Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Assets and Liabilities Carried at Fair Value 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
	December 31, 2021
Measured on a Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities available‑for‑sale:
Agency residential MBS	$	2,898,210	$	—	$	2,898,210	$	—
Municipal securities	2,315,968		—		2,315,968		—
Agency commercial MBS	1,688,967		—		1,688,967		—
Agency residential CMOs	1,038,134		—		1,038,134		—
U.S. Treasury securities	966,898		966,898		—		—
Corporate debt securities	527,094		—		527,094		—
Private label commercial MBS	450,217		—		435,216		15,001
Collateralized loan obligations	385,362		—		385,362		—
Private label residential CMOs	264,417		—		264,417		—
Asset-backed securities	129,547		—		129,547		—
SBA securities	29,644		—		29,644		—
Total securities available-for-sale	$	10,694,458	$	966,898	$	9,712,559	$	15,001
Equity investments with readily determinable fair values	$	28,578	$	28,578	$	—	$	—
Derivatives (1):
Equity warrants	3,555		—		—		3,555
Interest rate and economic contracts	2,509		—		2,509		—
Derivative liabilities	931		—		931		—

	Fair Value Measurements as of
	December 31, 2020
Measured on a Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities available‑for‑sale:
Municipal securities	$	1,531,617	$	—	$	1,531,617	$	—
Agency commercial MBS	1,281,877		—		1,281,877		—
Agency residential CMOs	1,219,880		—		1,219,880		—
Agency residential MBS	341,074		—		341,074		—
Corporate debt securities	311,889		—		311,889		—
Asset-backed securities	166,546		—		166,546		—
Collateralized loan obligations	135,876		—		135,876		—
Private label residential CMOs	116,946		—		112,299		4,647
Private label commercial MBS	82,957		—		57,232		25,725
SBA securities	41,627		—		41,627		—
U.S. Treasury securities	5,302		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 contracts	4,230		—		4,230		—
Derivative liabilities	1,150		—		1,150		—

____________________

(1)    For information regarding derivative instruments, see Note 13. Derivatives.

The following table summarizes activity for our Level 3 private label commercial MBS measured at fair value on a recurring basis for the years indicated:

	Year Ended December 31,
Level 3 Private Label Commercial MBS	2021		2020		2019
	(In thousands)
Balance, beginning of year	$	25,725	$	16,435	$	39,945
Total included in earnings	(77)		5		(77)
Total unrealized gain (loss) in comprehensive income	(115)		(41)		463
Purchases	—		20,100		—
Net settlements	(10,532)		(10,774)		(23,896)
Balance, end of year	$	15,001	$	25,725	$	16,435
Unrealized net gains (losses) for the period included in other
comprehensive income for securities held at year-end	$	41

Fair Value Inputs, Assets, Quantitative Information

The following table presents information about the quantitative inputs and assumptions used to determine the fair values provided by our third party pricing service for our Level 3 private label commercial MBS available-for-sale measured at fair value on a recurring basis as of the date indicated:

	December 31, 2021
	Private Label Commercial MBS
	Input or	Weighted
	Range of	Average
Unobservable Inputs	Inputs	Input (1)
Voluntary annual prepayment speeds	10.0% - 15.0%	12.1%
Annual default rates (2)	2.0%	2.0%
Loss severity rates (2)	60.0%	60.0%
Discount rates	3.0% - 3.4%	3.3%

____________________

(1)    Voluntary annual prepayment speeds and discount rates for private label commercial MBS were weighted by the relative fair values of the instruments.

(2)    Annual default rates and loss severity rates were the same for all of the private label commercial MBS.

The following table presents information about the 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:

	December 31, 2021
	Equity Warrants
		Weighted
	Range	Average
Unobservable Inputs	of Inputs	Input
Volatility	21.0% - 139.9%	28.6%
Risk-free interest rate	0.1% - 1.3%	0.9%
Remaining life assumption (in years)	0.08 - 4.99	3.00

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 measured at fair value on a recurring basis for the years indicated:

	Year Ended December 31,
Level 3 Private Label Residential CMOs	2021		2020		2019
	(In thousands)
Balance, beginning of year	$	4,647	$	6,264	$	7,288
Total included in earnings	2,287		485		432
Total unrealized loss in comprehensive income	(1,094)		(592)		(265)
Sales	(2,903)		—		—
Net settlements	(2,937)		(1,510)		(1,191)
Balance, end of year	$	—	$	4,647	$	6,264
Unrealized net gains (losses) for the period included in other
comprehensive income for securities held at year-end	$	—

