five year period from the date of grant and are subject to forfeiture until performance and employment targets are achieved. Compensation expense is typically measured as the market price of the stock awards on the grant date, and is recognized over the specified vesting periods.
The table below presents the activity of restricted stock units for the three months ended March 31, 2022:
SharesWeighted Average Grant Date Fair ValueFair Value of Restricted Stock Awards and Units That Vested During the Period
Non-vested restricted stock units, beginning of period485,339 $21.95 
Changes during the period:  
Granted95,155 29.38 
Vested(89,304)24.61 $2,652 
Forfeited(39,749)28.00 
Non-vested restricted stock units, end of period451,441 22.46 
v3.22.1
LEASES
 3 Months Ended
Mar. 31, 2022
Leases [Abstract]  
LEASES
12. OPERATING LEASES

We lease certain land and buildings for our bank branches and ATMs. In some instances, a lease may contain renewal options to extend the term of the lease. All renewal options are likely to be exercised and therefore have been recognized as part of our right-of-use assets and lease liabilities in accordance with ASC 842, "Leases". Certain leases also contain variable payments that are primarily determined based on common area maintenance costs and Hawaii state tax rates. All leases are operating leases and we do not include any short term leases in the calculation of the right-of-use assets and lease liabilities. The most significant assumption related to the Company’s application of ASC 842 was the discount rate assumption. As most of the Company’s lease agreements do not provide for an implicit interest rate, the Company uses the collateralized interest rate that the Company would have to pay to borrow over a similar term to estimate the Company’s lease liability.

Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated:
Three Months Ended
March 31,
(dollars in thousands)20222021
Lease cost:
Operating lease cost$1,390 $1,571 
Variable lease cost830 720 
Less: sublease income(12)— 
Total lease cost$2,208 $2,291 
Other information:
Operating cash flows from operating leases$(1,506)$(1,599)
Weighted-average remaining lease term - operating leases 11.49 years11.78 years
Weighted-average discount rate - operating leases3.92 %3.89 %
The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2022, the next five succeeding fiscal years and all years thereafter:
(dollars in thousands)
Year Ending December 31, Undiscounted Cash FlowsLease Liability ExpenseLease Liability Reduction
2022 (remainder)$4,420 $1,113 $3,307 
20235,183 1,343 3,840 
20244,508 1,214 3,294 
20254,195 1,088 3,107 
20264,133 968 3,165 
20274,123 843 3,280 
Thereafter23,253 3,636 19,617 
Total $49,815 $10,205 $39,610 

In addition, the Company, as lessor, leases certain properties that it owns. All of these leases are operating leases. The following represents lease income related to these leases that was recognized for the period indicated:
Three Months Ended
March 31,
(dollars in thousands)20222021
Total rental income recognized$951 $520 

Based on the Company's leases as lessor as of March 31, 2022, estimated lease payments for the remainder of fiscal year 2022, the next five succeeding fiscal years and all years thereafter are as follows:
(dollars in thousands)
Year Ending December 31,
2022 (remainder)$1,532 
2023923 
2024521 
2025304 
2026171 
2027131 
Thereafter304 
Total $3,886 
LEASES
12. OPERATING LEASES

We lease certain land and buildings for our bank branches and ATMs. In some instances, a lease may contain renewal options to extend the term of the lease. All renewal options are likely to be exercised and therefore have been recognized as part of our right-of-use assets and lease liabilities in accordance with ASC 842, "Leases". Certain leases also contain variable payments that are primarily determined based on common area maintenance costs and Hawaii state tax rates. All leases are operating leases and we do not include any short term leases in the calculation of the right-of-use assets and lease liabilities. The most significant assumption related to the Company’s application of ASC 842 was the discount rate assumption. As most of the Company’s lease agreements do not provide for an implicit interest rate, the Company uses the collateralized interest rate that the Company would have to pay to borrow over a similar term to estimate the Company’s lease liability.

Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated:
Three Months Ended
March 31,
(dollars in thousands)20222021
Lease cost:
Operating lease cost$1,390 $1,571 
Variable lease cost830 720 
Less: sublease income(12)— 
Total lease cost$2,208 $2,291 
Other information:
Operating cash flows from operating leases$(1,506)$(1,599)
Weighted-average remaining lease term - operating leases 11.49 years11.78 years
Weighted-average discount rate - operating leases3.92 %3.89 %
The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2022, the next five succeeding fiscal years and all years thereafter:
(dollars in thousands)
Year Ending December 31, Undiscounted Cash FlowsLease Liability ExpenseLease Liability Reduction
2022 (remainder)$4,420 $1,113 $3,307 
20235,183 1,343 3,840 
20244,508 1,214 3,294 
20254,195 1,088 3,107 
20264,133 968 3,165 
20274,123 843 3,280 
Thereafter23,253 3,636 19,617 
Total $49,815 $10,205 $39,610 

In addition, the Company, as lessor, leases certain properties that it owns. All of these leases are operating leases. The following represents lease income related to these leases that was recognized for the period indicated:
Three Months Ended
March 31,
(dollars in thousands)20222021
Total rental income recognized$951 $520 

Based on the Company's leases as lessor as of March 31, 2022, estimated lease payments for the remainder of fiscal year 2022, the next five succeeding fiscal years and all years thereafter are as follows:
(dollars in thousands)
Year Ending December 31,
2022 (remainder)$1,532 
2023923 
2024521 
2025304 
2026171 
2027131 
Thereafter304 
Total $3,886 
v3.22.1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 3 Months Ended
Mar. 31, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following tables present the components of other comprehensive loss for the three months ended March 31, 2022 and 2021, by component:
(dollars in thousands)Before TaxTax EffectNet of Tax
Three Months Ended March 31, 2022   
Net unrealized losses on investment securities:   
Net unrealized losses arising during the period$(108,448)$(28,998)$(79,450)
Net unrealized losses on investment securities(108,448)(28,998)(79,450)
Net unrealized losses on derivatives:
Net unrealized losses arising during the period$(50)$(13)$(37)
Net unrealized losses on derivatives(50)(13)(37)
Defined benefit plans:   
Amortization of net actuarial loss133 36 97 
Amortization of net transition obligation4 1 3 
Defined benefit plans, net137 37 100 
Other comprehensive loss$(108,361)$(28,974)$(79,387)

(dollars in thousands)Before TaxTax EffectNet of Tax
Three Months Ended March 31, 2021   
Net unrealized losses on investment securities:   
Net unrealized losses arising during the period$(23,619)$(6,318)$(17,301)
Net unrealized losses on investment securities(23,619)(6,318)(17,301)
Defined benefit plans:   
Amortization of net actuarial loss246 66 180 
Amortization of net transition obligation5 1 4 
Defined benefit plans, net251 67 184 
Other comprehensive loss$(23,368)$(6,251)$(17,117)

The following tables present the changes in each component of AOCI, net of tax, for the three months ended March 31, 2022 and 2021:
(dollars in thousands)Investment
Securities		DerivativesDefined
Benefit
Plans		AOCI
Three Months Ended March 31, 2022   
Balance at beginning of period$(3,666)$— $(4,294)$(7,960)
Other comprehensive loss before reclassifications(79,450)(37)— (79,487)
Reclassification adjustments from AOCI— — 100 100 
Total other comprehensive income (loss)(79,450)(37)100 (79,387)
Balance at end of period$(83,116)$(37)$(4,194)$(87,347)
(dollars in thousands)Investment
Securities		DerivativesDefined
Benefit
Plans		AOCI
Three Months Ended March 31, 2021   
Balance at beginning of period$26,651 $— $(6,523)$20,128 
Other comprehensive loss before reclassifications(17,301)— — (17,301)
Reclassification adjustments from AOCI— — 184 184 
Total other comprehensive income (loss)(17,301)— 184 (17,117)
Balance at end of period$9,350 $— $(6,339)$3,011 

The following table presents the amounts reclassified out of each component of AOCI for the three months ended March 31, 2022 and 2021:
 Amount Reclassified from AOCIAffected Line Item in the Statement Where Net Income is Presented
Details about AOCI ComponentsThree months ended March 31,
(dollars in thousands)20222021
Defined benefit retirement and supplemental executive retirement plan items:   
Amortization of net actuarial loss$(133)$(246)Other operating expense - other
Amortization of net transition obligation(4)(5)Other operating expense - other
Total before tax(137)(251)
Tax effect37 67 Income tax benefit (expense)
Net of tax$(100)$(184)
Total reclassification adjustments from AOCI for the period, net of tax$(100)$(184)
v3.22.1
EARNINGS PER SHARE
 3 Months Ended
Mar. 31, 2022
Earnings Per Share [Abstract]  
EARNINGS PER SHARE
14. EARNINGS PER SHARE

The following table presents the information used to compute basic and diluted earnings per common share for the periods indicated:
Three Months Ended
March 31,
(dollars in thousands, except per share data)20222021
Net income$19,438 $18,038 
Weighted average common shares outstanding - basic27,591,390 28,108,648 
Dilutive effect of employee stock options and awards283,534 204,366 
Weighted average common shares outstanding - diluted27,874,924 28,313,014 
Basic earnings per common share$0.70 $0.64 
Diluted earnings per common share$0.70 $0.64 
v3.22.1
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
 3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
15. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

Disclosures about Fair Value of Financial Instruments

Fair value estimates, methods and assumptions are set forth below for our financial instruments.

Short-Term Financial Instruments

The carrying values of short-term financial instruments are deemed to approximate fair values. Such instruments are considered readily convertible to cash and include cash and due from financial institutions, interest-bearing deposits in other financial institutions, accrued interest receivable, the majority of Federal Home Loan Bank advances and other short-term borrowings, and accrued interest payable.

Investment Securities

The fair value of investment securities is based on market price quotations received from third-party pricing services. The third-party pricing services utilize pricing models supported with timely market data information. Where quoted market prices are not available, fair values are based on quoted market prices of comparable securities.

Loans

Fair values of loans are estimated based on discounted cash flows of portfolios of loans with similar financial characteristics including the type of loan, interest terms and repayment history. Fair values are calculated by discounting scheduled cash flows through estimated maturities using estimated market discount rates. Estimated market discount rates are reflective of credit and interest rate risks inherent in the Company's various loan types and are derived from available market information, as well as specific borrower information. As of March 31, 2022, the weighted average discount rate used in the valuation of loans was 6.44%. In accordance with ASU 2016-01, the fair value of loans are measured based on the notion of exit price.

Loans Held for Sale

The fair value of loans classified as held for sale are generally based upon quoted prices for similar assets in active markets, acceptance of firm offer letters with agreed upon purchase prices, discounted cash flow models that take into account market observable assumptions, or independent appraisals of the underlying collateral securing the loans. We report the fair values of Hawaii and U.S. Mainland construction and commercial real estate loans, if any, net of applicable selling costs on our consolidated balance sheets.

Deposit Liabilities

The fair values of deposits with no stated maturity, such as noninterest-bearing demand deposits and interest-bearing demand and savings accounts, are equal to the amount payable on demand. The fair value of time deposits is estimated using discounted cash flow analyses. As of March 31, 2022, the weighted average discount rate used in the valuation of time deposits was 1.24%. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities.

Long-Term Debt

The fair value of our long-term debt is estimated by discounting scheduled cash flows over the contractual borrowing period at the estimated market rate for similar borrowing arrangements. As of March 31, 2022, the weighted average discount rate used in the valuation of long-term debt was 6.64%.

Derivatives

The fair values of derivative financial instruments are based upon current market values, if available. If there are no relevant comparables, fair values are based on pricing models using current assumptions for interest rate swaps and options.

Off-Balance Sheet Financial Instruments

The fair values of off-balance sheet financial instruments are estimated based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties, current settlement values or quoted market prices of comparable instruments.
Limitations

Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of future business and the value of assets and liabilities that are not considered financial instruments. For example, significant assets and liabilities that are not considered financial assets or liabilities include deferred tax assets, premises and equipment and intangible assets.
   Fair Value Measurement Using
(dollars in thousands)Carrying
Amount		Estimated
Fair Value		Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
March 31, 2022     
Financial assets:     
Cash and due from banks$83,947 $83,947 $83,947 $— $— 
Interest-bearing deposits in other banks118,183 118,183 118,183 — — 
Investment securities1,528,989 1,528,985 — 1,520,904 8,081 
Loans held for sale4,677 4,677 — 4,677 — 
Loans, net of ACL5,110,083 4,688,605 — — 4,688,605 
Accrued interest receivable16,423 16,423 16,423 — — 
Financial liabilities:     
Deposits:     
Noninterest-bearing demand2,269,562 2,269,562 2,269,562 — — 
Interest-bearing demand and savings and money market3,630,931 3,630,931 3,630,931 — — 
Time698,538 692,253 — — 692,253 
Long-term debt105,677 91,117 — — 91,117 
Accrued interest payable (included in other liabilities)1,807 1,807 1,807 — — 

   Fair Value Measurement Using
(dollars in thousands)Notional
Amount		Carrying
Amount		Estimated
Fair Value		Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
March 31, 2022     
Derivatives:
Interest rate lock commitments$899 $(2)$(2)$— $(2)$— 
Forward sale commitments5,669 146 146 — 146 — 
Risk participation agreements37,426 — — — — — 
Back-to-back swap agreements:
Assets32,919 1,624 1,624 — — 1,624 
Liabilities32,919 (1,624)(1,624)— — (1,624)
Interest rate swap115,545 (50)(50)— — (50)
Off-balance sheet financial instruments: 
Commitments to extend credit1,308,724 — 1,402 — 1,402 — 
Standby letters of credit and financial guarantees written6,058 — 91 — 91 — 
   Fair Value Measurement Using
(dollars in thousands)Carrying
Amount		Estimated
Fair Value		Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
December 31, 2021     
Financial assets:     
Cash and due from banks$81,506 $81,506 $81,506 $— $— 
Interest-bearing deposits in other banks247,401 247,401 247,401 — — 
Investment securities1,631,699 1,631,699 — 1,623,080 8,619 
Loans held for sale3,531 3,531 — 3,531 — 
Loans, net of ACL5,033,552 4,741,379 — — 4,741,379 
Accrued interest receivable 16,709 16,709 16,709 — — 
Financial liabilities:     
Deposits:     
Noninterest-bearing demand2,291,246 2,291,246 2,291,246 — — 
Interest-bearing demand and savings and money market3,641,180 3,641,180 3,641,180 — — 
Time706,732 704,645 — — 704,645 
Long-term debt105,616 94,588 — — 94,588 
Accrued interest payable (included in other liabilities)1,122 1,122 1,122 — — 

   Fair Value Measurement Using
(dollars in thousands)Notional
Amount		Carrying
Amount		Estimated
Fair Value		Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
December 31, 2021
Derivatives:
Forward sale commitments3,525 1 1 — 1 — 
Risk participation agreements37,531 (16)(16)— — (16)
Back-to-back swap agreements:
Assets33,112 435 435 — — 435 
Liabilities33,112 (435)(435)— — (435)
Off-balance sheet financial instruments:      
Commitments to extend credit1,266,596 — 1,347 — 1,347 — 
Standby letters of credit and financial guarantees written6,634 — 100 — 100 — 

Fair Value Measurements

We group our financial assets and liabilities at fair value into three levels based on the markets in which the financial assets and liabilities are traded and the reliability of the assumptions used to determine fair value as follows:

•Level 1 — Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities traded in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available.

•Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

•Level 3 — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use
in pricing the asset or liability. Valuation techniques include use of discounted cash flow models and similar techniques that requires the use of significant judgment or estimation.

We base our fair values on the price that we would expect to receive if an asset were sold, or the price that we would expect to pay to transfer a liability in an orderly transaction between market participants at the measurement date. We also maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements.

We use fair value measurements to record adjustments to certain financial assets and liabilities and to determine fair value disclosures. Available-for-sale and equity securities and derivatives are recorded at fair value on a recurring basis. From time to time, we may be required to record other financial assets at fair value on a nonrecurring basis such as loans held for sale, impaired loans, mortgage servicing rights, and other real estate owned. These nonrecurring fair value adjustments typically involve application of the lower of cost or fair value accounting or write-downs of individual assets.

As discussed in Note 8 - Derivatives, during the three months ended March 31, 2022 the Company entered into an interest rate swap which was measured at fair value using Level 3 inputs. There were no other transfers of financial assets and liabilities into or out of Level 3 of the fair value hierarchy during the three months ended March 31, 2022.

The following tables present the fair value of assets and liabilities measured on a recurring basis as of March 31, 2022 and December 31, 2021:
  Fair Value at Reporting Date Using
(dollars in thousands)Fair ValueQuoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
March 31, 2022    
Held-to-maturity:
Debt securities:
States and political subdivisions41,729 — 41,729 — 
Mortgage-backed securities:
Residential - U.S. Government-sponsored entities287,774 — 287,774 — 
Total held-to-maturity securities329,503 — 329,503 — 
Available-for-sale securities:    
Debt securities:    
States and political subdivisions$164,181 $— $156,952 $7,229 
Corporate securities33,054 — 33,054 — 
U.S. Treasury obligations and direct obligations of U.S Government agencies32,171 — 32,171 — 
Mortgage-backed securities:    
Residential - U.S. Government-sponsored entities858,198 — 858,198 — 
Residential - Non-government agencies10,908 — 10,056 852 
Commercial - U.S. Government-sponsored entities59,358 — 59,358 — 
Commercial - Non-government agencies41,612 — 41,612 — 
Total available-for-sale securities1,199,482 — 1,191,401 8,081 
Derivatives: Interest rate lock, forward sale commitments, risk participation agreements, back-to-back swap agreements, and interest rate swap agreements94 — 144 (50)
Total$1,529,079 $— $1,521,048 $8,031 
  Fair Value at Reporting Date Using
(dollars in thousands)Fair ValueQuoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
December 31, 2021    
Available-for-sale securities:    
Debt securities:    
States and political subdivisions$236,828 $— $229,147 $7,681 
Corporate securities40,646 — 40,646 — 
U.S. Treasury obligations and direct obligations of U.S Government agencies35,334 — 35,334 — 
Mortgage-backed securities:    
Residential - U.S. Government-sponsored entities1,198,816 — 1,198,816 — 
Residential - Non-government agencies12,213 — 11,275 938 
Commercial - U.S. Government-sponsored entities65,849 — 65,849 — 
Commercial - Non-government agencies42,013 — 42,013 — 
Total available-for-sale securities1,631,699 — 1,623,080 8,619 
Derivatives: Interest rate lock, forward sale commitments, risk participation agreements, back-to-back swap agreements, and interest rate swap agreements(15)— 1 (16)
Total$1,631,684 $— $1,623,081 $8,603 

For the three months ended March 31, 2022 and 2021, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:
Available-For-Sale Debt Securities:
(dollars in thousands)States and Political SubdivisionsResidential - Non-Government AgenciesTotal
Balance at December 31, 2021$7,681 $938 $8,619 
Principal payments received(55)(5)(60)
Unrealized net loss included in other comprehensive income(397)(81)(478)
Balance at March 31, 2022$7,229 $852 $8,081 
  
Balance at December 31, 2020$11,337 $989 $12,326 
Principal payments received(1,973)(5)(1,978)
Unrealized net loss included in other comprehensive income(673)(79)(752)
Balance at March 31, 2021$8,691 $905 $9,596 

Within the states and political subdivisions available-for-sale debt securities category, the Company held two mortgage revenue bonds issued by the City & County of Honolulu had an aggregate fair value of $7.2 million and $7.7 million at March 31, 2022 and December 31, 2021, respectively.

Within the other MBS non-agency category, the Company held two mortgage backed bonds issued by Habitat for Humanity with an aggregate fair value of $0.9 million and $0.9 million at March 31, 2022 and December 31, 2021, respectively.

The Company estimates the aggregate fair value of $8.1 million and $8.6 million as of March 31, 2022 and December 31, 2021, respectively, by using a discounted cash flow model to calculate the present value of estimated future principal and interest payments.

The significant unobservable input used in the fair value measurement of the Company's City & County of Honolulu mortgage revenue bonds and Habitat for Humanity mortgage backed bonds is the weighted average discount rate. As of March 31, 2022, the weighted average discount rate utilized was 4.63%, compared to 3.46% at December 31, 2021, which was derived by
incorporating a credit spread over the FHLB Fixed-Rate Advance curve. Significant increases (decreases) in the weighted average discount rate could result in a significantly lower (higher) fair value measurement.

