Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

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
	March 31, 2016
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	$	653,865	$	—	$	653,865	$	—
Government agency and government‑sponsored enterprise
collateralized mortgage obligations	443,732		—		443,732		—
Covered private label CMOs	27,863		—		—		27,863
Other private label CMOs	107,382		—		60,030		47,352
Municipal securities	1,517,592		—		1,517,592		—
Corporate debt securities	45,483		—		45,483		—
Collateralized loan obligations	139,572		—		139,572		—
SBA securities	202,674		—		202,674		—
Asset-backed and other securities	102,423		2,551		83,156		16,716
Total securities available-for-sale	3,240,586		2,551		3,146,104		91,931
Derivative assets	6,654		—		6,654		—
Equity warrants	5,033		—		—		5,033
Total recurring assets	$	3,252,273	$	2,551	$	3,152,758	$	96,964
Derivative liabilities	$	2,079	$	—	$	2,079	$	—



	Fair Value Measurements as of
	December 31, 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	$	767,797	$	—	$	767,797	$	—
Government agency and government‑sponsored enterprise
collateralized mortgage obligations	486,239		—		486,239		—
Covered private label CMOs	29,782		—		—		29,782
Other private label CMOs	115,014		—		63,555		51,459
Municipal securities	1,547,331		—		1,547,331		—
US Treasury securities	69,380		69,380		—		—
Corporate debt securities	48,424		—		48,424		—
Collateralized loan obligations	132,189		—		132,189		—
SBA securities	211,157		—		211,157		—
Government‑sponsored enterprise debt securities	36,913		—		36,913		—
Asset-backed and other securities	115,211		2,562		94,449		18,200
Total securities available-for-sale	3,559,437		71,942		3,388,054		99,441
Derivative assets	11,919		—		11,919		—
Equity warrants	4,914		—		—		4,914
Total recurring assets	$	3,576,270	$	71,942	$	3,399,973	$	104,355
Derivative liabilities	$	1,397	$	—	$	1,397	$	—

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 private label CMOs and asset-backed securities available-for-sale measured at fair value on a recurring basis as of March 31, 2016:



	Private Label CMOs		Asset-Backed Securities
		Weighted		Weighted
	Range	Average	Range	Average
Unobservable Inputs:	of Inputs	Input	of Inputs	Input
Voluntary annual prepayment speeds	1.5% - 22.4%	10.5%	5% - 40%	14.2%
Annual default rates	0.3% - 13.7%	2.4%	1% - 8%	3.7%
Loss severity rates	0% - 96.9%	32.6%	10% - 91%	51.8%
Discount rates	0.8% - 57.3%	3.8%	1.8% - 5.2%	3.4%

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

The following table summarizes activity for our Level 3 private label CMOs and asset-backed securities available-for-sale measured at fair value on a recurring basis for the period indicated:



	Private			Asset-Backed
	Label CMOs			Securities
	(In thousands)
Balance, December 31, 2015	$	81,241		$	18,200
Total included in earnings	353			15
Total included in other comprehensive income	(1,251		)	(12		)
Net settlements	(5,128		)	(1,487		)
Balance, March 31, 2016	$	75,215		$	16,716

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
	March 31, 2016
Measured on a Non‑Recurring Basis:	Total		Level 1		Level 2		Level 3
	(In thousands)
Impaired Non‑PCI loans	$	95,310	$	—	$	2,121	$	93,189



	Fair Value Measurement as of
	December 31, 2015
Measured on a Non‑Recurring Basis:	Total		Level 1		Level 2		Level 3
	(In thousands)
Impaired Non‑PCI loans	$	40,817	$	—	$	9,367	$	31,450
Other real estate owned	14,101		—		14,101		—
Investments carried at cost	107		—		—		107
Total non-recurring	$	55,025	$	—	$	23,468	$	31,557

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
	March 31,
Losses on Assets Measured on a Non‑Recurring Basis:	2016			2015
	(In thousands)
Impaired Non‑PCI loans	$	(12,909	)	$	(9,192	)
Other real estate owned	—			(124		)
Total loss	$	(12,909	)	$	(9,316	)

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 March 31, 2016:

Valuation

Unobservable

Weighted

Asset:

Fair Value

Technique

Inputs

Range

Average

(In thousands)

Impaired Non-PCI loans

52,516

Discounted cash flows

Discount rates

0% - 9.04%

6.33%

Impaired Non-PCI loans

38,910

Third party appraisals

Discounts

10.00% - 28.44%

25.25%

Impaired Non-PCI loans

1,763

Third party appraisals

No discounts

Total non-recurring Level 3

93,189

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:



	March 31, 2016
	Carrying or Contract		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	161,977	$	161,977	$	161,977	$	—	$	—
Interest‑earning deposits in financial institutions	357,541		357,541		357,541		—		—
Securities available‑for‑sale	3,240,586		3,240,586		2,551		3,146,104		91,931
Investment in FHLB stock	17,250		17,250		—		17,250		—
Investments carried at cost	1,990		4,950		—		—		4,950
Loans and leases, net	14,353,156		14,337,455		—		2,121		14,335,334
Derivative assets	6,654		6,654		—		6,654		—
Equity warrants	5,033		5,033		—		—		5,033

Financial Liabilities:
Deposits:
Demand, money market, interest checking, and savings deposits	11,956,102		11,956,102		—		11,956,102		—
Time deposits	3,485,273		3,484,782		—		3,484,782		—
Borrowings	551,401		551,401		550,000		1,401		—
Subordinated debentures	438,723		421,669		—		421,669		—
Derivative liabilities	2,079		2,079		—		2,079		—



	December 31, 2015
	Carrying or Contract		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	161,020	$	161,020	$	161,020	$	—	$	—
Interest‑earning deposits in financial institutions	235,466		235,466		235,466		—		—
Securities available‑for‑sale	3,559,437		3,559,437		71,942		3,388,054		99,441
Investment in FHLB stock	19,710		19,710		—		19,710		—
Investments carried at cost	2,267		6,789		—		—		6,789
Loans and leases, net	14,363,143		14,393,558		—		9,367		14,384,191
Derivative assets	11,919		11,919		—		11,919		—
Equity warrants	4,914		4,914		—		—		4,914

Financial Liabilities:
Deposits:
Demand, money market, interest checking, and savings deposits	11,513,826		11,513,826		—		11,513,826		—
Time deposits	4,152,356		4,152,920		—		4,152,920		—
Borrowings	621,914		622,438		618,000		4,438		—
Subordinated debentures	436,000		419,762		—		419,762		—
Derivative liabilities	1,397		1,397		—		1,397		—