XML 46 R34.htm IDEA: XBRL DOCUMENT

Fair Value (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value, Assets Measured on Recurring Basis

The following table provides the fair value for assets and liabilities required to be measured at fair value on a recurring basis in the Consolidated Statements of Financial Condition by level in the fair value hierarchy.

Recurring Fair Value Measurements

(Dollar amounts in thousands)


	As of September 30, 2020						As of December 31, 2019
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Equity securities	$	25,400	$	24,621	$	—	$	23,703	$	13,400	$	—
Securities available-for-sale
U.S. treasury securities	14,127		—		—		34,075		—		—
U.S. agency securities	—		659,291		—		—		248,424		—
CMOs	—		1,564,983		—		—		1,557,671		—
MBSs	—		640,201		—		—		684,684		—
Municipal securities	—		236,800		—		—		234,431		—

Corporate debt securities	—		164,482		—		—		114,101		—
Total securities available-for-sale	14,127		3,265,757		—		34,075		2,839,311		—
Mortgage servicing rights ("MSRs")(1)	—		—		4,458		—		—		5,858
Derivative assets(1)	—		177,790		—		—		62,436		—
Liabilities
Derivative liabilities(2)	$	—	$	51,516	$	—	$	—	$	18,535	$	—

(1)Included in other assets in the Consolidated Statements of Financial Condition.

(2)Included in other liabilities in the Consolidated Statements of Financial Condition.

Significant Unobservable Inputs Used in the Valuation of MSRs

The following table presents the ranges of significant, unobservable inputs used by the Company to determine the fair value of MSRs as of September 30, 2020 and December 31, 2019.

Significant Unobservable Inputs Used in the Valuation of MSRs


	As of
	September 30, 2020				December 31, 2019
Prepayment speed	6.7	%	-	15.5%	6.7	%	-	12.0%
Maturity (months)	14		-	71	18		-	94
Discount rate	9.4	%	-	12.0%	9.3	%	-	12.0%

Schedule of Servicing Assets at Fair Value

A rollforward of the carrying value of MSRs for the quarters and nine months ended September 30, 2020 and 2019 is presented in the following table.

Carrying Value of MSRs

(Dollar amounts in thousands)


	Quarters Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Beginning balance	$	4,464	$	5,831	$	5,858	$	6,730

New MSRs	727		404		1,628		861
Total gains (losses) included in earnings(1):
Changes in valuation inputs and assumptions	(432)		(284)		(2,090)		(1,273)
Other changes in fair value(2)	(301)		(269)		(938)		(636)
Ending balance(3)	$	4,458	$	5,682	$	4,458	$	5,682
Contractual servicing fees earned(1)	$	424	$	404	$	1,221	$	1,175

(1)Included in mortgage banking income in the Condensed Consolidated Statements of Income and related to assets held as of September 30, 2020 and 2019.

(2)Primarily represents changes in expected future cash flows due to payoffs and paydowns.

(3)Included in other assets in the Consolidated Statements of Financial Condition.

Fair Value Measurements, Nonrecurring

The following table provides the fair value for each class of assets and liabilities required to be measured at fair value on a non-recurring basis in the Consolidated Statements of Financial Condition by level in the fair value hierarchy.

Non-Recurring Fair Value Measurements

(Dollar amounts in thousands)


	As of September 30, 2020						As of December 31, 2019
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Collateral-dependent non-accrual loans(1)	$	—	$	—	$	57,322	$	—	$	—	$	41,326
OREO(2)	—		—		530		—		—		3,325
Loans held-for-sale(3)	—		—		86,323		—		—		36,032
Assets held-for-sale(4)	—		—		4,280		—		—		6,824

(1)Includes non-accrual loans with charge-offs and non-accrual loans with a specific allowance during the periods presented.

(2)Includes OREO with fair value adjustments subsequent to initial transfer that occurred during the periods presented.

(3)Included in other assets in the Consolidated Statements of Financial Condition.

(4)Included in premises, furniture, and equipment in the Consolidated Statements of Financial Condition.

Fair Value, by Balance Sheet Grouping

For certain financial instruments that are not required to be measured at fair value in the Consolidated Statements of Financial Condition, the Company must disclose the estimated fair values and the level within the fair value hierarchy as shown in the following table.

Fair Value Measurements of Other Financial Instruments

(Dollar amounts in thousands)


		As of
		September 30, 2020				December 31, 2019
	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets
Cash and due from banks	1	$	254,212	$	254,212	$	214,894	$	214,894
Interest-bearing deposits in other banks	2	936,528		936,528		84,327		84,327
Securities held-to-maturity	2	22,193		22,332		21,997		21,234
FHLB and FRB stock	2	138,120		138,120		115,409		115,409
Loans	3	14,414,140		14,435,555		12,733,200		12,535,848
Investment in BOLI	3	300,429		300,429		296,351		296,351
Accrued interest receivable	3	66,647		66,647		59,716		59,716

Liabilities
Deposits	2	$	15,771,573	$	15,778,878	$	13,251,278	$	13,247,871
Borrowed funds	2	1,957,180		1,957,180		1,658,758		1,658,758
Senior and subordinated debt	2	234,563		279,846		233,948		277,203
Accrued interest payable	2	5,122		5,122		10,502		10,502