XML 49 R39.htm IDEA: XBRL DOCUMENT v3.22.2.2
Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 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
September 30, 2022
Measured on a Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Securities available-for-sale:
Agency residential MBS$2,291,234 $— $2,291,234 $— 
Agency commercial MBS807,920 — 807,920 — 
Agency residential CMOs736,482 — 736,482 — 
U.S. Treasury securities663,389 663,389 — — 
Municipal securities415,199 — 415,199 — 
Collateralized loan obligations353,762 — 353,762 — 
Corporate debt securities345,542 — 345,542 — 
Private label residential CMOs197,955 — 197,955 — 
Asset-backed securities32,022 — 32,022 — 
Private label commercial MBS29,178 — 29,178 — 
SBA securities18,645 — 18,645 — 
Total securities available-for-sale$5,891,328 $663,389 $5,227,939 $— 
Equity investments with readily determinable fair values$$$— $— 
Derivatives (1):
Equity warrants 4,215 — — 4,215 
Interest rate and economic contracts6,149 — 6,149 — 
Derivative liabilities 6,367 — 6,367 — 
Credit-linked notes132,815 — — 132,815 
Fair Value Measurements as of
December 31, 2021
Measured on a Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Securities available-for-sale:
Agency residential MBS$2,898,210 $— $2,898,210 $— 
Municipal securities2,315,968 — 2,315,968 — 
Agency commercial MBS1,688,967 — 1,688,967 — 
Agency residential CMOs1,038,134 — 1,038,134 — 
U.S. Treasury securities966,898 966,898 — — 
Corporate debt securities527,094 — 527,094 — 
Private label commercial MBS450,217 — 435,216 15,001 
Collateralized loan obligations385,362 — 385,362 — 
Private label residential CMOs264,417 — 264,417 — 
Asset-backed securities129,547 — 129,547 — 
SBA securities29,644 — 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 contracts2,509 — 2,509 — 
Derivative liabilities 931 — 931 — 
Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques
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, 2022
Equity Warrants
Weighted
RangeAverage
Unobservable Inputsof Inputs
Input (1)
Volatility
24.9% - 160.1%
28.1%
Risk-free interest rate
2.8% - 4.3%
4.1%
Remaining life assumption (in years)
0.08 - 5.00
3.15
____________________
(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, 2022
ValuationUnobservableInput or
Weighted
Asset
Fair Value
TechniqueInputsRange
Average
(Dollars in thousands)
Individually evaluated
loans and leases$4,719Discounted cash flowsDiscount rates
5.50% - 9.25%
7.05%
Individually evaluated
loans and leases5,919Third party appraisalsNo discounts
Total non-recurring Level 3$10,638
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 and credit-linked notes measured at fair value on a recurring basis for the period indicated:
Private LabelEquity Credit-Linked
Commercial MBSWarrantsNotes
(In thousands)
Balance, December 31, 2021$15,001 $3,555 $— 
Total included in earnings(8)2,536 — 
Total included in other comprehensive income (loss)(156)— — 
Issuances— 604 132,815 
Transfer to Level 2(4,552)— — 
Net settlements(10,285)— — 
Exercises and settlements — (2,470)— 
Transfers to Level 1 (equity investments with readily
determinable fair values)— (10)— 
Balance, September 30, 2022$— $4,215 $132,815 
Unrealized net gains (losses) for the period included in other
comprehensive income for securities held at quarter-end$— 
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, 2022
Measured on a Non-Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Individually evaluated loans and leases $36,971 $— $26,333 $10,638 
Total non-recurring$36,971 $— $26,333 $10,638 


Fair Value Measurement as of
December 31, 2021
Measured on a Non-Recurring BasisTotalLevel 1Level 2Level 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 EndedNine Months Ended
Losses on Assets September 30,September 30,
Measured on a Non-Recurring Basis2022202120222021
(In thousands)
Individually evaluated loans and leases$5,234 $243 $6,892 $2,499 
OREO— — — 14 
Total losses$5,234 $243 $6,892 $2,513 
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, 2022
Carrying
Estimated Fair Value
AmountTotalLevel 1Level 2Level 3
(In thousands)
Financial Assets:
Cash and due from banks$216,436 $216,436 $216,436 $— $— 
Interest-earning deposits in financial institutions2,244,272 2,244,272 2,244,272 — — 
Securities available-for-sale5,891,328 5,891,328 663,389 5,227,939 — 
Securities held-to-maturity2,264,601 2,060,846 170,010 1,890,836 — 
Investment in FHLB stock36,990 36,990 — 36,990 — 
Loans held for sale15,534 16,407 — 16,407 — 
Loans and leases held for investment, net27,470,714 25,527,716 — 26,333 25,501,383 
Equity investments with readily determinable fair values— — 
Equity warrants4,215 4,215 — — 4,215 
Interest rate and economic contracts6,149 6,149 — 6,149 — 
Servicing rights712 712 — — 712 
Financial Liabilities:
Core deposits28,559,310 28,559,310 — 28,559,310 — 
Wholesale non-maturity deposits2,367,544 2,367,544 — 2,367,544 — 
Time deposits3,269,018 3,232,022 — 3,232,022 — 
Borrowings1,864,815 1,864,815 1,732,000 — 132,815 
Subordinated debt863,379 807,820 — 807,820 — 
Derivative liabilities6,367 6,367 — 6,367 — 
December 31, 2021
Carrying
Estimated Fair Value
AmountTotalLevel 1Level 2Level 3
(In thousands)
Financial Assets:
Cash and due from banks$112,548 $112,548 $112,548 $— $— 
Interest-earning deposits in financial institutions3,944,686 3,944,686 3,944,686 — — 
Securities available-for-sale10,694,458 10,694,458 966,898 9,712,559 15,001 
Investment in FHLB stock17,250 17,250 — 17,250 — 
Loans and leases held for investment, net22,740,984 23,461,156 — 2,915 23,458,241 
Equity investments with readily determinable fair values28,578 28,578 28,578 — — 
Equity warrants3,555 3,555 — — 3,555 
Interest rate and economic contracts2,509 2,509 — 2,509 — 
Servicing rights1,228 1,228 — — 1,228 
Financial Liabilities:
Core deposits32,734,949 32,734,949 — 32,734,949 — 
Wholesale non-maturity deposits889,976 889,976 — 889,976 — 
Time deposits1,372,832 1,371,527 — 1,371,527 — 
Borrowings— — — — — 
Subordinated debt863,283 917,342 — 917,342 — 
Derivative liabilities931 931 — 931 —