Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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
	June 30, 2016
Measured on a Recurring Basis:	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities available‑for‑sale:
Residential mortgage-backed securities:
Government agency and government‑sponsored enterprise
pass-through securities	$	520,519	$	—	$	520,519	$	—
Government agency and government‑sponsored enterprise
collateralized mortgage obligations	165,211		—		165,211		—
Private label collateralized mortgage obligations	149,569		—		80,539		69,030
Municipal securities	1,553,286		—		1,553,286		—
Government agency and government‑sponsored enterprise
commercial mortgage-backed securities	464,399		—		464,399		—
Corporate debt securities	46,727		—		46,727		—
Collateralized loan obligations	153,887		—		153,887		—
SBA securities	197,301		—		197,301		—
Asset-backed and other securities	96,647		2,714		77,797		16,136
Total securities available-for-sale	3,347,546		2,714		3,259,666		85,166
Derivative assets	2,484		—		2,484		—
Equity warrants	5,192		—		—		5,192
Total recurring assets	$	3,355,222	$	2,714	$	3,262,150	$	90,358
Derivative liabilities	$	2,740	$	—	$	2,740	$	—



	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:
Residential mortgage-backed securities:
Government agency and government‑sponsored enterprise
pass-through securities	$	667,840	$	—	$	667,840	$	—
Government agency and government‑sponsored enterprise
collateralized mortgage obligations	194,755		—		194,755		—
Private label collateralized mortgage obligations	144,796		—		63,555		81,241
Municipal securities	1,547,331		—		1,547,331		—
Government agency and government‑sponsored enterprise
commercial mortgage-backed securities	391,441		—		391,441		—
Corporate debt securities	48,424		—		48,424		—
Collateralized loan obligations	132,189		—		132,189		—
SBA securities	211,157		—		211,157		—
US Treasury securities	69,380		69,380		—		—
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 June 30, 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	0.9% - 24.5%	11.6%	5% - 40%	14.2%
Annual default rates	0.2% - 14.7%	1.9%	1% - 8%	3.7%
Loss severity rates	5.4% - 94.1%	23.2%	10% - 91%	52.4%
Discount rates	0.8% - 65.8%	3.7%	1.7% - 4.7%	2.8%

Fair Value, Quantitative Inputs and Assumptions Used to Determine Fair Value

The following table presents information about quantitative inputs and assumptions used in the modified Black-Scholes option pricing model to determine the fair value for our Level 3 equity warrants measured at fair value on a recurring basis as of June 30, 2016:



	Equity Warrants
	Weighted
	Average
Unobservable Inputs:	Input
Volatility	23.8%
Risk-free interest rate	0.8%
Remaining life assumption (in years)	3.7

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 available-for-sale, asset-backed securities available-for-sale, and equity warrants measured at fair value on a recurring basis for the period indicated:



	Private			Asset-Backed			Equity
	Label CMOs			Securities			Warrants
	(In thousands)
Balance, December 31, 2015	$	81,241		$	18,200		$	4,914
Total included in earnings	830			31			88
Total included in other comprehensive income	(1,409		)	12			—
Sales	—			—			(922		)
Issuances	—			—			1,112
Net settlements	(11,632		)	(2,107		)	—
Balance, June 30, 2016	$	69,030		$	16,136		$	5,192

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, 2016
Measured on a Non‑Recurring Basis:	Total		Level 1		Level 2		Level 3
	(In thousands)
Impaired Non‑PCI loans	$	95,657	$	—	$	3,471	$	92,186



	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						Six Months Ended
	June 30,						June 30,
Losses on Assets Measured on a Non‑Recurring Basis:	2016			2015			2016			2015
	(In thousands)
Impaired Non‑PCI loans	$	(603	)	$	(4,531	)	$	(16,779	)	$	(12,573	)
Other real estate owned	—			(282		)	—			(406		)
Total loss	$	(603	)	$	(4,813	)	$	(16,779	)	$	(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, 2016:

Valuation

Unobservable

Weighted

Asset:

Fair Value

Technique

Inputs

Range

Average

(In thousands)

Impaired Non-PCI loans

52,264

Discounted cash flows

Discount rates

0% - 10.20%

6.71%

38,775

Third party appraisals

Discounts

9.00% - 10.00%

9.17%

1,147

Third party appraisals

No discounts

Total non-recurring Level 3

92,186

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, 2016
	Carrying or Contract		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	226,471	$	226,471	$	226,471	$	—	$	—
Interest‑earning deposits in financial institutions	218,882		218,882		218,882		—		—
Securities available‑for‑sale	3,347,546		3,347,546		2,714		3,259,666		85,166
Investment in FHLB stock	24,214		24,214		—		24,214		—
Investments carried at cost	1,773		4,584		—		—		4,584
Loans and leases, net	14,498,171		14,461,301		—		3,471		14,457,830
Derivative assets	2,484		2,484		—		2,484		—
Equity warrants	5,192		5,192		—		—		5,192

Financial Liabilities:
Deposits:
Demand, money market, interest checking,
and savings deposits	12,384,812		12,384,812		—		12,384,812		—
Time deposits	2,763,197		2,762,439		—		2,762,439		—
Borrowings	918,208		918,208		917,000		1,208		—
Subordinated debentures	439,322		423,026		—		423,026		—
Derivative liabilities	2,740		2,740		—		2,740		—



	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		—