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FAIR VALUE MEASUREMENTS (Tables)
12 Months Ended
Dec. 31, 2017
Fair Value Inputs, Assets, Quantitative Information [Line Items]  
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

 
 
 
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

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

 
 
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

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

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

 
 
 
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


 
 
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

 

Recurring  
Fair Value Inputs, Assets, Quantitative Information [Line Items]  
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

 
 
 
 
 
 

 
 
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

 
 
 
 
 
 

Non-recurring  
Fair Value Inputs, Assets, Quantitative Information [Line Items]  
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.