FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Financial Instruments Carried at Fair Value

The following tables present financial instruments carried at fair value as of March 31, 2022 and December 31, 2021 by level in the valuation hierarchy (as described above):

	March 31, 2022
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Asset (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets measured at fair value on a recurring basis:
Available-for-sale securities:
CMO	$	—	$	563,090	$	—	$	563,090
FNMA MBS	—		4,586,978		—		4,586,978
FHLMC MBS	—		126,406		—		126,406
GNMA MBS	—		16,059		—		16,059
GSE agency notes	—		203,396		—		203,396
Other assets	—		72,252		209		72,461
Total assets measured at fair value on a recurring basis	$	—	$	5,568,181	$	209	$	5,568,390
Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	70,516	$	18,632	$	89,148
Assets measured at fair value on a nonrecurring basis:
Other investments	$	—	$	—	$	13,651	$	13,651
Other real estate owned	—		—		1,818		1,818
Loans held for sale	—		70,617		—		70,617
Total assets measured at fair value on a nonrecurring basis	$	—	$	70,617	$	15,469	$	86,086

	December 31, 2021
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Asset (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets measured at fair value on a recurring basis:
Available-for-sale securities:
CMO	$	—	$	575,766	$	—	$	575,766
FNMA MBS	—		4,245,684		—		4,245,684
FHLMC MBS	—		145,528		—		145,528
GNMA MBS	—		17,936		—		17,936
GSE agency notes	—		220,397		—		220,397
Other assets	—		5,153		—		5,153
Total assets measured at fair value on a recurring basis	$	—	$	5,210,464	$	—	$	5,210,464
Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	3,039	$	20,252	$	23,291
Assets measured at fair value on a nonrecurring basis
Other investments	$	—	$	—	$	10,518	$	10,518
Other real estate owned	—		—		2,320		2,320
Loans held for sale	—		113,349		—		113,349
Total assets measured at fair value on a nonrecurring basis	$	—	$	113,349	$	12,838	$	126,187

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The following table provides a description of the valuation technique and significant unobservable inputs for the Company's financial instruments classified as Level 3:

March 31, 2022
Financial Instrument	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Other investments	$	13,651	Observed market comparable transactions	Period of observed transactions	May 2021
Other real estate owned	1,818		Fair market value of collateral	Costs to sell	10.0%
Other assets (Risk participation agreements purchased)	209		Credit Value Adjustment	CDS Spread and Loss Given Default (LGD)	CDS spread: 110 - 250 bps LGD: 30%
Other liabilities (Risk participation agreements sold)	7		Credit Value Adjustment	CDS Spread and Loss Given Default (LGD)	CDS spread: 1 - 250 bps LGD: 30%
Other liabilities (Financial derivatives related to sales of certain Visa Class B shares)	18,625		Discounted cash flow	Timing of Visa litigation resolution	1.50 - 6.50 years (4.25 years or 4Q 2025)

Book Value and Estimated Fair Value of Financial Instruments

The book value and estimated fair value of the Company's financial instruments are as follows:

 

		March 31, 2022				December 31, 2021
(Dollars in thousands)	Fair Value Measurement	Book Value		Fair Value		Book Value		Fair Value
Financial assets:
Cash, cash equivalents, and restricted cash	Level 1	$	2,283,769	$	2,283,769	$	1,532,939	$	1,532,939
Investment securities available-for-sale	Level 2	5,495,929		5,495,929		5,205,311		5,205,311
Investment securities held-to-maturity, net	Level 2	84,898		85,754		90,642		94,131
Other investments	Level 3	13,651		13,651		10,518		10,518
Loans, held for sale	Level 2	70,617		70,617		113,349		113,349
Loans and leases, net(1)	Level 3	11,197,482		11,355,608		7,791,482		7,723,867
Stock in FHLB of Pittsburgh	Level 2	8,804		8,804		6,073		6,073
Accrued interest receivable	Level 2	53,241		53,241		41,596		41,596
Other assets	Level 2	72,461		72,461		5,153		5,153
Financial liabilities:
Deposits	Level 2	17,623,544		17,603,155		13,240,062		13,236,816
Borrowed funds	Level 2	372,402		350,649		239,477		225,119
Standby letters of credit	Level 3	413		413		674		674
Accrued interest payable	Level 2	5,258		5,258		736		736
Other liabilities	Levels 2, 3	89,148		89,148		23,291		23,291

 (1) Includes reverse mortgage loans.