Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Financial Assets and Financial Liabilities Measured at Fair Value

The following table summarizes financial assets and financial liabilities measured at fair value as of September 30, 2024 and December 31, 2023, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands):


			Fair Value Measurements at Reporting Date Using:
	Total Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
September 30, 2024
Items measured on a recurring basis:
Debt securities available-for-sale	$	911,753	$	48,542	$	863,211	$	—
Equity investments	45,631		—		45,631		—
Interest rate derivative asset	67,791		—		67,791		—
Interest rate derivative liability	(67,415)		—		(67,415)		—

Items measured on a non-recurring basis:
Equity investments (1) (2)	50,057		—		—		46,176

Loans measured for impairment based on the fair value of the underlying collateral (3)	16,814		—		—		16,814
December 31, 2023
Items measured on a recurring basis:
Debt securities available-for-sale	$	753,892	$	43,036	$	710,856	$	—
Equity investments	53,166		—		53,166		—
Interest rate derivative asset	87,776		—		87,776		—
Interest rate derivative liability	(87,848)		—		(87,848)		—
Items measured on a non-recurring basis:
Equity investments (1) (2)	46,997		—		—		43,576

Loans measured for impairment based on the fair value of the underlying collateral (3)	18,509		—		—		18,509

(1) As of September 30, 2024 and December 31, 2023, equity investments included $46.2 million and $43.6 million, respectively, of equity investments measured under the measurement alternative. This included no unrealized gains or losses for the nine months ended September 30, 2024 and the year ended December 31, 2023.

(2) As of September 30, 2024 and December 31, 2023, equity investments included $3.9 million and $3.4 million, respectively, of certain equity investment funds measured at NAV per share (or its equivalent) as a practical expedient to fair value and these equity investments have not been classified in the fair value hierarchy levels.

(3) Primarily consists of commercial loans, which are collateral dependent. The range may vary but is generally 0% to 8% on the discount for costs to sell and 0% to 10% on appraisal adjustments.

Schedule of Book Value and Estimated Fair Value of Significant Financial Instruments Not Recorded at Fair Value

The book value and estimated fair value of the Company’s significant financial instruments not recorded at fair value as of September 30, 2024 and December 31, 2023 are presented in the following tables (in thousands):


			Fair Value Measurements at Reporting Date Using:
	Book Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
September 30, 2024
Financial Assets:
Cash and due from banks	$	214,171	$	214,171	$	—	$	—
Debt securities held-to-maturity	1,075,131		—		1,007,781		—
Restricted equity investments	98,545		—		—		98,545
Loans receivable, net and loans held-for-sale	9,986,634		—		—		9,545,091
Financial Liabilities:
Deposits other than time deposits (1)	7,895,296		—		7,895,296		—
Time deposits	2,220,871		—		2,220,572		—
FHLB advances and other borrowings	1,311,787		—		1,308,840		—
Securities sold under agreements to repurchase with customers	81,163		81,163		—		—
December 31, 2023
Financial Assets:
Cash and due from banks	$	153,718	$	153,718	$	—	$	—
Debt securities held-to-maturity	1,159,735		—		1,068,438		—
Restricted equity investments	93,766		—		—		93,766
Loans receivable, net and loans held-for-sale	10,141,887		—		—		9,606,498
Financial Liabilities:
Deposits other than time deposits (1)	7,989,527		—		7,989,527		—
Time deposits	2,445,422		—		2,421,058		—
FHLB advances and other borrowings	1,045,092		—		1,008,351		—
Securities sold under agreements to repurchase with customers	73,148		73,148		—		—

(1) The estimated fair value of non-maturity deposits does not consider any inherent value and represents the amount payable on demand. However, non-maturity deposits do contain significant inherent value to the Company, particularly when overnight funding costs are greater than the deposit costs.