There were no assets measured on a nonrecurring basis as of March 31, 2022 and December 31, 2021.
v3.22.1
LEGAL PROCEEDINGS
 3 Months Ended
Mar. 31, 2022
Legal Proceedings [Abstract]  
LEGAL PROCEEDINGS 16. LEGAL PROCEEDINGSWe are involved in legal actions, but do not believe the ultimate disposition of those actions will have a material adverse impact on our results of operations or consolidated financial statements.
v3.22.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 3 Months Ended
Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
Basis of Presentation

The accompanying unaudited consolidated financial statements of Central Pacific Financial Corp. and Subsidiaries (herein referred to as the "Company," "we," "us," or "our") have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.

These interim condensed consolidated financial statements and notes should be read in conjunction with the Company's consolidated financial statements and notes thereto filed on Form 10-K for the fiscal year ended December 31, 2021. In the opinion of management, all adjustments necessary for a fair presentation have been made and include all normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year.
Consolidation, Policy [Policy Text Block]
Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

In January 2020, we acquired a 50% ownership interest in a mortgage loan origination and brokerage company, Oahu HomeLoans, LLC. The bank concluded that the investment meets the consolidation requirements under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, "Consolidation." The bank concluded that the entity meets the definition of a variable interest entity and that we are the primary beneficiary of the variable interest entity. Accordingly, the investment has been consolidated into our financial statements. In March 2022, Oahu HomeLoans, LLC was terminated.

We have 50% ownership interests in three other mortgage loan origination and brokerage companies which are accounted for using the equity method and are included in investment in unconsolidated entities: Gentry HomeLoans, LLC, Haseko HomeLoans, LLC and Island Pacific HomeLoans, LLC.

We have low income housing tax credit partnership investments that are accounted for under the proportional amortization method and are included in investment in unconsolidated entities.

During the first quarter of 2022, the Company invested $2.0 million in Swell Financial, Inc. ("Swell"), which included $1.5 million in other intangible assets and services provided in exchange for Swell common stock and $0.5 million in cash in exchange for Swell preferred stock. Swell intends to launch an integrated checking and line-of-credit account in the summer of 2022, with Central Pacific Bank serving as the bank sponsor. The Company does not have the ability to exercise significant influence over Swell and the investment does not have a readily determinable fair value. As a result, the Company determined that the cost method of accounting for the investment was appropriate. The investment is included in investments in unconsolidated entities.

During the second quarter of 2021, the Company committed $2.0 million to the JAM FINTOP Banktech Fund, L.P., an investment fund designed to help develop and accelerate technology adoption at community banks across the United States. The investment is accounted for under the cost method and is also included in investment in unconsolidated entities.

We also have other non-controlling equity investments in affiliates that are accounted for under the cost method and are included in investment in unconsolidated entities.

Our investments in unconsolidated entities accounted for under the equity, proportional amortization and cost methods were $0.2 million, $25.3 million and $5.6 million, respectively, at March 31, 2022 and $0.2 million, $25.9 million and $3.6 million, respectively, at December 31, 2021. Our policy for determining impairment of these investments includes an evaluation of whether a loss in value of an investment is other than temporary. Evidence of a loss in value includes absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment. We perform impairment tests whenever indicators of impairment are present. If
the value of an investment declines and it is considered other than temporary, the investment is written down to its respective fair value in the period in which this determination is made.

The Company sponsors the Central Pacific Bank Foundation, which is not consolidated in the Company's financial statements.
Reclassification, Policy [Policy Text Block]
Investment Securities

Investments in debt securities are designated as trading, available-for-sale ("AFS"), or held-to-maturity ("HTM"). Investments in debt securities are designated as HTM only if we have the positive intent and ability to hold these securities to maturity. HTM securities are reported at amortized cost in the consolidated balance sheets. Trading securities are reported at fair value, with changes in fair value included in net income. Debt securities not classified as HTM or trading are classified as AFS and are reported at fair value, with net unrealized gains and losses, net of applicable taxes, excluded from net income and included in accumulated other comprehensive income (loss) ("AOCI").

Transfers of investment securities from AFS to HTM are accounted for at fair value as of the date of the transfer. The difference between the fair value and the par value at the date of transfer is considered a premium or discount and is accounted for accordingly. Any unrealized gain or loss at the date of the transfer is reported in AOCI, and is amortized over the remaining life of the security as an adjustment of yield in a manner consistent with the amortization of any premium or discount, and will offset or mitigate the effect on interest income of the amortization of the premium or discount for that HTM security.

Equity securities with readily determinable fair values are carried at fair value, with changes in fair value included in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment.
The Company classifies its investment securities portfolio into the following major security types: mortgage-backed securities ("MBS"), other debt securities and equity securities. The Company’s MBS portfolio is comprised primarily of residential MBS issued by United States of America ("U.S.") government entities and agencies. These securities are either explicitly or implicitly guaranteed by an agency of the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The remainder of the MBS portfolio are commercial MBS issued by U.S government entities and agencies (which there is no minimum credit rating), non-agency residential MBS (which shall meet a minimum credit rating of AAA) and non-agency commercial MBS (which shall meet a minimum credit rating of BBB and meet minimum internal credit guidelines).

The Company’s other debt securities portfolio is comprised of obligations issued by U.S. government entities and agencies, obligations issued by states and political subdivisions (which shall meet a minimum credit rating of BBB), and corporate bonds (which shall meet a minimum credit rating of BBB-).

Interest income on investment securities includes amortization of premiums and accretion of discounts. We amortize premiums and accrete discounts using the effective interest method over the life of the respective security instrument. Gains and losses on the sale of investment securities are recorded on the trade date and determined using the specific identification method.

A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on non-accrual status is reversed against current period interest income. There were no investment securities on nonaccrual status as of March 31, 2022 and the Company did not reverse any accrued interest against interest income during the three months ended March 31, 2022.

Allowance for Credit Losses (“ACL”) for AFS Debt Securities

AFS debt securities in an unrealized loss position are evaluated for impairment at least quarterly. For AFS debt securities in an unrealized loss position, the Company first assesses whether or not it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the investment security’s amortized cost basis is written down to fair value through net income.

For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In conducting this assessment for debt securities in an unrealized loss position, management evaluates the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the investment security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost
basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in AOCI.

Changes in the ACL are recorded as a provision for (or reversal of) credit losses. Losses are charged against the ACL when management believes the uncollectibility of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

As of March 31, 2022, the declines in market values of our AFS debt securities were primarily attributable to changes in interest rates and volatility in the financial markets. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, we do not believe a credit loss exists and an ACL was not recorded.

The Company has made a policy election to exclude accrued interest receivable from the amortized cost basis of debt securities and report accrued interest receivable together with accrued interest on loans in the consolidated balance sheets. Accrued interest receivable on AFS debt securities totaled $3.6 million and $4.6 million as of March 31, 2022 and December 31, 2021, respectively. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses.

ACL for HTM Debt Securities

Management measures expected credit losses on HTM debt securities on a collective basis by major security type. For pools of such securities with common risk characteristics, the historical lifetime probability of default and severity of loss in the event of default is derived or obtained from external sources. Expected credit losses for these securities are estimated using a loss rate methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts.

Expected credit loss on each security in the HTM portfolio that do not share common risk characteristics with any of the pools of debt securities is individually measured based on net realizable value, or the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the recorded amortized cost basis of the security.

Securities in the HTM portfolio are issued by or contain collateral issued by U.S. government sponsored enterprises ("GSEs") and carry implicit guarantees from the U.S. government. Due to the implicit guarantee and the long history of no credit losses, no allowance for credit losses was recorded for these securities.

Accrued interest on HTM debt securities is reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses.

Accrued interest receivable on HTM debt securities totaled $0.6 million as of March 31, 2022. The Company did not have any accrued interest receivable on HTM debt securities as of December 31, 2021.

Federal Home Loan Bank Stock

We are a member of the Federal Home Loan Bank of Des Moines (the "FHLB"). The bank is required to obtain and hold a specific number of shares of capital stock of the FHLB equal to the sum of a membership investment requirement and an activity-based investment requirement. The securities are reported at cost and are presented separately in the consolidated balance sheets.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost, net of the ACL. Amortized cost is the unpaid principal amount outstanding, net of unamortized purchase premiums and discounts, unamortized deferred loan origination fees and costs and cumulative principal charge-offs. Purchase premiums and discounts are generally amortized into interest income over the contractual terms of the underlying loans using the effective interest method. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the life of the related loan as an adjustment to yield and are typically amortized using the interest method over the contractual term of the loan, adjusted for actual prepayments. Deferred loan fees and costs on loans paid in full are recognized as a component of interest income on loans.

Interest income on loans is accrued at the contractual rate of interest on the unpaid principal balance. Accrued interest receivable on loans totaled $12.2 million and $12.1 million at March 31, 2022 and December 31, 2021, respectively, and is reported together with accrued interest on HTM and AFS debt securities on the consolidated balance sheets. Upon adoption of ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,”
the Company made the accounting policy election to not measure an estimate of credit losses on accrued interest receivable as the Company writes off any uncollectible accrued interest receivable in a timely manner. The Company believes modified loans due to the novel coronavirus disease ("COVID-19") pandemic have distinct risk characteristics that cause them to be monitored and assessed for credit risk differently than their unmodified counterparts. Thus, in the third quarter of 2020, the Company elected to measure a reserve on the accrued interest receivable for loans on active payment forbearance or deferral of $0.2 million, with the offset recorded to provision for credit losses. Due to the significant decline in loans on active forbearance or deferral, the Company reversed the $0.2 million reserve during the second quarter of 2021 and no longer has a reserve on accrued interest receivable as of March 31, 2022.

Nonaccrual Loans

The Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. Commercial, scored small business, automobile and other consumer loans are generally placed on nonaccrual status when principal and/or interest payments are 90 days past due, or earlier should management determine that the borrowers will be unable to meet contractual principal and/or interest obligations, unless the loans are well-secured and in the process of collection. Residential mortgage and home equity loans, are generally placed on nonaccrual status when principal and/or interest payments are 120 days past due, or earlier should management determine that the borrowers will be unable to meet contractual principal and/or interest obligations, unless the loans are well-secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income should management determine that the collectability of such accrued interest is doubtful. All subsequent receipts are applied to principal outstanding and no interest income is recognized unless the financial condition and payment record of the borrowers warrant such recognition and the loan is restored to accrual status. A nonaccrual loan may be restored to an accrual basis when principal and interest payments are current for a predetermined period, normally at least six months, and full payment of principal and interest is reasonably assured.

Troubled Debt Restructuring (“TDR”)

A loan is accounted for and reported as a TDR when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) the Company grants a concession to the borrower experiencing financial difficulty that it would not otherwise consider for a borrower or transaction with similar credit risk characteristics. A restructuring that results in only an insignificant delay in payment is not considered a concession. A delay may be considered insignificant if the payments subject to the delay are insignificant relative to the unpaid principal or collateral value and the contractual amount due, or the delay in timing of the restructured payment period is insignificant relative to the frequency of payments, the debt’s original contractual maturity or original expected duration.

TDRs that are performing and on accrual status as of the date of the modification remain on accrual status. TDRs that are nonperforming as of the date of modification generally remain as nonaccrual until the prospect of future payments in accordance with the modified loan agreement is reasonably assured, generally demonstrated when the borrower maintains compliance with the restructured terms for a predetermined period, normally at least six months. TDRs with temporary below-market concessions remain designated as a TDR regardless of the accrual or performance status until the loan is paid off.

Expected credit losses are estimated on a collective (pool) basis when they share similar risk characteristics. If a TDR financial asset shares similar risk characteristics with other financial assets, it is evaluated with those other financial assets on a collective basis. If it does not share similar risk characteristics with other financial assets, it is evaluated individually. The Company’s ACL reflects all effects of a TDR when an individual asset is specifically identified as a reasonably expected TDR. The Company has determined that a TDR is reasonably expected no later than the point when the lender concludes that modification is the best course of action and it is at least reasonably possible that the troubled borrower will accept some form of concession from the lender to avoid a default. Reasonably expected TDRs and executed TDRs are evaluated to determine the required ACL using the same method as all other loans held for investment, except when the value of a concession cannot be measured using a method other than the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the ACL is determined by discounting the expected future cash flows at the original interest rate of the loan. Based on the underlying risk characteristics, TDRs performing in accordance with their modified contractual terms may be collectively evaluated.

In April 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued a revised interagency statement encouraging financial institutions to work with customers affected by the COVID-19 pandemic and providing additional information regarding loan modifications. The revised interagency statement clarifies the interaction between the interagency statement issued on March 22, 2020 and the temporary relief provided by Section 4013 of the Coronavirus Aid, Relief and Economic Security ("CARES") Act. Section 4013 allows financial institutions to suspend the requirements to classify certain loan modifications as TDRs. The revised statement also provides supervisory interpretations on past due and nonaccrual regulatory reporting of loan modification
programs and regulatory capital. Section 4013 and the interagency guidance were applied by the Company to loan modifications made related to the COVID-19 pandemic as eligible and appropriate. The application of the guidance reduced the number of TDRs that were reported. In December 2020, the Consolidated Appropriations Act, 2021 was signed into law. Section 541 of this legislation, “Extension of Temporary Relief From Troubled Debt Restructurings and Insurer Clarification,” extended Section 4013 of the CARES Act to the earlier of January 1, 2022 or 60 days after the termination of the national emergency declared relating to COVID-19. This relief ended on January 1, 2022.

Future TDRs are indeterminable and will depend on future developments, which are highly uncertain and cannot be predicted, including the economic recovery, market volatility and other actions taken by governmental authorities and other third parties as a result of the pandemic.

ACL for Loans

Under the current expected credit loss methodology, the ACL for loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Our policy is to charge off a loan in the period in which the loan is deemed to be uncollectible and all interest previously accrued but not collected is reversed against current period interest income. We consider a loan to be uncollectible when it is probable that a loss has been incurred and the Company can make a reasonable estimate of the loss. In these instances, the likelihood of and/or timeframe for recovery of the amount due is uncertain, weak, or protracted. Subsequent receipts, if any, are credited first to the remaining principal, then to the ACL for loans as recoveries, and finally to unaccrued interest.

The ACL for loans represents management's estimate of all expected credit losses over the expected life of our existing loan portfolio. Management estimates the ACL balance using relevant available information about the collectability of cash flows, from internal and external sources, including historical information relating to past events, current conditions, and reasonable and supportable forecasts of future economic conditions. When the Company is unable to forecast future economic events, management may revert to historical information.

The Company's methodologies incorporate a reasonable and supportable forecast period of one year and revert to historical loss information on a straight-line basis over a one year reversion period.

The Company maintains an ACL at an appropriate level as of a given balance sheet date to absorb management’s best estimate of expected life of loan credit losses.

Historical credit loss experience provides the basis for the Company’s expected credit loss estimate. Adjustments to historical loss information may be made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated.

The ACL methodology may also consider other adjustments to address changes in conditions, trends, and circumstances such as local industry changes that could have a significant impact on the risk profile of the loan portfolio and provide for adjustments that may not be reflected and/or captured in the historical loss data. These factors include: lending policies, imprecision in forecasting future economic conditions, loan profile, lending staff, problem loan trends, loan review, collateral, credit concentration and other internal and external factors.

The Company uses the Moody’s Analytics Baseline forecast service for its economic forecast assumption. The Moody’s Analytics Baseline forecast includes both National and Hawaii specific economic indicators. The Moody’s Analytics forecast service is widely used in the industry and is reasonable and supportable. It is updated at least monthly and includes a variety of upside and downside economic scenarios from the Baseline. Generally the Company will use the most recent Baseline forecast from Moody’s as of the balance sheet date. During times of economic and market volatility or instability, the Company may include a qualitative factor for forecast imprecision that factors in other potential economic scenarios available by Moody’s Analytics or may apply overrides to its statistical models to enhance the reasonableness of its loss estimates.

The ACL is measured on a collective or pool basis when similar risk characteristics exist. The Company segments its portfolio generally by Federal Financial Institutions Examination Council ("FFIEC") Call Report codes. Loan pools are further segmented by risk utilizing risk ratings or bands of payment delinquency (including TDR or non-accrual status), depending on what is most appropriate for each segment. Additional sub-segmentation may be utilized to identify groups of loans with unique risk characteristics relative to the rest of the portfolio.

The Company relies on a third-party platform which offers multiple methodologies to measure historical life-of-loan losses. The Company has also developed statistical models internally to incorporate future economic conditions and forecast expected credit losses based on various macro-economic indicators such as unemployment and income levels.
The Company has identified the following portfolio segments to measure the allowance for credit losses:
Loan SegmentHistorical Lifetime Loss MethodHistorical
Lookback
Period		Economic
Forecast
Length		Reversion Method
ConstructionProbability of Default/Loss Given Default ("PD/LGD")2008-PresentOne YearOne Year (straight-line basis)
Commercial real estatePD/LGD2008-Present
Multi-family mortgagePD/LGD2008-Present
Commercial, financial and agriculturalPD/LGD2008-Present
Home equity lines of creditLoss-Rate Migration2008-Present
Residential mortgageLoss-Rate Migration2008-Present
Consumer - other revolvingLoss-Rate Migration2008-Present
Consumer - non-revolvingLoss-Rate Migration2008-Present
Purchased Mainland portfolios (Dealer, Other consumer)Weighted-Average Remaining Maturity ("WARM")2008-Present

Below is a description and the risk characteristics of each segment:

Construction loans

Construction loans include both residential and commercial development projects. Each construction project is evaluated for economic viability and construction loans pose higher credit risks than typical secured loans. Financial strength of the borrower, completion risk (the risk that the project will not be completed on time and within budget) and geographic location are the predominant risk characteristics of this segment.

Commercial real estate loans

Commercial real estate loans are secured by commercial properties. The predominant risk characteristic of this segment is operating risk, which is the risk that the borrower will be unable to generate sufficient cash flows from the operation of the property. Interest rate conditions and the commercial real estate market through economic cycles also impact risk levels.

Multi-family mortgage loans

Multi-family mortgage loans can comprise multi-building properties with extensive amenities to a single building with no amenities. The primary risk characteristic of this segment is operating risk or the ability to generate sufficient rental cash flows from the operation of the property within the owner’s strategy and resources.

Commercial, financial and agricultural loans

Loans in this category consist primarily of term loans and lines of credit to small and middle-market businesses and professionals. The predominant risk characteristics of this segment are the cash flows of the business we lend to, global cash flows including guarantor liquidity, as well as economic and market conditions. The borrower’s business is typically regarded as the principal source of repayment, though our underwriting policy and practice generally requires secondary sources of support or collateral to mitigate risk.

Paycheck Protection Program (“PPP”) loans are also in this category and are considered lower risk as they are guaranteed by the Small Business Administration (“SBA”) and may be forgivable in whole or in part in accordance with the requirements of the PPP.

Home equity lines of credit

Home equity lines of credit include fixed or floating interest rate loans and are primarily secured by single family owner-occupied primary residences in Hawaii. They are underwritten based on a minimum FICO score, maximum debt-to-income ratio, and maximum combined loan-to-value ratio. Home equity lines of credit are monitored based on credit score, delinquency, end of draw period and maturity.
Residential mortgage loans

Residential mortgage loans include fixed-rate and adjustable-rate loans secured by single family owner-occupied primary residences in Hawaii. Economic conditions such as unemployment levels, future changes in interest rates and other market factors impact the level of credit risk inherent in the portfolio.

Consumer loans - other revolving

This segment consists of consumer unsecured lines of credit. Its predominant risk characteristics relate to current and projected economic conditions as well as employment and income levels attributed to the borrower.

Consumer loans - non-revolving

This segment consists of consumer non-revolving (term) loans, including auto dealer loans. Its predominant risk characteristics relate to current and projected economic conditions as well as employment and income levels attributed to the borrower.

