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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
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, 2020
Measured on a Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Securities available-for-sale:
Agency commercial MBS$1,204,315 $— $1,204,315 $— 
Municipal securities1,203,030 — 1,203,030 — 
Agency residential CMOs1,165,872 — 1,165,872 — 
Agency residential MBS246,498 — 246,498 — 
Asset-backed securities234,103 — 203,881 30,222 
Corporate debt securities174,282 — 174,282 — 
Collateralized loan obligations135,333 — 135,333 — 
Private label residential CMOs121,162 — 116,111 5,051 
SBA securities42,684 — 42,684 — 
U.S. Treasury securities5,335 5,335 — — 
Total securities available-for-sale$4,532,614 $5,335 $4,492,006 $35,273 
Equity investments with readily determinable fair values$1,135 $1,135 $— $— 
Derivatives (1):
Equity warrants 4,742 — — 4,742 
Interest rate and economic contracts3,614 — 3,614 — 
Derivative liabilities 81 — 81 — 
Fair Value Measurements as of
December 31, 2019
Measured on a Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Securities available-for-sale:
Agency commercial MBS$1,108,224 $— $1,108,224 $— 
Agency residential CMOs1,136,397 — 1,136,397 — 
Municipal securities735,159 — 735,159 — 
Agency residential MBS305,198 — 305,198 — 
Asset-backed securities214,783 — 198,348 16,435 
Collateralized loan obligations123,756 — 123,756 — 
Private label residential CMOs99,483 — 93,219 6,264 
SBA securities48,258 — 48,258 — 
Corporate debt securities20,748 — 20,748 — 
U.S. Treasury securities5,181 5,181 — — 
Total securities available-for-sale$3,797,187 $5,181 $3,769,307 $22,699 
Equity investments with readily determinable fair values$2,998 $2,998 $— $— 
Derivatives (1):
Equity warrants 3,434 — — 3,434 
Interest rate and economic contracts1,234 — 1,234 — 
Derivative liabilities 755 — 755 — 
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 residential CMOs and asset-backed securities available-for-sale measured at fair value on a recurring basis as of the date indicated:
September 30, 2020
Private Label Residential CMOsAsset-Backed Securities
Weighted
Input or
Weighted
Range
Average
Range
Average
Unobservable Inputsof Inputs
Input (1)
of Inputs
Input (2)
Voluntary annual prepayment speeds
5.3% - 16.1%
10.7%
10.0% - 15.0%
12.1%
Annual default rates (3)
0.7% - 29.8%
3.1%2.0%2.0%
Loss severity rates (3)
1.9% - 165.2%
53.0%60.0%60.0%
Discount rates
2.1% - 7.9%
6.0%
3.0% - 5.2%
3.8%
____________________
(1)    Unobservable inputs for private label residential CMOs were weighted by the relative fair values of the instruments.
(2)    Voluntary annual prepayment speeds and discount rates for asset-backed securities were weighted by the relative fair values of the instruments.
(3)    Annual default rates and loss severity rates were the same for all of the asset-backed securities.
Fair value inputs, assets, quantitative information
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 the date indicated:
September 30, 2020
Equity Warrants
Weighted
RangeAverage
Unobservable Inputsof Inputs
Input (1)
Volatility
23.7% - 224.4%
31.8%
Risk-free interest rate
0.1% - 0.3%
0.2%
Remaining life assumption (in years)
0.20 - 4.95
2.85
____________________
(1)    Unobservable inputs for equity warrants were weighted by the relative fair values of the instruments.
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:
September 30, 2020
ValuationUnobservableInput or
Weighted
Asset
Fair Value
TechniqueInputsRange
Average
(In thousands)
Individually evaluated
loans and leases$26,357Discounted cash flowsDiscount rates
3.75% - 10.46%
8.19%
Individually evaluated Discount from
loans and leases (1)
26,889Third party appraisalappraisal 23.00%23.00%
Individually evaluated
loans and leases7,588Third party appraisalsNo discounts
Total non-recurring Level 3$60,834
_____________________
(1)    Relates to one loan at September 30, 2020.
