Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value on a recurring basis

The following tables set forth the carrying value of assets and liabilities measured at fair value on a recurring basis at the dates indicated:

	Carrying Value at September 30, 2016
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Investment securities available-for-sale:
Debt securities:
GSEs debentures	$	—	$	66,339	$	—	$	66,339
GSE CMOs	—		172,805		—		172,805
GSE MBSs	—		233,423		—		233,423
SBA commercial loan asset-backed securities	—		111		—		111
Corporate debt obligations	—		49,304		—		49,304
Trust preferred securities	—		1,313		—		1,313
Total debt securities	—		523,295		—		523,295
Marketable equity securities	1,000		—		—		1,000
Total investment securities available-for-sale	$	1,000	$	523,295	$	—	$	524,295
Interest-rate swaps	$	—	$	24,790	$	—	$	24,790
Liabilities:
Interest-rate swaps	$	—	$	24,790	$	—	$	24,790

	Carrying Value at December 31, 2015
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Investment securities available-for-sale:
Debt securities:
GSEs debentures	$	—	$	40,627	$	—	$	40,627
GSE CMOs	—		193,816		—		193,816
GSE MBSs	—		229,881		—		229,881
SBA commercial loan asset-backed securities	—		147		—		147
Corporate debt obligations	—		46,486		—		46,486
Trust preferred securities	—		1,267		—		1,267
Total debt securities	—		512,224		—		512,224
Marketable equity securities	977		—		—		977
Total investment securities available-for-sale	$	977	$	512,224	$	—	$	513,201
Interest-rate swaps	$	—	$	8,656	$	—	$	8,656
Liabilities:
Interest-rate swaps	$	—	$	8,781	$	—	$	8,781

Summary of assets and liabilities measured at fair value on a non-recurring basis

The tables below summarize assets and liabilities measured at fair value on a non-recurring basis at the dates indicated:

	Carrying Value at September 30, 2016
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets measured at fair value on a non-recurring basis:
Collateral-dependent impaired loans and leases	$	—	$	—	$	33,414	$	33,414
OREO	—		—		367		367
Repossessed assets	—		785		—		785
Total assets measured at fair value on a non-recurring basis	$	—	$	785	$	33,781	$	34,566

	Carrying Value at December 31, 2015
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets measured at fair value on a non-recurring basis:
Collateral-dependent impaired loans and leases	$	—	$	—	$	12,137	$	12,137
OREO	—		—		729		729
Repossessed assets	—		614		—		614
Total assets measured at fair value on a non-recurring basis	$	—	$	614	$	12,866	$	13,480

Schedule of quantitative information about significant unobservable inputs (Level 3) for assets measured at fair value on a recurring basis

The table below presents quantitative information about significant unobservable inputs (Level 3) for assets measured at fair value on a recurring and non-recurring basis at the dates indicated.

	Fair Value				Valuation Technique
	At September 30, 2016		At December 31, 2015
	(Dollars in Thousands)
Collateral-dependent impaired loans and leases	$	33,414	$	12,137	Appraisal of collateral (1)
Other real estate owned	$	367	$	729	Appraisal of collateral (1)

(1) Fair value is generally determined through independent appraisals of the underlying collateral. The Company may also use another available source of collateral assessment to determine a reasonable estimate of the fair value of the collateral. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of the unobservable inputs used may vary but is generally 0% - 10% on the discount for costs to sell and 0% - 15% on appraisal adjustments.

Schedule of carrying amount, estimated fair value, and placement in the fair value hierarchy for financial instruments

The following table presents the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company’s financial instruments at the dates indicated. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, FHLBB and FRB stock, and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings, and accrued interest payable.

					Fair Value Measurements
	Carrying Value		Estimated Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
	(In Thousands)
At September 30, 2016
Financial assets:
Investment securities held-to-maturity:
GSEs debentures	$	14,734	$	14,705	$	—	$	14,705	$	—
GSE MBSs	18,710		18,752		—		18,752		—
Municipal obligations	43,150		44,131		—		44,131		—
Foreign government obligations	500		491		—		—		491
Loans held-for-sale	21,109		21,109		—		21,109		—
Loans and leases, net	5,273,408		5,206,031		—		—		5,206,031
Financial liabilities:
Certificates of deposit	1,106,046		1,115,664		—		1,115,664		—
Borrowed funds	1,022,653		1,027,986		—		1,027,986		—
At December 31, 2015
Financial assets:
Investment securities held-to-maturity:
GSE debentures	$	34,915	$	34,819	$	—	$	34,819	$	—
GSE MBSs	19,291		18,986		—		18,986		—
Municipal obligations	39,051		39,390		—		39,390		—
Foreign government obligations	500		500		—		—		500
Loans held-for-sale	13,383		13,383		—		13,383		—
Loans and leases, net	4,938,801		4,857,060		—		—		4,857,060
Financial liabilities:
Certificates of deposit	1,087,872		1,091,906		—		1,091,906		—
Borrowed funds	983,029		981,349		—		981,349		—