Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

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
	March 31, 2022
Measured on a Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities available-for-sale:
Agency residential MBS	$	2,788,814	$	—	$	2,788,814	$	—
Municipal securities	2,125,161		—		2,125,161		—
Agency commercial MBS	1,562,337		—		1,562,337		—
Agency residential CMOs	940,714		—		940,714		—
U.S. Treasury securities	907,743		907,743		—		—
Corporate debt securities	509,156		—		509,156		—
Private label commercial MBS	401,292		—		395,716		5,576
Collateralized loan obligations	363,806		—		363,806		—
Private label residential CMOs	238,160		—		238,160		—
Asset-backed securities	112,877		—		112,877		—
SBA securities	25,049		—		25,049		—
Total securities available-for-sale	$	9,975,109	$	907,743	$	9,061,790	$	5,576
Equity investments with readily determinable fair values	$	8,814	$	8,814	$	—	$	—
Derivatives (1):
Equity warrants	3,771		—		—		3,771
Interest rate and economic contracts	4,556		—		4,556		—
Derivative liabilities	2,500		—		2,500		—

	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, 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 commercial MBS available-for-sale measured at fair value on a recurring basis as of the date indicated:

	March 31, 2022
	Private Label Commercial MBS
	Input or	Weighted
	Range	Average
Unobservable Inputs	of Inputs	Input (1)
Voluntary annual prepayment speeds (2)	15.0%	15.0%
Annual default rates (2)	2.0%	2.0%
Loss severity rates (2)	60.0%	60.0%
Discount rates	4.6% - 4.8%	4.8%

____________________

(1)    Discount rates for private label commercial MBS were weighted by the relative fair values of the instruments.

(2)    Voluntary annual prepayment speeds, 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:

	March 31, 2022
	Equity Warrants
		Weighted
	Range	Average
Unobservable Inputs	of Inputs	Input (1)
Volatility	22.6% - 124.9%	28.2%
Risk-free interest rate	0.2% - 2.5%	2.3%
Remaining life assumption (in years)	0.08 - 4.98	3.07

____________________

(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:

	March 31, 2022
			Valuation	Unobservable	Input or	Weighted
Asset	Fair Value		Technique	Inputs	Range	Average
	(Dollars in thousands)
Individually evaluated
loans and leases	$	9,609	Discounted cash flows	Discount rates	5.50% - 9.25%	6.82%
Individually evaluated
loans and leases	3,634		Third party appraisals	No discounts
Total non-recurring Level 3	$	13,243

Fair value, assets measured on recurring basis, significant unobservable inputs (level 3) reconciliation

The following table summarizes activity for our Level 3 private label commercial MBS available-for-sale and equity warrants measured at fair value on a recurring basis for the period indicated:

	Private Label		Equity
	Commercial MBS		Warrants
	(In thousands)
Balance, December 31, 2021	$	15,001	$	3,555
Total included in earnings	(4)		629
Total included in other comprehensive income (loss)	(94)		—
Issuances	—		178
Net settlements	(9,327)		—
Exercises and settlements	—		(584)
Transfers to Level 1 (equity investments with readily
determinable fair values)	—		(7)
Balance, March 31, 2022	$	5,576	$	3,771
Unrealized net gains (losses) for the period included in other
comprehensive income for securities held at quarter-end	$	(53)

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
	March 31, 2022
Measured on a Non-Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Individually evaluated loans and leases	$	13,243	$	—	$	—	$	13,243
Total non-recurring	$	13,243	$	—	$	—	$	13,243

	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

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 Ended
Losses on Assets	March 31,
Measured on a Non-Recurring Basis	2022		2021
	(In thousands)
Individually evaluated loans and leases	$	434	$	702
OREO	—		14
Total losses	$	434	$	716

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:

	March 31, 2022
	Carrying		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	205,446	$	205,446	$	205,446	$	—	$	—
Interest-earning deposits in financial institutions	1,865,235		1,865,235		1,865,235		—		—
Securities available-for-sale	9,975,109		9,975,109		907,743		9,061,790		5,576
Investment in FHLB stock	17,250		17,250		—		17,250		—
Loans and leases held for investment, net	24,154,674		23,922,460		—		—		23,922,460
Equity investments with readily determinable fair values	8,814		8,814		8,814		—		—
Equity warrants	3,771		3,771		—		—		3,771
Interest rate and economic contracts	4,556		4,556		—		4,556		—
Servicing rights	1,002		1,002		—		—		1,002
Financial Liabilities:
Core deposits	31,676,404		31,676,404		—		31,676,404		—
Non-core non-maturity deposits	322,732		322,732		—		322,732		—
Time deposits	1,225,759		1,216,711		—		1,216,711		—
Borrowings	991,000		991,000		991,000		—		—
Subordinated debt	863,880		883,960		—		883,960		—
Derivative liabilities	2,500		2,500		—		2,500		—

	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		—