FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2023

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, 2023 and December 31, 2022 by level in the valuation hierarchy (as described above):

	March 31, 2023
(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	$	—	$	506,136	$	—	$	506,136
FNMA MBS	—		3,235,823		—		3,235,823
FHLMC MBS	—		122,089		—		122,089
GNMA MBS	—		40,242		—		40,242
GSE agency notes	—		182,169		—		182,169
Other assets	—		122,085		78		122,163
Total assets measured at fair value on a recurring basis	$	—	$	4,208,544	$	78	$	4,208,622
Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	119,622	$	16,295	$	135,917
Assets measured at fair value on a nonrecurring basis:
Other investments	$	—	$	—	$	24,797	$	24,797
Other real estate owned	—		—		1,131		1,131
Loans held for sale	—		39,734		—		39,734
Total assets measured at fair value on a nonrecurring basis	$	—	$	39,734	$	25,928	$	65,662

	December 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	$	—	$	506,380	$	—	$	506,380
FNMA MBS	—		3,250,258		—		3,250,258
FHLMC MBS	—		121,999		—		121,999
GNMA MBS	—		36,138		—		36,138
GSE agency notes	—		178,285		—		178,285
Other assets	—		156,912		81		156,993
Total assets measured at fair value on a recurring basis	$	—	$	4,249,972	$	81	$	4,250,053
Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	156,520	$	17,102	$	173,622
Assets measured at fair value on a nonrecurring basis
Other investments	$	—	$	—	$	26,120	$	26,120
Other real estate owned	—		—		833		833
Loans held for sale	—		42,985		—		42,985
Total assets measured at fair value on a nonrecurring basis	$	—	$	42,985	$	26,953	$	69,938

Schedule of Fair Value Measurement Inputs and Valuation Techniques

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

(Dollars in thousands)	March 31, 2023
Financial Instrument	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Other investments	$	24,797	Observed market comparable transactions	Period of observed transactions	May 2022
Other real estate owned	1,131		Fair market value of collateral	Costs to sell	10.0%
Other assets (Risk participation agreements purchased)	78		Credit Value Adjustment	CDS Spread and Loss Given Default (LGD)	CDS spread: 110 - 250 bps (195 bps) LGD: –% - 30% (30%)
Other liabilities (Risk participation agreements sold)	4		Credit Value Adjustment	CDS Spread and Loss Given Default (LGD)	CDS spread: 1 - 250 bps (104 bps) LGD: 30%
Other liabilities (Financial derivative related to sales of certain Visa Class B shares)	16,291		Discounted cash flow	Timing of Visa litigation resolution	1.00 - 5.50 years (3.48 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, 2023				December 31, 2022
(Dollars in thousands)	Fair Value Measurement	Book Value		Fair Value		Book Value		Fair Value
Financial assets:
Cash, cash equivalents, and restricted cash	Level 1	$	1,103,040	$	1,103,040	$	837,258	$	837,258
Investment securities available-for-sale	Level 2	4,086,459		4,086,459		4,093,060		4,093,060
Investment securities held-to-maturity, net	Level 2	1,094,799		1,035,856		1,111,619		1,040,104
Other investments	Level 3	24,797		24,797		26,120		26,120
Loans, held for sale	Level 2	39,734		39,734		42,985		42,985
Loans and leases, net(1)	Level 3	11,976,845		11,955,133		11,759,992		11,567,888
Stock in FHLB of Pittsburgh	Level 2	42,122		42,122		24,116		24,116
Accrued interest receivable	Level 2	77,356		77,356		74,448		74,448
Other assets	Levels 2, 3	122,163		122,163		156,993		156,993
Financial liabilities:
Deposits	Level 2	$	16,189,688	$	16,147,909	$	16,203,569	$	16,156,124
Borrowed funds	Level 2	1,138,206		1,129,912		726,894		709,014
Standby letters of credit	Level 3	620		620		739		739
Accrued interest payable	Level 2	15,135		15,135		5,174		5,174
Other liabilities	Levels 2, 3	135,917		135,917		173,622		173,622

 (1) Includes reverse mortgage loans.