Fair Value (Tables)

9 Months Ended

Sep. 30, 2018

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, 2018						As of December 31, 2017
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Trading securities:
Money market funds	$	—	$	—	$	—	$	1,685	$	—	$	—
Mutual funds	—		—		—		18,762		—		—
Total trading securities⁽¹⁾	—		—		—		20,447		—		—
Equity securities⁽¹⁾	22,078		6,968		—		—		—		—
Securities available-for-sale⁽¹⁾
U.S. treasury securities	49,109		—		—		46,345		—		—
U.S. agency securities	—		141,254		—		—		156,847		—
CMOs	—		1,257,927		—		—		1,095,186		—
MBSs	—		445,665		—		—		369,543		—
Municipal securities	—		223,035		—		—		208,991		—
Corporate debt securities	—		62,420		—		—		—		—
Equity securities	—		—		—		—		7,297		—
Total securities available-for-sale	49,109		2,130,301		—		46,345		1,837,864		—
Mortgage servicing rights ("MSRs")⁽²⁾	—		—		6,817		—		—		5,894
Derivative assets⁽²⁾	—		37,053		—		—		21,068		—
Liabilities
Derivative liabilities⁽³⁾	$	—	$	53,038	$	—	$	—	$	25,250	$	—


⁽¹⁾	As a result of recently adopted accounting guidance, equity securities are no longer presented within trading securities or securities available-for-sale for the prior period and are now presented within equity securities for the current period. For further discussion of this guidance, see Note 2 of "Notes to the Condensed Consolidated Financial Statements" in Item 1 of this Form 10-Q.


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


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

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, 2018 and December 31, 2017.

Significant Unobservable Inputs Used in the Valuation of MSRs



	As of
	September 30, 2018				December 31, 2017
Prepayment speed	6.6	%	-	13.1%	4.2	%	-	13.1%
Maturity (months)	2		-	106	6		-	92
Discount rate	9.5	%	-	12.0%	9.5	%	-	12.0%

Schedule of Servicing Assets at Fair Value

A rollforward of the carrying value of MSRs for the quarters and nine months ended September 30, 2018 and 2017 is presented in the following table.

Carrying Value of MSRs

(Dollar amounts in thousands)



	Quarters Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Beginning balance	$	6,671		$	5,925		$	5,894		$	6,120
New MSRs	324			161			893			522
Total gains (losses) included in earnings⁽¹⁾:
Changes in valuation inputs and assumptions	65			(121		)	627			(209		)
Other changes in fair value⁽²⁾	(243		)	(199		)	(597		)	(667		)
Ending balance	$	6,817		$	5,766		$	6,817		$	5,766
Contractual servicing fees earned⁽¹⁾	$	375		$	379		$	1,122		$	1,158


⁽¹⁾	Included in mortgage banking income in the Condensed Consolidated Statements of Income and related to assets held as of September 30, 2018 and 2017.


⁽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, 2018						As of December 31, 2017
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Collateral-dependent impaired loans⁽¹⁾	$	—	$	—	$	28,077	$	—	$	—	$	33,240
OREO⁽²⁾	—		—		7,075		—		—		12,340
Loans held-for-sale⁽³⁾	—		—		6,020		—		—		21,098
Assets held-for-sale⁽⁴⁾	—		—		4,659		—		—		2,208


⁽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, 2018				December 31, 2017
	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets
Cash and due from banks	1	$	185,239	$	185,239	$	192,800	$	192,800
Interest-bearing deposits in other banks	2	111,360		111,360		153,770		153,770
Securities held-to-maturity	2	12,673		10,515		13,760		12,013
FHLB and FRB stock	2	87,728		87,728		69,708		69,708
Loans	3	10,953,029		10,587,311		10,345,397		10,059,992
Investment in BOLI	3	284,074		284,074		279,900		279,900
Accrued interest receivable	3	51,856		51,856		45,261		45,261
Other interest-earning assets	3	33		33		228		228
Liabilities
Deposits	2	$	11,527,114	$	11,505,442	$	11,053,325	$	11,038,819
Borrowed funds	2	1,073,546		1,073,546		714,884		714,884
Senior and subordinated debt	2	195,595		209,917		195,170		208,666
Accrued interest payable	2	6,406		6,406		4,704		4,704