Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017, aggregated by the level in the fair value hierarchy within which those measurements fall:



	As of December 31, 2018		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)
Assets:
Available-for-sale securities
U.S. government and agencies	$	29,114	$	—	$	29,114	$	—
Government-sponsored entities	207,703		—		207,703		—
Municipal bonds	308,959		—		308,959		—
Mortgage-backed securities	448,289		—		448,289		—
Total available-for-sale securities	994,065		—		994,065		—
Equity securities	14,228		14,228		—		—
Derivatives - interest rate customer swaps	21,889		—		21,889		—
Derivatives - interest rate swaps	553		—		553		—
Derivatives - risk participation agreements	2		—		2		—
Trading securities held in the "rabbi trust" (1)	6,839		6,839		—		—

Liabilities:
Derivatives - interest rate customer swaps	$	22,385	$	—	$	22,385	$	—
Derivatives - risk participation agreements	152		—		152		—
Deferred compensation "rabbi trust" (1)	6,839		6,839		—		—



	As of December 31, 2017		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)
Assets:
Available-for-sale securities:
U.S. government and agencies	$	34,299	$	34,096	$	203	$	—
Government-sponsored entities	302,501		—		302,501		—
Municipal bonds	303,058		—		303,058		—
Mortgage-backed securities	509,676		—		509,676		—
Total available-for-sale securities	1,149,534		34,096		1,115,438		—
Equity securities	20,794		20,794		—		—
Derivatives - interest rate customer swaps	18,575		—		18,575		—
Derivatives - customer foreign exchange forwards	2		—		2		—
Derivatives - interest rate swaps	555		—		555		—
Derivatives - risk participation agreements	1		—		1		—
Trading securities held in the "rabbi trust" (1)	7,062		7,062		—		—

Liabilities:
Derivatives - interest rate customer swaps	$	18,953	$	—	$	18,953	$	—
Derivatives - interest rate swaps	80		—		80		—
Derivatives - customer foreign exchange forwards	2		—		2		—
Derivatives - risk participation agreements	108		—		108		—
Deferred compensation "rabbi trust" (1)	7,062		7,062		—		—

(1) The Company has adopted a special trust for the Deferred Compensation Plan called a “rabbi trust.” The rabbi trust is an arrangement that is used to accumulate assets that may be used to fund the Company’s obligation to pay benefits under the Deferred Compensation Plan. To prevent immediate taxation to the executives who participate in the Deferred Compensation Plan, the amounts placed in the rabbi trust must remain subject to the claims of the Company’s creditors. The investments chosen by the participants in the Deferred Compensation Plan are mirrored by the rabbi trust as a way to minimize the earnings volatility of the Deferred Compensation Plan.

Fair Value Measurements, Nonrecurring

The following tables present the Company’s assets and liabilities measured at fair value on a non-recurring basis during the periods ended December 31, 2018 and 2017, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall:



	As of December 31, 2018		Fair value measurements at reporting date using:						Gain (losses) from fair value changes
	As of December 31, 2018		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Year ended December 31, 2018
	(In thousands)
Assets:
Impaired loans (1)	$	2,192	$	—	$	—	$	2,192	$	(1,648	)
	$	2,192	$	—	$	—	$	2,192	$	(1,648	)

___________________


(1)	Collateral-dependent impaired loans held as of December 31, 2018 that had write-downs in fair value or whose specific reserve changed during 2018.



	As of December 31, 2017		Fair value measurements at reporting date using:						Gain (losses) from fair value changes
	As of December 31, 2017		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Year ended December 31, 2017
	(In thousands)
Assets:
Impaired loans (1)	$	1,778	$	—	$	—	$	1,778	$	(465	)
Goodwill (2)	42,054		—		—		42,054		(24,901		)
	$	43,832	$	—	$	—	$	43,832	$	(25,366	)

___________________


(1)	Collateral-dependent impaired loans held as of December 31, 2017 that had write-downs in fair value or whose specific reserve changed during 2017


(2)	Goodwill balance at Anchor as of December 31, 2017 that had write-downs in fair value during 2017. The goodwill balance related to Anchor is recorded in held for sale within other assets as of December 31, 2017. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 8: Goodwill and Other Intangible Assets” for further detail.

Fair Value Measurement Inputs and Valuation Techniques

The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value:



	As of December 31, 2018
	Fair Value		Valuation technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	2,192	Appraisals of Collateral	Discount for costs to sell	0% - 9%	5%
Impaired Loans	$	2,192	Appraisals of Collateral	Appraisal adjustments	—%	—%



	As of December 31, 2017
	Fair Value		Valuation technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	1,778	Appraisals of Collateral	Discount for costs to sell	0% - 7%	5%
Impaired Loans	$	1,778	Appraisals of Collateral	Appraisal adjustments	0% - 20%	14%

Fair Value, by Balance Sheet Grouping

The following tables present the carrying values and fair values of the Company’s financial instruments that are not measured at fair value on a recurring basis (other than certain loans, as noted below):



	As of December 31, 2018
	Book Value		Fair Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
FINANCIAL ASSETS:
Cash and cash equivalents	$	127,259	$	127,259	$	127,259	$	—	$	—
Investment securities held-to-maturity	70,438		68,595		—		68,595		—
Loans held for sale	2,812		2,837		—		2,837		—
Loans, net	6,817,846		6,734,216		—		—		6,734,216
Other financial assets	78,730		78,730		—		78,730		—
FINANCIAL LIABILITIES:
Deposits	6,781,170		6,777,928		—		6,777,928		—
Securities sold under agreements to repurchase	36,928		36,928		—		36,928		—
Federal funds purchased	250,000		250,000		—		250,000		—
Federal Home Loan Bank borrowings	420,144		417,092		—		417,092		—
Junior subordinated debentures	106,363		96,363		—		—		96,363
Other financial liabilities	2,001		2,001		—		2,001		—



	As of December 31, 2017
	Book Value		Fair Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
FINANCIAL ASSETS:
Cash and cash equivalents	$	120,541	$	120,541	$	120,541	$	—	$	—
Investment securities held-to-maturity	74,576		73,781		—		73,781		—
Loans held for sale	4,697		4,737		—		4,737		—
Loans, net	6,430,286		6,388,297		—		—		6,388,297
Other financial assets	93,449		93,449		—		93,449		—
FINANCIAL LIABILITIES:
Deposits	6,510,246		6,509,197		—		6,509,197		—
Securities sold under agreements to repurchase	32,169		32,169		—		32,169		—
Federal funds purchased	30,000		30,000		—		30,000		—
Federal Home Loan Bank borrowings	693,681		692,402		—		692,402		—
Junior subordinated debentures	106,363		96,363		—		—		96,363
Other financial liabilities	2,224		2,224		—		2,224		—