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Fair Value (Tables)
 3 Months Ended
Mar. 31, 2019
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 March 31, 2019
 
As of December 31, 2018
 
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
 
22,187

 
11,117

 
—

 
19,658

 
11,148

 
—

Securities available-for-sale
 
 
 
 
 
 
 
 
 
 
 
 
U.S. treasury securities
 
40,892

 
—

 
—

 
37,767

 
—

 
—

U.S. agency securities
 
—

 
128,321

 
—

 
—

 
142,563

 
—

CMOs
 
—

 
1,357,030

 
—

 
—

 
1,315,209

 
—

MBSs
 
—

 
487,026

 
—

 
—

 
466,934

 
—

Municipal securities
 
—

 
233,476

 
—

 
—

 
227,187

 
—

Corporate debt securities
 
—

 
103,450

 
—

 
—

 
82,349

 
—

Total securities available-for-sale
 
40,892

 
2,309,303

 
—

 
37,767

 
2,234,242

 
—

Mortgage servicing rights ("MSRs")(1)
 
—

 
—

 
6,228

 
—

 
—

 
6,730

Derivative assets(1)
 
—

 
36,786

 
—

 
—

 
32,057

 
—

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities(2)
 
$
—

 
$
24,378

 
$
—

 
$
—

 
$
28,861

 
$
—


(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 MSRs
The following table presents the ranges of significant, unobservable inputs used by the Company to determine the fair value of MSRs as of March 31, 2019 and December 31, 2018.
Significant Unobservable Inputs Used in the Valuation of MSRs
 
 
As of
 
 
March 31, 2019
 
December 31, 2018
Prepayment speed
 
6.9
%
 -
14.3%
 
6.5
%
 -
13.5%
Maturity (months)
 
19

 -
97
 
20

 -
104
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 ended March 31, 2019 and 2018 is presented in the following table.
Carrying Value of MSRs
(Dollar amounts in thousands)
 
 
Quarters Ended 
 March 31,
 
 
2019
 
2018
Beginning balance
 
$
6,730

 
$
5,894

New MSRs
 
253

 
176

Total gains (losses) included in earnings(1):
 
 
 
 
Changes in valuation inputs and assumptions
 
(600
)
 
560

Other changes in fair value(2)
 
(155
)
 
(162
)
Ending balance(3)
 
$
6,228

 
$
6,468

Contractual servicing fees earned(1)
 
$
381

 
$
378


(1) 
Included in mortgage banking income in the Condensed Consolidated Statements of Income and related to assets held as of March 31, 2019 and 2018.
(2) 
Primarily represents changes in expected future cash flows due to payoffs and paydowns.
(3) 
Included in other assets in the Consolidated Statements of Financial Condition.
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, 2019
 
As of December 31, 2018
 
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Collateral-dependent impaired loans(1)
 
$
—

 
$
—

 
$
22,349

 
$
—

 
$
—

 
$
24,565

OREO(2)
 
—

 
—

 
1,760

 
—

 
—

 
6,012

Loans held-for-sale(3)
 
—

 
—

 
8,918

 
—

 
—

 
3,478

Assets held-for-sale(4)
 
—

 
—

 
5,225

 
—

 
—

 
3,722

(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
 
 
 
 
March 31, 2019
 
December 31, 2018
 
 
Fair Value Hierarchy
Level
 
Carrying
Amount
 
Fair Value
 
Carrying
Amount
 
Fair Value
Assets
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
1
 
$
186,230

 
$
186,230

 
$
211,189

 
$
211,189

Interest-bearing deposits in other banks
 
2
 
76,529

 
76,529

 
78,069

 
78,069

Securities held-to-maturity
 
2
 
12,842

 
12,655

 
10,176

 
9,871

FHLB and FRB stock
 
2
 
85,790

 
85,790

 
80,302

 
80,302

Loans
 
3
 
11,467,223

 
11,226,795

 
11,346,668

 
11,052,040

Investment in BOLI
 
3
 
295,899

 
295,899

 
296,733

 
296,733

Accrued interest receivable
 
3
 
56,677

 
56,677

 
54,847

 
54,847

Liabilities
 
 
 
 
 
 
 
 
 
 
Deposits
 
2
 
$
12,160,982

 
$
12,148,240

 
$
12,084,112

 
$
12,064,604

Borrowed funds
 
2
 
973,852

 
973,852

 
906,079

 
906,079

Senior and subordinated debt
 
2
 
203,984

 
213,410

 
203,808

 
211,207

Accrued interest payable
 
2
 
9,764

 
9,764

 
10,005

 
10,005