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Fair Value Measurements | 6 Months Ended
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Jun. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Note 8 Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis The following is a description of the methodologies used to estimate the fair values of assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which those measurements are typically classified. Investment securities available for sale and marketable equity securities—Fair value measurements are based on quoted prices in active markets when available; these measurements are classified within level 1 of the fair value hierarchy. These securities typically include U.S. Treasury securities and certain preferred stocks. If quoted prices in active markets are not available, fair values are estimated using quoted prices of securities with similar characteristics, quoted prices of identical securities in less active markets, discounted cash flow techniques, or matrix pricing models. These securities are generally classified within level 2 of the fair value hierarchy and typically include all categories of investment securities not classified within level 1 of the hierarchy. Pricing of these securities is generally primarily spread driven. Observable inputs that may impact the valuation of these securities include benchmark yield curves, credit spreads, reported trades, dealer quotes, bids, issuer spreads, current rating, historical constant prepayment rates, historical voluntary prepayment rates, structural and waterfall features of individual securities, published collateral data, and for certain securities, historical constant default rates and default severities. The Company uses third-party pricing services in determining fair value measurements for investment securities. To obtain an understanding of the methodologies and assumptions used, management reviews written documentation provided by the pricing services, conducts interviews with valuation desk personnel and reviews model results and detailed assumptions used to value selected securities as considered necessary. Management has established a robust price challenge process that includes a review by the treasury front office of all prices provided on a quarterly basis. Any price evidencing significant unexpected quarter over quarter fluctuations or deviations from expectations is challenged. The Company has also established a quarterly process whereby prices provided by its primary pricing service are validated by obtaining a price from a second external source for most securities in the portfolio. If considered necessary to resolve any discrepancies, a price will be obtained from an additional independent valuation source. The Company does not typically adjust the prices provided, other than through this established challenge process. The results of price challenges are subject to review by executive management. Any price discrepancies are resolved based on careful consideration of the assumptions and inputs employed by each of the pricing sources. Derivative financial instruments—Fair values of interest rate derivatives are determined using widely accepted discounted cash flow modeling techniques. These discounted cash flow models use projections of future cash payments and receipts that are discounted at mid-market rates. Observable inputs that may impact the valuation of these instruments include benchmark swap rates and benchmark forward yield curves. These fair value measurements are generally classified within level 2 of the fair value hierarchy. The following tables present assets and liabilities measured at fair value on a recurring basis at the dates indicated (in thousands):
| June 30, 2025
| Level 1 |  | Level 2 |  | Total
Investment securities available for sale: |  |  |  |  |
U.S. Treasury securities | $ | 142,569 |  |  | $ | — |  |  | $ | 142,569 |
U.S. Government agency and sponsored enterprise residential MBS | — |  |  | 2,712,538 |  |  | 2,712,538 |
U.S. Government agency and sponsored enterprise commercial MBS | — |  |  | 500,325 |  |  | 500,325 |
Private label residential MBS and CMOs | — |  |  | 2,361,504 |  |  | 2,361,504 |
Private label commercial MBS | — |  |  | 2,095,039 |  |  | 2,095,039 |
Single family real estate-backed securities | — |  |  | 203,353 |  |  | 203,353 |
Collateralized loan obligations | — |  |  | 1,118,831 |  |  | 1,118,831 |
Non-mortgage asset-backed securities | — |  |  | 89,790 |  |  | 89,790 |
State and municipal obligations | — |  |  | 103,874 |  |  | 103,874 |
SBA securities | — |  |  | 64,569 |  |  | 64,569 |
Marketable equity securities | 8,679 |  |  | — |  |  | 8,679 |
