v3.26.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
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 Notes20262025
 (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 NotesMarch 31, 2026December 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 BasisTotalLevel 1Level 2Level 3
(In thousands)
Securities AFS:
Agency residential MBS$811,661 $— $811,661 $— 
Agency commercial MBS50,981 — 50,981 — 
Agency residential CMOs1,104,183 — 1,104,183 — 
Corporate debt securities231,958 — 229,708 2,250 
Private label residential CMOs233,184 — 233,184 — 
Collateralized loan obligations200,374 — 200,374 — 
Private label commercial MBS8,270 — 8,270 — 
Asset-backed securities12,661 — 12,661 — 
SBA securities3,060 — 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 hedges5,818 — 5,818 — 
Interest rate and foreign exchange contracts4,362 — 4,362 — 
Equity warrants 3,363 — — 3,363 
Derivative liabilities
Cash flow hedges1,838 — 1,838 — 
Interest rate and foreign exchange contracts4,461 — 4,461 — 
Credit-linked notes111,250 — — 111,250 
___________________
(1)    For information regarding derivative instruments, see "Note 9. Derivatives".
Fair Value Measurements as of December 31, 2025
Measured on a Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Securities AFS:
Agency residential MBS$834,085 $— $834,085 $— 
Agency commercial MBS50,966 — 50,966 — 
Agency residential CMOs871,624 — 871,624 — 
Corporate debt securities241,596 — 239,226 2,370 
Private label residential CMOs228,975 — 228,975 — 
Collateralized loan obligations200,822 — 200,822 — 
Private label commercial MBS9,279 — 9,279 — 
Asset-backed securities13,249 — 13,249 — 
SBA securities3,462 — 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 contracts4,124 — 4,124 — 
Equity warrants 3,437 — — 3,437 
Derivative liabilities
Cash flow hedges4,065 — 4,065 — 
Interest rate and foreign exchange contracts4,156 — 4,156 — 
Credit-linked notes113,634 — — 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 SecuritiesWarrantsNotes
(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 Inputsof 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
RangeWeighted Average
Unobservable Inputsof 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 BasisTotalLevel 1Level 2Level 3
(In thousands)
Individually evaluated loans and leases $50,721 $— $24,129 $26,592 
OREO290 — 290 — 
Total non-recurring$51,011 $— $24,419 $26,592 

Fair Value Measurement as of December 31, 2025
Measured on a Nonrecurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Individually evaluated loans and leases $52,443 $— $48,401 $4,042 
OREO248 — 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 Basis20262025
(In thousands)
Individually evaluated loans and leases$5,023 $11,285 
OREO44 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
ValuationUnobservableInput or
Weighted
Asset
Fair Value
TechniqueInputsRange
Average
(In thousands)
Individually evaluated loans and leases26,592Third party appraisalDiscount 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".