Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2020

Summary Of Assets And Liabilities Measured At Fair Value On A Recurring Basis

The table below presents the June 30, 2020 and December 31, 2019 carrying values of assets and liabilities measured at fair value on a recurring basis. There were no transfers among levels during the first six months of 2020 or the year ended December 31, 2019.


			Fair Value Measurements Using
(In thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2020
Assets:
Residential mortgage loans held for sale	$	6,854	$	—	$	6,854	$	—
Available for sale debt securities:
U.S. government and federal agency obligations	826,494		826,494		—		—
Government-sponsored enterprise obligations	109,883		—		109,883		—
State and municipal obligations	1,448,952		—		1,439,462		9,490
Agency mortgage-backed securities	5,382,187		—		5,382,187		—
Non-agency mortgage-backed securities	600,196		—		600,196		—
Asset-backed securities	1,448,225		—		1,448,225		—
Other debt securities	501,490		—		501,490		—
Trading debt securities	28,813		—		28,813		—
Equity securities	2,711		2,711		—		—
Private equity investments	73,846		—		—		73,846
Derivatives *	269,010		—		266,028		2,982
Assets held in trust for deferred compensation plan	16,310		16,310		—		—
Total assets	10,714,971		845,515		9,783,138		86,318
Liabilities:
Derivatives *	21,373		—		20,279		1,094
Liabilities held in trust for deferred compensation plan	16,310		16,310		—		—
Total liabilities	$	37,683	$	16,310	$	20,279	$	1,094
December 31, 2019
Assets:
Residential mortgage loans held for sale	$	9,181	$	—	$	9,181	$	—
Available for sale debt securities:
U.S. government and federal agency obligations	851,776		851,776		—		—
Government-sponsored enterprise obligations	139,277		—		139,277		—
State and municipal obligations	1,267,927		—		1,258,074		9,853
Agency mortgage-backed securities	3,937,964		—		3,937,964		—
Non-agency mortgage-backed securities	809,782		—		809,782		—
Asset-backed securities	1,233,489		—		1,233,489		—
Other debt securities	331,411		—		331,411		—
Trading debt securities	28,161		—		28,161		—
Equity securities	2,929		2,929		—		—
Private equity investments	94,122		—		—		94,122
Derivatives *	105,674		—		105,075		599
Assets held in trust for deferred compensation plan	16,518		16,518		—		—
Total assets	8,828,211		871,223		7,852,414		104,574
Liabilities:
Derivatives *	10,219		—		9,989		230
Liabilities held in trust for deferred compensation plan	16,518		16,518		—		—
Total liabilities	$	26,737	$	16,518	$	9,989	$	230

* The fair value of each class of derivative is shown in Note 11.

Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(In thousands)	State and Municipal Obligations		Private Equity Investments		Derivatives		Total
For the three months ended June 30, 2020
Balance March 31, 2020	$	8,362	$	81,159	$	(557)	$	88,964
Total gains or losses (realized/unrealized):
Included in earnings	—		(7,497)		2,814		(4,683)
Included in other comprehensive income *	1,123		—		—		1,123

Discount accretion	5		—		—		5
Purchases of private equity investments	—		155		—		155

Capitalized interest/dividends	—		29		—		29

Sale of risk participation agreements	—		—		(369)		(369)
Balance June 30, 2020	$	9,490	$	73,846	$	1,888	$	85,224
Total gains or losses for the three months included in earnings attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2020	$	—	$	(7,497)	$	2,815	$	(4,682)
Total gains or losses for the three months included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2020	$	1,123	$	—	$	—	$	1,123
For the six months ended June 30, 2020
Balance January 1, 2020	$	9,853	$	94,122	$	369	$	104,344
Total gains or losses (realized/unrealized):
Included in earnings	—		(20,505)		2,328		(18,177)
Included in other comprehensive income *	(372)		—		—		(372)

Discount accretion	9		—		—		9
Purchases of private equity investments	—		269		—		269
Sale/pay down of private equity investments	—		(69)		—		(69)
Capitalized interest/dividends	—		29		—		29

Sale of risk participation agreement	—		—		(809)		(809)
Balance June 30, 2020	$	9,490	$	73,846	$	1,888	$	85,224
Total gains or losses for the six months included in earnings attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2020	$	—	$	(20,505)	$	2,759	$	(17,746)
Total gains or losses for the six months included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2020	$	(372)	$	—	$	—	$	(372)


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(In thousands)	State and Municipal Obligations		Private Equity Investments		Derivatives		Total
For the three months ended June 30, 2019
Balance March 31, 2019	$	14,529	$	85,877	$	805	$	101,211
Total gains or losses (realized/unrealized):
Included in earnings	—		(1,176)		125		(1,051)
Included in other comprehensive income *	(5)		—		—		(5)
Investment securities called	(2,920)		—		—		(2,920)
Discount accretion	37		—		—		37
Purchases of private equity investments	—		7,829		—		7,829
Sale/pay down of private equity investments	—		(6,150)		—		(6,150)
Capitalized interest/dividends	—		31		—		31
Purchase of risk participation agreement	—		—		26		26
Sale of risk participation agreement	—		—		(73)		(73)
Balance June 30, 2019	$	11,641	$	86,411	$	883	$	98,935
Total gains or losses for the three months included in earnings attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2019	$	—	$	(1,176)	$	962	$	(214)

