Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value, Assets Measured on Recurring Basis

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



	Fair Value Measurements as of
	June 30, 2015
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	$	426,874	$	—	$	426,874	$	—
Government agency and government‑sponsored enterprise
collateralized mortgage obligations	265,899		—		265,899		—
Covered private label CMOs	32,323		—		—		32,323
Other private label CMOs	8,025		—		8,025		—
Municipal securities	721,556		—		721,556		—
Corporate debt securities	47,410		—		47,410		—
Collateralized loan obligations	133,907		—		133,907		—
Government‑sponsored enterprise debt securities	37,080		—		37,080		—
Other securities	25,084		518		24,566		—
Total securities available-for-sale	1,698,158		518		1,665,317		32,323
Derivative assets	8,810		—		8,810		—
Total recurring assets	$	1,706,968	$	518	$	1,674,127	$	32,323
Derivative liabilities	$	725	$	—	$	725	$	—



	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, Assets and Liabilities Measured on Nonrecurring Basis, 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 June 30, 2015:



	Covered Private Label CMOs
		Weighted
	Range	Average
Unobservable Inputs:	of Inputs	Input
Voluntary annual prepayment speeds	0% - 30.9%	4.9%
Annual default rates	0% - 43.5%	2.6%
Loss severity rates	0% - 87.9%	32.8%
Discount rates	0% - 31.4%	5.7%

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
	(In thousands)
Balance, December 31, 2014	$	33,947
Total realized in earnings	471
Total unrealized loss in comprehensive income	(569		)
Net settlements	(1,526		)
Balance, June 30, 2015	$	32,323

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
	June 30, 2015
Measured on a Non‑Recurring Basis:	Total		Level 1		Level 2		Level 3
	(In thousands)
Impaired Non‑PCI loans	$	64,737	$	—	$	552	$	64,185
Other real estate owned	1,549		—		1,549		—
Total non-recurring	$	66,286	$	—	$	2,101	$	64,185



	Fair Value Measurement as of
	December 31, 2014
Measured on a Non‑Recurring Basis:	Total		Level 1		Level 2		Level 3
	(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

Net Losses (Gains) on Nonrecurring Assets

The following table presents losses recognized on assets measured on a nonrecurring basis for the periods indicated:



	Three Months Ended			Six Months Ended
Loss on Assets Measured on a Non‑Recurring Basis:	June 30, 2015			June 30, 2015
	(In thousands)
Impaired Non‑PCI loans	$	(4,531	)	$	(12,573	)
Other real estate owned	(282		)	(406		)
Total net loss	$	(4,813	)	$	(12,979	)

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 June 30, 2015:

Fair Value

Valuation

Unobservable

Weighted

Asset

(In thousands)

Technique

Inputs

Range

Average

Impaired Non-PCI loans

41,398

Discounted cash flows

Discount rates

0% - 10.46%

6.26%

22,787

Third party appraisals

No discounts

Total non-recurring Level 3

64,185

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:



	June 30, 2015
	Carrying or Contract		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	209,598	$	209,598	$	209,598	$	—	$	—
Interest‑earning deposits in financial institutions	431,033		431,033		431,033		—		—
Securities available‑for‑sale	1,698,158		1,698,158		518		1,665,317		32,323
Investment in FHLB stock	17,250		17,250		—		17,250		—
Investments carried at cost	1,719		2,320		—		—		2,320
Investments accounted for under the equity method	20,990		21,250		—		—		21,250
Loans and leases, net	11,934,814		12,008,957		—		552		12,008,405
Derivative assets	8,810		8,810		—		8,810		—

Financial Liabilities:
Deposits:
Demand, money market, interest checking, and savings deposits	7,236,531		7,236,531		—		7,236,531		—
Time deposits	5,345,285		5,351,765		—		5,351,765		—
Borrowings	2,751		3,099		—		3,099		—
Subordinated debentures	433,944		417,706		—		417,706		—
Derivative liabilities	725		725		—		725		—



	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		5,502,479		—		5,502,479		—
Borrowings	383,402		383,539		380,000		3,539		—
Subordinated debentures	433,583		417,657		—		417,657		—
Derivative liabilities	118		118		—		118		—