Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

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 March 31, 2020 and December 31, 2019, aggregated by the level in the fair value hierarchy within which those measurements fall:

	As of March 31, 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)
Assets:
Available-for-sale securities:
U.S. government and agencies	$	21,087	$	—	$	21,087	$	—
Government-sponsored entities	160,442		—		160,442		—
Municipal bonds	332,500		—		332,500		—
Mortgage-backed securities	479,137		—		479,137		—
Total available-for-sale securities	993,166		—		993,166		—
Equity securities	23,080		23,080		—		—
Derivatives - interest rate customer swaps	93,391		—		93,391		—
Derivatives - risk participation agreement	46		—		46		—
Trading securities held in the “rabbi trust” (1)	5,550		5,550		—		—
Liabilities:
Derivatives - interest rate customer swaps	$	94,437	$	—	$	94,437	$	—
Derivatives - risk participation agreement	480		—		480		—
Deferred compensation “rabbi trust” (1)	5,550		5,550		—		—

			Fair value measurements at reporting date using:
	As of 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)
Assets:
Available-for-sale securities:
U.S. government and agencies	$	19,940	$	—	$	19,940	$	—
Government-sponsored entities	156,255		—		156,255		—
Municipal bonds	325,455		—		325,455		—
Mortgage-backed securities	476,634		—		476,634		—
Total available-for-sale securities	978,284		—		978,284		—
Equity securities	18,810		18,810		—		—
Derivatives - interest rate customer swaps	36,089		—		36,089		—
Derivatives - risk participation agreements	10		—		10		—
Trading securities held in the “rabbi trust” (1)	6,119		6,119		—		—
Liabilities:
Derivatives - interest rate customer swaps	$	36,580	$	—	$	36,580	$	—
Derivatives - risk participation agreements	242		—		242		—
Deferred compensation “rabbi trust” (1)	6,112		6,112		—		—

_____________________

(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, assets and liabilities measured on nonrecurring basis

The following tables present the Company’s assets and liabilities measured at fair value on a non-recurring basis during the periods ended March 31, 2020 and 2019, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall.

	As of March 31, 2020		Fair value measurements at reporting date using:						Gain (losses) from fair value changes
			Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Three months ended March 31, 2020
	(In thousands)
Assets:
Impaired loans (1)	$	97	$	—	$	—	$	97	$	21

_____________________

(1)Collateral-dependent impaired loans held as of March 31, 2020 that had write-downs or recoveries in fair value or whose specific reserve changed during the three months ended March 31, 2020.

	As of March 31, 2019		Fair value measurements at reporting date using:						Gain (losses) from fair value changes
			Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Three months ended March 31, 2019
	(In thousands)
Assets:
Impaired loans (1)	$	957	$	—	$	—	$	957	$	372

_____________________

(1)Collateral-dependent impaired loans held as of March 31, 2019 that had write-downs or recoveries in fair value or whose specific reserve changed during the three months ended March 31, 2019.

Fair value, assets and liabilities measured on recurring and nonrecurring basis, 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 March 31, 2020
	Fair Value		Valuation Technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	97	Appraisals of Collateral	Discount for costs to sell	10% - 10%	10%
				Appraisal adjustments	—%	—%

	As of March 31, 2019
	Fair Value		Valuation Technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	957	Appraisals of Collateral	Discount for costs to sell	—% - 6%	1%
				Appraisal adjustments	—%	—%

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:

	As of March 31, 2020
	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	$	61,714	$	61,714	$	61,714	$	—	$	—
Investment securities held-to-maturity	45,395		46,096		—		46,096		—
Loans held for sale	7,671		7,724		—		7,724		—
Loans, net	6,975,127		6,752,894		—		—		6,752,894
Other financial assets	73,576		73,576		—		73,576		—
FINANCIAL LIABILITIES:
Deposits	6,835,572		6,838,860		—		6,838,860		—
Securities sold under agreements to repurchase	45,319		45,319		—		45,319		—
Federal funds purchased	145,000		145,000		—		145,000		—
Federal Home Loan Bank borrowings	491,254		493,532		—		493,532		—
Junior subordinated debentures	106,363		96,363		—		—		96,363
Other financial liabilities	2,154		2,154		—		2,154		—

	As of December 31, 2019
	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	$	292,479	$	292,479	$	292,479	$	—	$	—
Investment securities held-to-maturity	48,212		47,949		—		47,949		—
Loans held for sale	7,386		7,475		—		7,475		—
Loans, net	6,904,722		6,883,360		—		—		6,883,360
Other financial assets	67,348		67,348		—		67,348		—
FINANCIAL LIABILITIES:
Deposits	7,241,476		7,241,739		—		7,241,739		—
Securities sold under agreements to repurchase	53,398		53,398		—		53,398		—
Federal Home Loan Bank borrowings	350,829		351,233		—		351,233		—
Junior subordinated debentures	106,363		96,363		—		—		96,363
Other financial liabilities	1,957		1,957		—		1,957		—