Fair Value (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Fair Value |
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| Schedule of assets and liabilities measured at fair value on a recurring basis |
| | | | | | | | | | | | | | | Fair Value Measurements as of June 30, 2026 | | | Quoted Prices in | | Significant | | | | | | | Active Markets for | | Other | | Significant | | | | | Identical Assets | | Observable | | Unobservable | | | (dollars in thousands) | | (Level 1) | | Inputs (Level 2) | | Inputs (Level 3) | | Total | Assets | | | | | | | | | | | | | Mortgage-backed securities: | | | | | | | | | | | | | Residential - Government agency(1) | | $ | — | | $ | 25,037 | | $ | — | | $ | 25,037 | Residential - Government-sponsored enterprises(1) | | | — | | | 865,210 | | | — | | | 865,210 | Commercial - Government agency | | | — | | | 183,542 | | | — | | | 183,542 | Commercial - Government-sponsored enterprises | | | — | | | 39,022 | | | — | | | 39,022 | Commercial - Non-agency | | | — | | | 259,510 | | | — | | | 259,510 | Collateralized mortgage obligations: | | | | | | | | | | | | | Government agency | | | — | | | 394,290 | | | — | | | 394,290 | Government-sponsored enterprises | | | — | | | 283,712 | | | — | | | 283,712 | Collateralized loan obligations | | | — | | | 44,376 | | | — | | | 44,376 | Total available-for-sale securities | | | — | | | 2,094,699 | | | — | | | 2,094,699 | Other assets(2) | | | 581 | | | 21,800 | | | — | | | 22,381 | Liabilities | | | | | | | | | | | | | Other liabilities(3) | | | — | | | (10,188) | | | (2,300) | | | (12,488) | Total | | $ | 581 | | $ | 2,106,311 | | $ | (2,300) | | $ | 2,104,592 |
| | | | | | | | | | | | | | | Fair Value Measurements as of December 31, 2025 | | | Quoted Prices in | | Significant | | | | | | | | Active Markets for | | Other | | Significant | | | | | Identical Assets | | Observable | | Unobservable | | | (dollars in thousands) | | (Level 1) | | Inputs (Level 2) | | Inputs (Level 3) | | Total | Assets | | | | | | | | | | | | | Mortgage-backed securities: | | | | | | | | | | | | | Residential - Government agency(1) | | $ | — | | $ | 30,367 | | $ | — | | $ | 30,367 | Residential - Government-sponsored enterprises(1) | | | — | | | 878,215 | | | — | | | 878,215 | Commercial - Government agency | | | — | | | 191,177 | | | — | | | 191,177 | Commercial - Government-sponsored enterprises | | | — | | | 41,599 | | | — | | | 41,599 | Commercial - Non-agency | | | — | | | 129,014 | | | — | | | 129,014 | Collateralized mortgage obligations: | | | | | | | | | | | | | Government agency | | | — | | | 426,276 | | | — | | | 426,276 | Government-sponsored enterprises | | | — | | | 302,996 | | | — | | | 302,996 | Collateralized loan obligations | | | — | | | 76,589 | | | — | | | 76,589 | Total available-for-sale securities | | | — | | | 2,076,233 | | | — | | | 2,076,233 | Other assets(2) | | | 595 | | | 21,522 | | | — | | | 22,117 | Liabilities | | | | | | | | | | | | | Other liabilities(3) | | | — | | | (12,328) | | | (2,300) | | | (14,628) | Total | | $ | 595 | | $ | 2,085,427 | | $ | (2,300) | | $ | 2,083,722 |
| (1) | Backed by residential real estate. |
| (2) | Other assets classified as Level 1 include money market funds that have quoted prices in active markets and are related to the Company’s deferred compensation plans. Other assets classified as Level 2 include derivative assets. |
| (3) | Other liabilities include derivative liabilities. |
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| Significant unobservable inputs used in fair value measurements for Level 3 assets and liabilities measured at fair value on a recurring basis |
| | | | | | | | | | | | Quantitative Information about Level 3 Fair Value Measurements at June 30, 2026 | | | | | | | | Significant | | | (dollars in thousands) | | Fair value | | Valuation Technique | | Unobservable Input | | Range | Collateral-dependent loans | | $ | 612 | | Financial Statement Values | | Discounts to reflect estimated selling costs | | 0% - 50% | Collateral-dependent loans | | | 373 | | Appraisal Value(1) | | Discounts to reflect estimated selling costs | | 7% - 8% | Visa derivative | | | (2,300) | | Discounted Cash Flow | | Expected Conversion Rate - 1.4953(2) | | 1.3565-1.4953 | | | | | | | | Expected Term - 12 months(3) | | n/m(3) | | | | | | | | Growth Rate - 17%(4) | | -4% - 31% |
| | | | | | | | | | | | Quantitative Information about Level 3 Fair Value Measurements at December 31, 2025 | | | | | | | | Significant | | | (dollars in thousands) | | Fair value | | Valuation Technique | | Unobservable Input | | Range | Collateral-dependent loans | | $ | 13,608 | | Financial Statement Values | | Discounts to reflect estimated selling costs | | 0% - 50% | Visa derivative | | | (2,300) | | Discounted Cash Flow | | Expected Conversion Rate - 1.5108(2) | | 1.3848-1.5108 | | | | | | | | Expected Term - 6 months(3) | | n/m(3) | | | | | | | | Growth Rate - 13%(4) | | -11% - 28% |