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 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 LabelAsset-BackedEquity
Residential CMOsSecuritiesWarrants
(In thousands)
Balance, December 31, 2019$6,264 $16,435 $3,434 
Total included in earnings326 42 3,310 
Total included in other comprehensive income(447)(389)— 
Purchases— 20,100 — 
Issuances— — 240 
Sales
— — (2,234)
Net settlements(1,092)(5,966)— 
Transfers to Level 1 (equity investments with readily
determinable fair values)— — (8)
Balance, September 30, 2020$5,051 $30,222 $4,742 
Unrealized net gains (losses) for the period included in other
comprehensive income for securities held at quarter-end$1,239 $(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
September 30, 2020
Measured on a Non-Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Individually evaluated loans and leases (1)
$63,865 $— $3,031 $60,834 
Total non-recurring$63,865 $— $3,031 $60,834 
______________________
(1)    Includes nonaccrual loans and leases and performing TDRs with balances greater than $250,000.
Fair Value Measurement as of
December 31, 2019
Measured on a Non-Recurring BasisTotalLevel 1Level 2Level 3
(In thousands)
Impaired loans and leases (1)
$28,706 $— $1,083 $27,623 
OREO105 — — 105 
Total non-recurring$28,811 $— $1,083 $27,728 
_____________________
(1)    Includes all nonaccrual loans and leases and performing TDRs.
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 EndedNine Months Ended
Losses on Assets September 30,September 30,
Measured on a Non-Recurring Basis2020201920202019
(In thousands)
Individually evaluated loans and leases (1)
$29,047 $8,339 $40,920 $10,091 
OREO157 54 267 54 
Total losses$29,204 $8,393 $41,187 $10,145 
_____________________
(1)    For 2019, losses are based on impaired loans and leases.
Fair value, by balance sheet grouping
The following tables present carrying amounts and estimated fair values of certain financial instruments as of the dates indicated:
September 30, 2020
Carrying
Estimated Fair Value
AmountTotalLevel 1Level 2Level 3
(In thousands)
Financial Assets:
Cash and due from banks$187,176 $187,176 $187,176 $— $— 
Interest-earning deposits in financial institutions2,766,020 2,766,020 2,766,020 — — 
Securities available-for-sale4,532,614 4,532,614 5,335 4,492,006 35,273 
Investment in FHLB stock17,250 17,250 — 17,250 — 
Loans and leases held for investment, net18,680,234 19,040,922 — 3,031 19,037,891 
Equity warrants4,742 4,742 — — 4,742 
Interest rate and economic contracts3,614 3,614 — 3,614 — 
Equity investments with readily determinable fair values1,135 1,135 1,135 — — 
Financial Liabilities:
Core deposits21,117,629 21,117,629 — 21,117,629 — 
Non-core non-maturity deposits1,123,909 1,123,909 — 1,123,909 — 
Time deposits1,724,157 1,731,333 — 1,731,333 — 
Borrowings60,000 59,988 50,000 9,988 — 
Subordinated debentures463,282 445,978 — 445,978 — 
Derivative liabilities81 81 — 81 — 

December 31, 2019
Carrying
Estimated Fair Value
AmountTotalLevel 1Level 2Level 3
(In thousands)
Financial Assets:
Cash and due from banks$172,585 $172,585 $172,585 $— $— 
Interest-earning deposits in financial institutions465,039 465,039 465,039 — — 
Securities available-for-sale3,797,187 3,797,187 5,181 3,769,307 22,699 
Investment in FHLB stock40,924 40,924 — 40,924 — 
Loans and leases held for investment, net18,708,087 19,055,004 — 1,083 19,053,921 
Equity warrants3,434 3,434 — — 3,434 
Interest rate and economic contracts1,234 1,234 — 1,234 — 
Equity investments with readily determinable fair values2,998 2,998 2,998 — — 
Financial Liabilities:
Core deposits16,187,287 16,187,287 — 16,187,287 — 
Non-core non-maturity deposits496,407 496,407 — 496,407 — 
Time deposits2,549,342 2,549,260 — 2,549,260 — 
Borrowings1,759,008 1,759,008 1,759,000 8 — 
Subordinated debentures458,209 441,617 — 441,617 — 
Derivative liabilities755 755 — 755 —