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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Fair value, assets measured on recurring basis

The following tables present information on the assets and liabilities measured and recorded at fair value on a recurring basis as of the dates indicated:

			Fair Value Measurements as of
			March 31, 2025
Measured on a Recurring Basis			Total						Level 1						Level 2						Level 3
			(In thousands)
Securities available-for-sale:
Agency residential MBS			$	867,042					$	—					$	867,042					$	—
Agency commercial MBS			61,204						—						61,204						—
Agency residential CMOs			565,068						—						565,068						—
Municipal securities			597						—						597						—
Corporate debt securities			263,403						—						261,243						2,160
Private label residential CMOs			303,327						—						303,327						—
Collateralized loan obligations			242,885						—						242,885						—
Private label commercial MBS			11,446						—						11,446						—
Asset-backed securities			15,224						—						15,224						—
SBA securities			3,862						—						3,862						—
Total securities available-for-sale			$	2,334,058					$	—					$	2,331,898					$	2,160
Equity investments with readily determinable fair values			$	2					$	2					$	—					$	—
Derivatives (1):
Derivative assets
Interest rate and foreign exchange contracts			5,877						—						5,877						—
Equity warrants			3,497						—						—						3,497
Derivative liabilities
Cash flow hedges			2,081						—						2,081						—
Interest rate and foreign exchange contracts			5,480						—						5,480						—
Credit-linked notes			117,196						—						—						117,196

____________________

(1)    For information regarding derivative instruments, see Note 9. Derivatives.

			Fair Value Measurements as of
			December 31, 2024
Measured on a Recurring Basis			Total						Level 1						Level 2						Level 3
			(In thousands)
Securities available-for-sale:
Agency residential MBS			$	861,840					$	—					$	861,840					$	—
Agency commercial MBS			51,564						—						51,564						—
Agency residential CMOs			446,631						—						446,631						—
Municipal securities			594						—						594						—
Corporate debt securities			257,712						—						255,582						2,130
Private label residential CMOs			316,910						—						316,910						—
Collateralized loan obligations			279,416						—						279,416						—
Private label commercial MBS			12,372						—						12,372						—
Asset-backed securities			15,600						—						15,600						—
SBA securities			4,200						—						4,200						—
Total securities available-for-sale			$	2,246,839					$	—					$	2,244,709					$	2,130
Equity investments with readily determinable fair values			$	3					$	3					$	—					$	—
Derivatives (1):
Derivative assets
Cash flow hedges			1,442						—						1,442						—
Interest rate and foreign exchange contracts			7,031						—						7,031						—
Equity warrants			3,763						—						—						3,763
Derivative liabilities
Interest rate and foreign exchange contracts			7,562						—						7,562						—
Credit-linked notes			118,838						—						—						118,838

____________________

(1)    For information regarding derivative instruments, see Note 9. Derivatives.

Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques

Fair value inputs, assets, quantitative information

The following table presents information about quantitative inputs and assumptions used in the modified Black-Scholes option pricing model to determine the fair value for our Level 3 equity warrants measured at fair value on a recurring basis as of the date indicated:

			March 31, 2025
			Equity Warrants
									Weighted
			Range						Average
Unobservable Inputs			of Inputs						Input (1)
Volatility			22.8% - 165.2%						24.4%
Risk-free interest rate			3.9% - 4.4%						3.9%
Remaining life assumption (in years)			0.08 - 4.97						3.23

____________________

(1)    Unobservable inputs for equity warrants were weighted by the relative fair values of the instruments.

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis as of the date indicated:

March 31, 2025

Valuation

Unobservable

Input or

Weighted

Asset

Fair Value

Technique

Inputs

Range

Average

(In thousands)

Individually evaluated

loans and leases

$

1,509

Discounted cash flows

Discount rates

4.25% - 7.54%

5.68%

Individually evaluated

loans and leases

5,164

Third-party appraisals

No discounts

Total non-recurring Level 3

$

6,673

Fair value, assets measured on recurring basis, significant unobservable inputs (level 3) reconciliation

The following table summarizes activity for our Level 3 corporate debt securities available-for-sale, equity warrants, and credit-linked notes measured at fair value on a recurring basis for the period indicated:

			Corporate						Equity						Credit-Linked
			Debt Securities						Warrants						Notes
			(In thousands)
Balance, December 31, 2024			$	2,130					$	3,763					$	118,838
Total included in earnings			—						(295)						(482)
Total included in other comprehensive income			30						—						(146)
Issuances			—						48						—
Principal payments			—						—						(1,014)
Exercises and settlements			—						(19)						—
Balance, March 31, 2025			$	2,160					$	3,497					$	117,196
Unrealized net gains (losses) for the period included in other
comprehensive income for securities held at quarter-end			$	(840)

Assets carried at fair value on a nonrecurring basis

The following tables present assets measured at fair value on a non-recurring basis as of the dates indicated:

			Fair Value Measurement as of
			March 31, 2025
Measured on a Non-Recurring Basis			Total						Level 1						Level 2						Level 3
			(In thousands)
Individually evaluated loans and leases			$	32,944					$	—					$	26,271					$	6,673
OREO			1,198						—						1,198						—
Total non-recurring			$	34,142					$	—					$	27,469					$	6,673

			Fair Value Measurement as of
			December 31, 2024
Measured on a Non-Recurring Basis			Total						Level 1						Level 2						Level 3
			(In thousands)
Individually evaluated loans and leases			$	58,948					$	—					$	45,962					$	12,986
OREO			3,372						—						3,372						—
Total non-recurring			$	62,320					$	—					$	49,334					$	12,986

Net losses (gains) on nonrecurring assets

The following table presents losses recognized on assets measured on a nonrecurring basis for the periods indicated:

			Three Months Ended
Losses on Assets			March 31,
Measured on a Non-Recurring Basis			2025						2024
			(In thousands)
Individually evaluated loans and leases			$	11,285					$	832
OREO			266						297
Total losses			$	11,551					$	1,129

Fair value, by balance sheet grouping

The following tables present carrying amounts and estimated fair values of certain financial instruments as of the dates indicated:

			March 31, 2025
			Carrying						Estimated Fair Value
			Amount						Total						Level 1						Level 2						Level 3
			(In thousands)
Financial Assets:
Cash and due from banks			$	215,591					$	215,591					$	215,591					$	—					$	—
Interest-earning deposits in financial institutions			2,128,298						2,128,298						2,128,298						—						—
Securities available-for-sale			2,334,058						2,334,058						—						2,331,898						2,160
Securities held-to-maturity			2,311,912						2,179,910						178,435						1,997,862						3,613
Investment in FRB and FHLB stock			155,330						155,330						—						155,330						—
Loans held for sale			25,797						26,015						—						26,015						—
Loans and leases held for investment, net			23,891,541						22,732,328						—						26,271						22,706,057
Equity investments with readily determinable fair values			2						2						2						—						—
Equity warrants			3,497						3,497						—						—						3,497
Interest rate and foreign exchange contracts			5,877						5,877						—						5,877						—
Servicing rights			19,062						20,336						—						—						20,336
Financial Liabilities:
Demand, checking, money market, and savings deposits			22,707,851						22,707,851						—						22,707,851						—
Time deposits			4,485,340						4,477,629						—						4,477,629						—
Borrowings			1,670,782						1,670,940						100,000						1,453,744						117,196
Subordinated debt			944,908						915,685						—						915,685						—
Cash flow hedges			2,081						2,081						—						2,081						—
Interest rate and foreign exchange contracts			5,480						5,480						—						5,480						—

			December 31, 2024
			Carrying						Estimated Fair Value
			Amount						Total						Level 1						Level 2						Level 3
			(In thousands)
Financial Assets:
Cash and due from banks			$	192,006					$	192,006					$	192,006					$	—					$	—
Interest-earning deposits in financial institutions			2,310,206						2,310,206						2,310,206						—						—
Securities available-for-sale			2,246,839						2,246,839						—						2,244,709						2,130
Securities held-to-maturity			2,306,149						2,156,694						173,283						1,976,265						7,146
Investment in FRB and FHLB stock			147,773						147,773						—						147,773						—
Loans held for sale			26,331						26,562						—						26,562						—
Loans and leases held for investment, net			23,542,303						22,412,073						—						45,962						22,366,111
Equity investments with readily determinable fair values			3						3						3						—						—
Equity warrants			3,763						3,763						—						—						3,763
Cash flow hedges			1,442						1,442						—						1,442						—
Interest rate and foreign exchange contracts			7,031						7,031						—						7,031						—
Servicing rights			19,623						21,040						—						—						21,040
Financial Liabilities:
Demand, checking, money market, and savings deposits			22,625,485						22,625,485						—						22,625,485						—
Time deposits			4,566,424						4,556,575						—						4,556,575						—
Borrowings			1,391,814						1,382,742						—						1,263,904						118,838
Subordinated debt			941,923						901,532						—						901,532						—
Interest rate and foreign exchange contracts			7,562						7,562						—						7,562						—

Fair Value Quantitative Inputs and Assumptions for Outside Services

The following table presents information about quantitative inputs and assumptions used to determine the fair values provided by our third-party pricing service for our Level 3 corporate debt securities available-for-sale measured at fair value on a recurring basis as of the date indicated:

			March 31, 2025
			Corporate Debt Securities
			Input or						Weighted
			Range						Average
Unobservable Inputs			of Inputs						Input (1)
Spread to 10 Year Treasury			7.1% - 10.4%						8.7%
Discount rates			11.3% - 14.6%						12.9%

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