Fair Value Measurement of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2018

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

The following tables present the assets and liabilities that are measured at fair value on a recurring and non-recurring basis by level within the fair value hierarchy as reported on the consolidated statements of financial condition at December 31, 2018 and 2017. The assets presented under “non-recurring fair value measurements” in the table 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).



			Fair Value Measurements at Reporting Date Using:
	December 31, 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	$	49,306	$	49,306	$	—	$	—
U.S. government agency securities	36,277		—		36,277		—
Obligations of states and political subdivisions	197,092		—		197,092		—
Residential mortgage-backed securities	1,429,782		—		1,429,782		—
Corporate and other debt securities	37,087		—		37,087		—
Total available for sale	1,749,544		49,306		1,700,238		—
Loans held for sale ⁽¹⁾	35,155		—		35,155		—
Other assets ⁽²⁾	48,979		—		48,979		—
Total assets	$	1,833,678	$	49,306	$	1,784,372	$	—
Liabilities
Other liabilities ⁽²⁾	$	23,681	$	—	$	23,681	$	—
Total liabilities	$	23,681	$	—	$	23,681	$	—
Non-recurring fair value measurements:
Collateral dependent impaired loans ⁽³⁾	$	45,245	$	—	$	—	$	45,245
Loan servicing rights	273		—		—		273
Foreclosed assets	5,673		—		—		5,673
Total	$	51,191	$	—	$	—	$	51,191



			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 held for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $34.6 million and $14.8 million at December 31, 2018 and 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 December 31, 2018 and 2017 were as follows:



		December 31,
		2018				2017
	Fair Value Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(in thousands)
Financial assets
Cash and due from banks	Level 1	$	251,541	$	251,541	$	234,310	$	234,310
Interest bearing deposits with banks	Level 1	177,088		177,088		172,800		172,800
Investment securities held to maturity:
U.S. Treasury securities	Level 1	138,517		142,049		138,676		145,257
U.S. government agency securities	Level 2	8,721		8,641		9,859		9,981
Obligations of states and political subdivisions	Level 2	585,656		586,033		465,878		477,479
Residential mortgage-backed securities	Level 2	1,266,770		1,235,605		1,131,945		1,118,044
Trust preferred securities	Level 2	37,332		31,486		49,824		40,088
Corporate and other debt securities	Level 2	31,250		31,129		46,509		46,771
Total investment securities held to maturity		2,068,246		2,034,943		1,842,691		1,837,620
Net loans	Level 3	24,883,610		24,068,755		18,210,724		17,562,153
Accrued interest receivable	Level 1	95,296		95,296		73,990		73,990
Federal Reserve Bank and Federal Home Loan Bank stock ⁽¹⁾	Level 1	232,080		232,080		178,668		178,668
Financial liabilities
Deposits without stated maturities	Level 1	17,388,990		17,388,990		14,589,941		14,589,941
Deposits with stated maturities	Level 2	7,063,984		7,005,573		3,563,521		3,465,373
Short-term borrowings	Level 1	2,118,914		2,091,892		748,628		679,316
Long-term borrowings	Level 2	1,654,268		1,751,194		2,315,819		2,453,797
Junior subordinated debentures issued to capital trusts	Level 2	55,370		55,692		41,774		37,289
Accrued interest payable ⁽²⁾	Level 1	25,762		25,762		14,161		14,161


⁽¹⁾	Included in other assets.


⁽²⁾	Included in accrued expenses and other liabilities.