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Fair Value of Financial Instruments | 9 Months Ended
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Sep. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Value of Financial Instruments | Fair Value of Financial Instruments A description of the valuation methodologies used for assets and liabilities measured at fair value on a recurring and non-recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. There were no changes in the valuation techniques used during the three and nine months ended September 30, 2025 and September 30, 2024. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following tables set forth the carrying value of assets and liabilities measured at fair value on a recurring basis at the dates indicated:
| Carrying Value as of September 30, 2025
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (In Thousands)
Assets: |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |
GSE debentures | $ | — |  |  | $ | 328,351 |  |  | $ | — |  |  | $ | 328,351 |
GSE CMOs | — |  |  | 339,701 |  |  | — |  |  | 339,701 |
GSE MBSs | — |  |  | 332,394 |  |  | — |  |  | 332,394 |
Municipal obligations | — |  |  | 224,548 |  |  | 10,886 |  |  | 235,434 |
Corporate debt obligations | — |  |  | 37,238 |  |  | 11,017 |  |  | 48,255 |
U.S. Treasury bonds | — |  |  | 454,788 |  |  | — |  |  | 454,788 |
Foreign government obligations | — |  |  | 500 |  |  | — |  |  | 500 |
Total investment securities available-for-sale | $ | — |  |  | $ | 1,717,520 |  |  | $ | 21,903 |  |  | $ | 1,739,423 |
Loans held for investment |  |  |  |  | $ | 286 |  |  | $ | 286 |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |
Interest rate derivatives | $ | — |  |  | $ | 164 |  |  | $ | — |  |  | $ | 164 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Loan level derivatives | — |  |  | 106,222 |  |  | — |  |  | 106,222 |
Risk participation-out agreements | — |  |  | 723 |  |  | — |  |  | 723 |
Foreign exchange contracts | — |  |  | 407 |  |  | — |  |  | 407 |
Liabilities: |  |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |
Interest rate derivatives | $ | — |  |  | $ | 512 |  |  | $ | — |  |  | $ | 512 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Loan level derivatives | — |  |  | 120,893 |  |  | — |  |  | 120,893 |
Risk participation-in agreements | — |  |  | 206 |  |  | — |  |  | 206 |
Foreign exchange contracts | — |  |  | 381 |  |  | — |  |  | 381 |
| Carrying Value as of December 31, 2024
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (In Thousands)
Assets: |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |
GSE debentures | $ | — |  |  | $ | 176,294 |  |  | $ | — |  |  | $ | 176,294 |
GSE CMOs | — |  |  | 55,543 |  |  | — |  |  | 55,543 |
GSE MBSs | — |  |  | 148,285 |  |  | — |  |  | 148,285 |
Municipal obligations | — |  |  | 3,198 |  |  | 17,056 |  |  | 20,254 |
Corporate debt obligations | — |  |  | 9,853 |  |  | 2,434 |  |  | 12,287 |
U.S. Treasury bonds | — |  |  | 481,872 |  |  | — |  |  | 481,872 |
Foreign government obligations | — |  |  | 499 |  |  | — |  |  | 499 |
Total investment securities available-for-sale | $ | — |  |  | $ | 875,544 |  |  | $ | 19,490 |  |  | $ | 895,034 |
Interest rate derivatives | — |  |  | 18 |  |  | — |  |  | 18 |
Loan level derivatives | — |  |  | 102,608 |  |  | — |  |  | 102,608 |
Risk participation-out agreements | — |  |  | 495 |  |  | — |  |  | 495 |
Foreign exchange contracts | — |  |  | 482 |  |  | — |  |  | 482 |
Liabilities: |  |  |  |  |  |  |
Interest rate derivatives | $ | — |  |  | $ | 2,051 |  |  | $ | — |  |  | $ | 2,051 |
Loan level derivatives | — |  |  | 102,608 |  |  | — |  |  | 102,608 |
Risk participation-in agreements | — |  |  | 137 |  |  | — |  |  | 137 |
Foreign exchange contracts | — |  |  | 459 |  |  | — |  |  | 459 |
Investment Securities Available-for-Sale and Equity Securities The fair value of investment securities is based principally on market prices and dealer quotes received from third-party and nationally-recognized pricing services for identical investment securities such as U.S. Treasury and agency securities. These prices are validated by comparing the primary pricing source with an alternative pricing source when available. When quoted market prices for identical securities are unavailable, the Company uses market prices provided by independent pricing services based on recent trading activity and other observable information, including but not limited to market interest-rate curves, referenced credit spreads and estimated prepayment speeds, where applicable. These investments include GSE debentures, GSE mortgage-related securities, SBA commercial loan asset backed securities, corporate debt securities, municipal obligations and U.S. Treasury bonds, all of which are included in Level 2. As of September 30, 2025, certain corporate debt securities and municipal obligations were valued using pricing models included in Level 3. Additionally, management reviews changes in fair value from period to period and performs testing to ensure that prices received from the third parties are consistent with management's expectation of the market. Changes in the prices obtained from the pricing service are analyzed from month to month, taking into consideration changes in market conditions including changes in mortgage spreads, changes in U.S. Treasury security yields and changes in generic pricing of 15-year and 30-year securities. Additional analysis may include a review of prices provided by other independent parties, a yield analysis, a