Purchased consumer portfolios

Credit risk for purchased consumer loans is managed on a pooled basis. The predominant risk characteristics of purchased consumer loans include current and projected economic conditions, employment and income levels, and the quality of purchased consumer loans.

Below is a description of the methodologies mentioned above:

Probability of Default/Loss Given Default ("PD/LGD")

The PD/LGD calculation is based on a cohort methodology whereby loans in the same cohort are tracked over time to identify defaults and corresponding losses. PD/LGD analysis requires a portfolio segmented into pools, and we elected to then further sub-segment by risk characteristics such as Risk Rating, TDR status and Nonaccrual status to measure losses accurately. PD measures the count or dollar amount of loans that defaulted in a given cohort. LGD measures the losses related to the loans that defaulted. Total expected loss rate is calculated using the formula 'PD times LGD'.

Loss-Rate Migration

Loss-rate migration analysis is a cohort-based approach that measures cumulative net charge-offs over a defined time-horizon to calculate a loss rate that will be applied to the loan pool. Loss-rate migration analysis requires the portfolio to be segmented into pools then further sub-segmented by risk characteristics such as days past due, delinquency counters, TDR status and Nonaccrual status to measure loss rates accurately. The key inputs to run a loss-rate migration analysis are the length and frequency of the migration period, the dates for the migration periods to start and the number of migration periods used for the analysis. For each migration period, the analysis will determine the outstanding balance in each segment and/or sub-segment at the start of each period. These loans will then be followed for the length of the migration period to identify the amount of associated charge-offs and recoveries. A loss rate for each migration period is calculated using the formula 'net charge-offs over the period divided by beginning loan balance'.

Weighted-Average Remaining Maturity ("WARM")

Under the WARM methodology, lifetime losses are calculated by determining the remaining life of the loan pool and then applying a loss rate which includes a forecast component over this remaining life. The methodology considers historical loss experience as well as a loss forecast expectation to estimate credit losses for the remaining balance of the loan pool. The calculated loss rate is applied to the contractual term (adjusted for prepayments) to determine the loan pool’s current expected credit losses.

Other

If a loan ceases to share similar risk characteristics with other loans in its segment, it will be moved to a different pool sharing similar risk characteristics. Loans that do not share risk characteristics are evaluated on an individual basis based on the fair value of the collateral or other approaches such as discounted cash flow (“DCF”) techniques. Loans evaluated individually are not included in the collective evaluation.
Determining the Term

Expected credit losses are estimated over the contractual term of the loans and are adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. If such renewal options or extensions are present, these options are evaluated in determining the contractual term.

Reserve for Off-Balance Sheet Credit Exposures

The Company maintains a separate and distinct reserve for off-balance-sheet credit exposures which is included in other liabilities on the Company’s consolidated balance sheets. The Company estimates the amount of expected losses by calculating a commitment usage factor for letters of credit, non-revolving lines of credit, and revolving lines of credit over the remaining life during which the Company is exposed to credit risk via a contractual obligation to extend credit.

Letters of credit are generally unlikely to advance since they are typically in place only to ensure various forms of performance of the borrowers. Many of the letters of credit are cash secured. Non-revolving lines of credit are determined to be likely to advance as these are typically construction lines. Meanwhile, the likelihood of revolving lines of credit advancing varies with each individual borrower. Therefore, the future usage of each line was estimated based on the average line utilization of the revolving line of credit portfolio as a whole.

The reserve for off-balance-sheet credit exposures also applies the loss factors for each loan type used in the ACL for loans methodology, which is based on historical losses, economic conditions and reasonable and supportable forecasts. The reserve for off-balance sheet credit exposures is recorded as a provision for credit losses on off-balance sheet credit exposures in the provision for credit losses.

Purchased Credit Deteriorated (“PCD”) Financial Assets

The Company has purchased financial assets, none of which were credit deteriorated since origination at the time of purchase. The Company does not purchase any financial assets that are greater than 30 days delinquent at the time of purchase.

PCD financial assets, if any, are recorded at the amount paid. An ACL for PCD financial assets will be determined using the same methodology as other financial assets. The initial ACL determined on a collective basis is allocated to individual financial assets. The sum of the financial asset’s purchase price and the ACL becomes its initial amortized cost. The difference between the initial amortized costs basis and the par value of the financial asset is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL are recorded through the provision for credit losses.
v3.22.1
RECENT ACCOUNTING PRONOUNCEMENTS (Policies)
 3 Months Ended
Mar. 31, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]  
Recent Accounting Pronouncements
Accounting Standards Adopted in 2022

In May 2021, the FASB issued ASU No. 2021-04, "Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options". ASU 2021-04 addresses issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options. ASU 2021-04 is effective for fiscal years beginning after December 15, 2021 and interim periods within those fiscal years, with early adoption permitted. The Company adopted ASU 2021-04 effective January 1, 2022 and it did not have a material impact on our consolidated financial statements.

In July 2021, the FASB issued ASU No. 2021-05, "Leases (Topic 842), Lessors—Certain Leases with Variable Lease Payments". ASU 2021-05 updates guidance in Topic 842, to restore long-standing accounting practice for certain sales-type leases with variable payments. ASU 2021-05 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company adopted ASU 2021-05 effective January 1, 2022 and it did not have an impact on our consolidated financial statements as the Company does not have sale-type leases with variable payments.
Impact of Other Recently Issued Accounting Pronouncements on Future Filings

In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848)." This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. Entities can (1) elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Entities can also (2) elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met. Finally, entities can (3) make a one-time election to sell and/or reclassify held-to-maturity (“HTM”) debt securities that reference an interest rate affected by reference rate reform. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848)," which clarifies that all derivative instruments affected by the changes to interest rates used for discounting, margining or contract price alignment, regardless of whether they reference LIBOR or another rate expected to be discontinued as a result of reference rate reform, an entity may apply certain practical expedients in Topic 848. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company will elect optional expedients above for applicable contract modifications and hedge accounting for hedging relationships that meet the stated criteria.

In March 2022, the FASB issued ASU No. 2022-01, "Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method". ASU 2022-01 updates guidance in Topic 815, to expand the current last-of-layer method, which will allow multiple hedged layers to be designated for a single closed portfolio of financial assets or one or more beneficial interests secured by a portfolio of financial instruments on a prospective basis. ASU 2022-01 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is in the process of evaluating the provisions of this ASU and its effects on our consolidated financial statements, however we currently do not use the last-of-layer hedge accounting method.

In March 2022, the FASB issued ASU No. 2022-02, "Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures". ASU 2022-02 updates guidance in Topic 326, to eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty and to require entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is in the process of evaluating the provisions of this ASU and its effects on our consolidated financial statements and plans on making the adoption for the upcoming effective fiscal period.
v3.22.1
INVESTMENT SECURITIES (Tables)
 3 Months Ended
Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Summary of available for sale and held to maturity investment securities are as follows:
(dollars in thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value		ACL
March 31, 2022    
Held-to-maturity:
Debt securities:
States and political subdivisions$41,730 $— $(1)$41,729 $— 
Mortgage-backed securities:
Residential - U.S. Government-sponsored entities$287,777 $— $(3)$287,774 $— 
Total held-to-maturity securities$329,507 $— $(4)$329,503 $— 
Available-for-sale:    
Debt securities:    
States and political subdivisions$178,137 $487 $(14,443)$164,181 $— 
Corporate securities36,561 — (3,507)33,054 — 
U.S. Treasury obligations and direct obligations of U.S Government agencies33,275 120 (1,224)32,171 — 
Mortgage-backed securities:    
Residential - U.S. Government-sponsored entities926,988 220 (69,010)858,198 — 
Residential - Non-government agencies11,088 101 (281)10,908 — 
Commercial - U.S. Government-sponsored entities63,074 17 (3,733)59,358 — 
Commercial - Non-government agencies41,333 279 — 41,612 — 
Total available-for-sale securities$1,290,456 $1,224 $(92,198)$1,199,482 $— 

(dollars in thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value		ACL
December 31, 2021    
Available-for-sale:    
Debt securities:    
States and political subdivisions$235,521 $3,156 $(1,849)$236,828 $— 
Corporate securities41,687 24 (1,065)40,646 — 
U.S. Treasury obligations and direct obligations of U.S Government agencies35,833 69 (568)35,334 — 
Mortgage-backed securities: 
Residential - U.S. Government-sponsored entities1,213,910 4,899 (19,993)1,198,816 — 
Residential - Non-government agencies11,942 335 (64)12,213 — 
Commercial - U.S. Government-sponsored entities66,287 756 (1,194)65,849 — 
Commercial - Non-government agencies41,328 685 — 42,013 — 
Total available-for-sale securities$1,646,508 $9,924 $(24,733)$1,631,699 $— 
Schedule of amortized cost and estimated fair value of investment securities by contractual maturity
The amortized cost and estimated fair value of our HTM and AFS debt securities at March 31, 2022 are shown below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
 March 31, 2022
(dollars in thousands)Amortized CostFair Value
Held-to-maturity:  
Debt securities:
Due after ten years$41,730 $41,729 
Mortgage-backed securities:  
Residential - U.S. Government-sponsored entities287,777 287,774 
Total held-to-maturity securities$329,507 $329,503 
Available-for-sale:  
Debt securities:
Due in one year or less$5,614 $5,607 
Due after one year through five years20,250 20,432 
Due after five years through ten years83,032 78,488 
Due after ten years139,077 124,879 
Mortgage-backed securities:
Residential - U.S. Government-sponsored entities926,988 858,198 
Residential - Non-government agencies11,088 10,908 
Commercial - U.S. Government-sponsored entities63,074 59,358 
Commercial - Non-government agencies41,333 41,612 
Total available-for-sale securities$1,290,456 $1,199,482 
Schedule of investment securities in an unrealized loss position
There were a total of 273 and 153 debt securities which were in an unrealized loss position, without an ACL, at March 31, 2022 and December 31, 2021, respectively. The following tables summarize AFS debt securities which were in an unrealized loss position at March 31, 2022 and December 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position.
 Less Than 12 Months12 Months or LongerTotal
(dollars in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
March 31, 2022      
Debt securities:      
States and political subdivisions$163,055 $(12,432)$9,445 $(2,012)$172,500 $(14,444)
Corporate securities4,696 (325)28,358 (3,182)33,054 (3,507)
U.S. Treasury obligations and direct obligations of U.S Government agencies4,808 (54)19,215 (1,170)24,023 (1,224)
Mortgage-backed securities:      
Residential - U.S. Government-sponsored entities951,100 (50,975)170,132 (18,038)1,121,232 (69,013)
Residential - Non-government agencies6,336 (137)852 (144)7,188 (281)
Commercial - U.S. Government-sponsored entities36,944 (1,104)14,579 (2,629)51,523 (3,733)
Total temporarily impaired securities$1,166,939 $(65,027)$242,581 $(27,175)$1,409,520 $(92,202)

 Less Than 12 Months12 Months or LongerTotal
(dollars in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
December 31, 2021      
Debt securities:      
States and political subdivisions$79,360 $(1,252)$10,864 $(597)$90,224 $(1,849)
Corporate securities8,633 (235)21,960 (830)30,593 (1,065)
U.S. Treasury obligations and direct obligations of U.S Government agencies16,103 (415)10,891 (153)26,994 (568)
Mortgage-backed securities:      
Residential - U.S. Government-sponsored entities926,570 (15,883)114,747 (4,110)1,041,317 (19,993)
Residential - Non-government agencies— — 938 (64)938 (64)
Commercial - U.S. Government-sponsored entities6,313 (205)16,281 (989)22,594 (1,194)
Total temporarily impaired securities$1,036,979 $(17,990)$175,681 $(6,743)$1,212,660 $(24,733)
v3.22.1
LOANS AND CREDIT QUALITY (Tables)
 3 Months Ended
Mar. 31, 2022
Receivables [Abstract]  
Schedule of loans and leases, excluding loans held for sale
Loans, excluding loans held for sale, net of ACL under ASC 326 as of March 31, 2022 and December 31, 2021 consisted of the following:
(dollars in thousands)March 31, 2022December 31, 2021
Commercial, financial and agricultural:
Small Business Administration Paycheck Protection Program$45,938 $94,850 
Other544,732 530,383 
Real estate:
Construction123,767 123,351 
Residential mortgage1,873,405 1,875,200 
Home equity674,625 635,721 
Commercial mortgage1,245,423 1,222,138 
Consumer669,194 624,115 
Gross loans5,177,084 5,105,758 
Net deferred fees(2,247)(4,109)
Total loans, net of deferred fees and costs5,174,837 5,101,649 
Allowance for credit losses(64,754)(68,097)
Total loans, net of allowance for credit losses$5,110,083 $5,033,552 
Financing Receivable, Purchased With Credit Deterioration
The following table presents loans purchased by class for the periods presented:
(dollars in thousands)U.S. Mainland Consumer - UnsecuredU.S. Mainland Consumer - AutomobileTotal
Three Months Ended March 31, 2022
Purchases:
Outstanding balance$48,142 $34,024 $82,166 
(Discount) premium(4,367)1,914 (2,453)
Purchase price$43,775 $35,938 $79,713 
Three Months Ended March 31, 2021
Purchases:
Outstanding balance$22,534 $12,990 $35,524 
(Discount) premium(131)666 535 
Purchase price$22,403 $13,656 $36,059 
Financing Receivable, Collateral-Dependent The following table presents the amortized cost basis of collateral-dependent loans by class, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of March 31, 2022 and December 31, 2021:
(dollars in thousands)Secured by
1-4 Family
Residential
Properties		Secured by
Nonfarm
Nonresidential
Properties		Secured by
Real Estate
and Business
 Assets		TotalAllocated
ACL
March 31, 2022
Real estate:
Residential mortgage$6,665 $— $— $6,665 $— 
Home equity820 — — 820 — 
Total$7,485 $— $— $7,485 $— 

(dollars in thousands)Secured by
1-4 Family
Residential
Properties		Secured by
Nonfarm
Nonresidential
Properties		Secured by
Real Estate
and Business
 Assets		TotalAllocated
ACL
December 31, 2021
Real estate:
Residential mortgage$8,391 $— $— $8,391 $— 
Home equity786 — — 786 — 
Total$9,177 $— $— $9,177 $— 
Schedule of aging of the recorded investment in past due loans and leases, by class The following tables present by class, the aging of the recorded investment in past due loans as of March 31, 2022 and December 31, 2021. The following tables also present the amortized cost of loans on nonaccrual status for which there was no related ACL under ASC 326 as of March 31, 2022 and December 31, 2021.
(dollars in thousands)Accruing
Loans
30 - 59 Days
Past Due		Accruing
Loans
60 - 89 Days
Past Due		Accruing
Loans
Greater 
Than
90 Days
Past Due		Nonaccrual
Loans		Total
Past Due
and
Nonaccrual		Loans and
Leases
Not
Past Due		TotalNonaccrual
Loans
With
No ACL
March 31, 2022       
Commercial, financial and agricultural:
SBA PPP$— $— $— $— $— $44,231 $44,231 $— 
Other710 323 592 293 1,918 542,498 544,416 — 
Real estate:  
Construction— — — — — 123,317 123,317 — 
Residential mortgage7,512 4,538 111 3,804 15,965 1,858,083 1,874,048 3,804 
Home equity135 138 — 820 1,093 675,233 676,326 820 
Commercial mortgage— — — — — 1,243,499 1,243,499 — 
Consumer3,113 555 621 419 4,708 664,292 669,000 — 
Total$11,470 $5,554 $1,324 $5,336 $23,684 $5,151,153 $5,174,837 $4,624 

(dollars in thousands)Accruing
Loans
30 - 59 Days
Past Due		Accruing
Loans
60 - 89 Days
Past Due		Accruing
Loans
Greater 
Than
90 Days
Past Due		Nonaccrual
Loans		Total
Past Due
and
Nonaccrual		Loans and
Leases
Not
Past Due		TotalNonaccrual
Loans
With
No ACL
December 31, 2021       
Commercial, financial and agricultural:
SBA PPP$— $— $— $— $— $91,327 $91,327 $— 
Other970 604 945 183 2,702 527,419 530,121 — 
Real estate:  
Construction638 — — — 638 122,229 122,867 — 
Residential mortgage5,315 — — 4,623 9,938 1,866,042 1,875,980 4,623 
Home equity234 — 44 786 1,064 636,185 637,249 786 
Commercial mortgage— — — — — 1,220,204 1,220,204 — 
Consumer2,444 712 374 289 3,819 620,082 623,901 — 
Total$9,601 $1,316 $1,363 $5,881 $18,161 $5,083,488 $5,101,649 $5,409 
Schedule Of Debt Instrument, Deferrals
Schedule of information related to loans modified in a TDR, by class
The Company did not modify any loans during the three months ended March 31, 2022. The Company modified one commercial, financial and agricultural loan totaling $0.6 million during the three months ended March 31,2021. The loan was paid off during the three months ended June 30, 2021.
(dollars in thousands)Number of
Contracts		Recorded
Investment
(as of Period End)		Increase in the
ACL
Three Months Ended March 31, 2021
Commercial, financial and agricultural - Other1 $560 $— 
Total1 $560 $— 
Schedule of recorded investment in loans and leases, by class and credit indicator The following table presents the amortized cost basis of the Company's loans by class, credit quality indicator and origination year as of March 31, 2022 and December 31, 2021. Revolving loans converted to term as of and during the three months ended March 31, 2022 and 2021 were not material to the total loan portfolio.
Amortized Cost of Term Loans by Origination Year
(dollars in thousands)20222021202020192018PriorAmortized Cost of Revolving LoansTotal
March 31, 2022
Commercial, financial and agricultural - SBA PPP:
Risk Rating
Pass$— $41,446 $2,785 $— $— $— $— $44,231 
Subtotal— 41,446 2,785 — — — — 44,231 
Commercial, financial and agricultural - Other:
Risk Rating
Pass22,335 116,423 62,923 53,061 50,404 135,034 78,849 519,029 
Special Mention1,720 615 260 2,557 97 8,259 175 13,683 
Substandard— — 1,592 320 617 8,425 750 11,704 
Subtotal24,055 117,038 64,775 55,938 51,118 151,718 79,774 544,416 
Construction:
Risk Rating
Pass1,386 40,722 28,751 3,165 26,372 20,169 1,841 122,406 
Substandard— — — — 911 — — 911 
Subtotal1,386 40,722 28,751 3,165 27,283 20,169 1,841 123,317 
Residential mortgage:
Risk Rating
Pass75,178 664,439 461,369 169,718 70,625 427,838 — 1,869,167 
Substandard— — 967 — — 3,914 — 4,881 
Subtotal75,178 664,439 462,336 169,718 70,625 431,752 — 1,874,048 
Home equity:
Risk Rating
Pass17,421 25,375 12,329 8,607 9,230 9,598 592,763 675,323 
Special Mention— — — — — — 183 183 
Substandard— — 175 — 79 566 — 820 
Subtotal17,421 25,375 12,504 8,607 9,309 10,164 592,946 676,326 
Commercial mortgage:
Risk Rating
Pass58,265 227,168 122,565 142,287 121,026 517,380 9,183 1,197,874 
Special Mention— 1,174 — 5,736 1,020 9,655 — 17,585 
Substandard— — — 1,737 10,227 16,076 — 28,040 
Subtotal58,265 228,342 122,565 149,760 132,273 543,111 9,183 1,243,499 
Consumer:
Risk Rating
Pass74,303 315,526 85,061 78,307 35,064 23,082 56,454 667,797 
Special Mention— — — 163 — — — 163 
Substandard— 60 44 178 83 495 — 860 
Loss— — — — — 180 — 180 
Subtotal74,303 315,586 85,105 78,648 35,147 23,757 56,454 669,000 
Total$250,608 $1,432,948 $778,821 $465,836 $325,755 $1,180,671 $740,198 $5,174,837 
Amortized Cost of Term Loans by Origination Year
(dollars in thousands)20212020201920182017PriorAmortized Cost of Revolving LoansTotal
December 31, 2021
Commercial, financial and agricultural - SBA PPP:
Risk Rating
Pass$84,254 $7,073 $— $— $— $— $— $91,327 
Subtotal84,254 7,073 — — — — — 91,327 
Commercial, financial and agricultural - Other:
Risk Rating
Pass$122,729 $68,021 $56,531 $52,375 $31,817 $93,957 $79,131 $504,561 
Special Mention1,441 1,278 2,443 96 8,671 354 — 14,283 
Substandard— 982 393 682 6,623 1,847 750 11,277 
Subtotal124,170 70,281 59,367 53,153 47,111 96,158 79,881 530,121 
Construction:
Risk Rating
Pass35,236 25,430 3,196 28,333 288 20,090 9,376 121,949 
Substandard— — — 918 — — — 918 
Subtotal35,236 25,430 3,196 29,251 288 20,090 9,376 122,867 
Residential mortgage:
Risk Rating
Pass670,011 478,891 180,687 75,820 92,394 372,539 42 1,870,384 
Special Mention— 973 — — — — — 973 
Substandard— — — 577 881 3,165 — 4,623 
Subtotal670,011 479,864 180,687 76,397 93,275 375,704 42 1,875,980 
Home equity:
Risk Rating
Pass26,479 13,008 10,329 10,593 480 7,743 567,600 636,232 
Special Mention— — — — — — 187 187 
Substandard— 176 — 79 — 575 — 830 
Subtotal26,479 13,184 10,329 10,672 480 8,318 567,787 637,249 
Commercial mortgage:
Risk Rating
Pass229,108 126,169 146,584 126,014 153,041 387,751 9,472 1,178,139 
Special Mention— — 3,106 3,219 283 9,455 — 16,063 
Substandard— — 1,760 8,050 1,784 14,408 — 26,002 
Subtotal229,108 126,169 151,450 137,283 155,108 411,614 9,472 1,220,204 
Consumer:
Risk Rating
Pass308,326 96,066 91,194 41,995 20,719 9,446 55,311 623,057 
Special Mention— — 181 — 10 7 — 198 
Substandard10 35 128 80 19 221 — 493 
Loss— — — — — 153 — 153 
Subtotal308,336 96,101 91,503 42,075 20,748 9,827 55,311 623,901 
Total$1,477,594 $818,102 $496,532 $348,831 $317,010 $921,711 $721,869 $5,101,649 
The following tables present the Company's loans by class and credit quality indicator as of March 31, 2022 and December 31, 2021:
(dollars in thousands)PassSpecial MentionSubstandardLossSubtotalNet Deferred Fees and CostsTotal
March 31, 2022      
Commercial, financial and agricultural: SBA PPP$45,938 $— $— $— $45,938 $(1,707)$44,231 
Commercial, financial and agricultural: Other519,345 13,683 11,704 — 544,732 (316)544,416 
Real estate:  
Construction122,856 — 911 — 123,767 (450)123,317 
Residential mortgage1,868,524 — 4,881 — 1,873,405 643 1,874,048 
Home equity673,622 183 820 — 674,625 1,701 676,326 
Commercial mortgage1,199,798 17,585 28,040 — 1,245,423 (1,924)1,243,499 
Consumer667,991 163 860 180 669,194 (194)669,000 
Total$5,098,074 $31,614 $47,216 $180 $5,177,084 $(2,247)$5,174,837 

