Fair Value Measurement of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2024

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 March 31, 2024 and December 31, 2023. 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).


	March 31, 2024		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	$	23,159	$	23,159	$	—	$	—
Equity securities at net asset value (NAV)	12,267		—		—		—
Trading debt securities	3,989		3,989		—		—
Available for sale debt securities:
U.S. Treasury securities	285,546		285,546		—		—
U.S. government agency securities	22,754		—		22,754		—
Obligations of states and political subdivisions	187,729		—		187,729		—
Residential mortgage-backed securities	783,143		—		783,143		—
Corporate and other debt securities	170,162		—		170,162		—
Total available for sale debt securities	1,449,334		285,546		1,163,788		—
Loans held for sale (1)	17,639		—		17,639		—
Other assets (2)	522,275		—		522,275		—
Total assets	$	2,028,663	$	312,694	$	1,703,702	$	—
Liabilities
Other liabilities (2)	$	546,416	$	—	$	546,416	$	—
Total liabilities	$	546,416	$	—	$	546,416	$	—
Non-recurring fair value measurements:
Non-performing loan held for sale (3)	$	10,000	$	—	$	10,000	$	—
Collateral dependent loans	77,673		—		—		77,673

Foreclosed assets	1,393		—		—		1,393
Total	$	89,066	$	—	$	10,000	$	79,066


			Fair Value Measurements at Reporting Date Using:
	December 31, 2023		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	$	23,307	$	23,307	$	—	$	—
Equity securities at net asset value (NAV)	12,126		—		—		—
Trading debt securities	3,973		3,973		—		—
Available for sale debt securities:
U.S. Treasury securities	288,157		288,157		—		—
U.S. government agency securities	23,702		—		23,702		—
Obligations of states and political subdivisions	191,690		—		191,690		—
Residential mortgage-backed securities	626,572		—		626,572		—

Corporate and other debt securities	166,455		—		166,455		—
Total available for sale debt securities	1,296,576		288,157		1,008,419		—

Loans held for sale (1)	20,640		—		20,640		—
Other assets (2)	466,227		—		466,227		—
Total assets	$	1,822,849	$	315,437	$	1,495,286	$	—
Liabilities
Other liabilities (2)	$	488,103	$	—	$	488,103	$	—
Total liabilities	$	488,103	$	—	$	488,103	$	—
Non-recurring fair value measurements:
Non-performing loan held for sale (3)	$	10,000	$	—	$	10,000	$	—
Collateral dependent loans	90,580		—		—		90,580
Foreclosed assets	1,444		—		—		1,444
Total	$	102,024	$	—	$	10,000	$	92,024

(1)Represents residential mortgage loans held for sale that are carried at fair value and had contractual unpaid principal balances totaling $17.5 million and $20.1 million at March 31, 2024 and December 31, 2023, respectively.

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

(3)Reported at lower of cost or market value.

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 March 31, 2024 and December 31, 2023 were as follows:


	Fair Value Hierarchy	March 31, 2024				December 31, 2023
		Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(in thousands)
Financial assets
Cash and due from banks	Level 1	$	398,827	$	398,827	$	284,090	$	284,090
Interest bearing deposits with banks	Level 1	542,006		542,006		607,135		607,135
Equity securities (1)	Level 3	31,525		31,525		29,031		29,031
Held to maturity debt securities:
U.S. Treasury securities	Level 1	26,048		25,742		26,232		25,978
U.S. government agency securities	Level 2	305,543		260,175		305,996		261,555
Obligations of states and political subdivisions	Level 2	400,523		378,032		405,470		387,527
Residential mortgage-backed securities	Level 2	2,856,322		2,441,934		2,885,303		2,521,926
Trust preferred securities	Level 2	37,066		30,482		37,062		30,650
Corporate and other debt securities	Level 2	86,316		81,037		80,350		74,676
Total held to maturity debt securities (2)		3,711,818		3,217,402		3,740,413		3,302,312
Net loans (3)	Level 3	49,486,937		47,672,062		49,764,215		47,981,499
Accrued interest receivable	Level 1	253,893		253,893		245,498		245,498
FRB and FHLB stock (4)	Level 2	323,981		323,981		320,727		320,727
Financial liabilities
Deposits without stated maturities	Level 1	36,334,212		36,334,212		36,066,105		36,066,105
Deposits with stated maturities	Level 2	12,743,734		12,685,362		13,176,724		13,103,381
Short-term borrowings	Level 2	75,224		57,603		917,834		901,617
Long-term borrowings	Level 2	3,262,341		3,176,646		2,328,375		2,256,997
Junior subordinated debentures issued to capital trusts	Level 2	57,195		47,597		57,108		47,374
Accrued interest payable (5)	Level 1	109,477		109,477		159,496		159,496

(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)Includes the carrying amount of $34.1 million of construction loans transferred at cost to loans held for sale at March 31, 2024.

(4)Included in other assets.

(5)Included in accrued expenses and other liabilities.