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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Fair Value, Assets Measured on 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

Schedule of Fair Value, Liabilities Measured on 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

Schedule of Quantitative Information About Significant Unobservable Inputs (Level 3) for Assets Measured at Fair Value on a Recurring Basis

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

Collateral Value

$0.00 - $17.6

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.

Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

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

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring and 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

Schedule of the Carrying Values and Estimated Fair Values

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		—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details