(dollars in thousands)PassSpecial MentionSubstandardLossSubtotalNet Deferred Fees and CostsTotal
December 31, 2021      
Commercial, financial and agricultural: SBA PPP$94,850 $— $— $— $94,850 $(3,523)$91,327 
Commercial, financial and agricultural: Other504,823 14,283 11,277 — 530,383 (262)530,121 
Real estate:  
Construction122,433 — 918 — 123,351 (484)122,867 
Residential mortgage1,869,604 973 4,623 — 1,875,200 780 1,875,980 
Home equity634,704 187 830 — 635,721 1,528 637,249 
Commercial mortgage1,180,074 16,062 26,002 — 1,222,138 (1,934)1,220,204 
Consumer623,271 181 510 153 624,115 (214)623,901 
Total$5,029,759 $31,686 $44,160 $153 $5,105,758 $(4,109)$5,101,649 
v3.22.1
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURE (Tables)
 3 Months Ended
Mar. 31, 2022
ALLOWANCE FOR LOAN AND LEASE LOSSES  
Schedule of activity in the allowance, by class
The following table presents by class, the activity in the ACL for loans under ASC 326 during the three months ended March 31, 2022 and March 31, 2021:
 Commercial, Financial and AgriculturalReal Estate 
(dollars in thousands)SBA PPPOtherConstructionResidential MortgageHome EquityCommercial MortgageConsumerTotal
Three Months Ended March 31, 2022
Beginning balance$77 $10,314 $3,908 $12,463 $4,509 $18,411 $18,415 $68,097 
(Credit) provision for credit losses on loans(41)(848)(72)(1,532)132 (2,356)1,786 (2,931)
Subtotal36 9,466 3,836 10,931 4,641 16,055 20,201 65,166 
Charge-offs— 254 — — — — 1,216 1,470 
Recoveries— 350 — 112 — — 596 1,058 
Net charge-offs (recoveries)— (96)— (112)— — 620 412 
Ending balance$36 $9,562 $3,836 $11,043 $4,641 $16,055 $19,581 $64,754 
Three Months Ended March 31, 2021
Beginning balance$304 $18,717 $4,277 $16,484 $5,449 $22,163 $15,875 $83,269 
(Credit) provision for credit losses on loans185 (2,733)770 (1,233)(207)563 1,681 (974)
Subtotal489 15,984 5,047 15,251 5,242 22,726 17,556 82,295 
Charge-offs— 609 — — — — 1,098 1,707 
Recoveries— 89 — 106 9 8 753 965 
Net charge-offs (recoveries)— 520 — (106)(9)(8)345 742 
Ending balance$489 $15,464 $5,047 $15,357 $5,251 $22,734 $17,211 $81,553 
The following table presents the activity in the reserve for off-balance sheet credit exposures, included in other liabilities, during the three months ended March 31, 2022 and March 31, 2021.
(dollars in thousands)
Three Months Ended March 31, 2022
Beginning balance$4,804 
(Credit) provision for off-balance sheet credit exposures(264)
Ending balance$4,540 
Three Months Ended March 31, 2021
Beginning balance$4,884 
Provision for off-balance sheet credit exposures153 
Ending balance$5,037 
v3.22.1
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Tables)
 3 Months Ended
Mar. 31, 2022
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]  
Schedule of investment in unconsolidated subsidiaries
The components of the Company's investments in unconsolidated entities were as follows:
(dollars in thousands)March 31, 2022December 31, 2021
Investments in low income housing tax credit partnerships, net of amortization$25,309 $25,916 
Investments in common securities of statutory trusts1,547 1,547 
Investments in affiliates187 162 
Other4,049 2,054 
Total$31,092 $29,679 
The following table presents amortization and tax credits recognized associated with our investments in LIHTC partnerships for the three months ended March 31, 2022 and March 31, 2021:

(dollars in thousands)Three Months Ended
March 31, 2022		Three Months Ended
March 31, 2021
Proportional amortization method:
Amortization expense recognized in income tax expense$607 $407 
Tax credits recognized in income tax expense709 474 
Other Commitments
The expected payments for the unfunded commitments as of March 31, 2022 for the remainder of fiscal year 2022, the next five succeeding fiscal years and all years thereafter are as follows:
(dollars in thousands)
Year Ending December 31, LIHTC partnershipsOther partnershipsTotal
2022 (remainder)$6,071 $1,653 $7,724 
20238,128 — 8,128 
202426 — 26 
20256 — 6 
20266 — 6 
20276 — 6 
Thereafter32 — 32 
Total unfunded commitments$14,275 $1,653 $15,928 
v3.22.1
MORTGAGE SERVICING RIGHTS (Tables)
 3 Months Ended
Mar. 31, 2022
OTHER INTANGIBLE ASSETS  
Schedule of gross carrying value and accumulated amortization related to intangible assets
The following table presents changes in mortgage servicing rights for the periods presented:
(dollars in thousands)Mortgage
Servicing
Rights
Balance, January 1, 2022$9,738 
Additions276 
Amortization(534)
Balance, March 31, 2022$9,480 
Balance, January 1, 2021$11,865 
Additions461 
Amortization(1,232)
Balance, March 31, 2021$11,094 
The gross carrying value and accumulated amortization related to our mortgage servicing rights are presented below:
 March 31, 2022December 31, 2021
(dollars in thousands)Gross
Carrying
Value		Accumulated
Amortization		Net
Carrying
Value		Gross
Carrying
Value		Accumulated
Amortization		Net
Carrying
Value
Mortgage servicing rights$72,526 $(63,046)$9,480 $72,250 $(62,512)$9,738 
Schedule of fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights
The following tables present the fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights:
Three Months EndedThree Months Ended
(dollars in thousands)March 31, 2022March 31, 2021
Fair market value, beginning of period$10,504 $12,003 
Fair market value, end of period11,166 11,673 
Weighted average discount rate9.5 %9.6 %
Weighted average prepayment speed assumption18.3 %17.5 %
Schedule of estimated amortization expense
Based on the mortgage servicing rights held as of March 31, 2022, estimated amortization expense for the remainder of fiscal year 2022, the next five succeeding fiscal years and all years thereafter are as follows:
(dollars in thousands)
Year Ending December 31,
2022 (remainder)$1,671 
20231,837 
20241,506 
20251,231 
20261,026 
2027852 
Thereafter1,357 
Total$9,480 
v3.22.1
DERIVATIVES (Tables)
 3 Months Ended
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of the location of all assets and liabilities associated with derivative instruments within the consolidated balance sheets
The following table presents the location of all assets and liabilities associated with our derivative instruments within the consolidated balance sheets:
Derivative Financial Instruments Not Designated as Hedging InstrumentsAsset DerivativesLiability Derivatives
Fair Value atFair Value at
(dollars in thousands)Balance Sheet LocationMarch 31,
2022		December 31,
2021		March 31,
2022		December 31,
2021
Interest rate lock and forward sale commitmentsOther assets / other liabilities$149 $5 $5 $4 
Risk participation agreementsOther assets / other liabilities— — — 16 
Back-to-back swap agreementsOther assets / other liabilities1,624 435 1,624 435 
Derivative Financial Instruments Designated as Hedging InstrumentsAsset DerivativesLiability Derivatives
Fair Value atFair Value at
(dollars in thousands)Balance Sheet LocationMarch 31,
2022		December 31,
2021		March 31,
2022		December 31,
2021
Interest rate swapOther assets / other liabilities$— $— $50 $— 
Schedule of the impact of derivative instruments and their location within the consolidated statements of income
The following table presents the impact of derivative instruments and their location within the consolidated statements of income:
Derivative Financial Instruments
Not Designated as Hedging Instruments		Location of Gain (Loss)
Recognized in
Earnings on Derivatives		Amount of Gain (Loss)
Recognized in
Earnings on Derivatives
(dollars in thousands)
Three Months Ended March 31, 2022 
Interest rate lock and forward sale commitmentsMortgage banking income143 
Loans held for saleOther income(63)
Risk participation agreementsOther service charges and fees16 
Back-to-back swap agreementsOther service charges and fees— 
Three Months Ended March 31, 2021 
Interest rate lock and forward sale commitmentsMortgage banking income180 
Loans held for saleOther income(1)
Risk participation agreementsOther service charges and fees— 
Back-to-back swap agreementsOther service charges and fees31 
v3.22.1
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - (Tables)
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Schedule of Subordinated Borrowing
At March 31, 2022 and December 31, 2021, the Company had the following junior subordinated debentures outstanding, which is recorded in long-term debt on the Company's consolidated balance sheets:
(dollars in thousands)March 31, 2022
Name of TrustSubordinated DebenturesInterest Rate
Trust IV$30,928 Three month LIBOR + 2.45%
Trust V20,619 Three month LIBOR + 1.87%
Total$51,547 
December 31, 2021
Name of TrustSubordinated DebenturesInterest Rate
Trust IV$30,928 Three month LIBOR + 2.45%
Trust V20,619 Three month LIBOR + 1.87%
Total$51,547 
Schedule of Long-term Debt Instruments
As of March 31, 2022 and December 31, 2021, the Company had the following subordinated notes outstanding:

(Dollars in thousands)March 31, 2022
NameAmount of Subordinated NotesInterest Rate
October 2020 Private Placement$55,000 
4.75% for the first five years. Resets quarterly thereafter to the then current three-month SOFR plus 456 basis points.
(Dollars in thousands)December 31, 2021
Name of TrustAmount of Subordinated DebenturesInterest Rate
October 2020 Private Placement$55,000 
4.75% for the first five years. Resets quarterly thereafter to the then current three-month SOFR plus 456 basis points.
v3.22.1
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)
 3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
Other operating income segregated by revenue streams
The following presents the Company's other operating income, segregated by revenue streams that are in-scope and out-of-scope of ASC 606, "Revenue from Contracts with Customers" for the three months ended March 31, 2022 and 2021:
Three Months Ended
March 31,
(dollars in thousands)20222021
Other operating income:
In-scope of ASC 606
Mortgage banking income$235 $838 
Service charges on deposit accounts1,861 1,478 
Other service charges and fees3,863 3,178 
Income on fiduciary activities1,154 1,231 
In-scope other operating income7,113 6,725 
Out-of-scope other operating income2,438 3,986 
Total other operating income$9,551 $10,711 
v3.22.1
SHARE-BASED COMPENSATION (Tables)
 3 Months Ended
Mar. 31, 2022
Share-based Payment Arrangement [Abstract]  
Schedule of activity of restricted stock awards and units
The table below presents the activity of restricted stock units for the three months ended March 31, 2022:
SharesWeighted Average Grant Date Fair ValueFair Value of Restricted Stock Awards and Units That Vested During the Period
Non-vested restricted stock units, beginning of period485,339 $21.95 
Changes during the period:  
Granted95,155 29.38 
Vested(89,304)24.61 $2,652 
Forfeited(39,749)28.00 
Non-vested restricted stock units, end of period451,441 22.46 
v3.22.1
LEASES (Tables)
 3 Months Ended
Mar. 31, 2022
Leases [Abstract]  
Lease, Cost [Table Text Block]
Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated:
Three Months Ended
March 31,
(dollars in thousands)20222021
Lease cost:
Operating lease cost$1,390 $1,571 
Variable lease cost830 720 
Less: sublease income(12)— 
Total lease cost$2,208 $2,291 
Other information:
Operating cash flows from operating leases$(1,506)$(1,599)
Weighted-average remaining lease term - operating leases 11.49 years11.78 years
Weighted-average discount rate - operating leases3.92 %3.89 %
Lessee, Operating Lease, Liability, Maturity [Table Text Block]
The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2022, the next five succeeding fiscal years and all years thereafter:
(dollars in thousands)
Year Ending December 31, Undiscounted Cash FlowsLease Liability ExpenseLease Liability Reduction
2022 (remainder)$4,420 $1,113 $3,307 
20235,183 1,343 3,840 
20244,508 1,214 3,294 
20254,195 1,088 3,107 
20264,133 968 3,165 
20274,123 843 3,280 
Thereafter23,253 3,636 19,617 
Total $49,815 $10,205 $39,610 
Operating Lease, Lease Income [Table Text Block] The following represents lease income related to these leases that was recognized for the period indicated:
Three Months Ended
March 31,
(dollars in thousands)20222021
Total rental income recognized$951 $520 
Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block]
Based on the Company's leases as lessor as of March 31, 2022, estimated lease payments for the remainder of fiscal year 2022, the next five succeeding fiscal years and all years thereafter are as follows:
(dollars in thousands)
Year Ending December 31,
2022 (remainder)$1,532 
2023923 
2024521 
2025304 
2026171 
2027131 
Thereafter304 
Total $3,886 
v3.22.1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)
 3 Months Ended
Mar. 31, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of components of other comprehensive income (loss)
The following tables present the components of other comprehensive loss for the three months ended March 31, 2022 and 2021, by component:
(dollars in thousands)Before TaxTax EffectNet of Tax
Three Months Ended March 31, 2022   
Net unrealized losses on investment securities:   
Net unrealized losses arising during the period$(108,448)$(28,998)$(79,450)
Net unrealized losses on investment securities(108,448)(28,998)(79,450)
Net unrealized losses on derivatives:
Net unrealized losses arising during the period$(50)$(13)$(37)
Net unrealized losses on derivatives(50)(13)(37)
Defined benefit plans:   
Amortization of net actuarial loss133 36 97 
Amortization of net transition obligation4 1 3 
Defined benefit plans, net137 37 100 
Other comprehensive loss$(108,361)$(28,974)$(79,387)

(dollars in thousands)Before TaxTax EffectNet of Tax
Three Months Ended March 31, 2021   
Net unrealized losses on investment securities:   
Net unrealized losses arising during the period$(23,619)$(6,318)$(17,301)
Net unrealized losses on investment securities(23,619)(6,318)(17,301)
Defined benefit plans:   
Amortization of net actuarial loss246 66 180 
Amortization of net transition obligation5 1 4 
Defined benefit plans, net251 67 184 
Other comprehensive loss$(23,368)$(6,251)$(17,117)
Schedule of changes in each component of AOCI, net of tax
The following tables present the changes in each component of AOCI, net of tax, for the three months ended March 31, 2022 and 2021:
(dollars in thousands)Investment
Securities		DerivativesDefined
Benefit
Plans		AOCI
Three Months Ended March 31, 2022   
Balance at beginning of period$(3,666)$— $(4,294)$(7,960)
Other comprehensive loss before reclassifications(79,450)(37)— (79,487)
Reclassification adjustments from AOCI— — 100 100 
Total other comprehensive income (loss)(79,450)(37)100 (79,387)
Balance at end of period$(83,116)$(37)$(4,194)$(87,347)
(dollars in thousands)Investment
Securities		DerivativesDefined
Benefit
Plans		AOCI
Three Months Ended March 31, 2021   
Balance at beginning of period$26,651 $— $(6,523)$20,128 
Other comprehensive loss before reclassifications(17,301)— — (17,301)
Reclassification adjustments from AOCI— — 184 184 
Total other comprehensive income (loss)(17,301)— 184 (17,117)
Balance at end of period$9,350 $— $(6,339)$3,011 
Schedule of amounts reclassified out of each component of AOCI
The following table presents the amounts reclassified out of each component of AOCI for the three months ended March 31, 2022 and 2021:
 Amount Reclassified from AOCIAffected Line Item in the Statement Where Net Income is Presented
Details about AOCI ComponentsThree months ended March 31,
(dollars in thousands)20222021
Defined benefit retirement and supplemental executive retirement plan items:   
Amortization of net actuarial loss$(133)$(246)Other operating expense - other
Amortization of net transition obligation(4)(5)Other operating expense - other
Total before tax(137)(251)
Tax effect37 67 Income tax benefit (expense)
Net of tax$(100)$(184)
Total reclassification adjustments from AOCI for the period, net of tax$(100)$(184)
v3.22.1
EARNINGS PER SHARE (Tables)
 3 Months Ended
Mar. 31, 2022
Earnings Per Share [Abstract]  
Schedule of information used to compute basic and diluted earnings per share
The following table presents the information used to compute basic and diluted earnings per common share for the periods indicated:
Three Months Ended
March 31,
(dollars in thousands, except per share data)20222021
Net income$19,438 $18,038 
Weighted average common shares outstanding - basic27,591,390 28,108,648 
Dilutive effect of employee stock options and awards283,534 204,366 
Weighted average common shares outstanding - diluted27,874,924 28,313,014 
Basic earnings per common share$0.70 $0.64 
Diluted earnings per common share$0.70 $0.64 
v3.22.1
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables)
 3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Schedule of carrying amount and estimated fair value of financial instruments
   Fair Value Measurement Using
(dollars in thousands)Carrying
Amount		Estimated
Fair Value		Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
March 31, 2022     
Financial assets:     
Cash and due from banks$83,947 $83,947 $83,947 $— $— 
Interest-bearing deposits in other banks118,183 118,183 118,183 — — 
Investment securities1,528,989 1,528,985 — 1,520,904 8,081 
Loans held for sale4,677 4,677 — 4,677 — 
Loans, net of ACL5,110,083 4,688,605 — — 4,688,605 
Accrued interest receivable16,423 16,423 16,423 — — 
Financial liabilities:     
Deposits:     
Noninterest-bearing demand2,269,562 2,269,562 2,269,562 — — 
Interest-bearing demand and savings and money market3,630,931 3,630,931 3,630,931 — — 
Time698,538 692,253 — — 692,253 
Long-term debt105,677 91,117 — — 91,117 
Accrued interest payable (included in other liabilities)1,807 1,807 1,807 — — 

