Fair Value Measurement of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2019

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, 2019 and December 31, 2018. 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, 2019		Fair Value Measurements at Reporting Date Using:
	September 30, 2019		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	$	70,965	$	70,965	$	—	$	—
U.S. government agency securities	30,037		—		30,037		—
Obligations of states and political subdivisions	180,467		—		179,787		680
Residential mortgage-backed securities	1,310,587		—		1,310,587		—
Corporate and other debt securities	36,006		—		36,006		—
Total available for sale	1,628,062		70,965		1,556,417		680
Loans held for sale ⁽¹⁾	41,621		—		41,621		—
Other assets ⁽²⁾	217,035		—		217,035		—
Total assets	$	1,886,718	$	70,965	$	1,815,073	$	680
Liabilities
Other liabilities ⁽²⁾	$	60,087	$	—	$	60,087	$	—
Total liabilities	$	60,087	$	—	$	60,087	$	—
Non-recurring fair value measurements:
Collateral dependent impaired loans ⁽³⁾	$	47,619	$	—	$	—	$	47,619
Loan servicing rights	715		—		—		715
Foreclosed assets	3,705		—		—		3,705
Total	$	52,039	$	—	$	—	$	52,039



			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


(1)	Represents residential mortgage loans originated for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $40.8 million and $34.6 million at September 30, 2019 and December 31, 2018, 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, 2019 and December 31, 2018 were as follows:



	Fair Value Hierarchy	September 30, 2019				December 31, 2018
	Fair Value Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(in thousands)
Financial assets
Cash and due from banks	Level 1	$	312,396	$	312,396	$	251,541	$	251,541
Interest bearing deposits with banks	Level 1	185,841		185,841		177,088		177,088
Investment securities held to maturity:
U.S. Treasury securities	Level 1	138,393		144,872		138,517		142,049
U.S. government agency securities	Level 2	7,462		7,553		8,721		8,641
Obligations of states and political subdivisions	Level 2	517,430		530,482		585,656		586,033
Residential mortgage-backed securities	Level 2	1,360,903		1,374,825		1,266,770		1,235,605
Trust preferred securities	Level 2	37,319		30,897		37,332		31,486
Corporate and other debt securities	Level 2	32,250		32,574		31,250		31,129
Total investment securities held to maturity		2,093,757		2,121,203		2,068,246		2,034,943
Net loans	Level 3	26,405,306		25,889,653		24,883,610		24,068,755
Accrued interest receivable	Level 1	97,282		97,282		95,296		95,296
Federal Reserve Bank and Federal Home Loan Bank stock⁽¹⁾	Level 1	235,965		235,965		232,080		232,080
Financial liabilities
Deposits without stated maturities	Level 1	17,673,950		17,673,950		17,388,990		17,388,990
Deposits with stated maturities	Level 2	7,872,172		7,891,568		7,063,984		7,005,573
Short-term borrowings	Level 1	1,825,417		1,825,486		2,118,914		2,091,892
Long-term borrowings	Level 2	2,250,633		2,467,403		1,654,268		1,751,194
Junior subordinated debentures issued to capital trusts	Level 2	55,631		55,670		55,370		55,692
Accrued interest payable ⁽²⁾	Level 1	30,819		30,819		25,762		25,762


(1)	Included in other assets.

(2)

Included in accrued expenses and other liabilities.