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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Fair value, assets measured on recurring basis
The following tables present information on the assets and liabilities measured and recorded at fair value on a recurring basis as of the dates indicated:
Fair Value Measurements as of
September 30, 2021
Measured on a Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Securities available-for-sale:
Agency residential MBS$2,180,993 $— $2,180,993 $— 
Municipal securities1,989,929 — 1,989,929 — 
Agency commercial MBS1,314,024 — 1,314,024 — 
Agency residential CMOs1,088,537 — 1,088,537 — 
U.S. Treasury securities971,268 971,268 — — 
Corporate debt securities516,615 — 516,615 — 
Private label commercial MBS388,318 — 369,989 18,329 
Collateralized loan obligations358,547 — 358,547 — 
Private label residential CMOs303,681 — 299,860 3,821 
Asset-backed securities132,997 — 132,997 — 
SBA securities32,017 — 32,017 — 
Total securities available-for-sale$9,276,926 $971,268 $8,283,508 $22,150 
Equity investments with readily determinable fair values$18,829 $18,829 $— $— 
Derivatives (1):
Equity warrants 3,747 — — 3,747 
Interest rate and economic contracts2,663 — 2,663 — 
Derivative liabilities 878 — 878 — 
Fair Value Measurements as of
December 31, 2020
Measured on a Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Securities available-for-sale:
Municipal securities$1,531,617 $— $1,531,617 $— 
Agency commercial MBS1,281,877 — 1,281,877 — 
Agency residential CMOs1,219,880 — 1,219,880 — 
Agency residential MBS341,074 — 341,074 — 
Corporate debt securities311,889 — 311,889 — 
Asset-backed securities166,546 — 166,546 — 
Collateralized loan obligations135,876 — 135,876 — 
Private label residential CMOs116,946 — 112,299 4,647 
Private label commercial MBS82,957 — 57,232 25,725 
SBA securities41,627 — 41,627 — 
U.S. Treasury securities5,302 5,302 — — 
Total securities available-for-sale$5,235,591 $5,302 $5,199,917 $30,372 
Equity investments with readily determinable fair values$6,147 $6,147 $— $— 
Derivatives (1):
Equity warrants 4,520 — — 4,520 
Interest rate and economic contracts4,230 — 4,230 — 
Derivative liabilities 1,150 — 1,150 — 
Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques
The following table presents information about quantitative inputs and assumptions used to determine the fair values provided by our third party pricing service for our Level 3 private label residential CMOs and private label commercial MBS available-for-sale measured at fair value on a recurring basis as of the date indicated:
September 30, 2021
Private Label Residential CMOsPrivate Label Commercial MBS
Weighted
Input or
Weighted
Range
Average
Range
Average
Unobservable Inputsof Inputs
Input (1)
of Inputs
Input (2)
Voluntary annual prepayment speeds
4.0% - 31.3%
12.5%
10.0% - 15.0%
11.9%
Annual default rates (3)
0.1% - 12.0%
2.4%2.0%2.0%
Loss severity rates (3)
16.5% - 82.1%
56.5%60.0%60.0%
Discount rates
0.0% - 10.5%
6.7%
2.7% - 3.3%
2.9%
____________________
(1)    Unobservable inputs for private label residential CMOs were weighted by the relative fair values of the instruments.
(2)    Voluntary annual prepayment speeds and discount rates for private label commercial MBS were weighted by the relative fair values of the instruments.
(3)    Annual default rates and loss severity rates were the same for all of the private label commercial MBS.
Fair value inputs, assets, quantitative information
The following table presents information about quantitative inputs and assumptions used in the modified Black-Scholes option pricing model to determine the fair value for our Level 3 equity warrants measured at fair value on a recurring basis as of the date indicated:
September 30, 2021
Equity Warrants
Weighted
RangeAverage
Unobservable Inputsof Inputs
Input (1)
Volatility
19.7% - 145.9%
29.4%
Risk-free interest rate
0.0% - 1.0%
0.5%
Remaining life assumption (in years)
0.08 - 4.99
2.91
____________________
(1)    Unobservable inputs for equity warrants were weighted by the relative fair values of the instruments.