   Fair Value Measurement Using
(dollars in thousands)Notional
Amount		Carrying
Amount		Estimated
Fair Value		Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
March 31, 2022     
Derivatives:
Interest rate lock commitments$899 $(2)$(2)$— $(2)$— 
Forward sale commitments5,669 146 146 — 146 — 
Risk participation agreements37,426 — — — — — 
Back-to-back swap agreements:
Assets32,919 1,624 1,624 — — 1,624 
Liabilities32,919 (1,624)(1,624)— — (1,624)
Interest rate swap115,545 (50)(50)— — (50)
Off-balance sheet financial instruments: 
Commitments to extend credit1,308,724 — 1,402 — 1,402 — 
Standby letters of credit and financial guarantees written6,058 — 91 — 91 — 
   Fair Value Measurement Using
(dollars in thousands)Carrying
Amount		Estimated
Fair Value		Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
December 31, 2021     
Financial assets:     
Cash and due from banks$81,506 $81,506 $81,506 $— $— 
Interest-bearing deposits in other banks247,401 247,401 247,401 — — 
Investment securities1,631,699 1,631,699 — 1,623,080 8,619 
Loans held for sale3,531 3,531 — 3,531 — 
Loans, net of ACL5,033,552 4,741,379 — — 4,741,379 
Accrued interest receivable 16,709 16,709 16,709 — — 
Financial liabilities:     
Deposits:     
Noninterest-bearing demand2,291,246 2,291,246 2,291,246 — — 
Interest-bearing demand and savings and money market3,641,180 3,641,180 3,641,180 — — 
Time706,732 704,645 — — 704,645 
Long-term debt105,616 94,588 — — 94,588 
Accrued interest payable (included in other liabilities)1,122 1,122 1,122 — — 

   Fair Value Measurement Using
(dollars in thousands)Notional
Amount		Carrying
Amount		Estimated
Fair Value		Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
December 31, 2021
Derivatives:
Forward sale commitments3,525 1 1 — 1 — 
Risk participation agreements37,531 (16)(16)— — (16)
Back-to-back swap agreements:
Assets33,112 435 435 — — 435 
Liabilities33,112 (435)(435)— — (435)
Off-balance sheet financial instruments:      
Commitments to extend credit1,266,596 — 1,347 — 1,347 — 
Standby letters of credit and financial guarantees written6,634 — 100 — 100 — 
Schedule of balances of assets and liabilities measured at fair value on a recurring basis
The following tables present the fair value of assets and liabilities measured on a recurring basis as of March 31, 2022 and December 31, 2021:
  Fair Value at Reporting Date Using
(dollars in thousands)Fair ValueQuoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
March 31, 2022    
Held-to-maturity:
Debt securities:
States and political subdivisions41,729 — 41,729 — 
Mortgage-backed securities:
Residential - U.S. Government-sponsored entities287,774 — 287,774 — 
Total held-to-maturity securities329,503 — 329,503 — 
Available-for-sale securities:    
Debt securities:    
States and political subdivisions$164,181 $— $156,952 $7,229 
Corporate securities33,054 — 33,054 — 
U.S. Treasury obligations and direct obligations of U.S Government agencies32,171 — 32,171 — 
Mortgage-backed securities:    
Residential - U.S. Government-sponsored entities858,198 — 858,198 — 
Residential - Non-government agencies10,908 — 10,056 852 
Commercial - U.S. Government-sponsored entities59,358 — 59,358 — 
Commercial - Non-government agencies41,612 — 41,612 — 
Total available-for-sale securities1,199,482 — 1,191,401 8,081 
Derivatives: Interest rate lock, forward sale commitments, risk participation agreements, back-to-back swap agreements, and interest rate swap agreements94 — 144 (50)
Total$1,529,079 $— $1,521,048 $8,031 
  Fair Value at Reporting Date Using
(dollars in thousands)Fair ValueQuoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
December 31, 2021    
Available-for-sale securities:    
Debt securities:    
States and political subdivisions$236,828 $— $229,147 $7,681 
Corporate securities40,646 — 40,646 — 
U.S. Treasury obligations and direct obligations of U.S Government agencies35,334 — 35,334 — 
Mortgage-backed securities:    
Residential - U.S. Government-sponsored entities1,198,816 — 1,198,816 — 
Residential - Non-government agencies12,213 — 11,275 938 
Commercial - U.S. Government-sponsored entities65,849 — 65,849 — 
Commercial - Non-government agencies42,013 — 42,013 — 
Total available-for-sale securities1,631,699 — 1,623,080 8,619 
Derivatives: Interest rate lock, forward sale commitments, risk participation agreements, back-to-back swap agreements, and interest rate swap agreements(15)— 1 (16)
Total$1,631,684 $— $1,623,081 $8,603 
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis
For the three months ended March 31, 2022 and 2021, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:
Available-For-Sale Debt Securities:
(dollars in thousands)States and Political SubdivisionsResidential - Non-Government AgenciesTotal
Balance at December 31, 2021$7,681 $938 $8,619 
Principal payments received(55)(5)(60)
Unrealized net loss included in other comprehensive income(397)(81)(478)
Balance at March 31, 2022$7,229 $852 $8,081 
  
