Fair Value Measurement of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2022

Assets and Liabilities Measured at Fair Value on a Recurring and Non-Recurring Basis

The following tables present the assets and liabilities that are measured at fair value on a recurring and non-recurring basis by level within the fair value hierarchy as reported on the consolidated statements of financial condition at September 30, 2022 and December 31, 2021. The assets presented under “non-recurring fair value measurements” in the tables below are not measured at fair value on an ongoing basis but are subject to fair value adjustments under certain circumstances (e.g., when an impairment loss is recognized).


	September 30, 2022		Fair Value Measurements at Reporting Date Using:
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Recurring fair value measurements:
Assets
Investment securities:
Equity securities (1)	$	34,942	$	23,917	$	—	$	—
Trading debt securities	4,100		2,915		1,185		—
Available for sale debt securities:
U.S. Treasury securities	277,902		277,902		—		—
U.S. government agency securities	26,821		—		26,821		—
Obligations of states and political subdivisions	141,563		—		141,563		—
Residential mortgage-backed securities	646,665		—		646,665		—
Corporate and other debt securities	178,903		—		178,903		—
Total available for sale debt securities	1,271,854		277,902		993,952		—
Loans held for sale (2)	6,073		—		6,073		—
Other assets (3)	594,116		—		594,116		—
Total assets	$	1,911,085	$	304,734	$	1,595,326	$	—
Liabilities
Other liabilities (3)	$	625,656	$	—	$	625,656	$	—
Total liabilities	$	625,656	$	—	$	625,656	$	—
Non-recurring fair value measurements:

Collateral dependent loans	$	73,108	$	—	$	—	$	73,108

Foreclosed assets	1,122		—		—		1,122
Total	$	74,230	$	—	$	—	$	74,230


			Fair Value Measurements at Reporting Date Using:
	December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Recurring fair value measurements:
Assets
Investment securities:
Equity securities (1)	$	32,844	$	21,284	$	—	$	—
Trading debt securities	38,130		—		38,130		—
Available for sale debt securities:

U.S. government agency securities	20,925		—		20,925		—
Obligations of states and political subdivisions	79,890		—		79,890		—
Residential mortgage-backed securities	904,502		—		904,502		—

Corporate and other debt securities	123,492		—		123,492		—
Total available for sale debt securities	1,128,809		—		1,128,809		—

Loans held for sale (2)	139,516		—		139,516		—
Other assets (3)	181,500		—		181,500		—
Total assets	$	1,520,799	$	21,284	$	1,487,955	$	—
Liabilities
Other liabilities (3)	$	52,376	$	—	$	52,376	$	—
Total liabilities	$	52,376	$	—	$	52,376	$	—
Non-recurring fair value measurements:
Collateral dependent loans	$	47,871	$	—	$	—	$	47,871
Foreclosed assets	2,931		—		—		2,931
Total	$	50,802	$	—	$	—	$	50,802

(1)Includes equity securities measured at net asset value (NAV) per share (or its equivalent) as a practical expedient totaling $11.0 million and $11.6 million at September 30, 2022 and December 31, 2021, respectively. These securities have not been classified in the fair value hierarchy.

(2)Represents residential mortgage loans held for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $6.2 million and $136.3 million at September 30, 2022 and December 31, 2021, respectively.

(3)Derivative financial instruments are included in this category.

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments not measured and not reported at fair value on the consolidated statements of financial condition at September 30, 2022 and December 31, 2021 were as follows:


	Fair Value Hierarchy	September 30, 2022				December 31, 2021
		Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(in thousands)
Financial assets
Cash and due from banks	Level 1	$	431,471	$	431,471	$	205,156	$	205,156
Interest bearing deposits with banks	Level 1	686,877		686,877		1,844,764		1,844,764
Equity securities (1)	Level 3	8,376		8,376		3,629		3,629
Held to maturity debt securities:
U.S. Treasury securities	Level 1	67,075		66,030		67,558		71,661
U.S. government agency securities	Level 2	259,869		214,314		6,265		6,378
Obligations of states and political subdivisions	Level 2	471,189		430,134		337,962		344,164
Residential mortgage-backed securities	Level 2	2,811,582		2,373,581		2,166,142		2,152,301
Trust preferred securities	Level 2	37,038		31,417		37,020		31,916
Corporate and other debt securities	Level 2	75,267		71,176		53,750		54,185
Total held to maturity debt securities (2)		3,722,020		3,186,652		2,668,697		2,660,605
Net loans	Level 3	44,710,020		41,945,829		33,794,455		33,283,251
Accrued interest receivable	Level 1	159,406		159,406		96,882		96,882
Federal Reserve Bank and Federal Home Loan Bank stock (3)	Level 2	267,319		267,319		206,450		206,450
Financial liabilities
Deposits without stated maturities	Level 1	38,980,287		38,980,287		31,945,368		31,945,368
Deposits with stated maturities	Level 2	6,328,556		6,194,389		3,687,044		3,670,113
Short-term borrowings	Level 1	919,283		883,100		655,726		637,490
Long-term borrowings	Level 2	1,541,097		1,424,946		1,423,676		1,404,184
Junior subordinated debentures issued to capital trusts	Level 2	56,673		56,543		56,413		46,306
Accrued interest payable (4)	Level 1	16,519		16,519		4,909		4,909

(1)Represents equity securities without a readily determinable fair value measured at cost less impairment, if any.

(2)The carrying amount is presented gross without the allowance for credit losses.

(3)Included in other assets.

(4)Included in accrued expenses and other liabilities.