Derivative assets | — |  |  | 92,108 |  |  | 92,108 |
Total assets at fair value | $ | 151,248 |  |  | $ | 9,341,931 |  |  | $ | 9,493,179 |
Derivative liabilities | $ | — |  |  | $ | (85,573) |  |  | $ | (85,573) |
Total liabilities at fair value | $ | — |  |  | $ | (85,573) |  |  | $ | (85,573) |
| December 31, 2024
| Level 1 |  | Level 2 |  | Total
Investment securities available for sale: |  |  |  |  |
U.S. Treasury securities | $ | 202,952 |  |  | $ | — |  |  | $ | 202,952 |
U.S. Government agency and sponsored enterprise residential MBS | — |  |  | 2,649,690 |  |  | 2,649,690 |
U.S. Government agency and sponsored enterprise commercial MBS | — |  |  | 495,753 |  |  | 495,753 |
Private label residential MBS and CMOs | — |  |  | 2,238,046 |  |  | 2,238,046 |
Private label commercial MBS | — |  |  | 1,784,029 |  |  | 1,784,029 |
Single family real estate-backed securities | — |  |  | 327,081 |  |  | 327,081 |
Collateralized loan obligations | — |  |  | 1,132,699 |  |  | 1,132,699 |
Non-mortgage asset-backed securities | — |  |  | 94,454 |  |  | 94,454 |
State and municipal obligations | — |  |  | 104,010 |  |  | 104,010 |
SBA securities | — |  |  | 72,702 |  |  | 72,702 |
Marketable equity securities | 28,828 |  |  | — |  |  | 28,828 |
Derivative assets | — |  |  | 85,132 |  |  | 85,132 |
Total assets at fair value | $ | 231,780 |  |  | $ | 8,983,596 |  |  | $ | 9,215,376 |
Derivative liabilities | $ | — |  |  | $ | (85,899) |  |  | $ | (85,899) |
Total liabilities at fair value | $ | — |  |  | $ | (85,899) |  |  | $ | (85,899) |
Assets and liabilities measured at fair value on a non-recurring basis The following is a description of the methodologies used to estimate the fair values of assets and liabilities that may be measured at fair value on a non-recurring basis, and the level within the fair value hierarchy in which those measurements are typically classified: Collateral dependent loans and OREO—The carrying amount of collateral dependent loans is typically based on the fair value of the underlying collateral, which may be real estate, enterprise value or other business assets, less estimated costs to sell when repayment is expected to come from the sale of the collateral. The carrying value of OREO is initially measured based on the fair value of the real estate acquired in foreclosure and subsequently adjusted to the lower of cost or estimated fair value, less estimated cost to sell. Fair values of real estate collateral and OREO are typically based on third-party real estate appraisals which utilize market and income approaches to valuation incorporating both observable and unobservable inputs. Fair value measurements related to collateral dependent loans and OREO are generally classified within level 3 of the fair value hierarchy. The following table presents the net carrying value of assets classified within level 3 of the fair value hierarchy at the dates indicated, for which non-recurring changes in fair value were recorded during the period then ended (in thousands):
| June 30, 2025 |  | December 31, 2024
Collateral dependent loans | $ | 159,773 |  |  | $ | 165,951 |
OREO | 413 |  |  | 2,577 |
| $ | 160,186 |  |  | $ | 168,528 |
The following table presents the carrying value and fair value of financial instruments and the level within the fair value hierarchy in which those measurements are classified at the dates indicated (dollars in thousands):
|  |  | June 30, 2025 |  | December 31, 2024
| Level |  | Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | 1 |  | $ | 801,294 |  |  | $ | 801,294 |  |  | $ | 491,116 |  |  | $ | 491,116 |
Investment securities | 1/2 |  | $ | 9,401,071 |  |  | $ | 9,401,071 |  |  | $ | 9,130,244 |  |  | $ | 9,130,244 |
Non-marketable equity securities | 2 |  | $ | 174,234 |  |  | $ | 174,234 |  |  | $ | 206,297 |  |  | $ | 206,297 |
Loans, net | 3 |  | $ | 23,710,797 |  |  | $ | 22,737,419 |  |  | $ | 24,074,827 |  |  | $ | 23,053,011 |
Derivative assets | 2 |  | $ | 92,108 |  |  | $ | 92,108 |  |  | $ | 85,132 |  |  | $ | 85,132 |
Liabilities: |  |  |  |  |  |  |  |  |
Demand, savings and money market deposits | 2 |  | $ | 24,867,707 |  |  | $ | 24,867,707 |  |  | $ | 23,564,414 |  |  | $ | 23,564,414 |
Time deposits | 2 |  | $ | 3,778,234 |  |  | $ | 3,764,013 |  |  | $ | 4,301,289 |  |  | $ | 4,279,475 |
FHLB advances | 2 |  | $ | 2,255,000 |  |  | $ | 2,255,007 |  |  | $ | 2,930,000 |  |  | $ | 2,929,896 |
Notes and other borrowings | 2 |  | $ | 708,937 |  |  | $ | 703,480 |  |  | $ | 708,553 |  |  | $ | 695,457 |
Derivative liabilities | 2 |  | $ | 85,573 |  |  | $ | 85,573 |  |  | $ | 85,899 |  |  | $ | 85,899 |

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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