review of average life changes using Bloomberg analytics and a review of historical pricing for a particular security. Loans Held for Investment The Company’s held for investment loan portfolio includes loans acquired through business combinations.The Company intends to hold these assets until maturity as a part of its business operations.These loans were recorded at fair value on acquisition date and subsequently marked to fair value each quarter. Certain inputs to the fair value calculation are unobservable; therefore, the loans meet the definition of Level 3 assets. All of these loans were nonperforming as of September 30, 2025. Derivatives and Hedging Instruments The fair value of interest rate derivatives designated as hedging instruments, loan level derivatives, risk participation agreements (RPA in/out), and foreign exchange contracts represent a Level 2 valuation and are based on settlement values adjusted for credit risks associated with the counterparties and the Company and observable market interest rate curves and foreign exchange rates where applicable. Credit risk adjustments consider factors such as the likelihood of default by the Company and its counterparties, its net exposures and remaining contractual life. To date, the Company has not realized any losses due to a counterparty's inability to pay any net uncollateralized position. Refer also to Note 8, "Derivatives and Hedging Activities." There were no transfers between levels for assets and liabilities recorded at fair value on a recurring basis at September 30, 2025 and December 31, 2024, respectively. The following tables summarize information about significant unobservable inputs related to the Company's categories of Level 3 financial assets and liabilities measured on a recurring basis.
Quantitative Information About Level 3 Fair Value Measurements - Recurring Basis
Financial Instrument | Estimated Fair Value |  | Valuation Technique(s) |  | Significant Unobservable Inputs |  | Range of Inputs |  | Weighted Average
(In Thousands)
September 30, 2025 |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |
Municipal obligations | $ | 10,886 |  |  | Discounted Cash Flow |  | Discount Rate from Bloomberg BVAL |  | 0.0%-3.65% |  | 1.91 | %
Corporate debt obligations | 11,017 |  |  | Observable Bids |  | Bloomberg TRACE |  |  |  |
Loans held for investment | 286 |  |  | Discounted Cash Flow |  | Discount Rate |  | 25 | % |  |
|  |  |  |  | Collateral Value |  | $0.00 - $17.6 |  |
The following table summarizes the changes in estimated fair value for all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3)
Changes in Estimated Fair Value of Level 3 Financial Assets and Liabilities - Recurring Basis |
| Nine Months Ended September 30, 2025
| (In Thousands)
| Municipal obligations |  | Corporate debt obligations | Loans held for investment
Beginning balance | $ | 17,056 |  |  | $ | 2,434 |  | $ | — |
Acquired assets due to the Merger |  |  | 9,159 |  | 326 |
Purchases | 1,341 |  |  | — |  | — |
Unrealized gains (losses) included in comprehensive income | 37 |  |  | 117 |  | (9) |
Transfers in | — |  |  | — |  | — |
Transfers out | — |  |  | — |  | — |
Sales | — |  |  | — |  | — |
Maturities, calls, and paydowns | (7,548) |  |  | (693) |  | (31) |
Ending balance | $ | 10,886 |  |  | $ | 11,017 |  | $ | 286 |
Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis Assets and liabilities measured at fair value on a non-recurring basis are summarized below at the dated indicated:
| Carrying Value as of September 30, 2025
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (In Thousands)
Assets measured at fair value on a non-recurring basis: |  |  |  |  |  |  |
Collateral-dependent impaired loans and leases | $ | — |  |  | $ | — |  |  | $ | 121,596 |  |  | $ | 121,596 |
OREO | — |  |  | — |  |  | 824 |  |  | 824 |
Repossessed assets | — |  |  | 2,536 |  |  | — |  |  | 2,536 |
Total assets measured at fair value on a non-recurring basis | $ | — |  |  | $ | 2,536 |  |  | $ | 122,420 |  |  | $ | 124,956 |
| Carrying Value as of December 31, 2024
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (In Thousands)
Assets measured at fair value on a non-recurring basis: |  |  |  |  |  |  |
Collateral-dependent impaired loans and leases | $ | — |  |  | $ | — |  |  | $ | 28,100 |  |  | $ | 28,100 |
OREO | — |  |  | — |  |  | 700 |  |  | 700 |
Repossessed assets | — |  |  | 403 |  |  | — |  |  | 403 |
Total assets measured at fair value on a non-recurring basis | $ | — |  |  | $ | 403 |  |  | $ | 28,800 |  |  | $ | 29,203 |
Collateral-Dependent Impaired Loans and Leases For nonperforming loans and leases where the credit quality of the borrower has deteriorated significantly, fair values of the underlying collateral were estimated using purchase and sales agreements (Level 2), or comparable sales or recent appraisals (Level 3), adjusted for selling costs and other expenses. OREO The Company records OREO at the lower of cost or fair value. In estimating fair value, the Company utilizes purchase and sales agreements (Level 2) or comparable sales, recent appraisals or cash flows discounted at an interest rate commensurate with the risk associated with these cash flows (Level 3), adjusted for selling costs and other expenses. Repossessed Assets Repossessed assets are carried at estimated fair value less costs to sell based on auction pricing (Level 2). The table below presents quantitative information about significant unobservable inputs (Level 3) for assets measured at fair value on a non-recurring basis at the dates indicated.
