FAIR VALUE MEASUREMENTS (Tables)
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12 Months Ended |
Dec. 31, 2017 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] |
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Summary of assets and financial liabilities measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value |
The following table summarizes assets and liabilities measured at fair value on a recurring basis as of year-end 2017 and 2016 segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: | | | | | | | | | | | | | | | | | | | | December 31, 2017 | (In thousands) | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Total Fair Value | Trading security | | $ | — |
| | $ | — |
| | $ | 12,277 |
| | $ | 12,277 |
| Available-for-sale securities: | | |
| | |
| | |
| | |
| Municipal bonds and obligations | | — |
| | 118,233 |
| | — |
| | 118,233 |
| Agency collateralized mortgage obligations | | — |
| | 851,158 |
| | — |
| | 851,158 |
| Agency residential mortgage-backed securities | | — |
| | 216,940 |
| | — |
| | 216,940 |
| Agency commercial mortgage-backed securities | | — |
| | 62,305 |
| | — |
| | 62,305 |
| Corporate bonds | | — |
| | 110,721 |
| | — |
| | 110,721 |
| Trust preferred securities | | — |
| | 11,677 |
| | — |
| | 11,677 |
| Other bonds and obligations | | — |
| | 9,880 |
| | — |
| | 9,880 |
| Marketable equity securities | | 44,851 |
| | 334 |
| | — |
| | 45,185 |
| Loans held for sale | | — |
| | 153,620 |
| | — |
| | 153,620 |
| Derivative assets | | — |
| | 14,049 |
| | 5,259 |
| | 19,308 |
| Other assets | | — |
| | — |
| | 3,834 |
| | 3,834 |
| Derivative liabilities | | 104 |
| | 15,715 |
| | 19 |
| | 15,838 |
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| | | | | | | | | | | | | | | | | | | | December 31, 2016 | (In thousands) | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Total Fair Value | Trading security | | $ | — |
| | $ | — |
| | $ | 13,229 |
| | $ | 13,229 |
| Available-for-sale securities: | | |
| | |
| | |
| | |
| Municipal bonds and obligations | | — |
| | 119,816 |
| | — |
| | 119,816 |
| Agency collateralized mortgage obligations | | — |
| | 651,911 |
| | — |
| | 651,911 |
| Agency residential mortgage-backed securities | | — |
| | 228,684 |
| | — |
| | 228,684 |
| Agency commercial mortgage-backed securities | | — |
| | 64,534 |
| | — |
| | 64,534 |
| Corporate bonds | | — |
| | 56,006 |
| | — |
| | 56,006 |
| Trust preferred securities | | — |
| | 11,887 |
| | — |
| | 11,887 |
| Other bonds and obligations | | — |
| | 11,158 |
| | — |
| | 11,158 |
| Marketable equity securities | | 62,284 |
| | 3,257 |
| | — |
| | 65,541 |
| Loans held for sale | | — |
| | 120,673 |
| | — |
| | 120,673 |
| Derivative assets | | 622 |
| | 16,157 |
| | 4,838 |
| | 21,617 |
| Other assets | | — |
| | — |
| | 798 |
| | 798 |
| Derivative liabilities | | — |
| | 24,420 |
| | — |
| | 24,420 |
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Schedule of loans held for sale |
| | | | | | | | | | | | | | | | Aggregate Fair Value | | Aggregate Unpaid Principal | | Aggregate Fair Value Less Aggregate Unpaid Principal | December 31, 2017 (In thousands) | | | | Loans Held for Sale | | $ | 153,620 |
| | $ | 149,022 |
| | $ | 4,598 |
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| | | | | | | | | | | | | | | | Aggregate Fair Value | | Aggregate Unpaid Principal | | Aggregate Fair Value Less Aggregate Unpaid Principal | December 31, 2016 (In thousands) | | | | Loans Held for Sale | | $ | 120,673 |
| | $ | 118,178 |
| | $ | 2,495 |
