Fair Value (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value, Assets Measured on Recurring Basis

The following table provides the fair value for assets and liabilities required to be measured at fair value on a recurring basis in the Consolidated Statements of Financial Condition by level in the fair value hierarchy.

Recurring Fair Value Measurements

(Dollar amounts in thousands)



	As of March 31, 2015						As of December 31, 2014
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Trading securities:
Money market funds	$	1,572	$	—	$	—	$	1,725	$	—	$	—
Mutual funds	16,802		—		—		15,735		—		—
Total trading securities	18,374		—		—		17,460		—		—
Securities available-for-sale:
U.S. Agency securities	—		24,707		—		—		30,431		—
CMOs	—		524,064		—		—		534,156		—
Other MBSs	—		150,646		—		—		159,765		—
Municipal securities	—		413,118		—		—		423,820		—
CDOs	—		—		33,928		—		—		33,774
Corporate debt securities	—		1,792		—		—		1,802		—
Equity securities	—		3,348		—		—		3,261		—
Total securities available-for-sale	—		1,117,675		33,928		—		1,153,235		33,774
Mortgage servicing rights ⁽¹⁾	—		—		1,773		—		—		1,728
Derivative assets ⁽¹⁾	—		16,534		—		—		9,018		—
Liabilities:
Derivative liabilities ⁽²⁾	$	—	$	20,176	$	—	$	—	$	11,980	$	—


⁽¹⁾	Included in other assets in the Consolidated Statements of Financial Condition.


⁽²⁾	Included in other liabilities in the Consolidated Statements of Financial Condition.

Fair Value Inputs, Assets, Quantitative Information

Significant Unobservable Inputs Used in the Valuation of CDOs



		As of
		March 31, 2015
Probability of prepayment		2.9% - 15.2%
Probability of default		18.4% - 57.7%
Loss given default		83.8% - 97.0%
Probability of deferral cure		6.7% - 75.0%

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

A rollforward of the carrying value of CDOs for the quarters ended March 31, 2015 and 2014 is presented in the following table.

Rollforward of the Carrying Value of CDOs

(Dollar amounts in thousands)



	Quarters Ended March 31,
	2015			2014
Beginning balance	$	33,774		$	18,309
Change in other comprehensive income (loss) ⁽¹⁾	300			3,357
Paydowns	(146		)	—
Ending balance	$	33,928		$	21,666


⁽¹⁾	Included in unrealized holding gains in the Consolidated Statements of Comprehensive Income.

Fair Value Measurements, Nonrecurring

The following table provides the fair value for each class of assets and liabilities required to be measured at fair value on a non-recurring basis in the Consolidated Statements of Financial Condition by level in the fair value hierarchy.

Non-Recurring Fair Value Measurements

(Dollar amounts in thousands)



	As of March 31, 2015						As of December 31, 2014
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Collateral-dependent impaired loans ⁽¹⁾	$	—	$	—	$	10,003	$	—	$	—	$	23,799
OREO ⁽²⁾	—		—		5,543		—		—		22,760
Loans held-for-sale ⁽³⁾	—		—		8,595		—		—		9,459
Assets held-for-sale ⁽⁴⁾	—		—		2,026		—		—		2,026


⁽¹⁾	Includes impaired loans with charge-offs and impaired loans with a specific reserve during the periods presented.


⁽²⁾	Includes OREO and covered OREO with fair value adjustments subsequent to initial transfer that occurred during the periods presented.


⁽³⁾	Included in other assets in the Consolidated Statements of Financial Condition.


⁽⁴⁾	Included in premises, furniture, and equipment in the Consolidated Statements of Financial Condition.

Fair Value, by Balance Sheet Grouping

For certain financial instruments that are not required to be measured at fair value in the Consolidated Statements of Financial Condition, the Company must disclose the estimated fair values and the level within the fair value hierarchy as shown in the following table.

Fair Value Measurements of Other Financial Instruments

(Dollar amounts in thousands)



		As of March 31, 2015				As of December 31, 2014
	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and due from banks	1	$	126,450	$	126,450	$	117,315	$	117,315
Interest-bearing deposits in other banks	2	492,607		492,607		488,947		488,947
Securities held-to-maturity	2	25,861		27,171		26,555		27,670
FHLB and FRB stock	2	38,748		38,748		37,558		37,558
Net loans	3	6,733,361		6,645,251		6,664,159		6,532,622
FDIC indemnification asset	3	8,540		4,669		8,452		3,626
Investment in BOLI	3	207,190		207,190		206,498		206,498
Accrued interest receivable	3	28,442		28,442		27,506		27,506
Other interest earning assets	3	3,268		3,352		3,799		3,904
Liabilities:
Deposits	2	$	7,914,679	$	7,908,654	$	7,887,758	$	7,879,413
Borrowed funds	2	131,200		131,200		137,994		137,994
Senior and subordinated debt	1	200,954		208,847		200,869		209,035
Accrued interest payable	2	5,149		5,149		2,324		2,324

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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