Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Assets and Liabilities Carried at Fair Value on Recurring Basis

The following tables presents information on the assets measured and recorded at fair value on a recurring basis as of the dates indicated:



	Fair Value Measurements as of
	December 31, 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	$	535,672	$	—	$	535,672	$	—
Government agency and government‑sponsored enterprise
collateralized mortgage obligations	277,946		—		277,946		—
Covered private label CMOs	33,947		—		—		33,947
Other private label CMOs	10,914		—		10,914		—
Municipal securities	536,116		—		536,116		—
Corporate debt securities	110,109		—		110,109		—
Government‑sponsored enterprise debt securities	36,757		—		36,757		—
Other securities	25,716		519		25,197		—
Total securities available-for-sale	1,567,177		519		1,532,711		33,947
Derivative assets	5,234		—		5,234		—
Total recurring assets	$	1,572,411	$	519	$	1,537,945	$	33,947
Derivative liabilities	$	118	$	—	$	118	$	—



	Fair Value Measurements as of
	December 31, 2013
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	$	707,188	$	—	$	707,188	$	—
Government agency and government‑sponsored enterprise
collateralized mortgage obligations	192,873		—		192,873		—
Covered private label CMOs	37,904		—		—		37,904
Municipal securities	436,658		—		436,658		—
Corporate debt securities	82,707		—		82,707		—
Government‑sponsored enterprise debt securities	9,872		—		9,872		—
Other securities	27,543		507		27,036		—
Total recurring assets	$	1,494,745	$	507	$	1,456,334	$	37,904

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 December 31, 2014:



	Covered Private Label CMOs
Unobservable Inputs:	Range of Inputs	Weighted Average Input
Voluntary annual prepayment speeds	0% - 36.4%	6.3%
Annual default rates	0% - 38.0%	2.3%
Loss severity rates	0% - 68.6%	24.0%
Discount rates	0.2% - 6.7%	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 years indicated:



	Year Ended December 31,
	2014			2013			2012
Covered Private Label CMOs:	(In thousands)
Balance, beginning of year	$	37,904		$	44,684		$	45,149
Total realized in earnings⁽¹⁾	1,627			1,938			340
Total unrealized gain (loss) in comprehensive income	(344		)	(1,204		)	4,883
Net settlements	(5,240		)	(7,514		)	(5,688		)
Balance, end of year	$	33,947		$	37,904		$	44,684

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 dates indicated:



	Fair Value Measurement as of
	December 31, 2014
	Total		Level 1		Level 2		Level 3
Measured on a Non‑Recurring Basis:	(In thousands)
Impaired Non‑PCI loans	$	42,693	$	—	$	2,366	$	40,327
Other real estate owned	24,015		—		18,400		5,615
Investments carried at cost	566		—		—		566
Total non-recurring	$	67,274	$	—	$	20,766	$	46,508



	Fair Value Measurement as of
	December 31, 2013
	Total		Level 1		Level 2		Level 3
Measured on a Non‑Recurring Basis:	(In thousands)
Impaired Non‑PCI loans	$	40,886	$	—	$	2,051	$	38,835
Other real estate owned	10,877		—		8,784		2,093
Total non-recurring	$	51,763	$	—	$	10,835	$	40,928

Net Losses (Gains) on Nonrecurring Assets [Table Text Block]

The following table presents gains and (losses) recognized on assets measured on a nonrecurring basis for the years indicated:



	Year Ended December 31,
	2014			2013			2012
Gain (Loss) on Assets Measured on a Non‑Recurring Basis:	(In thousands)
Impaired Non‑PCI loans	$	(7,006	)	$	(1,206	)	$	(5,582	)
Other real estate owned	(6,737		)	(1,045		)	(3,920		)
Investments carried at cost	(141		)	—			—
Total net loss	$	(13,884	)	$	(2,251	)	$	(9,502	)

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 December 31, 2014:



Asset	Fair Value (In thousands)		Valuation Technique	Unobservable Inputs	Range	Weighted Average
Impaired Non-PCI loans	$	36,149	Discounted cash flows	Discount rates	0% - 12.17%	5.92%
	4,178		Appraisals	No discounts
Other real estate owned	5,615		Appraisals	Discount, including selling costs	24% - 38%	35%
Investments carried at cost	566		Market and Income Approach	Illiquidity Discount	75%	75%
Total non-recurring Level 3	$	46,508

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:



	December 31, 2014
	Carrying or Contract		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	164,757	$	164,757	$	164,757	$	—	$	—
Interest‑earning deposits in financial institutions	148,469		148,469		148,469		—		—
Securities available‑for‑sale	1,567,177		1,567,177		519		1,532,711		33,947
Investment in FHLB stock	40,609		40,609		—		40,609		—
Investments carried at cost	3,691		3,691		—		—		3,691
Investments accounted for under the equity method	21,461		21,700		—		—		21,700
Loans and leases, net	11,797,977		11,757,951		—		2,366		11,755,585
Derivative assets	5,234		5,234		—		5,234		—

Financial Liabilities:
Deposits:
Demand, money market, interest checking, and savings deposits	6,256,190		6,256,190		—		6,256,190		—
Time deposits	5,498,938		5,202,464		—		5,202,464		—
Borrowings	383,402		383,539		380,000		3,539		—
Subordinated debentures	433,583		417,657		—		417,657		—
Derivative liabilities	118		118		—		118		—



	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
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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