XML 73 R35.htm IDEA: XBRL DOCUMENT

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2026

Fair Value Option, Disclosures, Credit-linked Notes

The following table presents the changes in fair value of the credit-linked notes for which the fair value option has been elected for the periods indicated:


	Three Months Ended March 31,

Credit-Linked Notes	2026		2025
	(In thousands)
Changes in fair value - gains included in earnings	$	94	$	482
Changes in fair value - other comprehensive (loss) income	$	(111)	$	146

Fair Value Option, Disclosure, Credit-Link Notes, Balance

The following table provides information about the credit-linked notes carried at fair value as of the dates indicated:


Credit-Linked Notes	March 31, 2026		December 31, 2025
	(In thousands)

Carrying value reported on the consolidated balance sheets	$	111,250	$	113,634
Aggregate unpaid principal balance in excess of fair value	$	1,203	$	1,220

Schedule of Fair Value, Assets and Liabilities 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, 2026
Measured on a Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities AFS:
Agency residential MBS	$	811,661	$	—	$	811,661	$	—

Agency commercial MBS	50,981		—		50,981		—
Agency residential CMOs	1,104,183		—		1,104,183		—

Corporate debt securities	231,958		—		229,708		2,250
Private label residential CMOs	233,184		—		233,184		—
Collateralized loan obligations	200,374		—		200,374		—
Private label commercial MBS	8,270		—		8,270		—
Asset-backed securities	12,661		—		12,661		—
SBA securities	3,060		—		3,060		—
Total securities AFS	$	2,656,332	$	—	$	2,654,082	$	2,250
Equity investments with readily determinable fair values	$	1,082	$	1,082	$	—	$	—
Derivatives (1):
Derivative assets
Cash flow hedges	5,818		—		5,818		—
Interest rate and foreign exchange contracts	4,362		—		4,362		—
Equity warrants	3,363		—		—		3,363
Derivative liabilities
Cash flow hedges	1,838		—		1,838		—
Interest rate and foreign exchange contracts	4,461		—		4,461		—
Credit-linked notes	111,250		—		—		111,250

___________________

(1) For information regarding derivative instruments, see "Note 9. Derivatives".


	Fair Value Measurements as of December 31, 2025
Measured on a Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities AFS:
Agency residential MBS	$	834,085	$	—	$	834,085	$	—

Agency commercial MBS	50,966		—		50,966		—
Agency residential CMOs	871,624		—		871,624		—

Corporate debt securities	241,596		—		239,226		2,370
Private label residential CMOs	228,975		—		228,975		—
Collateralized loan obligations	200,822		—		200,822		—
Private label commercial MBS	9,279		—		9,279		—
Asset-backed securities	13,249		—		13,249		—
SBA securities	3,462		—		3,462		—
Total securities AFS	$	2,454,058	$	—	$	2,451,688	$	2,370
Equity investments with readily determinable fair values	$	2	$	2	$	—	$	—
Derivatives (1):
Derivative assets

Interest rate and foreign exchange contracts	4,124		—		4,124		—
Equity warrants	3,437		—		—		3,437
Derivative liabilities
Cash flow hedges	4,065		—		4,065		—
Interest rate and foreign exchange contracts	4,156		—		4,156		—
Credit-linked notes	113,634		—		—		113,634

____________________

(1) For information regarding derivative instruments, see "Note 9. Derivatives".

The following table summarizes activity for our Level 3 corporate debt securities AFS, equity warrants, and credit-linked notes measured at fair value on a recurring basis for the period indicated:


	Corporate		Equity		Credit-Linked
	Debt Securities		Warrants		Notes
	(In thousands)
Balance, December 31, 2025	$	2,370	$	3,437	$	113,634
Total included in earnings	—		—		(94)
Total included in other comprehensive income	(120)		938		111

Issuances	—		143		—
Principal payments	—		—		(2,401)




Exercises and settlements	—		(51)		—

Transfers to Level 1 (equity investments with readily determinable fair values)	—		(1,104)		—
Balance, March 31, 2026	$	2,250	$	3,363	$	111,250

Unrealized net loss for the period included in other
comprehensive income for securities held at quarter-end	$	(750)

^[1]

Fair value inputs, assets, quantitative information

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 AFS measured at fair value on a recurring basis as of the date indicated:



	Corporate Debt Securities as of March 31, 2026

	Input or Range	Weighted Average
Unobservable Inputs	of Inputs	Input (1)
Spread to 10 Year Treasury	2.7% - 10.3%	4.8%
Discount rates	7.0% - 14.6%	9.2%

____________________

(1) Unobservable inputs for corporate debt securities were weighted by the relative fair values of the instruments.

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:



	Equity Warrants as of March 31, 2026

	Range	Weighted Average
Unobservable Inputs	of Inputs	Input (1)
Volatility (1)	23.5% - 1,027.0%	24.7%
Risk-free interest rate	3.7% - 3.9%	3.8%
Remaining life assumption (in years)	0.08 - 4.99	3.24 years

____________________

(1) Unobservable inputs for equity warrants were weighted by the relative fair values of the instruments.

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, 2026
Measured on a Nonrecurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Individually evaluated loans and leases	$	50,721	$	—	$	24,129	$	26,592

OREO	290		—		290		—
Total non-recurring	$	51,011	$	—	$	24,419	$	26,592


	Fair Value Measurement as of December 31, 2025
Measured on a Nonrecurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Individually evaluated loans and leases	$	52,443	$	—	$	48,401	$	4,042
OREO	248		—		248		—
Total non-recurring	$	52,691	$	—	$	48,649	$	4,042

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 March 31,
Loss on Assets Measured on a Non‑Recurring Basis	2026		2025
	(In thousands)
Individually evaluated loans and leases	$	5,023	$	11,285

OREO	44		266
Total losses	$	5,067	$	11,551

Fair Value Measurement Inputs and Valuations

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, 2026

Valuation

Unobservable

Input or

Weighted

Asset

Fair Value

Technique

Inputs

Range

Average

(In thousands)

Individually evaluated loans and leases

26,592

Third party appraisal

Discount from appraisal

7.75% - 7.75%

7.75%

Total non-recurring Level 3

26,592

[1]	For information regarding derivative instruments, see "Note 9. Derivatives".