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Schedule of changes in level 3 assets and liabilities that were measured at fair value on a recurring basis |
The table below presents the changes in Level 3 assets that were measured at fair value on a recurring basis at year-end 2017 and 2016: | | | | | | | | | | | | | | | | | | | | | | | | Assets (Liabilities) | (In thousands) | | Trading Security | | Securities Available for Sale | | Commitments to Lend | | Forward Commitments | | Capitalized Servicing Rights | Balance as of December 31, 2015 | | $ | 14,189 |
| | $ | 708 |
| | $ | 323 |
| | $ | 9 |
| | $ | — |
| Amounts acquired from First Choice Bank | | — |
| | — |
| | 3,900 |
| | — |
| | 696 |
| Unrealized (loss) gain, net recognized in other non-interest income | | (362 | ) | | — |
| | 13,563 |
| | 91 |
| | 102 |
| Unrealized gain included in accumulated other comprehensive loss | | — |
| | — |
| | — |
| | — |
| | — |
| Transfers to Level 2 | | — |
| | (708 | ) | | — |
| | — |
| | — |
| Paydown of trading security | | (598 | ) | | — |
| | — |
| | — |
| | — |
| Transfers to loans held for sale | | — |
| | — |
| | (13,048 | ) | | — |
| | — |
| Balance as of December 31, 2016 | | $ | 13,229 |
| | $ | — |
| | $ | 4,738 |
| | $ | 100 |
| | $ | 798 |
| Unrealized (loss) gain, net recognized in other non-interest income | | (320 | ) | | — |
| | 63,894 |
| | (81 | ) | | (221 | ) | Unrealized gain included in accumulated other comprehensive loss | | — |
| | — |
| | — |
| | — |
| | — |
| Transfers to Level 2 | | — |
| | — |
| | — |
| | — |
| | — |
| Paydown of trading security | | (632 | ) | | — |
| | — |
| | — |
| | — |
| Transfers to loans held for sale | | — |
| | — |
| | (63,373 | ) | | — |
| | — |
| Additions to servicing rights | | — |
| | — |
| | — |
| | — |
| | 3,257 |
| Balance as of December 31, 2017 | | $ | 12,277 |
| | $ | — |
| | $ | 5,259 |
| | $ | 19 |
| | $ | 3,834 |
| | | | | | | | | | | | Unrealized gains (losses) relating to instruments still held at December 31, 2017 | | $ | 1,522 |
| | $ | — |
| | $ | 5,259 |
| | $ | 19 |
| | $ | (221 | ) | Unrealized gains relating to instruments still held at December 31, 2016 | | $ | 1,843 |
| | $ | — |
| | $ | 4,738 |
| | $ | 100 |
| | $ | 102 |
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Schedule of quantitative information about the significant unobservable inputs within Level 3 |
The following is a summary of applicable non-recurring fair value measurements. There are no liabilities measured on a non-recurring basis. | | | | | | | | | | | December 31, 2017 | | | Fair Value Measurements as of December 31, 2017 | (In thousands) | | Level 3 Inputs | | | Level 3 Inputs | Assets | | |
| | | | Impaired loans | | $ | 23,853 |
| | | December 2017 | Capitalized servicing rights | | 12,527 |
| | | December 2017 | Other real estate owned | | — |
| | | — | Total | | $ | 36,380 |
| | | |
| | | | | | | | | | | December 31, 2016 | | | Fair Value Measurements as of December 31, 2016 | (In thousands) | | Level 3 Inputs | | | Level 3 Inputs | Assets | | |
| | | | Impaired loans | | $ | 17,761 |
| | | December 2016 | Capitalized servicing rights | | 10,726 |
| | | December 2016 | Other real estate owned | | 151 |
| | | Feb. 2016 - July 2016 | Total | | $ | 28,638 |
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Summary of applicable non-recurring fair value measurements |
The estimated fair values, and related carrying amounts, of the Company’s financial instruments follow. Certain financial instruments and all non-financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein may not necessarily represent the underlying fair value of the Company. | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2017 | | | Carrying Amount | | Fair Value | | | | | | | (In thousands) | | | | Level 1 | | Level 2 | | Level 3 | Financial Assets | | |
