Fair Value (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

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, 2016						As of December 31, 2015
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Trading securities:
Money market funds	$	1,707	$	—	$	—	$	2,530	$	—	$	—
Mutual funds	16,644		—		—		14,364		—		—
Total trading securities	18,351		—		—		16,894		—		—
Securities available-for-sale:
U.S. treasury securities	43,797		—		—		16,980		—		—
U.S. agency securities	—		192,931		—		—		86,643		—
CMOs	—		1,081,259		—		—		687,185		—
MBSs	—		324,484		—		—		153,530		—
Municipal securities	—		286,713		—		—		327,570		—
CDOs	—		—		31,899		—		—		31,529
Equity securities	—		2,947		—		—		3,199		—
Total securities available-for-sale	43,797		1,888,334		31,899		16,980		1,258,127		31,529
Mortgage servicing rights ("MSRs") (1)	—		—		5,076		—		—		1,853
Derivative assets (1)	—		44,928		—		—		16,233		—
Liabilities:
Derivative liabilities (2)	$	—	$	45,070	$	—	$	—	$	21,039	$	—

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

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

Significant Unobservable Inputs Used in the Valuation of CDOs

The following table presents the ranges of significant, unobservable inputs used by the Company to determine the fair value of MSRs as of September 30, 2016.

Significant Unobservable Inputs Used in the Valuation of MSRs

	As of
	September 30, 2016				December 31, 2015
Prepayment speed	10.2	%	-	29.2%	10.1	%	-	20.9%
Maturity (months)	12		-	80	6		-	86
Discount rate	9.5	%	-	13.0%	9.5	%	-	13.0%

The following table presents the ranges of significant, unobservable inputs calculated using the weighted-average of the Issuers used by the Company as of September 30, 2016 and December 31, 2015.

Significant Unobservable Inputs Used in the Valuation of CDOs

	As of
	September 30, 2016				December 31, 2015
Probability of prepayment	1.8	%	-	15.0%	1.8	%	-	15.1%
Probability of default	17.4	%	-	49.0%	19.1	%	-	32.6%
Loss given default	93.1	%	-	98.5%	93.8	%	-	97.1%
Probability of deferral cure	17.3	%	-	100.0%	15.2	%	-	63.1%

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, 2016 and 2015 is presented in the following table.

Carrying Value of CDOs

(Dollar amounts in thousands)

	Quarters Ended   September 30,						Nine Months Ended   September 30,
	2016			2015			2016			2015
Beginning balance	$	30,431		$	32,004		$	31,529		$	33,774
Change in other comprehensive income (1)	1,794			(62		)	764			(1,560		)
Paydowns	(326		)	(72		)	(394		)	(344		)
Ending balance	$	31,899		$	31,870		$	31,899		$	31,870

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

Significant Unobservable Inputs Used in the Valuation of MSRs

The following table presents the ranges of significant, unobservable inputs used by the Company to determine the fair value of MSRs as of September 30, 2016.

Significant Unobservable Inputs Used in the Valuation of MSRs

	As of
	September 30, 2016				December 31, 2015
Prepayment speed	10.2	%	-	29.2%	10.1	%	-	20.9%
Maturity (months)	12		-	80	6		-	86
Discount rate	9.5	%	-	13.0%	9.5	%	-	13.0%

The following table presents the ranges of significant, unobservable inputs calculated using the weighted-average of the Issuers used by the Company as of September 30, 2016 and December 31, 2015.

Significant Unobservable Inputs Used in the Valuation of CDOs

	As of
	September 30, 2016				December 31, 2015
Probability of prepayment	1.8	%	-	15.0%	1.8	%	-	15.1%
Probability of default	17.4	%	-	49.0%	19.1	%	-	32.6%
Loss given default	93.1	%	-	98.5%	93.8	%	-	97.1%
Probability of deferral cure	17.3	%	-	100.0%	15.2	%	-	63.1%

Schedule of Servicing Assets at Fair Value

A rollforward of the carrying value of MSRs for the quarters and nine months ended September 30, 2016 and 2015 is presented in the following table.

Carrying Value of MSRs

(Dollar amounts in thousands)

	Quarters Ended   September 30,						Nine Months Ended   September 30,
	2016			2015			2016			2015
Beginning balance	$	4,938		$	1,820		$	1,853		$	1,728
Additions from acquisition	—			—			3,092			—
New MSRs	581			60			928			303
(Losses) gains included in earnings (1):
Changes in valuation inputs and assumptions	(205		)	(12		)	(377		)	(51		)
Other changes in fair value (2)	(238		)	(70		)	(420		)	(182		)
Ending balance	$	5,076		$	1,798		$	5,076		$	1,798
Contractual servicing fees earned (1)	$	373		$	136		$	922		$	404

⁽¹⁾  Included in mortgage banking income in the Condensed Consolidated Statements of Income and related to assets held as of September 30, 2016 and 2015.

⁽²⁾  Primarily represents changes in expected future cash flows due to payoffs and paydowns.

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, 2016						As of December 31, 2015
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Collateral-dependent impaired loans (1)	$	—	$	—	$	10,156	$	—	$	—	$	10,519
OREO (2)	—		—		4,090		—		—		8,581
Loans held-for-sale (3)	—		—		29,645		—		—		14,444
Assets held-for-sale (4)	—		—		4,967		—		—		7,428

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

⁽²⁾  Includes 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, 2016				December 31, 2015
	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and due from banks	1	$	139,538	$	139,538	$	114,587	$	114,587
Interest-bearing deposits in other banks	2	362,153		362,153		266,615		266,615
Securities held-to-maturity	2	20,337		18,110		23,152		20,054
FHLB and FRB stock	2	53,506		53,506		39,306		39,306
Loans	3	8,091,306		7,997,227		7,091,988		6,959,024
Investment in BOLI	3	219,064		219,064		209,601		209,601
Accrued interest receivable	3	33,931		33,931		27,847		27,847
Other interest-earning assets	3	1,056		1,056		1,982		1,982
Liabilities:
Deposits	2	$	9,106,104	$	9,104,564	$	8,097,738	$	8,093,640
Borrowed funds	2	639,539		639,539		165,096		165,096
Senior and subordinated debt	1	309,444		317,948		201,208		205,726
Accrued interest payable	2	4,856		4,856		2,175		2,175