Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

Summary Of Assets And Liabilities Measured At Fair Value On A Recurring Basis

The table below presents the March 31, 2020 and December 31, 2019 carrying values of assets and liabilities measured at fair value on a recurring basis. There were no transfers among levels during the first three months of 2020 or the year ended December 31, 2019.


			Fair Value Measurements Using
(In thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2020
Assets:
Residential mortgage loans held for sale	$	108	$	—	$	108	$	—
Available for sale debt securities:
U.S. government and federal agency obligations	840,447		840,447		—		—
Government-sponsored enterprise obligations	112,870		—		112,870		—
State and municipal obligations	1,283,068		—		1,274,706		8,362
Agency mortgage-backed securities	4,168,421		—		4,168,421		—
Non-agency mortgage-backed securities	717,008		—		717,008		—
Asset-backed securities	1,232,292		—		1,232,292		—
Other debt securities	324,480		—		324,480		—
Trading debt securities	24,291		—		24,291		—
Equity securities	2,633		2,633		—		—
Private equity investments	81,159		—		—		81,159
Derivatives *	250,450		—		250,026		424
Assets held in trust for deferred compensation plan	14,194		14,194		—		—
Total assets	9,051,421		857,274		8,104,202		89,945
Liabilities:
Derivatives *	20,443		—		19,462		981
Liabilities held in trust for deferred compensation plan	14,194		14,194		—		—
Total liabilities	$	34,637	$	14,194	$	19,462	$	981
December 31, 2019
Assets:
Residential mortgage loans held for sale	$	9,181	$	—	$	9,181	$	—
Available for sale debt securities:
U.S. government and federal agency obligations	851,776		851,776		—		—
Government-sponsored enterprise obligations	139,277		—		139,277		—
State and municipal obligations	1,267,927		—		1,258,074		9,853
Agency mortgage-backed securities	3,937,964		—		3,937,964		—
Non-agency mortgage-backed securities	809,782		—		809,782		—
Asset-backed securities	1,233,489		—		1,233,489		—
Other debt securities	331,411		—		331,411		—
Trading debt securities	28,161		—		28,161		—
Equity securities	2,929		2,929		—		—
Private equity investments	94,122		—		—		94,122
Derivatives *	105,674		—		105,075		599
Assets held in trust for deferred compensation plan	16,518		16,518		—		—
Total assets	8,828,211		871,223		7,852,414		104,574
Liabilities:
Derivatives *	10,219		—		9,989		230
Liabilities held in trust for deferred compensation plan	16,518		16,518		—		—
Total liabilities	$	26,737	$	16,518	$	9,989	$	230

* The fair value of each class of derivative is shown in Note 11.

Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(In thousands)	State and Municipal Obligations		Private Equity Investments		Derivatives		Total
For the three months ended March 31, 2020
Balance December 31, 2019	$	9,853	$	94,122	$	369	$	104,344
Total gains or losses (realized/unrealized):
Included in earnings	—		(13,008)		(486)		(13,494)
Included in other comprehensive income *	(1,495)		—		—		(1,495)

Discount accretion	4		—		—		4
Purchases of private equity investments	—		114		—		114
Sale/pay down of private equity investments	—		(69)		—		(69)


Sale of risk participation agreements	—		—		(440)		(440)
Balance March 31, 2020	$	8,362	$	81,159	$	(557)	$	88,964
Total gains or losses for the three months included in earnings attributable to the change in unrealized gains or losses relating to assets still held at March 31, 2020	$	—	$	(13,008)	$	(55)	$	(13,063)
Total gains or losses for the three months included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets still held at March 31, 2020	$	(1,495)	$	—	$	—	$	(1,495)


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(In thousands)	State and Municipal Obligations		Private Equity Investments		Derivatives		Total















For the three months ended March 31, 2019
Balance January 1, 2019	$	14,158	$	85,659	$	490	$	100,307
Total gains or losses (realized/unrealized):
Included in earnings	—		(1,842)		315		(1,527)
Included in other comprehensive income *	364		—		—		364

Discount accretion	7		—		—		7
Purchases of private equity investments	—		2,060		—		2,060




Balance March 31, 2019	$	14,529	$	85,877	$	805	$	101,211
Total gains or losses for the three months included in earnings attributable to the change in unrealized gains or losses relating to assets still held at March 31, 2019	$	—	$	(1,842)	$	851	$	(991)

* Included in "net unrealized gains (losses) on other securities" in the consolidated statements of comprehensive income.

