Fair Value Measurement of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Assets and Liabilities Measured at Fair Value on a Recurring and Non-Recurring Basis

The following tables present the assets and liabilities that are measured at fair value on a recurring and nonrecurring basis by level within the fair value hierarchy as reported on the consolidated statements of financial condition at September 30, 2018 and December 31, 2017. The assets presented under “nonrecurring fair value measurements” in the tables below are not measured at fair value on an ongoing basis but are subject to fair value adjustments under certain circumstances (e.g., when an impairment loss is recognized).



	September 30, 2018		Fair Value Measurements at Reporting Date Using:
	September 30, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Recurring fair value measurements:
Assets
Investment securities:
Available for sale:
U.S. Treasury securities	$	48,363	$	48,363	$	—	$	—
U.S. government agency securities	36,513		—		36,513		—
Obligations of states and political subdivisions	205,237		—		205,237		—
Residential mortgage-backed securities	1,412,849		—		1,406,671		6,178
Trust preferred securities	1,590		—		1,590		—
Corporate and other debt securities	44,449		7,587		36,862		—
Total available for sale	1,749,001		55,950		1,686,873		6,178
Loans held for sale ⁽¹⁾	31,675		—		31,675		—
Other assets ⁽²⁾	28,539		—		28,539		—
Total assets	$	1,809,215	$	55,950	$	1,747,087	$	6,178
Liabilities
Other liabilities ⁽²⁾	$	44,917	$	—	$	44,917	$	—
Total liabilities	$	44,917	$	—	$	44,917	$	—
Non-recurring fair value measurements:
Collateral dependent impaired loans ⁽³⁾	$	36,957	$	—	$	—	$	36,957
Loan servicing rights	373		—		—		373
Foreclosed assets	4,450		—		—		4,450
Total	$	41,780	$	—	$	—	$	41,780



			Fair Value Measurements at Reporting Date Using:
	December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Recurring fair value measurements:
Assets
Investment securities:
Available for sale:
U.S. Treasury securities	$	49,642	$	49,642	$	—	$	—
U.S. government agency securities	42,505		—		42,505		—
Obligations of states and political subdivisions	112,884		—		112,884		—
Residential mortgage-backed securities	1,223,295		—		1,215,935		7,360
Trust preferred securities	3,214		—		3,214		—
Corporate and other debt securities	51,164		7,783		43,381		—
Equity securities	11,201		1,382		9,819		—
Total available for sale	1,493,905		58,807		1,427,738		7,360
Loans held for sale ⁽¹⁾	15,119		—		15,119		—
Other assets ⁽²⁾	26,417		—		26,417		—
Total assets	$	1,535,441	$	58,807	$	1,469,274	$	7,360
Liabilities
Other liabilities ⁽²⁾	$	24,330	$	—	$	24,330	$	—
Total liabilities	$	24,330	$	—	$	24,330	$	—
Non-recurring fair value measurements:
Collateral dependent impaired loans ⁽³⁾	$	48,373	$	—	$	—	$	48,373
Loan servicing rights	5,350		—		—		5,350
Foreclosed assets	3,472		—		—		3,472
Total	$	57,195	$	—	$	—	$	57,195


(1)	Represents residential mortgage loans originated for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $31.4 million and $14.8 million at September 30, 2018 and December 31, 2017, respectively.


(2)	Derivative financial instruments are included in this category.


(3)	Excludes PCI loans.

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments not measured and not reported at fair value on the consolidated statements of financial condition at September 30, 2018 and December 31, 2017 were as follows:



	Fair Value Hierarchy	September 30, 2018				December 31, 2017
	Fair Value Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(in thousands)
Financial assets
Cash and due from banks	Level 1	$	262,653	$	262,653	$	243,310	$	243,310
Interest bearing deposits with banks	Level 1	93,726		93,726		172,800		172,800
Investment securities held to maturity:
U.S. Treasury securities	Level 1	138,557		140,269		138,676		145,257
U.S. government agency securities	Level 2	8,846		8,541		9,859		9,981
Obligations of states and political subdivisions	Level 2	596,360		593,423		465,878		477,479
Residential mortgage-backed securities	Level 2	1,259,772		1,211,756		1,131,945		1,118,044
Trust preferred securities	Level 2	37,328		31,153		49,824		40,088
Corporate and other debt securities	Level 2	31,500		31,212		46,509		46,771
Total investment securities held to maturity		2,072,363		2,016,354		1,842,691		1,837,620
Net loans	Level 3	23,966,327		23,104,688		18,210,724		17,562,153
Accrued interest receivable	Level 1	92,666		92,666		73,990		73,990
Federal Reserve Bank and Federal Home Loan Bank stock⁽¹⁾	Level 1	271,905		271,905		178,668		178,668
Financial liabilities
Deposits without stated maturities	Level 1	17,171,701		17,171,701		14,589,941		14,589,941
Deposits with stated maturities	Level 2	5,416,571		5,351,921		3,563,521		3,465,373
Short-term borrowings	Level 1	2,968,431		2,786,568		748,628		679,316
Long-term borrowings	Level 2	1,728,805		1,639,788		2,315,819		2,453,797
Junior subordinated debentures issued to capital trusts	Level 2	55,283		47,715		41,774		37,289
Accrued interest payable ⁽²⁾	Level 1	17,844		17,844		14,161		14,161


(1)	Included in other assets.


(2)	Included in accrued expenses and other liabilities.