Fair Value Measurement of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Assets and Liabilities Measured at Fair Value on a Recurring and Non-Recurring Basis

The following tables present the assets and liabilities that are measured at fair value on a recurring and non-recurring basis by level within the fair value hierarchy as reported on the consolidated statements of financial condition at March 31, 2022 and December 31, 2021. The assets presented under “non-recurring fair value measurements” in the tables below are not measured at fair value on an ongoing basis but are subject to fair value adjustments under certain circumstances (e.g., when an impairment loss is recognized).


	March 31, 2022		Fair Value Measurements at Reporting Date Using:
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Recurring fair value measurements:
Assets
Investment securities:
Equity securities (1)	$	30,528	$	19,009	$	—	$	—
Trading debt securities	11,739		—		11,739		—
Available for sale debt securities:

U.S. government agency securities	18,332		—		18,332		—
Obligations of states and political subdivisions	67,951		—		67,951		—
Residential mortgage-backed securities	795,554		—		795,554		—
Corporate and other debt securities	133,197		—		133,197		—
Total available for sale debt securities	1,015,034		—		1,015,034		—
Loans held for sale (2)	77,632		—		77,632		—
Other assets (3)	176,270		—		176,270		—
Total assets	$	1,311,203	$	19,009	$	1,280,675	$	—
Liabilities
Other liabilities (3)	$	189,682	$	—	$	189,682	$	—
Total liabilities	$	189,682	$	—	$	189,682	$	—
Non-recurring fair value measurements:

Collateral dependent loans	$	47,603	$	—	$	—	$	47,603

Foreclosed assets	1,176		—		—		1,176
Total	$	48,779	$	—	$	—	$	48,779


			Fair Value Measurements at Reporting Date Using:
	December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Recurring fair value measurements:
Assets
Investment securities:
Equity securities (1)	$	32,844	$	21,284	$	—	$	—
Trading debt securities	38,130		—		38,130		—
Available for sale debt securities:

U.S. government agency securities	20,925		—		20,925		—
Obligations of states and political subdivisions	79,890		—		79,890		—
Residential mortgage-backed securities	904,502		—		904,502		—

Corporate and other debt securities	123,492		—		123,492		—
Total available for sale debt securities	1,128,809		—		1,128,809		—

Loans held for sale (2)	139,516		—		139,516		—
Other assets (3)	181,500		—		181,500		—
Total assets	$	1,520,799	$	21,284	$	1,487,955	$	—
Liabilities
Other liabilities (3)	$	52,376	$	—	$	52,376	$	—
Total liabilities	$	52,376	$	—	$	52,376	$	—
Non-recurring fair value measurements:
Collateral dependent loans	$	47,871	$	—	$	—	$	47,871
Foreclosed assets	2,931		—		—		2,931
Total	$	50,802	$	—	$	—	$	50,802

(1)Includes equity securities measured at net asset value (NAV) per share (or its equivalent) as a practical expedient totaling $11.5 million and $11.6 million at March 31, 2022 and December 31, 2021, respectively. These securities have not been classified in the fair value hierarchy.

(2)Represents residential mortgage loans held for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $79.1 million and $136.3 million at March 31, 2022 and December 31, 2021, respectively.

(3)Derivative financial instruments are included in this category.

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments not measured and not reported at fair value on the consolidated statements of financial condition at March 31, 2022 and December 31, 2021 were as follows:


	Fair Value Hierarchy	March 31, 2022				December 31, 2021
		Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(in thousands)
Financial assets
Cash and due from banks	Level 1	$	424,035	$	424,035	$	205,156	$	205,156
Interest bearing deposits with banks	Level 1	306,885		306,885		1,844,764		1,844,764
Equity securities (1)	Level 3	5,464		5,464		3,629		3,629
Held to maturity debt securities:
U.S. Treasury securities	Level 1	67,401		68,932		67,558		71,661
U.S. government agency securities	Level 2	5,572		5,453		6,265		6,378
Obligations of states and political subdivisions	Level 2	319,160		318,021		337,962		344,164
Residential mortgage-backed securities	Level 2	2,594,295		2,440,498		2,166,142		2,152,301
Trust preferred securities	Level 2	37,027		31,733		37,020		31,916
Corporate and other debt securities	Level 2	49,750		49,214		53,750		54,185
Total held to maturity debt securities (2)		3,073,205		2,913,851		2,668,697		2,660,605
Net loans	Level 3	35,001,895		33,815,930		33,794,455		33,283,251
Accrued interest receivable	Level 1	102,667		102,667		96,882		96,882
Federal Reserve Bank and Federal Home Loan Bank stock (3)	Level 2	195,536		195,536		206,450		206,450
Financial liabilities
Deposits without stated maturities	Level 1	32,232,968		32,232,968		31,945,368		31,945,368
Deposits with stated maturities	Level 2	3,414,368		3,365,608		3,687,044		3,670,113
Short-term borrowings	Level 1	484,181		478,300		655,726		637,490
Long-term borrowings	Level 2	1,409,142		1,336,303		1,423,676		1,404,184
Junior subordinated debentures issued to capital trusts	Level 2	56,500		39,578		56,413		46,306
Accrued interest payable (4)	Level 1	8,016		8,016		4,909		4,909

(1)Represents equity securities without a readily determinable fair value measured at cost less impairment, if any.

(2)The carrying amount is presented gross without the allowance for credit losses.

(3)Included in other assets.

(4)Included in accrued expenses and other liabilities.