Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Assets and Liabilities Carried at Fair Value on Recurring Basis

The following table summarizes activity for our Level 3 asset-backed securities measured at fair value on a recurring basis for the years indicated:

	Year Ended December 31,
Level 3 Asset-Backed Securities	2019			2018			2017
	(In thousands)
Balance, beginning of year	$	39,945		$	42,109		$	8,373
Total included in earnings	(77		)	(32		)	367
Total unrealized gain (loss) in comprehensive income	463			495			(937		)
Purchases	—			15,158			42,910
Net settlements	(23,896		)	(17,785		)	(8,604		)
Balance, end of year	$	16,435		$	39,945		$	42,109

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
	December 31, 2019
Measured on a Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities available‑for‑sale:
Agency residential CMOs	$	1,136,397	$	—	$	1,136,397	$	—
Agency commercial MBS	1,108,224		—		1,108,224		—
Municipal securities	735,159		—		735,159		—
Agency residential MBS	305,198		—		305,198		—
Asset-backed securities	214,783		—		198,348		16,435
Private label residential CMOs	99,483		—		93,219		6,264
Collateralized loan obligations	123,756		—		123,756		—
SBA securities	48,258		—		48,258		—
Corporate debt securities	20,748		—		20,748		—
U.S. Treasury securities	5,181		5,181		—		—
Total securities available-for-sale	3,797,187		5,181		3,769,307		22,699
Equity warrants	3,434		—		—		3,434
Other derivative assets	1,234		—		1,234		—
Equity investments with readily determinable fair values	2,998		2,998		—		—
Total recurring assets	$	3,804,853	$	8,179	$	3,770,541	$	26,133
Derivative liabilities	$	755	$	—	$	755	$	—

	Fair Value Measurements as of
	December 31, 2018
Measured on a Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Securities available‑for‑sale:
Municipal securities	$	1,312,194	$	—	$	1,312,194	$	—
Agency commercial MBS	1,112,704		—		1,112,704		—
Agency residential CMOs	632,850		—		632,850		—
U.S. Treasury securities	403,405		403,405		—		—
Agency residential MBS	281,088		—		281,088		—
Private label residential CMOs	101,205		—		93,917		7,288
Asset-backed securities	81,385		—		41,440		39,945
SBA securities	67,047		—		67,047		—
Corporate debt securities	17,553		—		17,553		—
Total securities available-for-sale	4,009,431		403,405		3,558,793		47,233
Equity warrants	4,793		—		—		4,793
Other derivative assets	3,292		—		3,292		—
Equity investments with readily determinable fair values	4,891		4,891		—		—
Total recurring assets	$	4,022,407	$	408,296	$	3,562,085	$	52,026
Derivative liabilities	$	142	$	—	$	142	$	—

Fair Value Inputs, Assets, Quantitative Information

The following table presents information about the 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 the date indicated:

	December 31, 2019
	Equity Warrants
	Weighted
	Average
Unobservable Inputs	Input
Volatility	16.6%
Risk-free interest rate	1.6%
Remaining life assumption (in years)	3.2

The following table presents information about the quantitative inputs and assumptions used to determine the fair values provided by our third party pricing service for our Level 3 private label residential CMOs and asset-backed securities available-for-sale measured at fair value on a recurring basis as of the date indicated:

	December 31, 2019
	Private Label Residential CMOs		Asset-Backed Securities
		Weighted	Input or	Weighted
	Range of	Average	Range of	Average
Unobservable Inputs	Inputs	Input	Inputs	Input
Voluntary annual prepayment speeds	0.0% - 19.1%	11.3%	15.0%	15.0%
Annual default rates (1)	0.8% - 35.7%	1.7%	2.0%	2.0%
Loss severity rates (1)	1.6% - 132.6%	56.1%	60.0%	60.0%
Discount rates	2.5% - 11.4%	6.6%	3.2% - 3.8%	3.6%

____________________

(1)

The voluntary annual prepayment speeds, annual default rates, and loss severity rates were the same for all of the asset-backed securities.

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

The following table summarizes activity for our Level 3 private label residential CMOs measured at fair value on a recurring basis for the years indicated:

	Year Ended December 31,
Level 3 Private Label Residential CMOs	2019			2018			2017
	(In thousands)
Balance, beginning of year	$	7,288		$	22,874		$	56,902
Total included in earnings	432			1,737			2,256
Total unrealized loss in comprehensive income	(265		)	(1,146		)	(742		)
Sales	—			(4,880		)	(4,732		)
Transfer from Level 2	—			—			574
Transfers to Level 2	—			—			(21,165		)
Net settlements	(1,191		)	(11,297		)	(10,219		)
Balance, end of year	$	6,264		$	7,288		$	22,874