Schedule of Stockholders' Equity Note, Warrants or Rights

The following table summarizes activity for our Level 3 equity warrants measured at fair value on a recurring basis for the years indicated:

	Year Ended December 31,
Level 3 Equity Warrants	2021		2020		2019
	(In thousands)
Balance, beginning of year	$	4,520	$	3,434	$	4,793
Total included in earnings	49,341		10,609		8,669
Exercises and settlements (1)	(50,092)		(9,828)		(10,239)
Issuances	432		424		324
Transfers to Level 1 (equity investments with readily
determinable fair values)	(646)		(119)		(113)
Balance, end of year	$	3,555	$	4,520	$	3,434

______________________

(1)    Includes the exercise of warrants that upon exercise become equity securities in public companies. These are often subject to lock-up restrictions that must be met before the equity security can be sold, during which time they are reported as equity investments with readily determinable fair values.

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
	December 31, 2021
Measured on a Non‑Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Individually evaluated loans and leases	$	30,882	$	—	$	2,915	$	27,967
Total non-recurring	$	30,882	$	—	$	2,915	$	27,967

	Fair Value Measurement as of
	December 31, 2020
Measured on a Non‑Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Individually evaluated loans and leases	$	102,274	$	—	$	4,160	$	98,114
Total non-recurring	$	102,274	$	—	$	4,160	$	98,114

Net Losses (Gains) on Nonrecurring Assets

The following table presents losses recognized on assets measured on a nonrecurring basis for the years indicated:

	Year Ended December 31,
Loss on Assets Measured on a Non‑Recurring Basis	2021		2020		2019
	(In thousands)
Individually evaluated loans and leases (1)	$	5,772	$	24,607	$	6,797
OREO	14		267		78
Total net loss	$	5,786	$	24,874	$	6,875

_____________________

(1)    For 2021 and 2020, losses were based on individually evaluated loans and leases. For 2019, losses were based on impaired loans and leases.

Fair Value Measurement Inputs and Valuations

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:

	December 31, 2021
			Valuation	Unobservable	Input or	Weighted
Asset	Fair Value		Technique	Inputs	Range	Average
	(In thousands)
Individually evaluated
loans and leases	$	15,426	Discounted cash flows	Discount rates	0.00% - 9.25%	6.46%
Individually evaluated
loans and leases	12,541		Third party appraisals	No discounts
Total non-recurring Level 3	$	27,967

Fair Value, by Balance Sheet Grouping

	December 31, 2021
	Carrying		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	112,548	$	112,548	$	112,548	$	—	$	—
Interest‑earning deposits in financial institutions	3,944,686		3,944,686		3,944,686		—		—
Securities available‑for‑sale	10,694,458		10,694,458		966,898		9,712,559		15,001
Investment in FHLB stock	17,250		17,250		—		17,250		—
Loans and leases held for investment, net	22,740,984		23,461,156		—		2,915		23,458,241
Equity investments with readily determinable fair values	28,578		28,578		28,578		—		—
Equity warrants	3,555		3,555		—		—		3,555
Interest rate and economic contracts	2,509		2,509		—		2,509		—
Servicing rights	1,228		1,228		—		—		1,228
Financial Liabilities:
Core deposits	32,734,949		32,734,949		—		32,734,949		—
Non-core non-maturity deposits	889,976		889,976		—		889,976		—
Time deposits	1,372,832		1,371,527		—		1,371,527		—
Borrowings	—		—		—		—		—
Subordinated debt	863,283		917,342		—		917,342		—
Derivative liabilities	931		931		—		931		—

	December 31, 2020
	Carrying		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	150,464	$	150,464	$	150,464	$	—	$	—
Interest‑earning deposits in financial institutions	3,010,197		3,010,197		3,010,197		—		—
Securities available‑for‑sale	5,235,591		5,235,591		5,302		5,199,917		30,372
Investment in FHLB stock	17,250		17,250		—		17,250		—
Loans and leases held for investment, net	18,735,196		19,305,998		—		4,160		19,301,838
Equity investments with readily determinable fair values	6,147		6,147		6,147		—		—
Equity warrants	4,520		4,520		—		—		4,520
Interest rate and economic contracts	4,230		4,230		—		4,230		—
Financial Liabilities:
Core deposits	22,264,480		22,264,480		—		22,264,480		—
Non-core non-maturity deposits	1,149,467		1,149,467		—		1,149,467		—
Time deposits	1,526,770		1,527,639		—		1,527,639		—
Borrowings	5,000		4,995		—		4,995		—
Subordinated debt	465,812		448,036		—		448,036		—
Derivative liabilities	1,150		1,150		—		1,150		—