Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2026

Assets Measured at Fair Value on a Recurring Basis

Assets measured at fair value on a recurring basis are outlined below, summarized by fair value hierarchy (dollars in thousands):


	June 30, 2026
	Total		Level 1		Level 2		Level 3
Investment securities, available-for-sale:
U.S. Government agency securities	$	22,524	$	—	$	22,524	$	—
Asset-backed securities	226,569		—		226,569		—
Obligations of states and political subdivisions	31,307		—		31,307		—
Residential mortgage-backed securities	434,913		—		434,913		—
Collateralized mortgage obligation securities	51,512		—		51,512		—
Commercial mortgage-backed securities	848,065		—		848,065		—
Total investment securities, available-for-sale	1,614,890		—		1,614,890		—
Commercial loans, at fair value	114,162		—		—		114,162
Credit enhancement asset	30,733		—		30,733		—
	$	1,759,785	$	—	$	1,645,623	$	114,162


	December 31, 2025
	Total		Level 1		Level 2		Level 3
Investment securities, available-for-sale:
U.S. Government agency securities	$	25,109	$	—	$	25,109	$	—
Asset-backed securities	234,101		—		234,101		—
Obligations of states and political subdivisions	28,563		—		28,563		—
Residential mortgage-backed securities	464,323		—		464,323		—
Collateralized mortgage obligation securities	57,580		—		57,580		—
Commercial mortgage-backed securities	862,074		—		862,074		—
Total investment securities, available-for-sale	1,671,750		—		1,671,750		—
Commercial loans, at fair value	139,389		—		—		139,389
Credit enhancement asset	31,138		—		31,138		—
	$	1,842,277	$	—	$	1,702,888	$	139,389

Changes in Company's Level 3 Assets

Activity in Level 3 Commercial loans at fair value is summarized below (dollars in thousands):


	Six Months Ended June 30,
	2026		2025
Beginning balance	$	139,389	$	223,115
Total net gains (realized/unrealized) included in earnings(1)	136		705
Purchases, advances, sales and settlements:
Advances	133		2,953
Settlements	(25,496)		(41,297)
Ending balance	$	114,162	$	185,476

Amount included in earnings attributable to the change in unrealized gains (losses) related to assets still held at period end	$	—	$	—

(1)For commercial loans at fair value, gains or losses are recognized in Non-interest income—Net realized and unrealized gains on commercial loans, at fair value in the Condensed Consolidated Statement of Operations.

Fair Value Inputs, Assets, Quantitative Information

Information related to assumptions used in the valuation of Level 3 instruments is as follows:


	Discount Rate Assumption
	At June 30, 2026				At December 31, 2025
	Range		Weighted average		Range		Weighted average
Commercial loans, at fair value:
Commercial - SBA	5.71	%	5.71	%	5.73	%	5.73	%
Non-SBA commercial real estate	8.50	%	8.50	%	6.50%-8.98%		6.94	%

Carrying Amount and Estimated Fair Value of Assets and Liabilities

The following tables provide information regarding carrying amounts and estimated fair values of all the Company’s financial instruments (dollars in thousands):


	June 30, 2026
			Fair Value
	Carrying amount		Total Fair Value		Level 1		Level 2		Level 3
ASSETS:
Investment securities, available-for-sale	$	1,614,890	$	1,614,890	$	—	$	1,614,890	$	—
Commercial loans, at fair value	114,162		114,162		—		—		114,162
Loans, net of deferred loan fees and costs	7,073,906		7,046,464		—		—		7,046,464
Stock in Federal Reserve, Federal Home Loan and Atlantic Central Bankers Banks	50,115		50,115		—		—		50,115
Accrued interest receivable	43,342		43,342		—		43,342		—
Credit enhancement asset	30,733		30,733		—		30,733		—
LIABILITIES:
Deposits
Demand and interest checking	$	7,353,151	$	7,353,151	$	—	$	7,353,151	$	—
Savings and money market	123,051		123,051		—		123,051		—
Short-term borrowings	744,000		744,000		—		744,000		—
Senior debt	196,528		204,262		—		204,262		—
Subordinated debentures	13,401		9,668		—		—		9,668
Other long-term borrowings	4,327		4,327		—		4,327		—
Other liabilities: Accrued interest payable	5,457		5,457		—		5,457		—


	December 31, 2025
			Fair Value
	Carrying amount		Total Fair Value		Level 1		Level 2		Level 3
ASSETS:
Investment securities, available-for-sale	$	1,671,750	$	1,671,750	$	—	$	1,671,750	$	—
Commercial loans, at fair value	139,389		139,389		—		—		139,389
Loans, net of deferred loan fees and costs	7,116,676		7,073,348		—		—		7,073,348
Stock in Federal Reserve, Federal Home Loan and Atlantic Central Bankers Banks	25,205		25,205		—		—		25,205
Accrued interest receivable	43,090		43,090		—		43,090		—
Credit enhancement asset	31,138		31,138		—		31,138		—
LIABILITIES:
Deposits
Demand and interest checking	$	7,827,037	$	7,827,037	$	—	$	7,827,037	$	—
Savings and money market	338,459		338,459		—		338,459		—
Short-term borrowings	199,000		199,000		—		199,000		—
Senior debt	196,253		202,503		—		202,503		—
Subordinated debentures	13,401		11,220		—		—		11,220
Other long-term borrowings	13,712		13,712		—		13,712		—
Other liabilities: Accrued interest payable	6,802		6,802		—		6,802		—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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