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Disclosure About Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis

The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis categorized by the level of inputs used in the valuation of each asset and liability at December 31, 2018 and 2017:

(In thousands)	Carrying Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2018
Assets
Investment securities available-for-sale	$	1,187,252	$	—	$	1,187,252	$	—
Equity securities with readily determinable fair values not held for trading		5,840		5,840		—		—
Derivative assets		11,136		—		11,136		—
Net profits interests		5,779		—		—		5,779
Investments in limited partnerships		11,191		—		—		11,191
Total recurring basis measured assets	$	1,221,198	$	5,840	$	1,198,388	$	16,970
Liabilities
Derivative liabilities	$	32,350	$	—	$	32,350	$	—
Total recurring basis measured liabilities	$	32,350	$	—	$	32,350	$	—

(In thousands)	Carrying Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2017
Assets
Investment securities available-for-sale	$	1,257,063	$	—	$	1,257,063	$	—
Equity securities with readily determinable fair values not held for trading		5,885		5,885		—		—
Derivative assets		3,958		—		3,958		—
Net profits interests		15,833		—		—		15,833
Total recurring basis measured assets	$	1,282,739	$	5,885	$	1,261,021	$	15,833
Liabilities
Derivative liabilities	$	25,280	$	—	$	25,280	$	—
Total recurring basis measured liabilities	$	25,280	$	—	$	25,280	$	—

Summary of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

	For the Year Ended December 31,
	2018			2017			2018			2017
(In thousands)	Net Profits Interests						Investments in Limited Partnerships
Beginning Balance	$	15,833		$	19,425		$	—		$	—
Transfers in due to adoption of ASU 2016-01		—			—			5,129			—
Adjustment recorded in retained earnings due to adoption of ASU 2016-01		—			—			1,201			—
Sales proceeds		(5,308	)		—			—			—
Net (losses) gains included in earnings		(3,177	)		(2,442	)		2,457			—
Contributions paid		—			—			3,807			—
Distributions received		(1,569	)		(1,150	)		(1,403	)		—
Ending Balance at December 31, 2018	$	5,779		$	15,833		$	11,191		$	—
Net unrealized (losses) gains included in earnings relating to assets held at the end of the period	$	(2,818	)	$	(2,442	)	$	2,457		$	—

Summary of Assets Recorded at Fair Value on a Nonrecurring Basis

From time to time, the Company may be required to measure certain other financial assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis which were still held on the balance sheets at December 31, 2018 and 2017, the following tables provide the level of valuation assumptions used to determine each adjustment and the related carrying value:

(In thousands)	Carrying Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2018
Loans held for sale	$	59,461		—	$	59,461	$	—
Impaired loans, net of specific allowance		71,741		—		—		71,741
Other real estate		2,406		—		—		2,406
Total assets measured on a nonrecurring basis	$	133,608	$	—	$	59,461	$	74,147

(In thousands)	Carrying Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2017
Loans held for sale	$	61,359		—	$	61,359	$	—
Impaired loans, net of specific allowance		65,088		—		—		65,088
Other real estate		7,605		—		—		7,605
Total assets measured on a nonrecurring basis	$	134,052	$	—	$	61,359	$	72,693

Summary of Significant Unobservable Inputs Used in Level 3 Fair Value Measurements for Financial Assets Measured at Fair Value on a Nonrecurring Basis

Significant unobservable inputs used in Level 3 fair value measurements for financial assets measured at fair value on a nonrecurring basis are summarized below:

Quantitative Information about Level 3 Fair Value Measurements

(In thousands)

Carrying

Value

Valuation

Methods

Unobservable Inputs

Range

December 31, 2018

Impaired loans, net of specific allowance

71,741

Appraised value, as adjusted

Discount to fair value

0% - 20%

Discounted cash flow

Net recoverable oil and gas reserves and forward-looking commodity prices. Discount rate - 10%

0 - 10%

Discounted cash flow

Discount rates - 2.9% to 8.7%

0% - 20%⁽¹⁾

Enterprise value

Exit multiples

0 - 15%⁽¹⁾

Estimated closing costs

10%

Other real estate

2,406

Appraised value, as adjusted

Discount to fair value

0% - 20%

Estimated closing costs

10%

(1) - Represents difference of unpaid balance to fair value.

Quantitative Information about Level 3 Fair Value Measurements

(In thousands)

Carrying

Value

Valuation

Methods

Unobservable

Inputs

Range

December 31, 2017

Impaired loans, net of specific allowance

65,088

Appraised value, as adjusted

Discount to fair value

0% - 50%

Discounted cash flow

Net recoverable oil and gas reserves and forward-looking commodity prices. Discount rate - 9%

0% - 29%⁽¹⁾

Discounted cash flow

Discount rates - 3.6% to 8.0%

0% - 1%⁽¹⁾

Estimated

closing costs

10%

Other real estate

7,605

Appraised value, as adjusted

Discount of

fair value

0%-20%

Estimated

closing costs

10%

(1) - Represents fair value as a percent of the unpaid principal balance.

Summary of Estimated Fair Values of Financial Instruments

The estimated fair values of the Company’s financial instruments are as follows:

	December 31, 2018
(In thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	237,342	$	237,342	$	237,342	$	—	$	—
Interest-bearing deposits in other banks		523,436		523,436		523,436		—		—
Federal funds sold		18,502		18,502		18,502		—		—
Investment securities available-for-sale		1,187,252		1,187,252		—		1,187,252		—
Equity securities with readily determinable fair values not held for trading		5,840		5,840		5,840		—		—
Loans held for sale		59,461		59,461		—		59,461		—
Net loans		9,959,545		9,735,130		—		—		9,735,130
Derivative assets		11,136		11,136		—		11,136		—
Net profits interests		5,779		5,779		—		—		5,779
Investments in limited partnerships		36,917		36,917		—		—		36,917
Financial Liabilities:
Deposits		10,708,689		10,700,350		—		10,700,350		—
Advances from FHLB		150,000		150,000		—		150,000		—
Securities sold under agreements to repurchase		1,106		1,106		—		1,106		—
Senior debt		184,801		194,762		—		194,762		—
Subordinated debt		98,910		103,008		—		103,008		—
Junior subordinated debentures		36,953		46,946		—		46,946		—
Derivative liabilities		32,350		32,350		—		32,350		—

	December 31, 2017
(In thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	238,707	$	238,707	$	238,707	$	—	$	—
Interest-bearing deposits in other banks		482,568		482,568		482,568		—		—
Federal funds sold		9,536		9,536		9,536		—		—
Securities available-for-sale		1,257,063		1,257,063		—		1,257,063		—
Securities held-to-maturity		290		311		—		311		—
Equity securities with readily determinable fair values not held for trading		5,885		5,885		5,885		—		—
Loans held for sale		61,359		61,359		—		61,359		—
Net loans		8,165,851		8,134,903		—		—		8,134,903
Derivative assets		3,958		3,958		—		3,958		—
Net profits interests		15,833		15,833		—		—		15,833
Financial Liabilities:
Deposits		9,011,515		9,006,890		—		9,006,890		—
Advances from FHLB		150,000		150,000		—		150,000		—
Securities sold under agreements to repurchase		1,026		1,026		—		1,026		—
Senior debt		184,629		194,484		—		194,484		—
Subordinated debt		98,687		94,724		—		94,724		—
Junior subordinated debentures		36,472		49,161		—		49,161		—
Derivative liabilities		25,280		25,280		—		25,280		—