Fair Value Measurement of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

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, 2020 and December 31, 2019. 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, 2020		Fair Value Measurements at Reporting Date Using:
			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:
Equity securities (1)	$	26,527	$	19,136	$	—	$	—
Available for sale:
U.S. Treasury securities	51,578		51,578		—		—
U.S. government agency securities	26,448		—		26,448		—
Obligations of states and political subdivisions	134,193		—		133,410		783
Residential mortgage-backed securities	1,233,436		—		1,233,436		—
Corporate and other debt securities	80,909		—		80,909		—
Total available for sale debt securities	1,526,564		51,578		1,474,203		783
Loans held for sale (2)	209,250		—		209,250		—
Other assets (3)	455,565		—		455,565		—
Total assets	$	2,217,906	$	70,714	$	2,139,018	$	783
Liabilities
Other liabilities (3)	$	190,049	$	—	$	190,049	$	—
Total liabilities	$	190,049	$	—	$	190,049	$	—
Non-recurring fair value measurements:
Collateral dependent loans	$	35,907	$	—	$	—	$	35,907
Loan servicing rights	14,000		—		—		14,000
Foreclosed assets	7,747		—		—		7,747
Total	$	57,654	$	—	$	—	$	57,654

			Fair Value Measurements at Reporting Date Using:
	December 31, 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:
Equity securities at fair value	$	41,410	$	41,410	$	—	$	—
Available for sale:
U.S. Treasury securities	50,943		50,943		—		—
U.S. government agency securities	29,243		—		29,243		—
Obligations of states and political subdivisions	170,051		—		169,371		680
Residential mortgage-backed securities	1,254,786		—		1,254,786		—
Trust preferred securities	—		—		—		—
Corporate and other debt securities	61,778		—		61,778		—
Total available for sale	1,566,801		50,943		1,515,178		680
Trading securities	—		—		—		—
Loans held for sale (2)	76,113		—		76,113		—
Other assets (3)	158,532		—		158,532		—
Total assets	$	1,842,856	$	92,353	$	1,749,823	$	680
Liabilities
Other liabilities (3)	$	43,926	$	—	$	43,926	$	—
Total liabilities	$	43,926	$	—	$	43,926	$	—
Non-recurring fair value measurements:
Collateral dependent impaired loans	$	39,075	$	—	$	—	$	39,075
Loan servicing rights	1,591		—		—		1,591
Foreclosed assets	10,807		—		—		10,807
Total	$	51,473	$	—	$	—	$	51,473

(1)Includes equity securities measured at net asset value (NAV) per share (or its equivalent) as a practical expedient totaling $7.4 million at September 30, 2020. These securities have not been classified in the fair value hierarchy.

(2)Represents residential mortgage loans originated for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $199.4 million and $74.5 million at September 30, 2020 and December 31, 2019, respectively.

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

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, 2020 and December 31, 2019 were as follows: 

	Fair Value Hierarchy	September 30, 2020				December 31, 2019
		Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(in thousands)
Financial assets
Cash and due from banks	Level 1	$	276,120	$	276,120	$	256,264	$	256,264
Interest bearing deposits with banks	Level 1	654,591		654,591		178,423		178,423
Equity securities (1)	Level 3	2,499		2,499		—		—
Investment securities held to maturity:
U.S. Treasury securities	Level 1	138,224		146,429		138,352		144,113
U.S. government agency securities	Level 2	6,302		6,634		7,345		7,362
Obligations of states and political subdivisions	Level 2	464,051		479,824		500,705		513,607
Residential mortgage-backed securities	Level 2	1,491,808		1,528,703		1,620,119		1,629,572
Trust preferred securities	Level 2	37,341		30,000		37,324		31,382
Corporate and other debt securities	Level 2	32,750		33,381		32,250		32,684
Total investment securities held to maturity (2)		2,170,476		2,224,971		2,336,095		2,358,720
Net loans	Level 3	32,090,554		31,883,095		29,537,449		28,964,396
Accrued interest receivable	Level 1	136,058		136,058		105,637		105,637
Federal Reserve Bank and Federal Home Loan Bank stock (3)	Level 2	287,628		287,628		214,421		214,421
Financial liabilities
Deposits without stated maturities	Level 1	23,650,401		23,650,401		19,467,892		19,467,892
Deposits with stated maturities	Level 2	7,537,581		7,466,794		9,717,945		9,747,867
Short-term borrowings	Level 2	1,430,726		1,544,596		1,093,280		1,081,879
Long-term borrowings	Level 2	2,852,569		3,115,757		2,122,426		2,181,401
Junior subordinated debentures issued to capital trusts	Level 2	55,978		44,771		55,718		53,889
Accrued interest payable (4)	Level 1	21,756		21,756		33,066		33,066

(1)Represents equity securities without a readily determinable fair value measured at cost less impairment, if any.

(2)The carrying amount is presented gross without the allowance for credit losses.

(3)Included in other assets.

(4)Included in accrued expenses and other liabilities.