Balance at December 31, 2020$11,337 $989 $12,326 
Principal payments received(1,973)(5)(1,978)
Unrealized net loss included in other comprehensive income(673)(79)(752)
Balance at March 31, 2021$8,691 $905 $9,596 
v3.22.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2022
USD ($)
segment
Sep. 30, 2021
USD ($)
Dec. 31, 2021
USD ($)
Jun. 30, 2021
USD ($)
Jan. 31, 2020
Schedule of Equity Method Investments [Line Items]          
Equity Method Investments $ 0.2   $ 0.2    
Proportional Amortization Investments 25.3   25.9    
Cost method investment $ 5.6   3.6    
Number of operating segments | segment 1        
Available for sale accrued interest receivable $ 3.6   4.6    
Accrued interest receivable on HTM debt securities 0.6   0.0    
Financing receivable accrued interest receivable $ 12.2   $ 12.1    
Financing Receivable, Accrued Interest, Allowance for Credit Loss   $ 0.2      
Provision for Loan, Lease, and Other Losses   $ 0.2      
Oahu HomeLoans, LLC          
Schedule of Equity Method Investments [Line Items]          
Equity method investment, ownership percentage         50.00%
Haseko Home Loans L L C          
Schedule of Equity Method Investments [Line Items]          
Equity method investment, ownership percentage 50.00%        
Gentry Home Loans L L C          
Schedule of Equity Method Investments [Line Items]          
Equity method investment, ownership percentage 50.00%        
Island Pacific HomeLoans, LLC          
Schedule of Equity Method Investments [Line Items]          
Equity method investment, ownership percentage 50.00%        
Swell Financial, Inc.          
Schedule of Equity Method Investments [Line Items]          
Equity Method Investments $ 2.0        
Other intangible assets and services provided in exchange for common stock 1.5        
Cash in exchange for preferred stock $ 0.5        
JAM FINTOP Banktech Fund, L.P.          
Schedule of Equity Method Investments [Line Items]          
Equity Method Investments       $ 2.0  
v3.22.1
INVESTMENT SECURITIES (Available for Sale and Held to Maturity Investment Securities) (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]    
Amortized Cost $ 329,507  
Gross unrealized gains 0  
Gross Unrealized Losses (4)  
Held to maturity, fair value 329,503 $ 0
Held-to-maturity, allowance for credit loss 0  
Available for Sale    
Amortized cost 1,290,456 1,646,508
Gross unrealized gains 1,224 9,924
Gross unrealized losses (92,198) (24,733)
Fair value 1,199,482 1,631,699
Available-for-sale, allowance for credit loss 0 0
States and political subdivisions    
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]    
Amortized Cost 41,730  
Gross unrealized gains 0  
Gross Unrealized Losses (1)  
Held to maturity, fair value 41,729  
Held-to-maturity, allowance for credit loss 0  
Available for Sale    
Amortized cost 178,137 235,521
Gross unrealized gains 487 3,156
Gross unrealized losses (14,443) (1,849)
Fair value 164,181 236,828
Available-for-sale, allowance for credit loss 0 0
Corporate securities    
Available for Sale    
Amortized cost 36,561 41,687
Gross unrealized gains 0 24
Gross unrealized losses (3,507) (1,065)
Fair value 33,054 40,646
Available-for-sale, allowance for credit loss 0 0
U.S. Treasury obligations and direct obligations of U.S Government agencies    
Available for Sale    
Amortized cost 33,275 35,833
Gross unrealized gains 120 69
Gross unrealized losses (1,224) (568)
Fair value 32,171 35,334
Available-for-sale, allowance for credit loss 0 0
Residential - U.S. Government-sponsored entities    
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]    
Amortized Cost 287,777  
Gross unrealized gains 0  
Gross Unrealized Losses (3)  
Held to maturity, fair value 287,774  
Held-to-maturity, allowance for credit loss 0  
Available for Sale    
Amortized cost 926,988 1,213,910
Gross unrealized gains 220 4,899
Gross unrealized losses (69,010) (19,993)
Fair value 858,198 1,198,816
Available-for-sale, allowance for credit loss 0 0
Residential - Non-government agencies    
Available for Sale    
Amortized cost 11,088 11,942
Gross unrealized gains 101 335
Gross unrealized losses (281) (64)
Fair value 10,908 12,213
Available-for-sale, allowance for credit loss 0 0
Commercial - U.S. Government-sponsored entities    
Available for Sale    
Amortized cost 63,074 66,287
Gross unrealized gains 17 756
Gross unrealized losses (3,733) (1,194)
Fair value 59,358 65,849
Available-for-sale, allowance for credit loss 0 0
Commercial - Non-government agencies    
Available for Sale    
Amortized cost 41,333 41,328
Gross unrealized gains 279 685
Gross unrealized losses 0 0
Fair value 41,612 42,013
Available-for-sale, allowance for credit loss $ 0 $ 0
v3.22.1
INVESTMENT SECURITIES (Narrative) (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
USD ($)
security
investment
shares
Dec. 31, 2021
USD ($)
security
Class of Stock [Line Items]    
Investment securities classified from available-for-sale to held-to-maturity | investment 41  
Investment securities, amortized cost basis $ 361,800  
Held to maturity, fair value 329,503 $ 0
Net unrealized loss from transfer of securities 32,300  
Investment securities pledged as collateral $ 408,300 $ 455,800
Number of investment securities in an unrealized loss position | security 273 153
Common Class B | Visa    
Class of Stock [Line Items]    
Shares owned (in shares) | shares 34,631  
v3.22.1
INVESTMENT SECURITIES (Amortized Cost and Estimated Fair Value of Investment Securities) (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Held-to-maturity, Amortized Cost    
Due after ten years $ 41,730  
Total held-to-maturity securities 329,507 $ 0
Held-to-maturity, Fair Value    
Due after ten years 41,729  
Held to maturity, fair value 329,503 0
Available for Sale, Amortized Cost    
Due in one year or less 5,614  
Due after one year through five years 20,250  
Due after five years through ten years 83,032  
Due after ten years 139,077  
Total 1,290,456 1,646,508
Available for Sale, Estimated Fair Value    
Due in one year or less 5,607  
Due after one year through five years 20,432  
Due after five years through ten years 78,488  
Due after ten years 124,879  
Available-for-sale debt securities, at fair value 1,199,482 1,631,699
Residential - U.S. Government-sponsored entities    
Held-to-maturity, Amortized Cost    
Mortgage-backed securities 287,777  
Held-to-maturity, Fair Value    
Mortgage-backed securities 287,774  
Held to maturity, fair value 287,774  
Available for Sale, Amortized Cost    
Mortgage-backed securities 926,988  
Total 926,988 1,213,910
Available for Sale, Estimated Fair Value    
Mortgage-backed securities 858,198  
Available-for-sale debt securities, at fair value 858,198 1,198,816
Residential - Non-government agencies    
Available for Sale, Amortized Cost    
Mortgage-backed securities 11,088  
Total 11,088 11,942
Available for Sale, Estimated Fair Value    
Mortgage-backed securities 10,908  
Available-for-sale debt securities, at fair value 10,908 12,213
Commercial - U.S. Government-sponsored entities    
Available for Sale, Amortized Cost    
Mortgage-backed securities 63,074  
Total 63,074 66,287
Available for Sale, Estimated Fair Value    
Mortgage-backed securities 59,358  
Available-for-sale debt securities, at fair value 59,358 65,849
Commercial - Non-government agencies    
Available for Sale, Amortized Cost    
Mortgage-backed securities 41,333  
Total 41,333 41,328
Available for Sale, Estimated Fair Value    
Mortgage-backed securities 41,612  
Available-for-sale debt securities, at fair value $ 41,612 $ 42,013
v3.22.1
INVESTMENT SECURITIES (Investment Securities at an Unrealized Loss Position) (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
INVESTMENT SECURITIES    
Less than 12 months, Fair Value $ 1,166,939 $ 1,036,979
Less than 12 months, Unrealized Losses (65,027) (17,990)
12 months or longer, Fair Value 242,581 175,681
12 months or longer, Unrealized Losses (27,175) (6,743)
Total, Fair Value 1,409,520 1,212,660
Total, Unrealized Losses (92,202) (24,733)
States and political subdivisions    
INVESTMENT SECURITIES    
Less than 12 months, Fair Value 163,055 79,360
Less than 12 months, Unrealized Losses (12,432) (1,252)
12 months or longer, Fair Value 9,445 10,864
12 months or longer, Unrealized Losses (2,012) (597)
Total, Fair Value 172,500 90,224
Total, Unrealized Losses (14,444) (1,849)
Corporate securities    
INVESTMENT SECURITIES    
Less than 12 months, Fair Value 4,696 8,633
Less than 12 months, Unrealized Losses (325) (235)
12 months or longer, Fair Value 28,358 21,960
12 months or longer, Unrealized Losses (3,182) (830)
Total, Fair Value 33,054 30,593
Total, Unrealized Losses (3,507) (1,065)
U.S. Treasury obligations and direct obligations of U.S Government agencies    
INVESTMENT SECURITIES    
Less than 12 months, Fair Value 4,808 16,103
Less than 12 months, Unrealized Losses (54) (415)
12 months or longer, Fair Value 19,215 10,891
12 months or longer, Unrealized Losses (1,170) (153)
Total, Fair Value 24,023 26,994
Total, Unrealized Losses (1,224) (568)
Residential - U.S. Government-sponsored entities    
INVESTMENT SECURITIES    
Less than 12 months, Fair Value 951,100 926,570
Less than 12 months, Unrealized Losses (50,975) (15,883)
12 months or longer, Fair Value 170,132 114,747
12 months or longer, Unrealized Losses (18,038) (4,110)
Total, Fair Value 1,121,232 1,041,317
Total, Unrealized Losses (69,013) (19,993)
Residential - Non-government agencies    
INVESTMENT SECURITIES    
Less than 12 months, Fair Value 6,336 0
Less than 12 months, Unrealized Losses (137) 0
12 months or longer, Fair Value 852 938
12 months or longer, Unrealized Losses (144) (64)
Total, Fair Value 7,188 938
Total, Unrealized Losses (281) (64)
Commercial - U.S. Government-sponsored entities    
INVESTMENT SECURITIES    
Less than 12 months, Fair Value 36,944 6,313
Less than 12 months, Unrealized Losses (1,104) (205)
12 months or longer, Fair Value 14,579 16,281
12 months or longer, Unrealized Losses (2,629) (989)
Total, Fair Value 51,523 22,594
Total, Unrealized Losses $ (3,733) $ (1,194)
v3.22.1
LOANS AND CREDIT QUALITY (Loans and Leases) (Details)
$ in Thousands
 3 Months Ended
Mar. 27, 2020
Mar. 31, 2022
USD ($)
property
loan
segment
Mar. 31, 2021
USD ($)
loan
contract
Dec. 31, 2021
USD ($)
Aug. 31, 2020
USD ($)
segment
LOANS AND LEASES          
Loans and leases, gross   $ 5,177,084   $ 5,105,758  
Net deferred fees   (2,247)   (4,109)  
Loans   5,174,837   5,101,649  
Financing Receivable, Allowance for Credit Loss   (64,754)   (68,097)  
Loans and Leases Receivable, Net Amount   $ 5,110,083   5,033,552  
Debt Instrument, Interest Rate, Stated Percentage 1.00%        
Number Of Loans Issued By Financial Institutions Through The SBA | segment   4,600     7,200
Loans Issued By Financial Institutions Through The SBA   $ 320,900     $ 558,900
Processing fees from loans issued by financial institutions through the SBA   18,400     $ 21,200
Payment for loans forgiven   846,800      
Net transfer of loans to loans held for sale   $ 0 $ 0    
Loans And Leases Receivable, Number Of Loans Sold | loan   0 0    
Mortgage loans foreclosure, number sold | property   0      
Mortgage loans foreclosure, number | loan   0 0    
Minimum          
LOANS AND LEASES          
Debt instrument, term 2 years        
Debt Issuance Costs, Percent 1.00%        
Maximum          
LOANS AND LEASES          
Debt instrument, term 5 years        
Debt Issuance Costs, Percent 5.00%        
Consumer          
LOANS AND LEASES          
Number of TDRs included in nonperforming assets | contract     1    
Recorded Investment (as of Period End)     $ 560    
Amount of TDRs still accruing interest     $ 0    
Consumer | Consumer          
LOANS AND LEASES          
Loans and leases, gross   $ 669,194   624,115  
Net deferred fees   (194)   (214)  
Loans   669,000   623,901  
Real Estate | Construction          
LOANS AND LEASES          
Loans and leases, gross   123,767   123,351  
Net deferred fees   (450)   (484)  
Loans   123,317   122,867  
Real Estate | Residential Mortgage          
LOANS AND LEASES          
Loans and leases, gross   1,873,405   1,875,200  
Net deferred fees   643   780  
Loans   1,874,048   1,875,980  
Loans in the process of foreclosure   1,000   700  
Real Estate | Home Equity          
LOANS AND LEASES          
Loans and leases, gross   674,625   635,721  
Net deferred fees   1,701   1,528  
Loans   676,326   637,249  
Real Estate | Commercial Mortgage          
LOANS AND LEASES          
Loans and leases, gross   1,245,423   1,222,138  
Net deferred fees   (1,924)   (1,934)  
Loans   1,243,499   1,220,204  
Commercial, financial and agricultural          
LOANS AND LEASES          
Number of TDRs included in nonperforming assets | contract     1    
Recorded Investment (as of Period End)     $ 560    
Amount of TDRs still accruing interest     $ 0    
Commercial, financial and agricultural | Small Business Administration Paycheck Protection Program          
LOANS AND LEASES          
Loans and leases, gross   45,938   94,850  
Net deferred fees   (1,707)   (3,523)  
Loans   44,231   91,327  
Commercial, financial and agricultural | Other          
LOANS AND LEASES          
Loans and leases, gross   544,732   530,383  
Net deferred fees   (316)   (262)  
Loans   544,416   530,121  
Special Mention          
LOANS AND LEASES          
Loans and leases, gross   31,614   31,686  
Special Mention | Consumer | Consumer          
LOANS AND LEASES          
Loans and leases, gross   163   181  
Special Mention | Real Estate | Construction          
LOANS AND LEASES          
Loans and leases, gross   0   0  
Special Mention | Real Estate | Residential Mortgage          
LOANS AND LEASES          
Loans and leases, gross   0   973  
Special Mention | Real Estate | Home Equity          
LOANS AND LEASES          
Loans and leases, gross   183   187  
Special Mention | Real Estate | Commercial Mortgage          
LOANS AND LEASES          
Loans and leases, gross   17,585   16,062  
Special Mention | Commercial, financial and agricultural | Small Business Administration Paycheck Protection Program          
LOANS AND LEASES          
Loans and leases, gross   0   0  
Special Mention | Commercial, financial and agricultural | Other          
LOANS AND LEASES          
Loans and leases, gross   13,683   14,283  
Substandard          
LOANS AND LEASES          
Loans and leases, gross   47,216   44,160  
Substandard | Consumer | Consumer          
LOANS AND LEASES          
Loans and leases, gross   860   510  
Substandard | Real Estate | Construction          
LOANS AND LEASES          
Loans and leases, gross   911   918  
Substandard | Real Estate | Residential Mortgage          
LOANS AND LEASES          
Loans and leases, gross   4,881   4,623  
Substandard | Real Estate | Home Equity          
LOANS AND LEASES          
Loans and leases, gross   820   830  
Substandard | Real Estate | Commercial Mortgage          
LOANS AND LEASES          
Loans and leases, gross   28,040   26,002  
Substandard | Commercial, financial and agricultural | Small Business Administration Paycheck Protection Program          
LOANS AND LEASES          
Loans and leases, gross   0   0  
Substandard | Commercial, financial and agricultural | Other          
LOANS AND LEASES          
Loans and leases, gross   11,704   11,277  
Loss          
LOANS AND LEASES          
Loans and leases, gross   180   153  
Loss | Consumer | Consumer          
LOANS AND LEASES          
Loans and leases, gross   180   153  
Loss | Real Estate | Construction          
LOANS AND LEASES          
Loans and leases, gross   0   0  
Loss | Real Estate | Residential Mortgage          
LOANS AND LEASES          
Loans and leases, gross   0   0  
Loss | Real Estate | Home Equity          
LOANS AND LEASES          
Loans and leases, gross   0   0  
Loss | Real Estate | Commercial Mortgage          
LOANS AND LEASES          
Loans and leases, gross   0   0  
Loss | Commercial, financial and agricultural | Small Business Administration Paycheck Protection Program          
LOANS AND LEASES          
Loans and leases, gross   0   0  
Loss | Commercial, financial and agricultural | Other          
LOANS AND LEASES          
Loans and leases, gross   0   0  
Pass          
LOANS AND LEASES          
Loans and leases, gross   5,098,074   5,029,759  
Pass | Consumer | Consumer          
LOANS AND LEASES          
Loans and leases, gross   667,991   623,271  
Pass | Real Estate | Construction          
LOANS AND LEASES          
Loans and leases, gross   122,856   122,433  
Pass | Real Estate | Residential Mortgage          
LOANS AND LEASES          
Loans and leases, gross   1,868,524   1,869,604  
Pass | Real Estate | Home Equity          
LOANS AND LEASES          
Loans and leases, gross   673,622   634,704  
Pass | Real Estate | Commercial Mortgage          
LOANS AND LEASES          
Loans and leases, gross   1,199,798   1,180,074  
Pass | Commercial, financial and agricultural | Small Business Administration Paycheck Protection Program          
LOANS AND LEASES          
Loans and leases, gross   45,938   94,850  
Pass | Commercial, financial and agricultural | Other          
LOANS AND LEASES          
Loans and leases, gross   $ 519,345   $ 504,823  
v3.22.1
LOANS AND CREDIT QUALITY (Purchases) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]    
Outstanding balance $ 82,166 $ 35,524
(Discount) premium (2,453) 535
Purchase price 79,713 36,059
Consumer    
Loans and Leases Receivable Disclosure [Line Items]    
Outstanding balance 48,142 22,534
(Discount) premium (4,367) (131)
Purchase price 43,775 22,403
U.S. Mainland Consumer - Automobile    
Loans and Leases Receivable Disclosure [Line Items]    
Outstanding balance 34,024 12,990
(Discount) premium 1,914 666
Purchase price $ 35,938 $ 13,656
v3.22.1
LOANS AND CREDIT QUALITY (Collateral-Dependent Loans) (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]    
Collateral-Dependent Financing Receivable $ 7,485 $ 9,177
Allocated ACL 0 0
Secured by 1-4 Family Residential Properties    
Loans and Leases Receivable Disclosure [Line Items]    
Collateral-Dependent Financing Receivable 7,485 9,177
Secured by Nonfarm Nonresidential Properties    
Loans and Leases Receivable Disclosure [Line Items]    
Collateral-Dependent Financing Receivable 0 0
Secured by Real Estate and Business Assets    
Loans and Leases Receivable Disclosure [Line Items]    
Collateral-Dependent Financing Receivable 0 0
Real Estate | Residential Mortgage    
Loans and Leases Receivable Disclosure [Line Items]    
Collateral-Dependent Financing Receivable 6,665 8,391
Allocated ACL 0 0
Real Estate | Residential Mortgage | Secured by 1-4 Family Residential Properties    
Loans and Leases Receivable Disclosure [Line Items]    
Collateral-Dependent Financing Receivable 6,665 8,391
Real Estate | Residential Mortgage | Secured by Nonfarm Nonresidential Properties    
Loans and Leases Receivable Disclosure [Line Items]    
Collateral-Dependent Financing Receivable 0 0
Real Estate | Residential Mortgage | Secured by Real Estate and Business Assets    
Loans and Leases Receivable Disclosure [Line Items]    
Collateral-Dependent Financing Receivable 0 0
Real Estate | Home Equity    
Loans and Leases Receivable Disclosure [Line Items]    
Collateral-Dependent Financing Receivable 820 786
Allocated ACL 0 0
Real Estate | Home Equity | Secured by 1-4 Family Residential Properties    
Loans and Leases Receivable Disclosure [Line Items]    
Collateral-Dependent Financing Receivable 820 786
Real Estate | Home Equity | Secured by Nonfarm Nonresidential Properties    
Loans and Leases Receivable Disclosure [Line Items]    
Collateral-Dependent Financing Receivable 0 0
Real Estate | Home Equity | Secured by Real Estate and Business Assets    
Loans and Leases Receivable Disclosure [Line Items]    
Collateral-Dependent Financing Receivable $ 0 $ 0
v3.22.1
LOANS AND CREDIT QUALITY (Impaired Loans) (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2022
USD ($)
property
loan
Mar. 31, 2021
loan
Dec. 31, 2021
USD ($)
Interest income recognized on impaired loans      
Mortgage loans foreclosure, number | loan 0 0  
Mortgage loans foreclosure, number sold | property 0    
Residential Mortgage | Real Estate      
Interest income recognized on impaired loans      
Loans in the process of foreclosure | $ $ 1.0   $ 0.7
v3.22.1
LOANS AND LEASES (Aging of Recorded Investment) (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due $ 5,174,837 $ 5,101,649
Nonaccrual Loans 5,336 5,881
Total Past Due and Nonaccrual 23,684 18,161
Loans 5,174,837 5,101,649
Nonaccrual Loans with No ACL 4,624 5,409
Accruing Loans 30 - 59 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 11,470 9,601
Accruing Loans 60 - 89 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 5,554 1,316
Accruing Loans Greater  Than 90 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 1,324 1,363
Financial Asset, Not Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 5,151,153 5,083,488
Commercial, financial and agricultural: | Small Business Administration Paycheck Protection Program    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 44,231 91,327
Nonaccrual Loans 0 0
Total Past Due and Nonaccrual 0 0
Loans 44,231 91,327
Nonaccrual Loans with No ACL 0 0
Commercial, financial and agricultural: | Small Business Administration Paycheck Protection Program | Accruing Loans 30 - 59 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 0 0
Commercial, financial and agricultural: | Small Business Administration Paycheck Protection Program | Accruing Loans 60 - 89 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 0 0
Commercial, financial and agricultural: | Small Business Administration Paycheck Protection Program | Accruing Loans Greater  Than 90 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 0 0
Commercial, financial and agricultural: | Small Business Administration Paycheck Protection Program | Financial Asset, Not Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 44,231 91,327
Commercial, financial and agricultural: | Other    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 544,416 530,121
Nonaccrual Loans 293 183
Total Past Due and Nonaccrual 1,918 2,702
Loans 544,416 530,121
Nonaccrual Loans with No ACL 0 0
Commercial, financial and agricultural: | Other | Accruing Loans 30 - 59 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 710 970
Commercial, financial and agricultural: | Other | Accruing Loans 60 - 89 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 323 604
Commercial, financial and agricultural: | Other | Accruing Loans Greater  Than 90 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 592 945
Commercial, financial and agricultural: | Other | Financial Asset, Not Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 542,498 527,419
Real Estate | Construction    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 123,317 122,867
Nonaccrual Loans 0 0
Total Past Due and Nonaccrual 0 638
Loans 123,317 122,867
Nonaccrual Loans with No ACL 0 0
Real Estate | Construction | Accruing Loans 30 - 59 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 0 638
Real Estate | Construction | Accruing Loans 60 - 89 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 0 0
Real Estate | Construction | Accruing Loans Greater  Than 90 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 0 0
Real Estate | Construction | Financial Asset, Not Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 123,317 122,229
Real Estate | Real estate, Mortgage - residential    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 1,874,048 1,875,980
Nonaccrual Loans 3,804 4,623
Total Past Due and Nonaccrual 15,965 9,938
Nonaccrual Loans with No ACL 3,804 4,623
Real Estate | Real estate, Mortgage - residential | Accruing Loans 30 - 59 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 7,512 5,315
Real Estate | Real estate, Mortgage - residential | Accruing Loans 60 - 89 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 4,538 0
Real Estate | Real estate, Mortgage - residential | Accruing Loans Greater  Than 90 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 111 0
Real Estate | Real estate, Mortgage - residential | Financial Asset, Not Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 1,858,083 1,866,042
Real Estate | Home Equity    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 676,326 637,249
Nonaccrual Loans 820 786
Total Past Due and Nonaccrual 1,093 1,064
Loans 676,326 637,249
Nonaccrual Loans with No ACL 820 786
Real Estate | Home Equity | Accruing Loans 30 - 59 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 135 234
Real Estate | Home Equity | Accruing Loans 60 - 89 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 138 0
Real Estate | Home Equity | Accruing Loans Greater  Than 90 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 0 44
Real Estate | Home Equity | Financial Asset, Not Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 675,233 636,185
Real Estate | Commercial mortgage    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 1,243,499 1,220,204
Nonaccrual Loans 0 0
Total Past Due and Nonaccrual 0 0
Nonaccrual Loans with No ACL 0 0
Real Estate | Commercial mortgage | Accruing Loans 30 - 59 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 0 0
Real Estate | Commercial mortgage | Accruing Loans 60 - 89 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 0 0
Real Estate | Commercial mortgage | Accruing Loans Greater  Than 90 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 0 0
Real Estate | Commercial mortgage | Financial Asset, Not Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 1,243,499 1,220,204
Consumer | Consumer Loan    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 669,000 623,901
Nonaccrual Loans 419 289
Total Past Due and Nonaccrual 4,708 3,819
Nonaccrual Loans with No ACL 0 0
Consumer | Consumer Loan | Accruing Loans 30 - 59 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 3,113 2,444
Consumer | Consumer Loan | Accruing Loans 60 - 89 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 555 712
