v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Note 8    Fair Value Measurements
Assets and liabilities measured at fair value on a recurring basis
The following is a description of the methodologies used to estimate the fair values of assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which those measurements are typically classified.
Investment securities available for sale and marketable equity securities—Fair value measurements are based on quoted prices in active markets when available; these measurements are classified within level 1 of the fair value hierarchy. These securities typically include U.S. Treasury securities and certain preferred stocks. If quoted prices in active markets are not available, fair values are estimated using quoted prices of securities with similar characteristics, quoted prices of identical securities in less active markets, discounted cash flow techniques, or matrix pricing models. These securities are generally classified within level 2 of the fair value hierarchy and typically include all categories of investment securities not classified within level 1 of the hierarchy. Pricing of these securities is generally primarily spread driven. Observable inputs that may impact the valuation of these securities include benchmark yield curves, credit spreads, reported trades, dealer quotes, bids, issuer spreads, current rating, historical constant prepayment rates, historical voluntary prepayment rates, structural and waterfall features of individual securities, published collateral data, and for certain securities, historical constant default rates and default severities.
The Company uses third-party pricing services in determining fair value measurements for investment securities. To obtain an understanding of the methodologies and assumptions used, management reviews written documentation provided by the pricing services, conducts interviews with valuation desk personnel and reviews model results and detailed assumptions used to value selected securities as considered necessary. Management has established a robust price challenge process that includes a review by the treasury front office of all prices provided on a quarterly basis. Any price evidencing significant unexpected quarter-over-quarter fluctuations or deviations from expectations is challenged. The Company has also established a quarterly process whereby prices provided by its primary pricing service are validated by obtaining a price from a second external source for most securities in the portfolio. If considered necessary to resolve any discrepancies, a price will be obtained from an additional independent valuation source. The Company does not typically adjust the prices provided, other than through this established challenge process. The results of price challenges are subject to review by executive management. Any price discrepancies are resolved based on careful consideration of the assumptions and inputs employed by each of the pricing sources.
Derivative financial instruments—Fair values of interest rate derivatives are determined using widely accepted discounted cash flow modeling techniques. These discounted cash flow models use projections of future cash payments and receipts that are discounted at mid-market rates. Observable inputs that may impact the valuation of these instruments include benchmark swap rates and benchmark forward yield curves. These fair value measurements are generally classified within level 2 of the fair value hierarchy.
The following tables present assets and liabilities measured at fair value on a recurring basis at the dates indicated (in thousands):
June 30, 2026
Level 1Level 2Total
Investment securities available for sale:
U.S. Treasury securities$307,677 $— $307,677 
U.S. Government agency and sponsored enterprise residential MBS— 2,229,375 2,229,375 
U.S. Government agency and sponsored enterprise commercial MBS— 750,700 750,700 
Private label residential MBS and CMOs— 2,526,164 2,526,164 
Private label commercial MBS— 2,364,360 2,364,360 
Single family real estate-backed securities— 182,795 182,795 
Collateralized loan obligations— 772,056 772,056 
Non-mortgage asset-backed securities— 56,498 56,498 
State and municipal obligations— 69,703 69,703 
SBA securities— 52,534 52,534 
Marketable equity securities5,752 — 5,752 
Derivative assets— 62,172 62,172 
Total assets at fair value$313,429 $9,066,357 $9,379,786 
Derivative liabilities$— $(77,917)$(77,917)
Total liabilities at fair value$— $(77,917)$(77,917)
December 31, 2025
Level 1Level 2Total
Investment securities available for sale:
U.S. Treasury securities
$268,653 $— $268,653 
U.S. Government agency and sponsored enterprise residential MBS— 2,563,027 2,563,027 
U.S. Government agency and sponsored enterprise commercial MBS— 534,363 534,363 
Private label residential MBS and CMOs— 2,490,828 2,490,828 
Private label commercial MBS— 2,168,110 2,168,110 
Single family real estate-backed securities— 225,892 225,892 
Collateralized loan obligations— 780,944 780,944 
Non-mortgage asset-backed securities— 58,765 58,765 
State and municipal obligations— 109,520 109,520 
SBA securities— 57,815 57,815 
Marketable equity securities
5,734 — 5,734 
Derivative assets— 85,156 85,156 
Total assets at fair value$274,387 $9,074,420 $9,348,807 
Derivative liabilities$— $(79,816)$(79,816)
Total liabilities at fair value$— $(79,816)$(79,816)
Assets and liabilities measured at fair value on a non-recurring basis
The following is a description of the methodologies used to estimate the fair values of assets and liabilities that may be measured at fair value on a non-recurring basis, and the level within the fair value hierarchy in which those measurements are typically classified:
Collateral dependent loans and OREO—The carrying amount of collateral dependent loans is typically based on the fair value of the underlying collateral, which may be real estate, enterprise value or other business assets, less estimated costs to sell when repayment is expected to come from the sale of the collateral. The carrying value of OREO is initially measured based on the fair value of the real estate acquired in foreclosure and subsequently adjusted to the lower of cost or estimated fair value, less estimated cost to sell. Fair values of real estate collateral and OREO are typically based on third-party real estate appraisals which utilize market and income approaches to valuation incorporating both observable and unobservable inputs.
Fair value measurements related to collateral dependent loans and OREO are generally classified within level 3 of the fair value hierarchy.
The following table presents the net carrying value of assets classified within level 3 of the fair value hierarchy at the dates indicated, for which non-recurring changes in fair value were recorded during the period then ended (in thousands):
June 30, 2026December 31, 2025
Collateral dependent loans$74,984 $183,259 
OREO963 512 
$75,947 $183,771 
The following table presents the carrying value and fair value of financial instruments and the level within the fair value hierarchy in which those measurements are classified at the dates indicated (dollars in thousands):
June 30, 2026December 31, 2025
LevelCarrying ValueFair ValueCarrying ValueFair Value
Assets:
Cash and cash equivalents1$367,873 $367,873 $217,784 $217,784 
Investment securities 1/2$9,317,614 $9,317,614 $9,263,651 $9,263,651 
Non-marketable equity securities2$144,652 $144,652 $140,684 $140,684 
Loans, net3$23,711,557 $23,394,467 $24,053,882 $23,707,267 
Derivative assets2$62,172 $62,172 $85,156 $85,156 
Liabilities:
Demand, savings and money market deposits2$26,512,467 $26,512,467 $25,464,221 $25,464,221 
Time deposits2$2,368,781 $2,361,568 $3,888,684 $3,887,392 
Federal funds purchased 2$265,000 $265,000 $— $— 
FHLB advances2$1,630,000 $1,629,994 $1,555,000 $1,555,021 
Notes and other borrowings2$318,936 $313,143 $319,740 $318,456 
Derivative liabilities2$77,917 $77,917 $79,816 $79,816