Fair Value Measurements (Tables)

6 Months Ended

Jun. 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 June 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
June 30, 2024
Items measured on a recurring basis:
Debt securities available-for-sale	$	721,484	$	46,830	$	674,654	$	—
Equity investments	55,611		—		55,611		—
Interest rate derivative asset	103,246		—		103,246		—
Interest rate derivative liability	(104,283)		—		(104,283)		—

Items measured on a non-recurring basis:
Equity investments (1) (2)	48,521		—		—		44,738

Loans measured for impairment based on the fair value of the underlying collateral (3)	23,360		—		—		23,360
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 June 30, 2024 and December 31, 2023, equity investments of $48.5 million and $47.0 million, respectively, included $44.7 million and $43.6 million, respectively, of equity investments measured under the measurement alternative. This included no unrealized gains or losses for the six months ended June 30, 2024 and the year ended December 31, 2023.

(2) As of June 30, 2024 and December 31, 2023, equity investments of $48.5 million and $47.0 million, respectively, included $3.8 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 June 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
June 30, 2024
Financial Assets:
Cash and due from banks	$	181,198	$	181,198	$	—	$	—
Debt securities held-to-maturity	1,105,843		—		1,003,850		—
Restricted equity investments	92,679		—		—		92,679
Loans receivable, net and loans held-for-sale	9,963,179		—		—		9,341,464
Financial Liabilities:
Deposits other than time deposits (1)	7,626,358		—		7,626,358		—
Time deposits	2,367,659		—		2,354,246		—
FHLB advances and other borrowings	1,213,827		—		1,197,118		—
Securities sold under agreements to repurchase with customers	80,000		80,000		—		—
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.