| | |
| | |
| | |
| | |
| Cash and cash equivalents | | $ | 248,763 |
| | $ | 248,763 |
| | $ | 248,763 |
| | $ | — |
| | $ | — |
| Trading security | | 12,277 |
| | 12,277 |
| | — |
| | — |
| | 12,277 |
| Securities available for sale | | 1,426,099 |
| | 1,426,099 |
| | 44,850 |
| | 1,381,249 |
| | — |
| Securities held to maturity | | 397,103 |
| | 405,276 |
| | — |
| | 371,458 |
| | 33,818 |
| FHLB stock and restricted equity securities | | 63,085 |
| | N/A |
| | — |
| | N/A |
| | — |
| Net loans | | 8,247,504 |
| | 8,422,034 |
| | — |
| | — |
| | 8,422,034 |
| Loans held for sale | | 153,620 |
| | 153,620 |
| | — |
| | 153,620 |
| | — |
| Accrued interest receivable | | 33,739 |
| | 33,739 |
| | — |
| | 33,739 |
| | — |
| Derivative assets | | 19,308 |
| | 19,308 |
| | — |
| | 14,049 |
| | 5,259 |
| Assets held for sale | | 1,392 |
| | 1,392 |
| | — |
| | 1,392 |
| | — |
| | | | | | | | | | | | Financial Liabilities | | |
| | |
| | |
| | |
| | |
| Total deposits | | 8,749,530 |
| | 8,731,527 |
| | — |
| | 8,731,527 |
| | — |
| Short-term debt | | 667,300 |
| | 667,246 |
| | — |
| | 667,246 |
| | — |
| Long-term FHLB advances | | 380,436 |
| | 378,766 |
| | — |
| | 378,766 |
| | — |
| Subordinated notes | | 89,339 |
| | 97,414 |
| | — |
| | 97,414 |
| | — |
| Derivative liabilities | | 15,838 |
| | 15,838 |
| | 104 |
| | 15,715 |
| | 19 |
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| | | | | | | | | | | | | | | | | | | | | | | | December 31, 2016 | | | Carrying Amount | | Fair Value | | | | | | | (In thousands) | | | | Level 1 | | Level 2 | | Level 3 | Financial Assets | | |
| | |
| | |
| | |
| | |
| Cash and cash equivalents | | $ | 113,075 |
| | $ | 113,075 |
| | $ | 113,075 |
| | $ | — |
| | $ | — |
| Trading security | | 13,229 |
| | 13,229 |
| | — |
| | — |
| | 13,229 |
| Securities available for sale | | 1,209,537 |
| | 1,209,537 |
| | 62,284 |
| | 1,147,253 |
| | — |
| Securities held to maturity | | 334,368 |
| | 337,680 |
| | — |
| | 300,806 |
| | 36,874 |
| FHLB stock and restricted equity securities | | 71,112 |
| | N/A |
| | — |
| | N/A |
| | — |
| Net loans | | 6,505,789 |
| | 6,532,745 |
| | — |
| | — |
| | 6,532,745 |
| Loans held for sale | | 120,673 |
| | 120,673 |
| | — |
| | 120,673 |
| | — |
| Accrued interest receivable | | 26,113 |
| | 26,113 |
| | — |
| | 26,113 |
| | — |
| Derivative assets | | 21,617 |
| | 21,617 |
| | 622 |
| | 16,157 |
| | 4,838 |
| Assets held for sale | | 322 |
| | 322 |
| | — |
| | 322 |
| | — |
| | | | | | | | | | | | Financial Liabilities | | |
| | |
| | |
| | |
| | |
| Total deposits | | 6,622,092 |
| | 6,624,108 |
| | — |
| | 6,624,108 |
| | — |
| Short-term debt | | 1,082,044 |
| | 1,081,996 |
| | — |
| | 1,081,996 |
| | — |
| Long-term FHLB advances | | 142,792 |
| | 143,151 |
| | — |
| | 143,151 |
| | — |
| Subordinated notes | | 89,161 |
| | 96,973 |
| | — |
| | 96,973 |
| | — |
| Derivative liabilities | | 24,420 |
| | 24,420 |
| | — |
| | 24,420 |
| | — |
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Recurring |
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Fair Value Inputs, Assets, Quantitative Information [Line Items] |
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Schedule of quantitative information about the significant unobservable inputs within Level 3 |