The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis as of the date indicated:
September 30, 2021
ValuationUnobservableInput or
Weighted
Asset
Fair Value
TechniqueInputsRange
Average
(In thousands)
Individually evaluated
loans and leases$26,278Discounted cash flowsDiscount rates
3.75% - 7.75%
6.21%
Individually evaluated
loans and leases5,833Third party appraisalsNo discounts
Total non-recurring Level 3$32,111
Fair value, assets measured on recurring basis, significant unobservable inputs (level 3) reconciliation
The following table summarizes activity for our Level 3 private label residential CMOs available-for-sale, private label commercial MBS available-for-sale, and equity warrants measured at fair value on a recurring basis for the period indicated:
Private LabelPrivate LabelEquity
Residential CMOsCommercial MBSWarrants
(In thousands)
Balance, December 31, 2020$4,647 $25,725 $4,520 
Total included in earnings263 (64)25,351 
Total included in other comprehensive income(270)(20)— 
Issuances— — 267 
Sales
— — (25,809)
Net settlements(819)(7,312)— 
Transfers to Level 1 (equity investments with readily
determinable fair values)— — (582)
Balance, September 30, 2021$3,821 $18,329 $3,747 
Unrealized net gains (losses) for the period included in other
comprehensive income for securities held at quarter-end$823 $136 
Assets carried at fair value on a nonrecurring basis
The following tables present assets measured at fair value on a non-recurring basis as of the dates indicated:
Fair Value Measurement as of
September 30, 2021
Measured on a Non-Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Individually evaluated loans and leases (1)
$32,765 $— $654 $32,111 
Total non-recurring$32,765 $— $654 $32,111 
______________________
(1)    Includes nonaccrual loans and leases and performing TDRs with balances greater than $250,000.
Fair Value Measurement as of
December 31, 2020
Measured on a Non-Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Individually evaluated loans and leases (1)
$102,274 $— $4,160 $98,114 
Total non-recurring$102,274 $— $4,160 $98,114 
_____________________
(1)    Includes nonaccrual loans and leases and performing TDRs with balances greater than $250,000.
Net losses (gains) on nonrecurring assets
The following table presents losses recognized on assets measured on a nonrecurring basis for the periods indicated:
Three Months EndedNine Months Ended
Losses on Assets September 30,September 30,
Measured on a Non-Recurring Basis2021202020212020
(In thousands)
Individually evaluated loans and leases$243 $29,047 $2,499 $40,920 
OREO— 157 14 267 
Total losses$243 $29,204 $2,513 $41,187 
Fair value, by balance sheet grouping
The following tables present carrying amounts and estimated fair values of certain financial instruments as of the dates indicated:
September 30, 2021
Carrying
Estimated Fair Value
AmountTotalLevel 1Level 2Level 3
(In thousands)
Financial Assets:
Cash and due from banks$174,585 $174,585 $174,585 $— $— 
Interest-earning deposits in financial institutions3,524,613 3,524,613 3,524,613 — — 
Securities available-for-sale9,276,926 9,276,926 971,268 8,283,508 22,150 
Investment in FHLB stock17,250 17,250 — 17,250 — 
Loans and leases held for investment, net20,307,287 20,904,189 — 654 20,903,535 
Equity investments with readily determinable fair values18,829 18,829 18,829 — — 
Equity warrants3,747 3,747 — — 3,747 
Interest rate and economic contracts2,663 2,663 — 2,663 — 
Servicing rights1,636 1,636 — — 1,636 
Financial Liabilities:
Core deposits28,140,708 28,140,708 — 28,140,708 — 
Non-core non-maturity deposits960,438 960,438 — 960,438 — 
Time deposits1,458,599 1,459,457 — 1,459,457 — 
Borrowings— — — — — 
Subordinated debt862,447 923,374 — 923,374 — 
Derivative liabilities878 878 — 878 — 

December 31, 2020
Carrying
Estimated Fair Value
AmountTotalLevel 1Level 2Level 3
(In thousands)
Financial Assets:
Cash and due from banks$150,464 $150,464 $150,464 $— $— 
Interest-earning deposits in financial institutions3,010,197 3,010,197 3,010,197 — — 
Securities available-for-sale5,235,591 5,235,591 5,302 5,199,917 30,372 
Investment in FHLB stock17,250 17,250 — 17,250 — 
Loans and leases held for investment, net18,735,196 19,305,998 — 4,160 19,301,838 
Equity investments with readily determinable fair values6,147 6,147 6,147 — — 
Equity warrants4,520 4,520 — — 4,520 
Interest rate and economic contracts4,230 4,230 — 4,230 — 
Financial Liabilities:
Core deposits22,264,480 22,264,480 — 22,264,480 — 
Non-core non-maturity deposits1,149,467 1,149,467 — 1,149,467 — 
Time deposits1,526,770 1,527,639 — 1,527,639 — 
Borrowings5,000 4,995 — 4,995 — 
Subordinated debt465,812 448,036 — 448,036 — 
Derivative liabilities1,150 1,150 — 1,150 —