For the six months ended June 30, 2019
Balance January 1, 2019	$	14,158	$	85,659	$	490	$	100,307
Total gains or losses (realized/unrealized):
Included in earnings	—		(3,018)		440		(2,578)
Included in other comprehensive income *	359		—		—		359
Investment securities called	(2,920)		—		—		(2,920)
Discount accretion	44		—		—		44
Purchases of private equity investments	—		9,889		—		9,889
Sale/pay down of private equity investments	—		(6,150)		—		(6,150)
Capitalized interest/dividends	—		31		—		31
Purchase of risk participation agreement	—		—		26		26
Sale of risk participation agreement	—		—		(73)		(73)
Balance June 30, 2019	$	11,641	$	86,411	$	883	$	98,935
Total gains or losses for the six months included in earnings attributable to the change in unrealized gains or losses relating to assets still held at June 30, 2019	$	—	$	(4,468)	$	990	$	(3,478)

* Included in "net unrealized gains (losses) on other securities" in the consolidated statements of comprehensive income.

Summary Of Gains And Losses On Level 3 Assets And Liabilities

Gains and losses included in earnings for the Level 3 assets and liabilities in the previous table are reported in the following line items in the consolidated statements of income:


(In thousands)	Loan Fees and Sales		Other Non-Interest Income		Investment Securities Gains (Losses), Net		Total
For the three months ended June 30, 2020
Total gains or losses included in earnings	$	2,547	$	267	$	(7,497)	$	(4,683)
Change in unrealized gains or losses relating to assets still held at June 30, 2020	$	2,547	$	268	$	(7,497)	$	(4,682)
For the six months ended June 30, 2020
Total gains or losses included in earnings	$	2,088	$	240	$	(20,505)	$	(18,177)
Change in unrealized gains or losses relating to assets still held at June 30, 2020	$	2,547	$	212	$	(20,505)	$	(17,746)
For the three months ended June 30, 2019
Total gains or losses included in earnings	$	112	$	13	$	(1,176)	$	(1,051)
Change in unrealized gains or losses relating to assets still held at June 30, 2019	$	935	$	27	$	(1,176)	$	(214)
For the six months ended June 30, 2019
Total gains or losses included in earnings	$	399	$	41	$	(3,018)	$	(2,578)
Change in unrealized gains or losses relating to assets still held at June 30, 2019	$	935	$	55	$	(4,468)	$	(3,478)

Summary Of Quantitative Information About Level 3 Fair Value Measurements

The Company's significant Level 3 measurements, which employ unobservable inputs that are readily quantifiable, pertain to auction rate securities (ARS), investments in portfolio concerns held by the Company's private equity subsidiaries, and held for sale residential mortgage loan commitments. ARS are included in state and municipal securities and totaled $9.5 million at June 30, 2020, while private equity investments, included in other securities, totaled $73.8 million.

Information about these inputs is presented in the table below.


Quantitative Information about Level 3 Fair Value Measurements								Weighted
	Valuation Technique	Unobservable Input	Range				Average*
Auction rate securities	Discounted cash flow	Estimated market recovery period			5 years	5 years
		Estimated market rate	2.6%	-	3.1%	2.6%
Private equity investments	Market comparable companies	EBITDA multiple	4.0	-	6.0	5.3
Mortgage loan commitments	Discounted cash flow	Probability of funding	44.6%	-	99.7%	81.1%
		Embedded servicing value	—%	-	1.4%	0.9%

* Unobservable inputs were weighted by the relative fair value of the instruments.

Schedule Of Fair Value Disclosures Measured On Nonrecurring Basis [Table Text Block]

For assets measured at fair value on a nonrecurring basis during the first six months of 2020 and 2019, and still held as of June 30, 2020 and 2019, the following table provides the adjustments to fair value recognized during the respective periods, the level of valuation inputs used to determine each adjustment, and the carrying value of the related individual assets or portfolios at June 30, 2020 and 2019.


			Fair Value Measurements Using
(In thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) Recognized During the Six Months Ended June 30
June 30, 2020
Collateral dependent impaired loans	$	12,066	$	—	$	—	$	12,066	$	(3,079)

Mortgage servicing rights	5,625		—		—		5,625		(1,851)

Long-lived assets	348		—		—		348		(5)

June 30, 2019
Collateral dependent impaired loans	$	135	$	—	$	—	$	135	$	(58)

Mortgage servicing rights	6,730		—		—		6,730		(309)

Long-lived assets	820		—		—		820		(318)

Information about Level Three Fair Value Measurements - Nonrecurring Basis

The Company's significant Level 3 measurements that are measured on a nonrecurring basis pertain to the Company's mortgage servicing rights retained on certain fixed rate personal real estate loan originations. Mortgage servicing rights are included in other assets on the consolidated balance sheet and totaled $5.6 million at June 30, 2020. Information about these inputs is presented in the table below.


Quantitative Information about Level 3 Fair Value Measurements														Weighted
	Valuation Technique	Unobservable Input	Range										Average*
Mortgage servicing rights	Discounted cash flow	Discount rate	9.15		%	-	9.37		%	9.31		%
		Prepayment speeds (CPR)*	13.08		%	-	14.29		%	14.10		%
		Loan servicing costs - annually per loan
		Performing loans	$	71		-	$	73		$	73
		Delinquent loans	$	200		-	$	750
		Loans in foreclosure	$	1,000

*Ranges and weighted averages based on interest rate tranches.