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Fair Value (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2019
 
As of December 31, 2018
 
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities
 
$
22,613

 
$
13,040

 
$
—

 
$
19,658

 
$
11,148

 
$
—

Securities available-for-sale
 
 
 
 
 
 
 
 
 
 
 
 
U.S. treasury securities
 
43,087

 
—

 
—

 
37,767

 
—

 
—

U.S. agency securities
 
—

 
187,238

 
—

 
—

 
142,563

 
—

CMOs
 
—

 
1,549,728

 
—

 
—

 
1,315,209

 
—

MBSs
 
—

 
670,407

 
—

 
—

 
466,934

 
—

Municipal securities
 
—

 
238,342

 
—

 
—

 
227,187

 
—

Corporate debt securities
 
—

 
104,514

 
—

 
—

 
82,349

 
—

Total securities available-for-sale
 
43,087

 
2,750,229

 
—

 
37,767

 
2,234,242

 
—

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

 
—

 
5,831

 
—

 
—

 
6,730

Derivative assets(1)
 
—

 
59,905

 
—

 
—

 
32,057

 
—

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities(2)
 
$
—

 
$
23,191

 
$
—

 
$
—

 
$
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 June 30, 2019 and December 31, 2018.
Significant Unobservable Inputs Used in the Valuation of MSRs
 
 
As of
 
 
June 30, 2019
 
December 31, 2018
Prepayment speed
 
6.8
%
 -
10.5%
 
6.5
%
 -
13.5%
Maturity (months)
 
18

 -
89
 
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 and six months ended June 30, 2019 and 2018 is presented in the following table.
Carrying Value of MSRs
(Dollar amounts in thousands)
 
 
Quarters Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
 
2019
 
2018
 
2019
 
2018
Beginning balance
 
$
6,228

 
$
6,468

 
$
6,730

 
$
5,894

New MSRs
 
204

 
393

 
457

 
569

Total gains (losses) included in earnings(1):
 
 
 
 
 
 
 
 
Changes in valuation inputs and assumptions
 
(389
)
 
2

 
(989
)
 
562

Other changes in fair value(2)
 
(212
)
 
(192
)
 
(367
)
 
(354
)
Ending balance(3)
 
$
5,831

 
$
6,671

 
$
5,831

 
$
6,671

Contractual servicing fees earned(1)
 
$
390

 
$
369

 
$
771

 
$
747


(1) 
Included in mortgage banking income in the Condensed Consolidated Statements of Income and related to assets held as of June 30, 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 June 30, 2019
 
As of December 31, 2018
 
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Collateral-dependent impaired loans(1)
 
$
—

 
$
—

 
$
21,089

 
$
—

 
$
—

 
$
24,565

OREO(2)
 
—

 
—

 
1,820

 
—

 
—

 
6,012

Loans held-for-sale(3)
 
—

 
—

 
16,948

 
—

 
—

 
3,478

Assets held-for-sale(4)
 
—

 
—

 
3,655

 
—

 
—

 
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
 
 
 
 
June 30, 2019
 
December 31, 2018
 
 
Fair Value Hierarchy
Level
 
Carrying
Amount
 
Fair Value
 
Carrying
Amount
 
Fair Value
Assets
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
1
 
$
199,684

 
$
199,684

 
$
211,189

 
$
211,189

Interest-bearing deposits in other banks
 
2
 
126,966

 
126,966

 
78,069

 
78,069

Securities held-to-maturity
 
2
 
23,277

 
22,405

 
10,176

 
9,871

FHLB and FRB stock
 
2
 
109,466

 
109,466

 
80,302

 
80,302

Loans
 
3
 
12,415,371

 
12,273,439

 
11,346,668

 
11,052,040

Investment in BOLI
 
3
 
297,118

 
297,118

 
296,733

 
296,733

Accrued interest receivable
 
3
 
59,765

 
59,765

 
54,847

 
54,847

Liabilities
 
 
 
 
 
 
 
 
 
 
Deposits
 
2
 
$
13,188,588

 
$
13,185,124

 
$
12,084,112

 
$
12,064,604

Borrowed funds
 
2
 
1,407,378

 
1,407,378

 
906,079

 
906,079

Senior and subordinated debt
 
2
 
233,538

 
272,085

 
203,808

 
211,207

Accrued interest payable
 
2
 
13,091

 
13,091

 
10,005

 
10,005