| Fair Value |  | Valuation Technique |  |  |  |  |  |
| At September 30, 2025 |  | At December 31, 2024 |  |  |  |  |  |  |  |
| (Dollars in Thousands) |  |  |  |  |  |  |  |
Collateral-dependent impaired loans and leases | $ | 121,596 |  |  | $ | 28,100 |  |  | Appraisal of collateral (1) |  |  |  |  |  |
Other real estate owned | 824 |  |  | 700 |  |  | Appraisal of collateral (1) |  |  |  |  |  |
________________________________________________________________________ (1) Fair value is generally determined through independent appraisals of the underlying collateral. The Company may also use another available source of collateral assessment to determine a reasonable estimate of the fair value of the collateral. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of the unobservable inputs used may vary but is generally 0% - 10% on the discount for costs to sell and 0% - 15% on appraisal adjustments. Summary of Estimated Fair Values of Financial Instruments The following table presents the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company's financial instruments at the dates indicated. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, restricted equity securities, and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings, and accrued interest payable. There were no transfers between levels during the three months and nine months ended September 30, 2025.
|  |  |  |  | Fair Value Measurements at September 30, 2025
| Carrying Value |  | Estimated Fair Value |  | Level 1 Inputs |  | Level 2 Inputs |  | Level 3 Inputs
| (In Thousands)
Financial assets: |  |  |  |  |  |  |  |  |
Loans held for sale | $ | 83,330 |  |  | $ | 83,330 |  |  | $ | — |  |  | $ | 83,330 |  |  | $ | — |
Loans and leases, net | $ | 17,988,172 |  |  | $ | 17,850,603 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,850,603 |
Financial liabilities: |  |  |  |  |  |  |  |  |
Certificates of deposits and brokered deposits | 5,033,115 |  |  | 5,028,287 |  |  | — |  |  | 5,028,287 |  |  | — |
Borrowed funds | 1,080,516 |  |  | 1,080,331 |  |  | — |  |  | 1,080,331 |  |  | — |
|  |  |  |  | Fair Value Measurements at December 31, 2024
| Carrying Value |  | Estimated Fair Value |  | Level 1 Inputs |  | Level 2 Inputs |  | Level 3 Inputs
| (In Thousands)
Financial assets: |  |  |  |  |  |  |  |  |
Loans and leases, net | $ | 9,654,205 |  |  | $ | 9,298,057 |  |  | $ | — |  |  | $ | — |  |  | $ | 9,298,057 |
Financial liabilities: |  |  |  |  |  |  |  |  |
Certificates of deposits and brokered deposits | 2,754,397 |  |  | 2,749,092 |  |  | — |  |  | 2,749,092 |  |  | — |
Borrowed funds | 1,519,846 |  |  | 1,547,183 |  |  | — |  |  | 1,547,183 |  |  | — |
Loans Held for Sale Fair value is measured using quoted market prices when available. If quoted market prices are not available, comparable market values may be utilized. These assets are typically categorized as Level 2. Loans and Leases The fair values of performing loans and leases was estimated by segregating the portfolio into its primary loan and lease categories — commercial real estate mortgage, multi-family mortgage, construction, commercial, equipment financing, condominium association, residential mortgage, home equity and other consumer. These categories were further disaggregated based upon significant financial characteristics such as type of interest rate (fixed / variable) and payment status (current / past-due). Using the exit price valuation method, the Company discounts the contractual cash flows for each loan category using interest rates currently being offered for loans with similar terms to borrowers of similar quality and incorporates estimates of future loan prepayments. Deposits The fair values of deposit liabilities with no stated maturity (demand, NOW, savings and money market savings accounts) are equal to the carrying amounts payable on demand. The fair value of certificates of deposit represents contractual cash flows discounted using interest rates currently offered on deposits with similar characteristics and remaining maturities. The fair value estimates for deposits do not include the benefit that results from the low-cost funding provided by the Company's core deposit relationships (deposit-based intangibles). Borrowed Funds The fair value of federal funds purchased is equal to the amount borrowed. The fair value of FHLB advances and repurchase agreements represents contractual repayments discounted using interest rates currently available for borrowings with similar characteristics and remaining maturities. The fair values reported for retail repurchase agreements are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on borrowings with similar characteristics and maturities. The fair values reported for subordinated deferrable interest debentures are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on instruments with similar terms and maturities.

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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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