Fair Value (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2015						As of December 31, 2014
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Trading securities:
Money market funds	$	2,366	$	—	$	—	$	1,725	$	—	$	—
Mutual funds	14,672		—		—		15,735		—		—
Total trading securities	17,038		—		—		17,460		—		—
Securities available-for-sale:
U.S. treasury securities	—		1,999		—		—		—		—
U.S. agency securities	—		18,623		—		—		30,431		—
CMOs	—		546,475		—		—		534,156		—
MBSs	—		167,381		—		—		159,765		—
Municipal securities	—		381,554		—		—		423,820		—
CDOs	—		—		31,870		—		—		33,774
Corporate debt securities	—		—		—		—		1,802		—
Equity securities	—		3,516		—		—		3,261		—
Total available-for-sale securities	—		1,119,548		31,870		—		1,153,235		33,774
Mortgage servicing rights ⁽¹⁾	—		—		1,798		—		—		1,728
Derivative assets ⁽¹⁾	—		26,151		—		—		9,018		—
Liabilities:
Derivative liabilities ⁽²⁾	$	—	$	28,030	$	—	$	—	$	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 September 30, 2015
Probability of prepayment		2.4% - 15.4%
Probability of default		17.7% - 54.8%
Loss given default		88.2% - 96.5%
Probability of deferral cure		21.7% - 56.8%

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

A rollforward of the carrying value of CDOs for the quarters and nine months ended September 30, 2015 and 2014 is presented in the following table.

Rollforward of the Carrying Value of CDOs

(Dollar amounts in thousands)



	Quarters Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Beginning balance	$	32,004		$	18,436		$	33,774		$	18,309
Change in other comprehensive loss ⁽¹⁾	(62		)	(65		)	(1,560		)	1,571
Paydowns	(72		)	(2		)	(344		)	(1,511		)
Ending balance	$	31,870		$	18,369		$	31,870		$	18,369


⁽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 September 30, 2015						As of December 31, 2014
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Collateral-dependent impaired loans ⁽¹⁾	$	—	$	—	$	5,773	$	—	$	—	$	23,799
OREO ⁽²⁾	—		—		7,477		—		—		22,760
Loans held-for-sale ⁽³⁾	—		—		19,439		—		—		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
		September 30, 2015				December 31, 2014
	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and due from banks	1	$	125,279	$	125,279	$	117,315	$	117,315
Interest-bearing deposits in other banks	2	822,264		822,264		488,947		488,947
Securities held-to-maturity	2	23,723		23,708		26,555		27,670
FHLB and FRB stock	2	38,748		38,748		37,558		37,558
Loans	3	6,859,305		6,770,861		6,672,611		6,536,248
Investment in BOLI	3	208,666		208,666		206,498		206,498
Accrued interest receivable	3	27,897		27,897		27,506		27,506
Other interest-earning assets	3	2,357		2,357		3,799		3,799
Liabilities:
Deposits	2	$	8,296,450	$	8,295,488	$	7,887,758	$	7,879,413
Borrowed funds	2	169,943		169,942		137,994		137,994
Senior and subordinated debt	1	201,123		207,045		200,869		209,035
Accrued interest payable	2	5,124		5,124		2,324		2,324