Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Fair value of assets and liabilities

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 basis at the dates indicated.



	Fair Value				Valuation Technique
	At December 31, 2019		At December 31, 2018
	(Dollars in Thousands)
Collateral-dependent impaired loans and leases	$	2,243	$	11,451	Appraisal of collateral ⁽¹⁾
Other real estate owned	—		3,054		Appraisal of collateral ⁽¹⁾

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⁽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.

Summary of the carrying values and estimated fair values

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, restricted equity securities, 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. There were no transfers between levels during 2019.



					Fair Value Measurements
	Carrying Value		Estimated Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
	(In Thousands)
At December 31, 2019
Financial assets:
Investment securities held-to-maturity:
GSE debentures	$	31,228	$	31,290	$	—	$	31,290	$	—
GSE MBSs	9,360		9,279		—		9,279		—
Municipal obligations	45,692		46,514		—		46,514		—
Foreign government obligations	500		478		—		—		478
Loans and leases, net	6,676,734		6,697,583		—		—		6,697,583
Restricted equity securities	53,818		53,818		—		—		53,818
Financial liabilities:
Certificates of deposit	2,021,642		2,026,683		—		2,026,683		—
Borrowed funds	902,749		902,670		—		902,670		—
At December 31, 2018
Financial assets:
Investment securities held-to-maturity:
GSE debentures	$	50,546	$	49,601	$	—	$	49,601	$	—
GSE MBSs	11,426		11,131		—		11,131		—
Municipal obligations	52,304		51,598		—		51,598		—
Foreign government obligations	500		500		—		—		500
Loans held-for-sale	3,247		3,247		—		3,247		—
Loans and leases, net	6,244,824		6,154,704		—		—		6,154,704
Restricted equity securities	61,751		61,751		—		—		61,751
Financial liabilities:
Certificates of deposit	1,789,165		1,778,860		—		1,778,860		—
Borrowed funds	920,542		886,545		—		886,545		—

Recurring basis

Fair value of assets and liabilities

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

The following table set forth the carrying value of assets and liabilities measured at fair value on a recurring basis at December 31, 2019 and 2018:



	Carrying Value as of December 31, 2019
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Investment securities available-for-sale:
Debt securities:
GSE debentures	$	—	$	185,803	$	—	$	185,803
GSE CMOs	—		85,932		—		85,932
GSE MBSs	—		153,343		—		153,343
SBA commercial loan asset-backed securities	—		34		—		34
Corporate debt obligations	—		28,986		—		28,986
U.S. Treasury bonds	—		44,897		—		44,897
Total investment securities available-for-sale	$	—	$	498,995	$	—	$	498,995
Equity securities held-for-trading	$	2,569	$	1,012	$	—	$	3,581
Loan level derivatives	—		59,365		—		59,365
Risk participation-out agreements	—		1,229		—		1,229
Foreign exchange contracts	—		54		—		54
Liabilities:
Loan level derivatives	$	—	$	59,365	$	—	$	59,365
Risk participation-in agreements	—		283		—		283
Foreign exchange contracts	—		53		—		53



	Carrying Value as of December 31, 2018
	Level 1		Level 2		Level 3		Total
	(In Thousands)
Assets:
Investment securities available-for-sale:
Debt securities:
GSE debentures	$	—	$	181,079	$	—	$	181,079
GSE CMOs	—		103,130		—		103,130
GSE MBSs	—		165,089		—		165,089
SBA commercial loan asset-backed securities	—		51		—		51
Corporate debt obligations	—		39,708		—		39,708
U.S. Treasury bonds	—		13,736		—		13,736
Total investment securities available-for-sale	$	—	$	502,793	$	—	$	502,793
Equity securities held for trading	$	3,235	$	972	$	—	$	4,207
Loan level derivatives	—		22,013		—		22,013
Risk participation-out agreements	—		344		—		344
Foreign exchange contracts	—		131		—		131
Liabilities:
Loan level derivatives	$	—	$	22,013	$	—	$	22,013
Risk participation-in agreements	—		84		—		84
Foreign exchange contracts	—		123		—		123

Nonrecurring basis

Fair value of assets and liabilities

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

Assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2019 and 2018 are summarized below:



	Carrying Value as of December 31, 2019
	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	$	—	$	—	$	2,243	$	2,243
Repossessed assets	—		2,631		—		2,631
Total assets measured at fair value on a non-recurring basis	$	—	$	2,631	$	2,243	$	4,874



	Carrying Value as of December 31, 2018
	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	$	—	$	—	$	11,451	$	11,451
OREO	—		—		3,054		3,054
Repossessed assets	—		965		—		965
Total assets measured at fair value on a non-recurring basis	$	—	$	965	$	14,505	$	15,470