Fair Value (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Fair Value of Assets Measured on Recurring and Nonrecurring Basis

Under ASC Topic 820, fair value measurements for items measured at fair value on a recurring and nonrecurring basis at September 30, 2023 and December 31, 2022 included:


(In thousands)	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
At September 30, 2023
Financial Assets
Available-for-sale debt securities1	$	1,841,845	$	188	$	1,841,657	$	—
Derivative financial instruments2	44,276		—		44,276		—
Loans held for sale2	2,979		—		2,979		—
Loans, net3	10,482		—		818		9,664
Other real estate owned4	7,216		—		7,216		—
Equity securities5	13,120		13,120		—		—
Financial Liabilities
Derivative financial instruments2	$	37,362	$	—	$	37,362	$	—

At December 31, 2022
Financial Assets
Available-for-sale debt securities1	$	1,871,742	$	186	$	1,871,556	$	—
Derivative financial instruments2	23,142		—		23,142		—
Loans held for sale2	3,151		—		3,151		—
Loans3	8,513		—		1,183		7,330
Other real estate owned4	2,301		—		2,301		—
Equity securities5	8,220		8,220		—		—
Financial Liabilities
Derivative financial instruments2	$	23,142	$	—	$	23,142	$	—
1See “Note 3 – Securities” for further detail of fair value of individual investment categories.
2Recurring fair value basis determined using observable market data.
3See “Note 4 – Loans.” Nonrecurring fair value adjustments to collateral-dependent loans reflect full or partial write-downs that are based on current appraised values of the collateral in accordance with ASC Topic 310.
4Fair value is measured on a nonrecurring basis in accordance with ASC Topic 360.
5Investment in shares of mutual funds that invest primarily in CRA-qualified debt securities, reported at fair value in Other Assets. Recurring fair value basis is determined using market quotations.

Schedule of Aggregate Fair Value and Contractual Balance of Loans for Sale

The aggregate fair value and contractual balance of loans held for sale as of September 30, 2023 and December 31, 2022 is as follows:


(In thousands)	September 30, 2023		December 31, 2022
Aggregate fair value	$	2,979	$	3,151
Contractual balance	2,846		3,071
Excess	133		80

Schedule of Carrying Amount and Fair Value of Other Significant Financial Instruments Not Measured on a Recurring Basis

The carrying amount and fair value of the Company’s other financial instruments that were not disclosed previously in the balance sheet and for which carrying amount is not fair value as of September 30, 2023 and December 31, 2022 is as follows:


(In thousands)	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2023
Financial Assets
Debt securities held-to-maturity1	$	691,404	$	—	$	537,218	$	—
Time deposits with other banks	4,357		—		4,241		—
Loans, net	9,851,043		—		—		9,591,237
Financial Liabilities
Deposit liabilities	12,107,834		—		—		12,106,525
Federal Home Loan Bank (“FHLB”) borrowings	110,000		—		—		110,293
Subordinated debt, net	106,136		—		98,110		—

December 31, 2022

Debt securities held-to-maturity1	$	747,408	$	—	$	617,741	$	—
Time deposits with other banks	3,236		—		2,989		—
Loans, net	8,022,316		—		—		7,845,375
Financial Liabilities
Deposit liabilities	9,981,595		—		—		9,976,125
Federal Home Loan Bank (“FHLB”) borrowings	150,000		—		—		149,450
Subordinated debt	84,533		—		82,226		—
1See “Note 3 – Securities” for further detail of recurring fair value basis of individual investment categories.