Consumer | Consumer Loan | Accruing Loans Greater  Than 90 Days Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due 621 374
Consumer | Consumer Loan | Financial Asset, Not Past Due    
Aging Analysis of Accruing and Non-Accruing Loans and Leases    
Loans Past Due $ 664,292 $ 620,082
v3.22.1
LOANS AND CREDIT QUALITY (Modifications) (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
USD ($)
loan
Dec. 31, 2021
USD ($)
loan
Mar. 31, 2021
USD ($)
contract
loan
Information related to loans modified in a TDR      
Number of loan modifications | loan   600,000  
Number of loans were modified as a TDR within the previous twelve months that subsequently defaulted | loan 0   0
Accruing Loans Greater  Than 90 Days Past Due      
Information related to loans modified in a TDR      
Amount of TDRs still accruing interest $ 100    
Commercial, financial and agricultural      
Information related to loans modified in a TDR      
Number of TDRs included in nonperforming assets | contract     1
Recorded Investment (as of Period End)     $ 560
Amount of TDRs still accruing interest     $ 0
Consumer      
Information related to loans modified in a TDR      
Number of TDRs included in nonperforming assets | contract     1
Recorded Investment (as of Period End)     $ 560
Amount of TDRs still accruing interest     $ 0
Nonperforming Financial Instruments      
Information related to loans modified in a TDR      
Amount of TDRs still accruing interest $ 3,900 $ 4,900  
Nonperforming Financial Instruments | Resi Mortgage | HAWAII      
Information related to loans modified in a TDR      
Number of TDRs included in nonperforming assets | loan 5    
Recorded Investment (as of Period End) $ 1,100    
v3.22.1
LOANS AND CREDIT QUALITY (Class and Credit Indicator) (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Recorded investment in the loans and leases, by class and credit indicator    
2022 $ 250,608 $ 1,477,594
2021 1,432,948 818,102
2020 778,821 496,532
2019 465,836 348,831
2018 325,755 317,010
Prior 1,180,671 921,711
Amortized Cost of Revolving Loans 740,198 721,869
Total 5,174,837 5,101,649
Loans and leases, gross 5,177,084 5,105,758
Net deferred fees (2,247) (4,109)
Loans 5,174,837 5,101,649
Pass    
Recorded investment in the loans and leases, by class and credit indicator    
Loans and leases, gross 5,098,074 5,029,759
Special Mention    
Recorded investment in the loans and leases, by class and credit indicator    
Loans and leases, gross 31,614 31,686
Substandard    
Recorded investment in the loans and leases, by class and credit indicator    
Loans and leases, gross 47,216 44,160
Loss    
Recorded investment in the loans and leases, by class and credit indicator    
Loans and leases, gross 180 153
Small Business Administration Paycheck Protection Program | Commercial, financial and agricultural:    
Recorded investment in the loans and leases, by class and credit indicator    
2022 0 84,254
2021 41,446 7,073
2020 2,785 0
2019 0 0
2018 0 0
Prior 0 0
Amortized Cost of Revolving Loans 0 0
Total 44,231 91,327
Loans and leases, gross 45,938 94,850
Net deferred fees (1,707) (3,523)
Loans 44,231 91,327
Small Business Administration Paycheck Protection Program | Pass | Commercial, financial and agricultural:    
Recorded investment in the loans and leases, by class and credit indicator    
2022 0 84,254
2021 41,446 7,073
2020 2,785 0
2019 0 0
2018 0 0
Prior 0 0
Amortized Cost of Revolving Loans 0 0
Total 44,231 91,327
Loans and leases, gross 45,938 94,850
Small Business Administration Paycheck Protection Program | Special Mention | Commercial, financial and agricultural:    
Recorded investment in the loans and leases, by class and credit indicator    
Loans and leases, gross 0 0
Small Business Administration Paycheck Protection Program | Substandard | Commercial, financial and agricultural:    
Recorded investment in the loans and leases, by class and credit indicator    
Loans and leases, gross 0 0
Small Business Administration Paycheck Protection Program | Loss | Commercial, financial and agricultural:    
Recorded investment in the loans and leases, by class and credit indicator    
Loans and leases, gross 0 0
Other | Commercial, financial and agricultural:    
Recorded investment in the loans and leases, by class and credit indicator    
2022 24,055 124,170
2021 117,038 70,281
2020 64,775 59,367
2019 55,938 53,153
2018 51,118 47,111
Prior 151,718 96,158
Amortized Cost of Revolving Loans 79,774 79,881
Total 544,416 530,121
Loans and leases, gross 544,732 530,383
Net deferred fees (316) (262)
Loans 544,416 530,121
Other | Pass | Commercial, financial and agricultural:    
Recorded investment in the loans and leases, by class and credit indicator    
2022 22,335 122,729
2021 116,423 68,021
2020 62,923 56,531
2019 53,061 52,375
2018 50,404 31,817
Prior 135,034 93,957
Amortized Cost of Revolving Loans 78,849 79,131
Total 519,029 504,561
Loans and leases, gross 519,345 504,823
Other | Special Mention | Commercial, financial and agricultural:    
Recorded investment in the loans and leases, by class and credit indicator    
2022 1,720 1,441
2021 615 1,278
2020 260 2,443
2019 2,557 96
2018 97 8,671
Prior 8,259 354
Amortized Cost of Revolving Loans 175 0
Total 13,683 14,283
Loans and leases, gross 13,683 14,283
Other | Substandard | Commercial, financial and agricultural:    
Recorded investment in the loans and leases, by class and credit indicator    
2022 0 0
2021 0 982
2020 1,592 393
2019 320 682
2018 617 6,623
Prior 8,425 1,847
Amortized Cost of Revolving Loans 750 750
Total 11,704 11,277
Loans and leases, gross 11,704 11,277
Other | Loss | Commercial, financial and agricultural:    
Recorded investment in the loans and leases, by class and credit indicator    
Loans and leases, gross 0 0
Construction | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
2022 1,386 35,236
2021 40,722 25,430
2020 28,751 3,196
2019 3,165 29,251
2018 27,283 288
Prior 20,169 20,090
Amortized Cost of Revolving Loans 1,841 9,376
Total 123,317 122,867
Loans and leases, gross 123,767 123,351
Net deferred fees (450) (484)
Loans 123,317 122,867
Construction | Pass | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
2022 1,386 35,236
2021 40,722 25,430
2020 28,751 3,196
2019 3,165 28,333
2018 26,372 288
Prior 20,169 20,090
Amortized Cost of Revolving Loans 1,841 9,376
Total 122,406 121,949
Loans and leases, gross 122,856 122,433
Construction | Special Mention | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
Loans and leases, gross 0 0
Construction | Substandard | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
2022 0 0
2021 0 0
2020 0 0
2019 0 918
2018 911 0
Prior 0 0
Amortized Cost of Revolving Loans 0 0
Total 911 918
Loans and leases, gross 911 918
Construction | Loss | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
Loans and leases, gross 0 0
Residential Mortgage | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
2022 75,178 670,011
2021 664,439 479,864
2020 462,336 180,687
2019 169,718 76,397
2018 70,625 93,275
Prior 431,752 375,704
Amortized Cost of Revolving Loans 0 42
Total 1,874,048 1,875,980
Loans and leases, gross 1,873,405 1,875,200
Net deferred fees 643 780
Loans 1,874,048 1,875,980
Residential Mortgage | Pass | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
2022 75,178 670,011
2021 664,439 478,891
2020 461,369 180,687
2019 169,718 75,820
2018 70,625 92,394
Prior 427,838 372,539
Amortized Cost of Revolving Loans 0 42
Total 1,869,167 1,870,384
Loans and leases, gross 1,868,524 1,869,604
Residential Mortgage | Special Mention | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
2022   0
2021   973
2020   0
2019   0
2018   0
Prior   0
Amortized Cost of Revolving Loans   0
Total   973
Loans and leases, gross 0 973
Residential Mortgage | Substandard | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
2022 0 0
2021 0 0
2020 967 0
2019 0 577
2018 0 881
Prior 3,914 3,165
Amortized Cost of Revolving Loans 0 0
Total 4,881 4,623
Loans and leases, gross 4,881 4,623
Residential Mortgage | Loss | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
Loans and leases, gross 0 0
Home Equity | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
2022 17,421 26,479
2021 25,375 13,184
2020 12,504 10,329
2019 8,607 10,672
2018 9,309 480
Prior 10,164 8,318
Amortized Cost of Revolving Loans 592,946 567,787
Total 676,326 637,249
Loans and leases, gross 674,625 635,721
Net deferred fees 1,701 1,528
Loans 676,326 637,249
Home Equity | Pass | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
2022 17,421 26,479
2021 25,375 13,008
2020 12,329 10,329
2019 8,607 10,593
2018 9,230 480
Prior 9,598 7,743
Amortized Cost of Revolving Loans 592,763 567,600
Total 675,323 636,232
Loans and leases, gross 673,622 634,704
Home Equity | Special Mention | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Amortized Cost of Revolving Loans 183 187
Total 183 187
Loans and leases, gross 183 187
Home Equity | Substandard | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
2022 0 0
2021 0 176
2020 175 0
2019 0 79
2018 79 0
Prior 566 575
Amortized Cost of Revolving Loans 0 0
Total 820 830
Loans and leases, gross 820 830
Home Equity | Loss | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
Loans and leases, gross 0 0
Commercial Mortgage | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
2022 58,265 229,108
2021 228,342 126,169
2020 122,565 151,450
2019 149,760 137,283
2018 132,273 155,108
Prior 543,111 411,614
Amortized Cost of Revolving Loans 9,183 9,472
Total 1,243,499 1,220,204
Loans and leases, gross 1,245,423 1,222,138
Net deferred fees (1,924) (1,934)
Loans 1,243,499 1,220,204
Commercial Mortgage | Pass | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
2022 58,265 229,108
2021 227,168 126,169
2020 122,565 146,584
2019 142,287 126,014
2018 121,026 153,041
Prior 517,380 387,751
Amortized Cost of Revolving Loans 9,183 9,472
Total 1,197,874 1,178,139
Loans and leases, gross 1,199,798 1,180,074
Commercial Mortgage | Special Mention | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
2022 0 0
2021 1,174 0
2020 0 3,106
2019 5,736 3,219
2018 1,020 283
Prior 9,655 9,455
Amortized Cost of Revolving Loans 0 0
Total 17,585 16,063
Loans and leases, gross 17,585 16,062
Commercial Mortgage | Substandard | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
2022 0 0
2021 0 0
2020 0 1,760
2019 1,737 8,050
2018 10,227 1,784
Prior 16,076 14,408
Amortized Cost of Revolving Loans 0 0
Total 28,040 26,002
Loans and leases, gross 28,040 26,002
Commercial Mortgage | Loss | Real Estate    
Recorded investment in the loans and leases, by class and credit indicator    
Loans and leases, gross 0 0
Consumer | Consumer    
Recorded investment in the loans and leases, by class and credit indicator    
2022 74,303 308,336
2021 315,586 96,101
2020 85,105 91,503
2019 78,648 42,075
2018 35,147 20,748
Prior 23,757 9,827
Amortized Cost of Revolving Loans 56,454 55,311
Total 669,000 623,901
Loans and leases, gross 669,194 624,115
Net deferred fees (194) (214)
Loans 669,000 623,901
Consumer | Pass | Consumer    
Recorded investment in the loans and leases, by class and credit indicator    
2022 74,303 308,326
2021 315,526 96,066
2020 85,061 91,194
2019 78,307 41,995
2018 35,064 20,719
Prior 23,082 9,446
Amortized Cost of Revolving Loans 56,454 55,311
Total 667,797 623,057
Loans and leases, gross 667,991 623,271
Consumer | Special Mention | Consumer    
Recorded investment in the loans and leases, by class and credit indicator    
2022 0 0
2021 0 0
2020 0 181
2019 163 0
2018 0 10
Prior 0 7
Amortized Cost of Revolving Loans 0 0
Total 163 198
Loans and leases, gross 163 181
Consumer | Substandard | Consumer    
Recorded investment in the loans and leases, by class and credit indicator    
2022 0 10
2021 60 35
2020 44 128
2019 178 80
2018 83 19
Prior 495 221
Amortized Cost of Revolving Loans 0 0
Total 860 493
Loans and leases, gross 860 510
Consumer | Loss | Consumer    
Recorded investment in the loans and leases, by class and credit indicator    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 180 153
Amortized Cost of Revolving Loans 0 0
Total 180 153
Loans and leases, gross $ 180 $ 153
v3.22.1
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURE (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Changes in the allowance    
Beginning balance $ 68,097 $ 83,269
(Credit) provision for credit losses (3,195) (821)
Subtotal 65,166 82,295
Charge-offs 1,470 1,707
Recoveries 1,058 965
Net charge-offs (recoveries) 412 742
Ending balance 64,754 81,553
(Credit) provision for credit losses on loans (2,931) (974)
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]    
Off-balance sheet, credit loss, liability, beginning balance   4,884
(Credit) provision for off-balance sheet credit exposures (300) 153
Off-balance sheet, credit loss, liability, ending balance 4,540 5,037
Commercial, financial and agricultural:    
Changes in the allowance    
Beginning balance 77 304
Subtotal 36 489
Charge-offs 0 0
Recoveries 0 0
Net charge-offs (recoveries) 0 0
Ending balance 36 489
(Credit) provision for credit losses on loans (41) 185
Other    
Changes in the allowance    
Beginning balance 10,314 18,717
Subtotal 9,466 15,984
Charge-offs 254 609
Recoveries 350 89
Net charge-offs (recoveries) (96) 520
Ending balance 9,562 15,464
(Credit) provision for credit losses on loans (848) (2,733)
Construction | Real Estate    
Changes in the allowance    
Beginning balance 3,908 4,277
Subtotal 3,836 5,047
Charge-offs 0 0
Recoveries 0 0
Net charge-offs (recoveries) 0 0
Ending balance 3,836 5,047
(Credit) provision for credit losses on loans (72) 770
Residential Mortgage | Real Estate    
Changes in the allowance    
Beginning balance 12,463 16,484
Subtotal 10,931 15,251
Charge-offs 0 0
Recoveries 112 106
Net charge-offs (recoveries) (112) (106)
Ending balance 11,043 15,357
(Credit) provision for credit losses on loans (1,532) (1,233)
Home Equity | Real Estate    
Changes in the allowance    
Beginning balance 4,509 5,449
Subtotal 4,641 5,242
Charge-offs 0 0
Recoveries 0 9
Net charge-offs (recoveries) 0 (9)
Ending balance 4,641 5,251
(Credit) provision for credit losses on loans 132 (207)
Commercial Mortgage | Real Estate    
Changes in the allowance    
Beginning balance 18,411 22,163
Subtotal 16,055 22,726
Charge-offs 0 0
Recoveries 0 8
Net charge-offs (recoveries) 0 (8)
Ending balance 16,055 22,734
(Credit) provision for credit losses on loans (2,356) 563
Consumer | Consumer    
Changes in the allowance    
Beginning balance 18,415 15,875
Subtotal 20,201 17,556
Charge-offs 1,216 1,098
Recoveries 596 753
Net charge-offs (recoveries) 620 345
Ending balance 19,581 17,211
(Credit) provision for credit losses on loans 1,786 $ 1,681
Adjusted balance at beginning of period    
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]    
Off-balance sheet, credit loss, liability, beginning balance 4,804  
(Credit) provision for off-balance sheet credit exposures $ (264)  
v3.22.1
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Jun. 30, 2021
Other Commitments [Line Items]        
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Investments in Low Income Housing Tax Credit Partnerships $ 25,309   $ 25,916  
Investments in common securities of statutory trusts 1,547   1,547  
Investments in affiliates 187   162  
Other 4,049   2,054  
Investment in unconsolidated subsidiaries 31,092   29,679  
Equity Method Investments 200   200  
Amortization expense in pretax income 607 $ 407    
Income tax credits and adjustments 709 $ 474    
2022 (remainder) 7,724      
2021 8,128      
2022 26      
2023 6      
2024 6      
2025 6      
Thereafter 32      
Total unfunded commitments 15,928      
Fund Commitments        
Other Commitments [Line Items]        
Funded commitments, LIHTC 30,300   30,300  
Unfunded Commitments        
Other Commitments [Line Items]        
Funded commitments, LIHTC 14,300   14,300  
Swell Financial, Inc.        
Other Commitments [Line Items]        
Equity Method Investments 2,000      
JAM FINTOP Banktech Fund, L.P.        
Other Commitments [Line Items]        
Equity Method Investments       $ 2,000
LIHTC partnerships        
Other Commitments [Line Items]        
2022 (remainder) 6,071      
2021 8,128      
2022 26      
2023 6      
2024 6      
2025 6      
Thereafter 32      
Total unfunded commitments 14,275      
Other partnerships        
Other Commitments [Line Items]        
2022 (remainder) 1,653      
2021 0      
2022 0      
2023 0      
2024 0      
2025 0      
Thereafter 0      
Total unfunded commitments $ 1,653   $ 1,700  
v3.22.1
MORTGAGE SERVICING RIGHTS (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
USD ($)
Mar. 31, 2021
USD ($)
Dec. 31, 2021
USD ($)
OTHER INTANGIBLE ASSETS      
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans $ 769 $ 2,439  
Mortgage Servicing Rights      
OTHER INTANGIBLE ASSETS      
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans 300 500  
Changes in other intangible assets      
Balance, beginning of period 9,738 11,865  
Additions 276 461  
Amortization (534) (1,232)  
Balance, end of period 9,480 11,094  
Fair market value and key assumptions used in determining the fair market value      
Fair market value, beginning of period 10,504 12,003  
Fair market value, end of period 11,166 11,673  
Gross carrying value, accumulated amortization and net carrying value related to intangible assets      
Gross Carrying Value 72,526   $ 72,250
Accumulated Amortization (63,046)   (62,512)
Other intangible assets 9,480 11,094 9,738
Estimated Amortization Expense      
2022 (remainder) 1,671    
2021 1,837    
2022 1,506    
2023 1,231    
2024 1,026    
2025 852    
Thereafter 1,357    
Other intangible assets $ 9,480 $ 11,094 $ 9,738
Measurement Input, Discount Rate | Mortgage Servicing Rights      
Fair market value and key assumptions used in determining the fair market value      
Weighted average prepayment speed assumption 0.095 0.096  
Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights      
Fair market value and key assumptions used in determining the fair market value      
Weighted average prepayment speed assumption 0.183 0.175  
v3.22.1
DERIVATIVES (Additional Information) (Details)
$ in Millions
Mar. 31, 2022
USD ($)
Interest rate lock commitments | Derivatives Not Designated as Hedging Instruments  
DERIVATIVES  
Mortgage loans hedged $ 0.9
Forward sale commitments | Derivatives Not Designated as Hedging Instruments  
DERIVATIVES  
Mortgage loans hedged 5.7
Back-to-back swap agreements | Derivatives Not Designated as Hedging Instruments  
DERIVATIVES  
Notional amount 32.9
Cash pledged as collateral 1.7
Interest Rate Swap | Designated as Hedging Instrument  
DERIVATIVES  
Notional amount $ 115.5
Fixed interest rate 2.095%
v3.22.1
DERIVATIVES (Balance Sheet) (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Derivatives Not Designated as Hedging Instruments | Interest rate lock and forward sale commitments    
Asset Derivatives    
Fair Value $ 149 $ 5
Liability Derivatives    
Fair Value 5 4
Derivatives Not Designated as Hedging Instruments | Risk participation agreements    
Asset Derivatives    
Fair Value 0 0
Liability Derivatives    
Fair Value 0 16
Derivatives Not Designated as Hedging Instruments | Back-to-back swap agreements    
Asset Derivatives    
Fair Value 1,624 435
Liability Derivatives    
Fair Value 1,624 435
Designated as Hedging Instrument | Interest Rate Swap    
Asset Derivatives    
Fair Value 0 0
Liability Derivatives    
Fair Value $ 50 $ 0
v3.22.1
DERIVATIVES (Income Statement) (Details) - Derivatives Not Designated as Hedging Instruments - Derivatives Not in Cash Flow Hedging Relationship - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Mortgage banking income | Interest rate lock and forward sale commitments    
DERIVATIVES    
Unrealized gain (loss) on interest rate locks $ 143 $ 180
Other service charges and fees | Risk participation agreements    
DERIVATIVES    
Unrealized gain (loss) on interest rate locks 16 0
Other service charges and fees | Back-to-back swap agreements    
DERIVATIVES    
Unrealized gain (loss) on interest rate locks 0 31
Other income | Loans held for sale    
DERIVATIVES    
Unrealized gain (loss) on interest rate locks $ (63) $ (1)
v3.22.1
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Narrative (Details)
 1 Months Ended 3 Months Ended
Dec. 31, 2004
USD ($)
Sep. 30, 2004
USD ($)
Mar. 31, 2022
USD ($)
period
Dec. 31, 2021
USD ($)
Debt Instrument [Line Items]        
Long term borrowings     $ 105,677,000 $ 105,616,000
Federal Home Loan Bank Borrowings        
Debt Instrument [Line Items]        
Line of Credit, maximum borrowing capacity     1,920,000,000 1,830,000,000
Unused borrowings available     1,890,000,000 1,800,000,000
Letters of Credit, outstanding     32,200,000 32,200,000
Commercial real estate and commercial loans pledged as collateral     2,810,000,000  
Federal Reserve discount window line of credit        
Debt Instrument [Line Items]        
Unused borrowings available     84,300,000 55,400,000
Commercial real estate and commercial loans pledged as collateral     $ 129,100,000 $ 131,000,000
C P B Capital Trust I V [Member]        
Debt Instrument [Line Items]        
Trust preferred securities issued value   $ 30,000,000    
Trust preferred securities, variable rate basis   three-month LIBOR    
Trust preferred securities, basis spread on variable rate   2.45%    
Common securities issued   $ 900,000    
C P B Capital Trust V [Member]        
Debt Instrument [Line Items]        
Trust preferred securities issued value $ 20,000,000      
Trust preferred securities, variable rate basis three-month LIBOR      
Trust preferred securities, basis spread on variable rate 1.87%      
Common securities issued $ 600,000      
Subordinated Debt [Member]        
Debt Instrument [Line Items]        
Number of periods interest can be deferred | period     20  
Subordinated Debt [Member] | C P B Capital Trust I V [Member]        
Debt Instrument [Line Items]        
Long term borrowings     $ 30,900,000  
Subordinated Debt [Member] | C P B Capital Trust V [Member]        
Debt Instrument [Line Items]        
Long term borrowings     $ 20,600,000  
Maximum | Subordinated Debt [Member]        
Debt Instrument [Line Items]        
Redemption period     90 days  
v3.22.1
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Subordinated Debentures (Details) - Junior Subordinated Debt - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Subordinated Debentures $ 51,547 $ 51,547
Trust IV    
Debt Instrument [Line Items]    
Subordinated Debentures 30,928 30,928
Trust V    
Debt Instrument [Line Items]    
Subordinated Debentures $ 20,619 $ 20,619
v3.22.1
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Subordinated Notes (Details) - USD ($)
Oct. 20, 2020
Mar. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]      
Long-term debt   $ 105,677,000 $ 105,616,000
Subordinated notes | Notes      
Debt Instrument [Line Items]      
Subordinated notes   $ 55,000,000 $ 55,000,000
Stated interest rate, first five years 4.75% 0.0475%  
Debt face amount $ 55,000,000    
Debt instrument, term 10 years    
Long-term debt   $ 54,100,000  
Unamortized debt issuance costs   $ 900,000  
Subordinated notes | Notes | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]      
Debt Instrument [Line Items]      
Basis spread on variable rate 4.56%    
v3.22.1
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Revenue from External Customer [Line Items]    
In-scope other operating income $ 7,113 $ 6,725
Out-of-scope other operating income 2,438 3,986
Total other operating income 9,551 10,711
Loan placement fees    
Revenue from External Customer [Line Items]    
In-scope other operating income 235 838
Service charges on deposit accounts    
Revenue from External Customer [Line Items]    
In-scope other operating income 1,861 1,478
Other service charges and fees    
Revenue from External Customer [Line Items]    
In-scope other operating income 3,863 3,178
Income from fiduciary activities    
Revenue from External Customer [Line Items]    
In-scope other operating income $ 1,154 $ 1,231
v3.22.1
SHARE-BASED COMPENSATION (Details) - Restricted Stock Awards and Units
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2022
USD ($)
$ / shares
shares
Activity of nonvested shares  
Nonvested restricted stock awards and units, beginning of period (in shares) | shares 485,339
Changes during the period:  
Granted (in shares) | shares 95,155
Vested (in shares) | shares (89,304)
Forfeited (in shares) | shares (39,749)
Nonvested restricted stock awards and units, end of period (in shares) | shares 451,441
Weighted Average Grant Date Fair Value  
Nonvested restricted stock awards and units, beginning of period (in dollars per share) | $ / shares $ 21.95
Changes during the period:  
Granted (in dollars per share) | $ / shares 29.38
Vested (in dollars per share) | $ / shares 24.61
Forfeited (in dollars per share) | $ / shares 28.00
Nonvested restricted stock awards and units, end of period (in dollars per share) | $ / shares $ 22.46
Fair Value of Restricted Stock Awards and Units That Vested During the Period, Vested | $ $ 2,652
v3.22.1
LEASES - Lease Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Leases [Abstract]    
Operating Lease, Cost $ 1,390 $ 1,571
Variable Lease, Cost 830 720
Sublease Income (12) 0
Lease, Cost 2,208 2,291
Cash flows from operating leases $ (1,506) $ (1,599)
Operating Lease, Weighted Average Remaining Lease Term 11 years 5 months 26 days 11 years 9 months 10 days
Operating Lease, Weighted Average Discount Rate, Percent 3.92% 3.89%
v3.22.1
LEASES - Lessee, Operating Lease Maturities (Details)
$ in Thousands
Mar. 31, 2022
USD ($)
Undiscounted Cash Flows  
2022 (remainder) $ 4,420
2021 5,183
2022 4,508
2023 4,195
2024 4,133
2025 4,123
Thereafter 23,253
Total 49,815
Lease Liability Expense  
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Remainder Of The Year 1,113
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Two 1,343
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Three 1,214
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Four 1,088
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Five 968
