Fair Value Measurement of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2021

Assets and Liabilities Measured at Fair Value on a Recurring and Non-Recurring Basis

The following tables present the assets and liabilities that are measured at fair value on a recurring and non-recurring basis by level within the fair value hierarchy as reported on the consolidated statements of financial condition at September 30, 2021 and December 31, 2020. The assets presented under “non-recurring fair value measurements” in the tables below are not measured at fair value on an ongoing basis but are subject to fair value adjustments under certain circumstances (e.g., when an impairment loss is recognized).


	September 30, 2021		Fair Value Measurements at Reporting Date Using:
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Recurring fair value measurements:
Assets
Investment securities:
Equity securities (1)	$	32,300	$	20,890	$	—	$	—
Trading debt securities	4,797		—		4,797		—
Available for sale debt securities:

U.S. government agency securities	21,442		—		21,442		—
Obligations of states and political subdivisions	83,149		—		83,149		—
Residential mortgage-backed securities	992,828		—		992,828		—
Corporate and other debt securities	110,858		—		110,858		—
Total available for sale debt securities	1,208,277		—		1,208,277		—
Loans held for sale (2)	157,084		—		157,084		—
Other assets (3)	215,919		—		215,919		—
Total assets	$	1,618,377	$	20,890	$	1,586,077	$	—
Liabilities
Other liabilities (3)	$	66,733	$	—	$	66,733	$	—
Total liabilities	$	66,733	$	—	$	66,733	$	—
Non-recurring fair value measurements:

Collateral dependent loans	$	68,162	$	—	$	—	$	68,162

Foreclosed assets	2,037		—		—		2,037
Total	$	70,199	$	—	$	—	$	70,199


			Fair Value Measurements at Reporting Date Using:
	December 31, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Recurring fair value measurements:
Assets
Investment securities:
Equity securities (1)	$	26,379	$	18,600	$	—	$	—
Available for sale debt securities:
U.S. Treasury securities	51,393		51,393		—		—
U.S. government agency securities	26,157		—		26,157		—
Obligations of states and political subdivisions	79,950		—		79,135		815
Residential mortgage-backed securities	1,090,022		—		1,090,022		—

Corporate and other debt securities	91,951		—		91,951		—
Total available for sale	1,339,473		51,393		1,287,265		815

Loans held for sale (2)	301,427		—		301,427		—
Other assets (3)	387,452		—		387,452		—
Total assets	$	2,054,731	$	69,993	$	1,976,144	$	815
Liabilities
Other liabilities (3)	$	156,281	$	—	$	156,281	$	—
Total liabilities	$	156,281	$	—	$	156,281	$	—
Non-recurring fair value measurements:
Collateral dependent impaired loans	$	35,228	$	—	$	—	$	35,228
Loan servicing rights	15,603		—		—		15,603
Foreclosed assets	7,387		—		—		7,387
Total	$	58,218	$	—	$	—	$	58,218

(1)Includes equity securities measured at net asset value (NAV) per share (or its equivalent) as a practical expedient totaling $11.4 million and $7.8 million at September 30, 2021 and December 31, 2020, respectively. These securities have not been classified in the fair value hierarchy.

(2)Represents residential mortgage loans held for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $152.4 million and $286.4 million at September 30, 2021 and December 31, 2020, respectively.

(3)Derivative financial instruments are included in this category.

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments not measured and not reported at fair value on the consolidated statements of financial condition at September 30, 2021 and December 31, 2020 were as follows:


	Fair Value Hierarchy	September 30, 2021				December 31, 2020
		Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(in thousands)
Financial assets
Cash and due from banks	Level 1	$	304,912	$	304,912	$	257,845	$	257,845
Interest bearing deposits with banks	Level 1	1,195,244		1,195,244		1,071,360		1,071,360
Equity securities (1)	Level 3	3,768		3,768		2,999		2,999
Held to maturity debt securities:
U.S. Treasury securities	Level 1	67,716		72,898		68,126		75,484
U.S. government agency securities	Level 2	4,817		5,015		6,222		6,513
Obligations of states and political subdivisions	Level 2	353,406		360,903		470,259		484,506
Residential mortgage-backed securities	Level 2	2,072,700		2,076,597		1,550,306		1,589,655
Trust preferred securities	Level 2	37,014		31,507		37,348		30,033
Corporate and other debt securities	Level 2	48,750		49,391		40,750		41,421
Total held to maturity debt securities (2)		2,584,403		2,596,311		2,173,011		2,227,612
Net loans	Level 3	32,264,287		32,113,934		31,876,869		31,635,060
Accrued interest receivable	Level 1	98,073		98,073		106,230		106,230
Federal Reserve Bank and Federal Home Loan Bank stock (3)	Level 2	207,701		207,701		250,116		250,116
Financial liabilities
Deposits without stated maturities	Level 1	29,672,322		29,672,322		25,220,924		25,220,924
Deposits with stated maturities	Level 2	3,960,283		3,957,008		6,714,678		6,639,022
Short-term borrowings	Level 1	783,346		765,636		1,147,958		1,151,478
Long-term borrowings	Level 2	1,427,444		1,417,368		2,295,665		2,405,345
Junior subordinated debentures issued to capital trusts	Level 2	56,326		46,057		56,065		57,779
Accrued interest payable (4)	Level 1	8,824		8,824		18,839		18,839

(1)Represents equity securities without a readily determinable fair value measured at cost less impairment, if any.

(2)The carrying amount is presented gross without the allowance for credit losses.

(3)Included in other assets.

(4)Included in accrued expenses and other liabilities.