v3.26.1
Fair Value Measurements and Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Schedule of Credit-Linked Notes for Fair Value Option
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 June 30,Six Months Ended June 30,
Credit-Linked Notes2026202520262025
(In thousands)
Changes in fair value - gains included in earnings$112 $(637)$206 $(155)
Changes in fair value - other comprehensive (loss) income $(106)$(517)$(217)$(371)
Schedule of Credit-Linked Notes Carried
The following table provides information about the credit-linked notes carried at fair value as of the dates indicated:
Credit-Linked NotesJune 30, 2026December 31, 2025
(In thousands)
Carrying value reported on the consolidated balance sheets$110,363 $113,634 
Aggregate unpaid principal balance in excess of fair value$1,209 $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 June 30, 2026
Measured on a Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Securities AFS:
Agency residential MBS$788,640 $— $788,640 $— 
U.S. Treasury securities223,475 223,475 — — 
Agency commercial MBS149,572 — 149,572 — 
Agency residential CMOs2,599,212 — 2,599,212 — 
Corporate debt securities237,864 — 230,964 6,900 
Private label residential CMOs262,028 — 262,028 — 
Collateralized loan obligations200,500 — 200,500 — 
Private label commercial MBS7,511 — 7,511 — 
Asset-backed securities12,181 — 12,181 — 
SBA securities3,038 — 3,038 — 
Total securities AFS$4,484,021 $223,475 $4,253,646 $6,900 
Equity investments with readily determinable fair values$2,159 $2,159 $— $— 
Derivatives (1):
Derivative assets
Cash flow hedges5,253 — 5,253 — 
Interest rate and foreign exchange contracts4,546 — 4,546 — 
Equity warrants 3,326 — — 3,326 
Derivative liabilities
Cash flow hedges3,617 — 3,617 — 
Interest rate and foreign exchange contracts4,406 — 4,406 — 
Credit-linked notes110,363 — — 110,363 
___________________
(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".
Schedule of Quantitative Inputs and Assumptions
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 June 30, 2026
Input or Range
Weighted Average
Unobservable Inputsof Inputs
Input (1)
Spread to 10 Year Treasury
(0.2)% - 41.9%
8.3%
Discount rates
4.3% - 13.3%
12.8%
____________________
(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 June 30, 2026
RangeWeighted Average
Unobservable Inputsof Inputs
Input (1)
Volatility (1)
24.1% - 1,327.4%
24.7%
Risk-free interest rate
3.7% - 4.2%
4.1%
Remaining life assumption (in years)
0.08 - 4.95
3.17 years
____________________
(1)    Unobservable inputs for equity warrants were weighted by the relative fair values of the instruments.
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:
June 30, 2026
ValuationUnobservable
Asset
Fair Value
TechniqueInputs
(In thousands)
Individually evaluated loans and leases34,325Third-party appraisalNo discounts
Total non-recurring Level 3$34,325
Summary of Level 3 Asset Activity
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— 1,834 (206)
Total included in other comprehensive income 30 — 217 
Issuances— 204 — 
Principal payments— — (3,282)
Transfer from Level 24,500 — — 
Exercises and settlements — (591)— 
Transfers to Level 1 (equity investments with readily determinable fair values)— (1,558)— 
Balance, June 30, 2026$6,900 $3,326 $110,363 
Unrealized net gain for the period included in other
comprehensive income for securities held at quarter-end$30 
Summary of Level 3 Liabilities Activity
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— 1,834 (206)
Total included in other comprehensive income 30 — 217 
Issuances— 204 — 
Principal payments— — (3,282)
Transfer from Level 24,500 — — 
Exercises and settlements — (591)— 
Transfers to Level 1 (equity investments with readily determinable fair values)— (1,558)— 
Balance, June 30, 2026$6,900 $3,326 $110,363 
Unrealized net gain for the period included in other
comprehensive income for securities held at quarter-end$30 
Schedule of Assets Measured at Fair Value on Non-Recurring 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 June 30, 2026
Measured on a Nonrecurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Individually evaluated loans and leases $54,493 $— $20,168 $34,325 
OREO21 — 21 — 
Total non-recurring$54,514 $— $20,189 $34,325 

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 
Schedule of Losses Recognized on Assets
The following table presents losses recognized on assets measured on a nonrecurring basis for the periods indicated:
Three Months Ended June 30,Six Months Ended June 30,
Loss on Assets Measured on a Non‑Recurring Basis2026202520262025
(In thousands)
Individually evaluated loans and leases$13,216 $490 $15,494 $1,394 
OREO6 367 6 424 
Total losses$13,222 $857 $15,500 $1,818 
Schedule of Carrying Amounts and Estimated Fair Values
The following tables present carrying amounts and estimated fair values of certain financial instruments as of the dates indicated:
June 30, 2026
Carrying
Estimated Fair Value
AmountTotalLevel 1Level 2Level 3
(In thousands)
Financial Assets:
Cash and due from banks$225,343 $225,343 $225,343 $— $— 
Interest-earning deposits in financial institutions2,592,712 2,592,712 2,592,712 — — 
Securities AFS4,484,021 4,484,021 223,475 4,253,646 6,900 
Investment in FRB and FHLB stock181,352 181,352 — 181,352 — 
Loans HFS915,171 915,324 — 915,324 — 
Loans and leases HFI, net23,967,527 22,955,046 — 20,168 22,934,878 
Equity investments with readily determinable fair values2,159 2,159 2,159 — — 
Equity warrants3,326 3,326 — — 3,326 
Cash flow hedges5,253 5,253 — 5,253 — 
Interest rate and foreign exchange contracts4,546 4,546 — 4,546 — 
Servicing rights190 190 — — 190 
Financial Liabilities:
Demand, checking, money market, and savings deposits23,468,565 23,468,565 — 23,468,565 — 
Time deposits4,652,617 4,638,194 — 4,638,194 — 
Borrowings2,460,363 2,459,613 — 2,349,250 110,363 
Subordinated debt573,555 575,837 — 575,837 — 
Cash flow hedges3,617 3,617 — 3,617 — 
Interest rate and foreign exchange contracts4,406 4,406 — 4,406 — 
December 31, 2025
Carrying
Estimated Fair Value
AmountTotalLevel 1Level 2Level 3
(In thousands)
Financial Assets:
Cash and due from banks$181,103 $181,103 $181,103 $— $— 
Interest-earning deposits in financial institutions2,126,862 2,126,862 2,126,862 — — 
Securities AFS2,454,058 2,454,058 — 2,451,688 2,370 
Securities HTM2,308,636 2,246,526 185,088 2,057,189 4,249 
Investment in FRB and FHLB stock160,442 160,442 — 160,442 — 
Loans HFS182,936 183,083 — 183,083 — 
Loans and leases HFI, net24,787,067 23,871,794 — 48,401 23,823,393 
Equity investments with readily determinable fair values2 2 2 — — 
Equity warrants3,437 3,437 — — 3,437 
Interest rate and foreign exchange contracts4,124 4,124 — 4,124 — 
Servicing rights17,480 19,427 — — 19,427 
Financial Liabilities:
Demand, checking, money market, and savings deposits23,156,094 23,156,094 — 23,156,094 — 
Time deposits4,687,263 4,684,099 — 4,684,099 — 
Borrowings2,063,819 2,069,076 275,185 1,680,257 113,634 
Subordinated debt952,740 934,819 — 934,819 — 
Cash flow hedges4,065 4,065 — 4,065 — 
Interest rate and foreign exchange contracts4,156 4,156 — 4,156 —