Fair Value (Tables)

12 Months Ended

Dec. 31, 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 December 31, 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⁾	19,658		11,148		—		—		—		—
Securities available-for-sale⁽¹⁾
U.S. treasury securities	37,767		—		—		46,345		—		—
U.S. agency securities	—		142,563		—		—		156,847		—
CMOs	—		1,315,209		—		—		1,095,186		—
MBSs	—		466,934		—		—		369,543		—
Municipal securities	—		227,187		—		—		208,991		—
Corporate debt securities	—		82,349		—		—		—		—
Equity securities	—		—		—		—		7,297		—
Total securities available-for-sale	37,767		2,234,242		—		46,345		1,837,864		—
Mortgage servicing rights ("MSRs")⁽²⁾	—		—		6,730		—		—		5,894
Derivative assets⁽²⁾	—		32,057		—		—		21,068		—
Liabilities
Derivative liabilities⁽³⁾	$	—	$	28,861	$	—	$	—	$	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 not presented within equity securities for the current period. For further discussion of this guidance, see Note 2 of "Notes to the Consolidated Financial Statements" in Item 8 of this Form 10-K.


⁽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 CDOs

The following table presents the ranges of significant, unobservable inputs used by the Company to determine the fair value of MSRs as of December 31, 2018 and 2017.

Significant Unobservable Inputs Used in the Valuation of MSRs



	As of December 31,
	2018				2017
Prepayment speed	6.5	%	-	13.5%	4.2	%	-	13.1%
Maturity (months)	20		-	104	6		-	92
Discount rate	9.5	%	-	12.0%	9.5	%	-	12.0%

Carrying Value of CDOs

A rollforward of the carrying value of CDOs for the two years ended December 31, 2017 is presented in the following table.

Carrying Value of CDOs

(Dollar amounts in thousands)



	Years Ended December 31,
	2017			2016
Beginning balance	$	33,260		$	31,529
Additions	—			—
Change in other comprehensive income⁽¹⁾	14,421			2,337
Paydowns and sales	(47,681		)	(606		)
Ending balance	$	—		$	33,260


⁽¹⁾	Included in unrealized holding (losses) 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 December 31, 2018 and 2017.

Significant Unobservable Inputs Used in the Valuation of MSRs



	As of December 31,
	2018				2017
Prepayment speed	6.5	%	-	13.5%	4.2	%	-	13.1%
Maturity (months)	20		-	104	6		-	92
Discount rate	9.5	%	-	12.0%	9.5	%	-	12.0%

Fair Value Inputs Mortgage Servicing Assets Quantitative Information

A rollforward of the carrying value of MSRs for the three years ended December 31, 2018 is presented in the following table.

Carrying Value of MSRs

(Dollar amounts in thousands)



	Years Ended December 31,
	2018			2017			2016
Beginning balance	$	5,894		$	6,120		$	1,853
Additions from acquisition	—			—			3,092
New MSRs	1,080			673			1,263
Total gains (losses) included in earnings⁽¹⁾:
Changes in valuation inputs and assumptions	475			(41		)	610
Other changes in fair value⁽²⁾	(719		)	(858		)	(698		)
Ending balance⁽³⁾	$	6,730		$	5,894		$	6,120
Contractual servicing fees earned during the year⁽¹⁾	$	1,517		$	1,536		$	1,312
Total amount of loans being serviced for the benefit of others at the end of the year	627,323			607,016			640,530


⁽¹⁾	Included in mortgage banking income in the Consolidated Statements of Income and related to assets held as of December 31, 2018, 2017, and 2016.


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


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

Fair Value Assets Measured On Annual Basis

The fair value of Pension Plan assets is presented in the following table by level in the fair value hierarchy.

Annual Fair Value Measurements for Pension Plan Assets

(Dollar amounts in thousands)



	As of December 31, 2018						As of December 31, 2017
	Level 1		Level 2		Total		Level 1		Level 2		Total
Pension plan assets:
Mutual funds⁽¹⁾	$	27,246	$	—	$	27,246	$	41,002	$	—	$	41,002
U.S. government and government agency securities	4,389		3,626		8,015		3,678		9,397		13,075
Corporate bonds	—		10,472		10,472		—		9,171		9,171
Common stocks	26,882		—		26,882		—		—		—
Common trust funds	—		3,595		3,595		—		2,911		2,911
Total pension plan assets	$	58,517	$	17,693	$	76,210	$	44,680	$	21,479	$	66,159


⁽¹⁾	Includes mutual funds, money market funds, cash, cash equivalents, and accrued interest.

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 December 31, 2018						As of December 31, 2017
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Collateral-dependent impaired loans⁽¹⁾	$	—	$	—	$	24,565	$	—	$	—	$	33,240
OREO⁽²⁾	—		—		6,012		—		—		12,340
Loans held-for-sale⁽³⁾	—		—		3,478		—		—		21,098
Assets held-for-sale⁽⁴⁾	—		—		3,722		—		—		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 December 31, 2018				As of December 31, 2017
	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets
Cash and due from banks	1	$	211,189	$	211,189	$	192,800	$	192,800
Interest-bearing deposits in other banks	2	78,069		78,069		153,770		153,770
Securities held-to-maturity	2	10,176		9,871		13,760		12,013
FHLB and FRB stock	2	80,302		80,302		69,708		69,708
Loans	3	11,346,668		11,052,040		10,345,397		10,059,992
Investment in BOLI	3	296,733		296,733		279,900		279,900
Accrued interest receivable	3	54,847		54,847		45,261		45,261
Other interest-earning assets	3	5		5		228		228
Liabilities
Deposits	2	$	12,084,112	$	12,064,604	$	11,053,325	$	11,038,819
Borrowed funds	2	906,079		906,079		714,884		714,884
Senior and subordinated debt	2	203,808		211,207		195,170		208,666
Accrued interest payable	2	10,005		10,005		4,704		4,704