Quantitative information about the significant unobservable inputs within Level 3 recurring assets/(liabilities) as of December 31, 2017 and 2016 are as follows: | | | | | | | | | | | | | | | | Fair Value | | | | | | Significant Unobservable Input Value | (In thousands) | | December 31, 2017 | | Valuation Techniques | | Unobservable Inputs | | Assets | | |
| | | | | | |
| Trading Security | | $ | 12,277 |
| | Discounted Cash Flow | | Discount Rate | | 2.74 | % | Forward Commitments | | 19 |
| | Historical Trend | | Closing Ratio | | 81.53 | % | | | | | Pricing Model | | Origination Costs, per loan | | $ | 3,692 |
| Commitments to Lend | | 5,259 |
| | Historical Trend | | Closing Ratio | | 81.53 | % | | | | | Pricing Model | | Origination Costs, per loan | | $ | 3,692 |
| Capitalized Servicing Rights | | 3,834 |
| | Discounted cash flow | | Constant prepayment rate (CPR) | | 10.00 | % | | | | | | | Discount rate | | 10.95 | % | Total | | $ | 21,389 |
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| | | | | | | | | | | | | | | | Fair Value | | | | | | Significant Unobservable Input Value | (In thousands) | | December 31, 2016 | | Valuation Techniques | | Unobservable Inputs | | Assets | | |
| | | | | | |
| Trading Security | | $ | 13,229 |
| | Discounted Cash Flow | | Discount Rate | | 2.62 | % | Forward Commitments | | 100 |
| | Historical Trend | | Closing Ratio | | 80.36 | % | Commitments to Lend | | 4,738 |
| | Pricing Model | | Origination Costs, per loan | | $ | 3.692 |
| | | | | Historical Trend | | Closing Ratio | | 80.36 | % | Capitalized Servicing Rights | | 798 |
| | Pricing Model | | Origination Costs, per loan | | $ | 3.692 |
| | | | | Discounted cash flow | | Constant prepayment rate (CPR) | | 10.40 | % | | | | | | | Discount rate | | 11.00 | % | Total | | $ | 18,865 |
| | | | | | |
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Non-recurring |
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Fair Value Inputs, Assets, Quantitative Information [Line Items] |
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Schedule of quantitative information about the significant unobservable inputs within Level 3 |
Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets as of December 31, 2017 and 2016 are as follows: | | | | | | | | | | | | | (in thousands) | | December 31, 2017 | | Valuation Techniques | | Unobservable Inputs | | Range (Weighted Average) (a) | Assets | | |
| | | | | | |
| Impaired loans | | $ | 23,853 |
| | Fair value of collateral | | Loss severity | | 38.72% to 0.21% (3.40%) |
| | | |
| | | | Appraised value | | $10.9 to $5967 ($2,197) |
| Capitalized servicing rights | | 12,527 |
| | Discounted cash flow | | Constant prepayment rate (CPR) | | 7.78% to 12.78% (10.38%) |
| | | |
| | | | Discount rate | | 10.00% to 13.28% (11.72%) |
| Other real estate owned | | — |
| | Fair value of collateral | | Appraised value | | — |
| Total Assets | | $ | 36,380 |
| | | | | | |
(a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.
| | | | | | | | | | | | (in thousands) | | December 31, 2016 | | Valuation Techniques | | Unobservable Inputs | | Range (Weighted Average) (a) | Assets | | |
| | | | | | | Impaired loans | | $ | 17,761 |
| | Fair value of collateral | | Loss severity | | 0% to 88.70% (9.73%) | | | |
| | | | Appraised value | | $0 to $2,192 ($1,026) | Capitalized servicing rights | | 10,726 |
| | Discounted cash flow | | Constant prepayment rate (CPR) | | 7.35% to 14.28% (10.44%) | | | |
| | | | Discount rate | | 10.00% to 14.00% (11.77%) | Other real estate owned | | 151 |
| | Fair value of collateral | | Appraised value | | $101 to $129 ($122) | Total Assets | | $ | 28,638 |
| | | | | | |
(a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.
|