| (1) | Fair value is generally determined through appraisals of the underlying collateral. The Company may also use another available source of collateral assessment, such as purchase offers, letters of intent, broker price opinions or real property tax assessment values, to determine a reasonable estimate of the fair value of the collateral. |
| (2) | Due to the uncertainty in the movement of the conversion rate, the current conversion rate as of the respective consolidated balance sheet dates was utilized in the fair value calculation. |
| (3) | The expected term was based on a claim filing deadline and subsequent period for claims to be processed. As such, a range is not meaningful to disclose. |
| (4) | The growth rate was based on the arithmetic average of analyst price targets. |
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| Summary of changes in Level 3 liabilities measured at fair value on a recurring basis |
| | | | | | | | | Visa Derivative | (dollars in thousands) | | 2026 | | 2025 | Three Months Ended June 30, | | | | | | | Balance as of April 1, | | $ | (2,300) | | $ | (2,300) | Total net losses included in other noninterest income | | | (1,034) | | | (903) | Settlements | | | 1,034 | | | 903 | Balance as of June 30, | | $ | (2,300) | | $ | (2,300) | Total net losses included in net income attributable to the change in unrealized losses related to liabilities still held as of June 30, | | $ | (1,034) | | $ | (903) | | | | | | | | Six Months Ended June 30, | | | | | | | Balance as of January 1, | | $ | (2,300) | | $ | (2,300) | Total net losses included in other noninterest income | | | (2,005) | | | (2,195) | Settlements | | | 2,005 | | | 2,195 | Balance as of June 30, | | $ | (2,300) | | $ | (2,300) | Total net losses included in net income attributable to the change in unrealized losses related to liabilities still held as of June 30, | | $ | (2,005) | | $ | (2,195) |
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| Summary of estimated fair value of financial instruments not required to be carried at fair value on a recurring basis |
| | | | | | | | | | | | | | | | | | June 30, 2026 | | | | | | Fair Value Measurements | | | | | | Quoted Prices in | | Significant | | Significant | | | | | | | | Active Markets | | Other | | Unobservable | | | | | | | | for Identical | | Observable | | Inputs | | | (dollars in thousands) | | Book Value | | Assets (Level 1) | | Inputs (Level 2) | | (Level 3) | | Total | Financial assets: | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | 1,012,496 | | $ | 263,762 | | $ | 748,734 | | $ | — | | $ | 1,012,496 | Investment securities held-to-maturity | | | 3,411,684 | | | — | | | 3,035,475 | | | — | | | 3,035,475 | Loans(1) | | | 14,126,842 | | | — | | | — | | | 13,629,349 | | | 13,629,349 | | | | | | | | | | | | | | | | | Financial liabilities: | | | | | | | | | | | | | | | | Time deposits(2) | | $ | 3,289,664 | | $ | — | | $ | 3,273,300 | | $ | — | | $ | 3,273,300 |
| | | | | | | | | | | | | | | | | | December 31, 2025 | | | | | | Fair Value Measurements | | | | | | Quoted Prices in | | Significant | | Significant | | | | | | | | Active Markets | | Other | | Unobservable | | | | | | | | for Identical | | Observable | | Inputs | | | (dollars in thousands) | | Book Value | | Assets (Level 1) | | Inputs (Level 2) | | (Level 3) | | Total | Financial assets: | | | | | | | | | | | | | | | | Cash and cash equivalents | | $ | 1,477,752 | | $ | 228,734 | | $ | 1,249,018 | | $ | — | | $ | 1,477,752 | Investment securities held-to-maturity | | | 3,533,082 | | | — | | | 3,188,775 | | | — | | | 3,188,775 | Loans held for sale | | | 1,370 | | | — | | | 1,376 | | | — | | | 1,376 | Loans(1) | | | 13,870,599 | | | — | | | — | | | 13,356,550 | | | 13,356,550 | | | | | | | | | | | | | | | | | Financial liabilities: | | | | | | | | | | | | | | | | Time deposits(2) | | $ | 3,370,133 | | $ | — | | $ | 3,356,533 | | $ | — | | $ | 3,356,533 |
| (1) | Excludes financing leases of $450.5 million at June 30, 2026 and $441.9 million at December 31, 2025. |
| (2) | Excludes deposit liabilities with no defined or contractual maturity of $16.9 billion as of June 30, 2026 and $17.1 billion as of December 31, 2025. |
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| Schedule of assets with fair value adjustments on a nonrecurring basis |
| | | | | | | | | | (dollars in thousands) | | Level 1 | | Level 2 | | Level 3 | June 30, 2026 | | | | | | | | | | Collateral-dependent loans | | $ | — | | $ | — | | $ | 985 | December 31, 2025 | | | | | | | | | | Collateral-dependent loans | | $ | — | | $ | — | | $ | 13,608 |
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