v3.23.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2023
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, 2023
Measured on a Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Securities available-for-sale:
Agency residential MBS$2,249,080 $— $2,249,080 $— 
U.S. Treasury securities685,436 685,436 — — 
Agency commercial MBS491,681 — 491,681 — 
Agency residential CMOs455,682 — 455,682 — 
Municipal securities345,639 — 345,639 — 
Corporate debt securities289,794 — 275,015 14,779 
Private label residential CMOs164,403 — 164,403 — 
Collateralized loan obligations102,994 — 102,994 — 
Private label commercial MBS25,535 — 25,535 — 
Asset-backed securities22,457 — 22,457 — 
SBA securities15,906 — 15,906 — 
Total securities available-for-sale$4,848,607 $685,436 $4,148,392 $14,779 
Equity investments with readily determinable fair values$1 $1 $— $— 
Derivatives (1):
Equity warrants 3,978 — — 3,978 
Interest rate and economic contracts7,025 — 7,025 — 
Derivative liabilities 5,178 — 5,178 — 
Credit-linked notes128,375 — — 128,375 
Fair Value Measurements as of
December 31, 2022
Measured on a Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Securities available-for-sale:
Agency residential MBS$2,242,042 $— $2,242,042 $— 
U.S. Treasury securities670,070 670,070 — — 
Agency commercial MBS487,606 — 487,606 — 
Agency residential CMOs457,063 — 457,063 — 
Municipal securities339,326 — 339,326 — 
Corporate debt securities311,905 — 311,905 — 
Private label residential CMOs166,724 — 166,724 — 
Collateralized loan obligations102,261 — 102,261 — 
Private label commercial MBS26,827 — 26,827 — 
Asset-backed securities22,413 — 22,413 — 
SBA securities17,250 — 17,250 — 
Total securities available-for-sale$4,843,487 $670,070 $4,173,417 $— 
Equity investments with readily determinable fair values$1 $1 $— $— 
Derivatives (1):
Equity warrants 4,048 — — 4,048 
Interest rate and economic contracts7,814 — 7,814 — 
Derivative liabilities 5,906 — 5,906 — 
Credit-linked notes132,030 — — 132,030 
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, 2023
Equity Warrants
Weighted
RangeAverage
Unobservable Inputsof Inputs
Input (1)
Volatility
22.7% - 104.0%
27.9%
Risk-free interest rate
3.6% - 4.9%
3.9%
Remaining life assumption (in years)
0.08 - 5.00
3.27
____________________
(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, 2023
ValuationUnobservableInput or
Weighted
Asset
Fair Value
TechniqueInputsRange
Average
(Dollars in thousands)
Individually evaluated
loans and leases521Third party appraisalsNo discounts
Total non-recurring Level 3$521
Fair value, assets measured on recurring basis, significant unobservable inputs (level 3) reconciliation
The following table summarizes activity for our Level 3 private label commercial MBS available-for-sale, and equity warrants and credit-linked notes measured at fair value on a recurring basis for the period indicated:
Corporate Equity Credit-Linked
Debt SecuritiesWarrantsNotes
                                          (In thousands)
Balance, December 31, 2022$— $4,048 $132,030 
Total included in earnings— (333)(1,998)
Total included in other comprehensive income (loss)(3,221)— — 
Issuances— 283 — 
Principal payments— — (1,657)
Transfer from Level 218,000 — 
Exercises and settlements — (19)— 
Transfers to Level 1 (equity investments with readily
determinable fair values)— (1)— 
Balance, March 31, 2023$14,779 $3,978 $128,375 
Unrealized net gains (losses) for the period included in other
comprehensive income for securities held at quarter-end$(3,221)
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, 2023
Measured on a Non-Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Individually evaluated loans and leases $23,673 $— $23,152 $521 
Total non-recurring$23,673 $— $23,152 $521 


Fair Value Measurement as of
December 31, 2022
Measured on a Non-Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Individually evaluated loans and leases $34,077 $— $28,065 $6,012 
OREO47 — 47 — 
Total non-recurring$34,124 $— $28,112 $6,012 
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 Basis20232022
(In thousands)
Individually evaluated loans and leases$4,911 $434 
Total losses$4,911 $434 
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, 2023
Carrying
Estimated Fair Value
AmountTotalLevel 1Level 2Level 3
(In thousands)
Financial Assets:
Cash and due from banks$218,830 $218,830 $218,830 $— $— 
Interest-earning deposits in financial institutions6,461,306 6,461,306 6,461,306 — — 
Securities available-for-sale4,848,607 4,848,607 685,436 4,148,392 14,779 
Securities held-to-maturity2,273,650 2,157,056 176,629 1,945,900 34,527 
Investment in FHLB stock147,150 147,150 — 147,150 — 
Loans held for sale2,796,208 2,807,699 — 2,807,699 — 
Loans and leases held for investment, net25,462,326 24,138,162 — 23,152 24,115,010 
Equity investments with readily determinable fair values1 1 1 — — 
Equity warrants3,978 3,978 — — 3,978 
Interest rate and economic contracts7,025 7,025 — 7,025 — 
Servicing rights1,409 1,409 — — 1,409 
Financial Liabilities:
Retail non-maturity deposits19,230,293 19,230,293 — 19,230,293 — 
Wholesale non-maturity deposits2,028,676 2,028,676 — 2,028,676 — 
Time deposits6,928,592 6,945,479 — 6,945,479 — 
Borrowings11,881,712 11,899,375 4,910,000 5,450,000 1,539,375 
Subordinated debt868,815 823,002 — 823,002 — 
Derivative liabilities5,178 5,178 — 5,178 — 
December 31, 2022
Carrying
Estimated Fair Value
AmountTotalLevel 1Level 2Level 3
(In thousands)
Financial Assets:
Cash and due from banks$212,273 $212,273 $212,273 $— $— 
Interest-earning deposits in financial institutions2,027,949 2,027,949 2,027,949 — — 
Securities available-for-sale4,843,487 4,843,487 670,070 4,173,417 — 
Securities held-to-maturity2,269,135 2,110,472 171,700 1,938,772 — 
Investment in FHLB stock34,290 34,290 — 34,290 — 
Loans held for sale65,076 65,501 — 65,501 — 
Loans and leases held for investment, net28,408,397 26,627,985 — 28,065 26,599,920 
Equity investments with readily determinable fair values1 1 1 — — 
Equity warrants4,048 4,048 — — 4,048 
Interest rate and economic contracts7,814 7,814 — 7,814 — 
Servicing rights633 633 — — 633 
Financial Liabilities:
Retail non-maturity deposits26,561,129 26,561,129 — 26,561,129 — 
Wholesale non-maturity deposits2,637,362 2,637,362 — 2,637,362 — 
Time deposits4,737,843 4,700,054 — 4,700,054 — 
Borrowings1,764,030 1,764,037 882,000 750,007 132,030 
Subordinated debt867,087 870,534 — 870,534 — 
Derivative liabilities5,906 5,906 — 5,906 — 
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, 2023
Corporate Debt Securities
Input or
Weighted
Range
Average
Unobservable Inputsof Inputs
Input (1)
Spread to 10 Year Treasury
4.2% - 7.7%
5.9%
Discount rates
7.7% - 11.2%
9.4%