Schedule of Stockholders' Equity Note, Warrants or Rights

The following table summarizes activity for our Level 3 equity warrants measured at fair value on a recurring basis for the years indicated:

	Year Ended December 31,
Level 3 Equity Warrants	2019			2018			2017
	(In thousands)
Balance, beginning of year	$	4,793		$	5,161		$	5,497
Total included in earnings	8,669			7,478			2,532
Exercises and settlements (1)	(10,239		)	(8,589		)	(3,093		)
Issuances	324			821			1,407
Transfers to Level 1 (equity investments with readily
determinable fair values)	(113		)	(78		)	(1,182		)
Balance, end of year	$	3,434		$	4,793		$	5,161

______________________

(1)

Includes the exercise of warrants that upon exercise become equity securities in public companies. These are often subject to lock-up restrictions that must be met before the equity security can be sold, during which time they are reported as equity investments with readily determinable fair values.

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, 2019
Measured on a Non‑Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Impaired loans	$	28,706	$	—	$	1,083	$	27,623
OREO	105		—		—		105
Total non-recurring	$	28,811	$	—	$	1,083	$	27,728

	Fair Value Measurement as of
	December 31, 2018
Measured on a Non‑Recurring Basis	Total		Level 1		Level 2		Level 3
	(In thousands)
Impaired loans	$	24,432	$	—	$	1,800	$	22,632
OREO	1,136		—		1,136		—
Total non-recurring	$	25,568	$	—	$	2,936	$	22,632

Net Losses (Gains) on Nonrecurring Assets

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

	Year Ended December 31,
Loss on Assets Measured on a Non‑Recurring Basis	2019		2018		2017
	(In thousands)
Impaired loans	$	6,797	$	9,198	$	20,422
Loans held for sale	—		—		957
OREO	78		74		14
Total net loss	$	6,875	$	9,272	$	21,393

Fair Value Measurement Inputs and Valuations

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a nonrecurring basis as of the date indicated:

	December 31, 2019
			Valuation	Unobservable	Input or	Weighted
Asset	Fair Value		Technique	Inputs	Range	Average
	(In thousands)
Impaired loans	$	18,899	Discounted cash flows	Discount rates	3.75% - 8.77%	7.62%
Impaired loans	8,724		Third party appraisals	No discounts
OREO	105		Third party appraisals	Discount (1)	43.00%	43.00%
Total non-recurring Level 3	$	27,728

____________________

(1)    Relates to one OREO property at December 31, 2019.

Fair Value, by Balance Sheet Grouping

	December 31, 2019
	Carrying		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	172,585	$	172,585	$	172,585	$	—	$	—
Interest‑earning deposits in financial institutions	465,039		465,039		465,039		—		—
Securities available‑for‑sale	3,797,187		3,797,187		5,181		3,769,307		22,699
Investment in FHLB stock	40,924		40,924		—		40,924		—
Loans and leases held for investment, net	18,708,087		19,055,004		—		1,083		19,053,921
Equity warrants	3,434		3,434		—		—		3,434
Other derivative assets	1,234		1,234		—		1,234		—
Equity investments with readily determinable fair values	2,998		2,998		2,998		—		—
Financial Liabilities:
Core deposits	16,187,287		16,187,287		—		16,187,287		—
Non-core non-maturity deposits	496,407		496,407		—		496,407		—
Time deposits	2,549,342		2,549,260		—		2,549,260		—
Borrowings	1,759,008		1,759,008		1,759,000		8		—
Subordinated debentures	458,209		441,617		—		441,617		—
Derivative liabilities	755		755		—		755		—

	December 31, 2018
	Carrying		Estimated Fair Value
	Amount		Total		Level 1		Level 2		Level 3
	(In thousands)
Financial Assets:
Cash and due from banks	$	175,830	$	175,830	$	175,830	$	—	$	—
Interest‑earning deposits in financial institutions	209,937		209,937		209,937		—		—
Securities available‑for‑sale	4,009,431		4,009,431		403,405		3,558,793		47,233
Investment in FHLB stock	32,103		32,103		—		32,103		—
Loans and leases held for investment, net	17,825,241		17,013,860		—		1,800		17,012,060
Equity warrants	4,793		4,793		—		—		4,793
Other derivative assets	3,292		3,292		—		3,292		—
Equity investments with readily determinable fair values	4,891		4,891		4,891		—		—
Financial Liabilities:
Core deposits	16,346,671		16,346,671		—		16,346,671		—
Non-core non-maturity deposits	518,192		518,192		—		518,192		—
Time deposits	2,005,638		2,017,137		—		2,017,137		—
Borrowings	1,371,114		1,371,114		1,371,000		114		—
Subordinated debentures	453,846		435,251		—		435,251		—
Derivative liabilities	142		142		—		142		—