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Six 843
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due After Year Six 3,636
Lessee, Operating Lease, Liability, Undiscounted Excess Amount 10,205
Lease Liability Reduction  
Lessee, Operating Lease, Lease Liability Reduction, Due Remainder Of The Year 3,307
Lessee, Operating Lease, Lease Liability Reduction, Year Two 3,840
Lessee, Operating Lease, Lease Liability Reduction, Year Three 3,294
Lessee, Operating Lease, Lease Liability Reduction, Year Four 3,107
Lessee, Operating Lease, Lease Liability Reduction, Year Five 3,165
Lessee, Operating Lease, Lease Liability Reduction, Year Six 3,280
Lessee, Operating Lease, Lease Liability Reduction, After Year Six 19,617
Lessee, Operating Lease, Lease Liability Reduction $ 39,610
v3.22.1
LEASES - Rental Income (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Leases [Abstract]    
Total rental income recognized $ 951 $ 520
v3.22.1
LEASES - Lessor, Operating Lease Maturities (Details)
$ in Thousands
Mar. 31, 2022
USD ($)
Leases [Abstract]  
2022 (remainder) $ 1,532
2021 923
2022 521
2023 304
2024 171
2025 131
Thereafter 304
Total $ 3,886
v3.22.1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Components of Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Before Tax    
Other comprehensive income (loss), before tax $ (108,361) $ (23,368)
Tax Effect    
Other comprehensive income, tax (28,974) (6,251)
Net of Tax    
Total other comprehensive loss, net of tax (79,387) (17,117)
Net unrealized gains on investment securities    
Before Tax    
Other comprehensive income (loss) before reclassification, before tax (108,448) (23,619)
Other comprehensive income (loss), before tax (108,448) (23,619)
Tax Effect    
Other comprehensive income (loss) before reclassifications, tax (28,998) (6,318)
Other comprehensive income, tax (28,998) (6,318)
Net of Tax    
Other comprehensive income (loss), before reclassifications, net of tax (79,450) (17,301)
Total other comprehensive loss, net of tax (79,450) (17,301)
Net unrealized losses on derivatives:    
Before Tax    
Other comprehensive income (loss) before reclassification, before tax (50)  
Other comprehensive income (loss), before tax (50)  
Tax Effect    
Other comprehensive income (loss) before reclassifications, tax (13)  
Other comprehensive income, tax (13)  
Net of Tax    
Other comprehensive income (loss), before reclassifications, net of tax (37)  
Total other comprehensive loss, net of tax (37)  
Amortization of net actuarial loss    
Before Tax    
Reclassification from AOCI, before tax 133 246
Tax Effect    
Reclassification from AOCI, tax 36 66
Net of Tax    
Reclassification from AOCI, net of tax 97 180
Amortization of net transition obligation    
Before Tax    
Reclassification from AOCI, before tax 4 5
Tax Effect    
Reclassification from AOCI, tax 1 1
Net of Tax    
Reclassification from AOCI, net of tax 3 4
Defined benefit plans, net    
Before Tax    
Other comprehensive income (loss), before tax (137) (251)
Tax Effect    
Other comprehensive income, tax (37) (67)
Net of Tax    
Other comprehensive income (loss), before reclassifications, net of tax 0 0
Reclassification from AOCI, net of tax 100 184
Total other comprehensive loss, net of tax $ 100 $ 184
v3.22.1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Components of AOCI) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Changes in each component of AOCI, net of tax    
Balance at beginning of period $ 558,219  
Total other comprehensive loss, net of tax (79,387) $ (17,117)
Balance at end of period 486,328  
Investment Securities    
Changes in each component of AOCI, net of tax    
Balance at beginning of period (3,666) 26,651
Other comprehensive income (loss) before reclassifications (79,450) (17,301)
Reclassification adjustments from AOCI 0 0
Total other comprehensive loss, net of tax (79,450) (17,301)
Balance at end of period (83,116) 9,350
Derivatives    
Changes in each component of AOCI, net of tax    
Balance at beginning of period 0 0
Other comprehensive income (loss) before reclassifications (37) 0
Reclassification adjustments from AOCI 0 0
Total other comprehensive loss, net of tax (37) 0
Balance at end of period (37) 0
Defined Benefit Plans    
Changes in each component of AOCI, net of tax    
Balance at beginning of period (4,294) (6,523)
Other comprehensive income (loss) before reclassifications 0 0
Reclassification adjustments from AOCI 100 184
Total other comprehensive loss, net of tax 100 184
Balance at end of period (4,194) (6,339)
Accum. Other Comp. Loss    
Changes in each component of AOCI, net of tax    
Balance at beginning of period (7,960) 20,128
Other comprehensive income (loss) before reclassifications (79,487) (17,301)
Reclassification adjustments from AOCI 100 184
Total other comprehensive loss, net of tax (79,387) (17,117)
Balance at end of period $ (87,347) $ 3,011
v3.22.1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassified out of AOCI) (LOSS) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Amounts reclassified out of each component of accumulated other comprehensive income    
Income tax (expenses) benefit $ (6,038) $ (5,452)
Total reclassification adjustments from AOCI for the period, net of tax 19,438 18,038
Amount Reclassified from AOCI    
Amounts reclassified out of each component of accumulated other comprehensive income    
Total reclassification adjustments from AOCI for the period, net of tax (100) (184)
Investment Securities    
Amounts reclassified out of each component of accumulated other comprehensive income    
Reclassification from AOCI, net of tax 0 0
Defined Benefit Plans    
Amounts reclassified out of each component of accumulated other comprehensive income    
Reclassification from AOCI, net of tax (100) (184)
Defined Benefit Plans | Amount Reclassified from AOCI    
Amounts reclassified out of each component of accumulated other comprehensive income    
Amortization of defined benefit plan items, before tax (137) (251)
Amortization of defined benefit plan items, tax 37 67
Reclassification from AOCI, net of tax (100) (184)
Amortization of net actuarial loss    
Amounts reclassified out of each component of accumulated other comprehensive income    
Amortization of defined benefit plan items, before tax (133) (246)
Amortization of defined benefit plan items, tax 36 66
Reclassification from AOCI, net of tax (97) (180)
Amortization of net actuarial loss | Amount Reclassified from AOCI    
Amounts reclassified out of each component of accumulated other comprehensive income    
Amortization of defined benefit plan items, before tax (133) (246)
Amortization of net transition obligation    
Amounts reclassified out of each component of accumulated other comprehensive income    
Amortization of defined benefit plan items, before tax (4) (5)
Amortization of defined benefit plan items, tax 1 1
Reclassification from AOCI, net of tax (3) (4)
Amortization of net transition obligation | Amount Reclassified from AOCI    
Amounts reclassified out of each component of accumulated other comprehensive income    
Amortization of defined benefit plan items, before tax $ (4) $ (5)
v3.22.1
EARNINGS PER SHARE (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
SHARE-BASED COMPENSATION    
Net income $ 19,438 $ 18,038
Weighted average shares outstanding - basic 27,591,390 28,108,648
Weighted average shares outstanding - diluted 27,874,924 28,313,014
Basic earnings per common share (in dollars per share) $ 0.70 $ 0.64
Diluted earnings per common share (in dollars per share) $ 0.70 $ 0.64
Stock Option    
SHARE-BASED COMPENSATION    
Dilutive effect of share-based compensation arrangements 283,534 204,366
v3.22.1
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments) (Details) - USD ($)
 3 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Fair Value Disclosures [Abstract]    
Loans, weighted average discount rate, percent 6.44%  
Time deposits, weighted average discount rate, percent 1.24%  
Long-term debt, weighted average interest rate 6.64%  
Financial assets    
Cash and due from banks $ 83,947,000 $ 81,506,000
Interest-bearing deposits in other banks 118,183,000 247,401,000
Loans held for sale 4,677,000 3,531,000
Accrued interest receivable 16,423,000 16,709,000
Deposits:    
Noninterest-bearing deposits 2,269,562,000 2,291,246,000
Time deposits 698,538,000 706,732,000
Transfers of financial assets (liability) out of Level 3 0  
Interest rate lock commitments    
Deposits:    
Notional amount 899,000  
Forward sale commitments    
Deposits:    
Notional amount 5,669,000 3,525,000
Risk participation agreements    
Deposits:    
Notional amount 37,426,000 37,531,000
Assets    
Deposits:    
Notional amount 32,919,000 33,112,000
Liabilities    
Deposits:    
Notional amount 32,919,000 33,112,000
Derivative liabilities   (435,000)
Interest Rate Swap    
Deposits:    
Notional amount 115,545,000  
Commitments to extend credit    
Deposits:    
Off-balance sheet financial instruments, Notional Amount 1,308,724,000 1,266,596,000
Standby letters of credit and financial guarantees written    
Deposits:    
Off-balance sheet financial instruments, Notional Amount 6,058,000 6,634,000
Carrying Amount    
Financial assets    
Cash and due from banks 83,947,000 81,506,000
Interest-bearing deposits in other banks 118,183,000 247,401,000
Investment securities 1,528,989,000 1,631,699,000
Loans held for sale 4,677,000 3,531,000
Net loans and leases 5,110,083,000 5,033,552,000
Accrued interest receivable 16,423,000 16,709,000
Deposits:    
Noninterest-bearing deposits 2,269,562,000 2,291,246,000
Interest-bearing demand and savings deposits 3,630,931,000 3,641,180,000
Time deposits 698,538,000 706,732,000
Long-term debt 105,677,000 105,616,000
Interest Payable 1,807,000 1,122,000
Carrying Amount | Interest rate lock commitments    
Deposits:    
Derivative liabilities (2,000)  
Carrying Amount | Risk participation agreements    
Deposits:    
Assets, Fair Value Disclosure 0 16,000
Carrying Amount | Assets    
Deposits:    
Derivative liabilities (1,624,000) (435,000)
Carrying Amount | Liabilities    
Deposits:    
Derivative liabilities (1,624,000)  
Carrying Amount | Interest Rate Swap    
Deposits:    
Derivative liabilities (50,000)  
Carrying Amount | Commitments to extend credit    
Deposits:    
Off-balance sheet financial instruments 0 0
Carrying Amount | Standby letters of credit and financial guarantees written    
Deposits:    
Off-balance sheet financial instruments 0 0
Estimated Fair Value    
Financial assets    
Cash and due from banks 83,947,000 81,506,000
Interest-bearing deposits in other banks 118,183,000 247,401,000
Investment securities 1,528,985,000 1,631,699,000
Loans held for sale 4,677,000 3,531,000
Net loans and leases 4,688,605,000 4,741,379,000
Accrued interest receivable 16,423,000 16,709,000
Deposits:    
Noninterest-bearing deposits 2,269,562,000 2,291,246,000
Interest-bearing demand and savings deposits 3,630,931,000 3,641,180,000
Time deposits 692,253,000 704,645,000
Long-term debt 91,117,000 94,588,000
Interest Payable 1,807,000 1,122,000
Estimated Fair Value | Interest rate lock commitments    
Deposits:    
Derivative liabilities (2,000)  
Estimated Fair Value | Risk participation agreements    
Deposits:    
Assets, Fair Value Disclosure 0 16,000
Estimated Fair Value | Assets    
Deposits:    
Derivative liabilities (1,624,000) (435,000)
Estimated Fair Value | Liabilities    
Deposits:    
Derivative liabilities (1,624,000)  
Estimated Fair Value | Interest Rate Swap    
Deposits:    
Derivative liabilities (50,000)  
Estimated Fair Value | Commitments to extend credit    
Deposits:    
Off-balance sheet financial instruments 1,402,000 1,347,000
Estimated Fair Value | Standby letters of credit and financial guarantees written    
Deposits:    
Off-balance sheet financial instruments 91,000 100,000
Quoted Prices in Active Markets for Identical Assets (Level 1)    
Financial assets    
Cash and due from banks 83,947,000 81,506,000
Interest-bearing deposits in other banks 118,183,000 247,401,000
Investment securities 0 0
Loans held for sale 0 0
Net loans and leases 0 0
Accrued interest receivable 16,423,000 16,709,000
Deposits:    
Noninterest-bearing deposits 2,269,562,000 2,291,246,000
Interest-bearing demand and savings deposits 3,630,931,000 3,641,180,000
Time deposits 0 0
Long-term debt 0 0
Interest Payable 1,807,000 1,122,000
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate lock commitments    
Deposits:    
Derivative liabilities 0  
Quoted Prices in Active Markets for Identical Assets (Level 1) | Risk participation agreements    
Deposits:    
Assets, Fair Value Disclosure 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Assets    
Deposits:    
Derivative liabilities 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Liabilities    
Deposits:    
Derivative liabilities 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest Rate Swap    
Deposits:    
Derivative liabilities 0  
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commitments to extend credit    
Deposits:    
Off-balance sheet financial instruments 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Standby letters of credit and financial guarantees written    
Deposits:    
Off-balance sheet financial instruments 0 0
Significant Other Observable Inputs (Level 2)    
Financial assets    
Cash and due from banks 0 0
Interest-bearing deposits in other banks 0 0
Investment securities 1,520,904,000 1,623,080,000
Loans held for sale 4,677,000 3,531,000
Net loans and leases 0 0
Accrued interest receivable 0 0
Deposits:    
Noninterest-bearing deposits 0 0
Interest-bearing demand and savings deposits 0 0
Time deposits 0 0
Long-term debt 0 0
Interest Payable 0 0
Significant Other Observable Inputs (Level 2) | Interest rate lock commitments    
Deposits:    
Derivative liabilities (2,000)  
Significant Other Observable Inputs (Level 2) | Risk participation agreements    
Deposits:    
Assets, Fair Value Disclosure 0 0
Significant Other Observable Inputs (Level 2) | Assets    
Deposits:    
Derivative liabilities 0 0
Significant Other Observable Inputs (Level 2) | Liabilities    
Deposits:    
Derivative liabilities 0 0
Significant Other Observable Inputs (Level 2) | Interest Rate Swap    
Deposits:    
Derivative liabilities 0  
Significant Other Observable Inputs (Level 2) | Commitments to extend credit    
Deposits:    
Off-balance sheet financial instruments 1,402,000 1,347,000
Significant Other Observable Inputs (Level 2) | Standby letters of credit and financial guarantees written    
Deposits:    
Off-balance sheet financial instruments 91,000 100,000
Significant Unobservable Inputs (Level 3)    
Financial assets    
Cash and due from banks 0 0
Interest-bearing deposits in other banks 0 0
Investment securities 8,081,000 8,619,000
Loans held for sale 0 0
Net loans and leases 4,688,605,000 4,741,379,000
Accrued interest receivable 0 0
Deposits:    
Noninterest-bearing deposits 0 0
Interest-bearing demand and savings deposits 0 0
Time deposits 692,253,000 704,645,000
Long-term debt 91,117,000 94,588,000
Interest Payable 0 0
Significant Unobservable Inputs (Level 3) | Interest rate lock commitments    
Deposits:    
Derivative liabilities 0  
Significant Unobservable Inputs (Level 3) | Risk participation agreements    
Deposits:    
Assets, Fair Value Disclosure 0 16,000
Significant Unobservable Inputs (Level 3) | Assets    
Deposits:    
Derivative liabilities (1,624,000) (435,000)
Significant Unobservable Inputs (Level 3) | Liabilities    
Deposits:    
Derivative liabilities (1,624,000) (435,000)
Significant Unobservable Inputs (Level 3) | Interest Rate Swap    
Deposits:    
Derivative liabilities (50,000)  
Significant Unobservable Inputs (Level 3) | Commitments to extend credit    
Deposits:    
Off-balance sheet financial instruments 0 0
Significant Unobservable Inputs (Level 3) | Standby letters of credit and financial guarantees written    
Deposits:    
Off-balance sheet financial instruments 0 0
Recurring basis | Carrying Amount | Forward sale commitments    
Deposits:    
Assets, Fair Value Disclosure 146,000 1,000
Recurring basis | Estimated Fair Value | Forward sale commitments    
Deposits:    
Assets, Fair Value Disclosure 146,000 1,000
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward sale commitments    
Deposits:    
Assets, Fair Value Disclosure 0 0
Recurring basis | Significant Other Observable Inputs (Level 2) | Forward sale commitments    
Deposits:    
Assets, Fair Value Disclosure 146,000 1,000
Recurring basis | Significant Unobservable Inputs (Level 3) | Forward sale commitments    
Deposits:    
Assets, Fair Value Disclosure $ 0 $ 0
v3.22.1
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Assets and liabilities measured at fair value    
Held to maturity, fair value $ 329,503 $ 0
Available-for-sale debt securities, at fair value 1,199,482 1,631,699
States and political subdivisions    
Assets and liabilities measured at fair value    
Held to maturity, fair value 41,729  
Available-for-sale debt securities, at fair value 164,181 236,828
Residential - U.S. Government-sponsored entities    
Assets and liabilities measured at fair value    
Held to maturity, fair value 287,774  
Available-for-sale debt securities, at fair value 858,198 1,198,816
Corporate securities    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 33,054 40,646
U.S. Treasury obligations and direct obligations of U.S Government agencies    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 32,171 35,334
Commercial - U.S. Government-sponsored entities    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 59,358 65,849
Residential - Non-government agencies    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 10,908 12,213
Commercial - Non-government agencies    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 41,612 42,013
Recurring basis    
Assets and liabilities measured at fair value    
Held to maturity, fair value 329,503  
Available-for-sale debt securities, at fair value 1,199,482 1,631,699
Total 1,529,079 1,631,684
Recurring basis | Derivative - Interest Rate Contracts    
Assets and liabilities measured at fair value    
Derivatives: Interest rate lock and forward sale commitments 94 (15)
Recurring basis | States and political subdivisions    
Assets and liabilities measured at fair value    
Held to maturity, fair value 41,729  
Available-for-sale debt securities, at fair value 164,181 236,828
Recurring basis | Residential - U.S. Government-sponsored entities    
Assets and liabilities measured at fair value    
Held to maturity, fair value 287,774  
Available-for-sale debt securities, at fair value 858,198 1,198,816
Recurring basis | Corporate securities    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 33,054 40,646
Recurring basis | U.S. Treasury obligations and direct obligations of U.S Government agencies    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 32,171 35,334
Recurring basis | Commercial - U.S. Government-sponsored entities    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 59,358 65,849
Recurring basis | Residential - Non-government agencies    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 10,908 12,213
Recurring basis | Commercial - Non-government agencies    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 41,612 42,013
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Assets and liabilities measured at fair value    
Held to maturity, fair value 0  
Available-for-sale debt securities, at fair value 0 0
Total 0 0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative - Interest Rate Contracts    
Assets and liabilities measured at fair value    
Derivatives: Interest rate lock and forward sale commitments 0 0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | States and political subdivisions    
Assets and liabilities measured at fair value    
Held to maturity, fair value 0  
Available-for-sale debt securities, at fair value 0 0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential - U.S. Government-sponsored entities    
Assets and liabilities measured at fair value    
Held to maturity, fair value 0  
Available-for-sale debt securities, at fair value 0 0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 0 0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury obligations and direct obligations of U.S Government agencies    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 0 0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial - U.S. Government-sponsored entities    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 0 0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential - Non-government agencies    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 0 0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial - Non-government agencies    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 0 0
Recurring basis | Significant Other Observable Inputs (Level 2)    
Assets and liabilities measured at fair value    
Held to maturity, fair value 329,503  
Available-for-sale debt securities, at fair value 1,191,401 1,623,080
Total 1,521,048 1,623,081
Recurring basis | Significant Other Observable Inputs (Level 2) | Derivative - Interest Rate Contracts    
Assets and liabilities measured at fair value    
Derivatives: Interest rate lock and forward sale commitments 144 1
Recurring basis | Significant Other Observable Inputs (Level 2) | States and political subdivisions    
Assets and liabilities measured at fair value    
Held to maturity, fair value 41,729  
Available-for-sale debt securities, at fair value 156,952 229,147
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential - U.S. Government-sponsored entities    
Assets and liabilities measured at fair value    
Held to maturity, fair value 287,774  
Available-for-sale debt securities, at fair value 858,198 1,198,816
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate securities    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 33,054 40,646
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Treasury obligations and direct obligations of U.S Government agencies    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 32,171 35,334
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial - U.S. Government-sponsored entities    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 59,358 65,849
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential - Non-government agencies    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 10,056 11,275
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial - Non-government agencies    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 41,612 42,013
Recurring basis | Significant Unobservable Inputs (Level 3)    
Assets and liabilities measured at fair value    
Held to maturity, fair value 0  
Available-for-sale debt securities, at fair value 8,081 8,619
Total 8,031 8,603
Recurring basis | Significant Unobservable Inputs (Level 3) | Derivative - Interest Rate Contracts    
Assets and liabilities measured at fair value    
Derivatives: Interest rate lock and forward sale commitments (50) (16)
Recurring basis | Significant Unobservable Inputs (Level 3) | States and political subdivisions    
Assets and liabilities measured at fair value    
Held to maturity, fair value 0  
Available-for-sale debt securities, at fair value 7,229 7,681
Recurring basis | Significant Unobservable Inputs (Level 3) | Residential - U.S. Government-sponsored entities    
Assets and liabilities measured at fair value    
Held to maturity, fair value 0  
Available-for-sale debt securities, at fair value 0 0
Recurring basis | Significant Unobservable Inputs (Level 3) | Corporate securities    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 0 0
Recurring basis | Significant Unobservable Inputs (Level 3) | U.S. Treasury obligations and direct obligations of U.S Government agencies    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 0 0
Recurring basis | Significant Unobservable Inputs (Level 3) | Commercial - U.S. Government-sponsored entities    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 0 0
Recurring basis | Significant Unobservable Inputs (Level 3) | Residential - Non-government agencies    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value 852 938
Recurring basis | Significant Unobservable Inputs (Level 3) | Commercial - Non-government agencies    
Assets and liabilities measured at fair value    
Available-for-sale debt securities, at fair value $ 0 $ 0
v3.22.1
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Change in Level 3 Assets and Liabilities) (Details 3) - Mortgage revenue bonds
$ in Thousands
 3 Months Ended
Mar. 31, 2022
USD ($)
security
Mar. 31, 2021
USD ($)
Dec. 31, 2021
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis      
Aggregate fair value / Balance at the beginning of the period $ 8,619 $ 12,326  
Principal payments received (60) (1,978)  
Unrealized net loss included in other comprehensive income (478) (752)  
Aggregate fair value / Balance at the end of the period 8,081 9,596  
States and political subdivisions      
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis      
Aggregate fair value / Balance at the beginning of the period 7,681 11,337  
Principal payments received (55) (1,973)  
Unrealized net loss included in other comprehensive income (397) (673)  
Aggregate fair value / Balance at the end of the period $ 7,229 8,691  
Additional disclosures      
Number of investment securities held | security 2    
Residential - Non-government agencies      
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis      
Aggregate fair value / Balance at the beginning of the period $ 938 989  
Principal payments received (5) (5)  
Unrealized net loss included in other comprehensive income (81) (79)  
Aggregate fair value / Balance at the end of the period $ 852 $ 905  
Additional disclosures      
Number of investment securities held | security 2    
Measurement Input, Discount Rate | Weighted average      
Additional disclosures      
Weighted average prepayment speed assumption 0.0463   0.0346