Fair Value Measurement of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2024

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 September 30, 2024 and December 31, 2023. 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).


	September 30, 2024		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	$	23,985	$	23,985	$	—	$	—
Equity securities at net asset value (NAV)	11,507		—		—		—
Trading debt securities	3,996		3,996		—		—
Available for sale debt securities:
U.S. Treasury securities	296,061		296,061		—		—
U.S. government agency securities	23,212		—		23,212		—
Obligations of states and political subdivisions	201,846		—		201,846		—
Residential mortgage-backed securities	1,895,868		—		1,895,868		—
Corporate and other debt securities	185,273		—		185,273		—
Total available for sale debt securities	2,602,260		296,061		2,306,199		—
Loans held for sale (1)	17,153		—		17,153		—
Other assets (2)	305,429		—		305,429		—
Total assets	$	2,964,330	$	324,042	$	2,628,781	$	—
Liabilities
Other liabilities (2)	$	313,791	$	—	$	313,791	$	—
Total liabilities	$	313,791	$	—	$	313,791	$	—
Non-recurring fair value measurements:
Commercial real estate loans held for sale:
Performing	$	817,298	$	—	$	817,298	$	—
Non-performing	8,750		—		8,750		—
Total commercial real estate loans held for sale (3)	826,048		—		826,048		—
Collateral dependent loans	119,767		—		—		119,767

Foreclosed assets	8,783		—		—		8,783
Total	$	954,598	$	—	$	826,048	$	128,550


			Fair Value Measurements at Reporting Date Using:
	December 31, 2023		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	$	23,307	$	23,307	$	—	$	—
Equity securities at net asset value (NAV)	12,126		—		—		—
Trading debt securities	3,973		3,973		—		—
Available for sale debt securities:
U.S. Treasury securities	288,157		288,157		—		—
U.S. government agency securities	23,702		—		23,702		—
Obligations of states and political subdivisions	191,690		—		191,690		—
Residential mortgage-backed securities	626,572		—		626,572		—

Corporate and other debt securities	166,455		—		166,455		—
Total available for sale debt securities	1,296,576		288,157		1,008,419		—

Loans held for sale (1)	20,640		—		20,640		—
Other assets (2)	466,227		—		466,227		—
Total assets	$	1,822,849	$	315,437	$	1,495,286	$	—
Liabilities
Other liabilities (2)	$	488,103	$	—	$	488,103	$	—
Total liabilities	$	488,103	$	—	$	488,103	$	—
Non-recurring fair value measurements:
Non-performing loan held for sale (3)	$	10,000	$	—	$	10,000	$	—
Collateral dependent loans	90,580		—		—		90,580
Foreclosed assets	1,444		—		—		1,444
Total	$	102,024	$	—	$	10,000	$	92,024

(1)Represents residential mortgage loans held for sale that are carried at fair value and had contractual unpaid principal balances totaling $16.9 million and $20.1 million at September 30, 2024 and December 31, 2023, respectively.

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

(3)Reported at lower of cost or fair value.

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 September 30, 2024 and December 31, 2023 were as follows:


	Fair Value Hierarchy	September 30, 2024				December 31, 2023
		Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(in thousands)
Financial assets
Cash and due from banks	Level 1	$	511,945	$	511,945	$	284,090	$	284,090
Interest bearing deposits with banks	Level 1	527,960		527,960		607,135		607,135
Equity securities (1)	Level 3	37,579		37,579		29,031		29,031
Held to maturity debt securities:
U.S. Treasury securities	Level 1	25,671		25,682		26,232		25,978
U.S. government agency securities	Level 2	303,200		269,208		305,996		261,555
Obligations of states and political subdivisions	Level 2	380,653		364,290		405,470		387,527
Residential mortgage-backed securities	Level 2	2,742,188		2,432,867		2,885,303		2,521,926
Trust preferred securities	Level 2	37,076		29,774		37,062		30,650
Corporate and other debt securities	Level 2	86,248		82,675		80,350		74,676
Total held to maturity debt securities (2)		3,575,036		3,204,496		3,740,413		3,302,312
Net loans	Level 3	48,806,992		47,796,832		49,764,215		47,981,499
Accrued interest receivable	Level 1	250,131		250,131		245,498		245,498
FRB and FHLB stock (3)	Level 2	327,645		327,645		320,727		320,727
Financial liabilities
Deposits without stated maturities	Level 1	36,223,159		36,223,159		36,066,105		36,066,105
Deposits with stated maturities	Level 2	14,172,807		14,227,913		13,176,724		13,103,381
Short-term borrowings	Level 2	58,268		45,079		917,834		901,617
Long-term borrowings	Level 2	3,274,340		3,291,136		2,328,375		2,256,997
Junior subordinated debentures issued to capital trusts	Level 2	57,368		47,879		57,108		47,374
Accrued interest payable (4)	Level 1	127,685		127,685		159,496		159,496

(1)Represents equity securities without a readily determinable fair value, which are measured based on the price at which the investment was acquired plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments. Total changes in the valuation of equity securities for the nine months ended September 30, 2024 and for the year ended December 31, 2023 were immaterial.

(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.