Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value, Assets Measured on Recurring Basis

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



	Fair Value Measurements as of
	September 30, 2016
Measured on a Recurring Basis:	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities available‑for‑sale:
Residential MBS and CMOs:
Agency MBS	$	528,941	$	—	$	528,941	$	—
Agency CMOs	157,231		—		157,231		—
Private label CMOs	138,625		—		75,804		62,821
Municipal securities	1,522,494		—		1,522,494		—
Agency commercial MBS	531,273		—		531,273		—
Corporate debt securities	49,011		—		49,011		—
Collateralized loan obligations	156,647		—		156,647		—
SBA securities	187,300		—		187,300		—
Asset-backed and other securities	69,813		2,177		52,612		15,024
Total securities available-for-sale	3,341,335		2,177		3,261,313		77,845
Derivative assets	1,261		—		1,261		—
Equity warrants	5,108		—		—		5,108
Total recurring assets	$	3,347,704	$	2,177	$	3,262,574	$	82,953
Derivative liabilities	$	1,829	$	—	$	1,829	$	—



	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 MBS and CMOs:
Agency MBS	$	667,840	$	—	$	667,840	$	—
Agency CMOs	194,755		—		194,755		—
Private label CMOs	144,796		—		63,555		81,241
Municipal securities	1,547,331		—		1,547,331		—
Agency commercial MBS	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		—		—
Agency 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 September 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	0.0% - 27.6%	11.5%	5% - 40%	14.7%
Annual default rates	0.0% - 15.0%	2.1%	1% - 8%	3.7%
Loss severity rates	0.0% - 94.5%	33.1%	10% - 91%	54.3%
Discount rates	0.9% - 15.0%	3.6%	2.1% - 7.2%	2.9%

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 September 30, 2016:



	Equity Warrants
	Weighted
	Average
Unobservable Inputs:	Input
Volatility	19.3%
Risk-free interest rate	1.0%
Remaining life assumption (in years)	3.8

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	1,252			47			301
Total included in other comprehensive income	(1,399		)	(5		)	—
Sales	—			—			(1,597		)
Issuances	—			—			1,490
Net settlements	(18,273		)	(3,218		)	—
Balance, September 30, 2016	$	62,821		$	15,024		$	5,108

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
	September 30, 2016
Measured on a Non‑Recurring Basis:	Total		Level 1		Level 2		Level 3
	(In thousands)
Impaired Non‑PCI loans	$	131,149	$	—	$	817	$	130,332



	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				Nine Months Ended
	September 30,				September 30,
Losses on Assets Measured on a Non‑Recurring Basis:	2016		2015		2016		2015
	(In thousands)
Impaired Non‑PCI loans	$	12,935	$	873	$	27,301	$	7,623
Other real estate owned	—		4,758		—		4,882
Total losses	$	12,935	$	5,631	$	27,301	$	12,505

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, 2016:

Valuation

Unobservable

Weighted

Asset:

Fair Value

Technique

Inputs

Range

Average

(In thousands)

Impaired Non-PCI loans

45,571

Discounted cash flows

Discount rates

0% - 8.00%

6.12%

73,775

Third party appraisals

Discounts

9.00% - 22.00%

17.17%

10,986

Third party appraisals

No discounts

Total non-recurring Level 3

130,332

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, 2016
	Carrying or Contract		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	286,371	$	286,371	$	286,371	$	—	$	—
Interest‑earning deposits in financial institutions	253,994		253,994		253,994		—		—
Securities available‑for‑sale	3,341,335		3,341,335		2,177		3,261,313		77,845
Investment in FHLB stock	19,386		19,386		—		19,386		—
Investments carried at cost	1,700		4,408		—		—		4,408
Loans and leases, net	14,594,870		14,707,667		—		817		14,706,850
Derivative assets	1,261		1,261		—		1,261		—
Equity warrants	5,108		5,108		—		—		5,108

Financial Liabilities:
Deposits:
Demand, money market, interest checking,
and savings deposits	13,092,753		13,092,753		—		13,092,753		—
Time deposits	2,552,915		2,549,662		—		2,549,662		—
Borrowings	541,011		541,067		340,000		201,067		—
Subordinated debentures	441,112		424,874		—		424,874		—
Derivative liabilities	1,829		1,829		—		1,829		—



	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		—