Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Assets and Liabilities Carried at Fair Value on Recurring Basis

The following table presents information on the assets measured and recorded at fair value on a recurring basis as of September 30, 2014:



	Fair Value Measurements as of
	September 30, 2014
Measured on a Recurring Basis:	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities available‑for‑sale:
Government agency and government‑sponsored enterprise
pass through securities	$	555,087	$	—	$	555,087	$	—
Government agency and government‑sponsored enterprise
collateralized mortgage obligations	279,791		—		279,791		—
Covered private label CMOs	35,309		—		—		35,309
Other private label CMOs	12,593		—		12,593		—
Municipal securities	482,427		—		482,427		—
Corporate debt securities	112,143		—		112,143		—
Government‑sponsored enterprise debt securities	36,382		—		36,382		—
Other securities	25,949		514		25,435		—
Total	$	1,539,681	$	514	$	1,503,858	$	35,309

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

The following table presents information about quantitative inputs and assumptions used to determine the fair values provided by our third party pricing service for our Level 3 covered private label CMOs measured at fair value on a recurring basis as of September 30, 2014:



	Covered Private Label CMOs
Unobservable Inputs:	Range of Inputs	Weighted Average Input
Voluntary annual prepayment speeds	0% - 34.2%	10.2%
Annual default rates	0% - 9.7%	3.2%
Loss severity rates	0% - 65.2%	40.9%
Discount rates	0% - 7.1%	4.9%

Fair Value, Assets Measured on Recurring Basis, Significant Unobservable Inputs (Level 3) Reconciliation

The following table summarizes activity for assets measured at fair value on a recurring basis that are categorized as Level 3 for the period indicated:



	Covered Private Label CMOs (Level 3)
	(In thousands)
Balance, December 31, 2013	$	37,904
Total realized in earnings	862
Total unrealized gain in comprehensive income	76
Net settlements	(3,533		)
Balance, September 30, 2014	$	35,309

Assets carried at fair value on a nonrecurring basis

The following tables present assets measured at fair value on a non‑recurring basis as of the date indicated and the losses recognized on such assets for the period indicated:



	Fair Value Measurement as of								Gain (Loss)
	September 30, 2014								Three Months Ended			Nine Months Ended
	Total		Level 1		Level 2		Level 3		September 30, 2014
Measured on a Non‑Recurring Basis:	(In thousands)
Impaired Non‑PCI loans	$	42,728	$	—	$	2,366	$	40,362	$	(1,374	)	$	(10,205	)
Other real estate owned	28,011		—		26,352		1,659		(4,863		)	(4,863		)
Total non-recurring	$	70,739	$	—	$	28,718	$	42,021	$	(6,237	)	$	(15,068	)

Fair Value Inputs, Assets, Quantitative Information

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis as of September 30, 2014:



Asset	Fair Value (In thousands)		Valuation Technique	Unobservable Inputs	Range	Weighted Average
Impaired Non-PCI loans	$	36,306	Discounted cash flows	Discount rates	0% - 10.46%	6.87%
	$	4,056	Appraisals	No discounts
OREO	$	1,659	Appraisals	Discount, including selling costs	11.19% - 62.61%	39.98%

Fair Value, by Balance Sheet Grouping

The following tables present a summary of the carrying values and estimated fair values of certain financial instruments as of the dates indicated:



	September 30, 2014
	Carrying or Contract		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	145,463	$	145,463	$	145,463	$	—	$	—
Interest‑earning deposits in financial institutions	115,399		115,399		115,399		—		—
Securities available‑for‑sale	1,539,681		1,539,681		514		1,503,858		35,309
Investment in FHLB stock	45,602		45,602		—		45,602		—
Loans and leases, net	11,492,986		11,396,792		—		2,366		11,394,426

Financial Liabilities:
Deposits:
Demand, money market, interest checking,
and savings deposits	6,006,958		6,006,958		—		6,006,958		—
Time deposits	5,516,479		5,524,373		—		5,524,373		—
Borrowings	363,672		363,804		360,000		3,804		—
Subordinated debentures	433,545		417,349		—		417,349		—



	December 31, 2013
	Carrying or Contract		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	96,424	$	96,424	$	96,424	$	—	$	—
Interest‑earning deposits in financial institutions	50,998		50,998		50,998		—		—
Securities available‑for‑sale	1,494,745		1,494,745		507		1,456,334		37,904
Investment in FHLB stock	27,939		27,939		—		27,939		—
Loans and leases, net	4,230,318		4,231,078		—		2,051		4,229,027
SBA loan servicing asset	807		807		—		—		807
Financial Liabilities:
Deposits:
Demand, money market, interest checking,
and savings deposits	4,616,616		4,616,616		—		4,616,616		—
Time deposits	664,371		665,148		—		665,148		—
Borrowings	113,726		113,726		106,600		7,126		—
Subordinated debentures	132,645		132,498		—		132,498		—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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