Summary Of Gains And Losses On Level 3 Assets And Liabilities

Gains and losses included in earnings for the Level 3 assets and liabilities in the previous table are reported in the following line items in the consolidated statements of income:


(In thousands)	Loan Fees and Sales		Other Non-Interest Income		Investment Securities Gains (Losses), Net		Total



For the three months ended March 31, 2020
Total gains or losses included in earnings	$	(459)	$	(27)	$	(13,008)	$	(13,494)
Change in unrealized gains or losses relating to assets still held at March 31, 2020	$	—	$	(55)	$	(13,008)	$	(13,063)



For the three months ended March 31, 2019
Total gains or losses included in earnings	$	287	$	28	$	(1,842)	$	(1,527)
Change in unrealized gains or losses relating to assets still held at March 31, 2019	$	823	$	28	$	(1,842)	$	(991)

Summary Of Quantitative Information About Level 3 Fair Value Measurements

The Company's significant Level 3 measurements which employ unobservable inputs that are readily quantifiable pertain to auction rate securities (ARS) held by the Bank and investments in portfolio concerns held by the Company's private equity subsidiaries. ARS are included in state and municipal securities and totaled $8.4 million at March 31, 2020, while private equity investments, included in other securities, totaled $81.2 million.

Information about these inputs is presented in the table below.

Quantitative Information about Level 3 Fair Value Measurements

Weighted

Valuation Technique

Unobservable Input

Range

Average*

Auction rate securities

Discounted cash flow

Estimated market recovery period

5 years

Estimated market rate

5.7%

6.5%

5.8%

Private equity investments

Market comparable companies

EBITDA multiple

4.0

6.0

5.3

* Unobservable inputs were weighted by the relative fair value of the instruments.

Schedule Of Fair Value Disclosures Measured On Nonrecurring Basis [Table Text Block]

For assets measured at fair value on a nonrecurring basis during the first three months of 2020 and 2019, and still held as of March 31, 2020 and 2019, the following table provides the adjustments to fair value recognized during the respective periods, the level of valuation inputs used to determine each adjustment, and the carrying value of the related individual assets or portfolios at March 31, 2020 and 2019.


			Fair Value Measurements Using
(In thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) Recognized During the Three Months Ended March 31
March 31, 2020
Collateral dependent impaired loans	$	124	$	—	$	—	$	124	$	(16)

Mortgage servicing rights	6,768		—		—		6,768		(1,056)



March 31, 2019
Collateral dependent impaired loans	$	129	$	—	$	—	$	129	$	(170)

Mortgage servicing rights	6,341		—		—		6,341		(260)

Long-lived assets	134		—		—		134		(14)

Information about Level Three Fair Value Measurements - Nonrecurring Basis

The Company's significant Level 3 measurements that are measured on a nonrecurring basis pertain to the Company's mortgage servicing rights retained on certain fixed rate personal real estate loan originations. Mortgage servicing rights are included in other assets on the consolidated balance sheet and totaled $6.8 million at March 31, 2020. Information about these inputs is presented in the table below.


Quantitative Information about Level 3 Fair Value Measurements														Weighted
	Valuation Technique	Unobservable Input	Range										Average*
Mortgage servicing rights	Discounted cash flow	Discount rate	9.09		%	-	11.50		%	9.25		%
		Prepayment speeds (CPR)*	10.91		%	-	14.34		%	13.14		%
		Loan servicing costs - annually per loan
		Performing loans	$	71		-	$	80		$	72
		Delinquent loans	$	200		-	$	750
		Loans in foreclosure	$	1,000

*Ranges and weighted averages based on interest rate tranches.