Fair Value (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following table presents assets and liabilities measured at fair value on a recurring basis:

Fair Value Measurements at March 31, 2015 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at March 31, 2015
Assets
Investment securities:
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	—	$	495,171	$	—	$	495,171
U.S. Government sponsored entities’ asset-backed securities	—		767,676		—		767,676
Equity securities	1,891		—		739		2,630
Mortgage loans held for sale	—		7,987		—		7,987
Mortgage IRLCs	—		189		—		189
Liabilities
Fair value swap	$	—	$	—	$	226	$	226

Fair Value Measurements at December 31, 2014 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2014
Assets
Investment securities:
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	—	$	538,064	$	—	$	538,064
U.S. Government sponsored entities’ asset-backed securities	—		761,153		—		761,153
Equity securities	1,922		—		776		2,698
Mortgage loans held for sale	—		5,264		—		5,264
Mortgage IRLCs	—		70		—		70
Liabilities
Fair value swap	$	—	$	—	$	226	$	226

Reconciliation Of Level 3 Input For Financial Instruments Measured On Recurring Basis

The table below is a reconciliation of the beginning and ending balances of the Level 3 inputs for the three months ended March 31, 2015 and 2014, for financial instruments measured on a recurring basis and classified as Level 3:

Level 3 Fair Value Measurements

Three months ended March 31, 2015 and 2014

(In thousands)	Equity Securities			Fair value swap
Balance, at January 1, 2015	$	776		$	(226	)
Total gains/(losses)
Included in earnings – realized	—			—
Included in earnings – unrealized	—			—
Included in other comprehensive income (loss)	(37		)	—
Purchases, sales, issuances and settlements, other	—			—
Re-evaluation of fair value swap, recorded in other expense	—			—
Balance at March 31, 2015	$	739		$	(226	)
Balance, at January 1, 2014	$	759		$	(135	)
Total gains/(losses)
Included in earnings – realized	—			—
Included in earnings – unrealized	—			—
Included in other comprehensive income (loss)	(48		)	—
Purchases, sales, issuances and settlements, other	—			—
Re-evaluation of fair value swap	—			—
Balance at March 31, 2014	$	711		$	(135	)

Assets And Liabilities Measured At Fair Value On A Nonrecurring Basis

The following tables present assets and liabilities measured at fair value on a nonrecurring basis. Collateral dependent impaired loans are carried at fair value if they have been charged down to fair value or if a specific valuation allowance has been established. A new cost basis is established at the time a property is initially recorded in OREO. OREO properties are carried at fair value if a devaluation has been taken to the property's value subsequent to the initial measurement.

Fair Value Measurements at March 31, 2015 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at March 31, 2015
Impaired loans recorded at fair value:
Commercial real estate	$	—	$	—	$	2,163	$	2,163
Construction real estate:
SEPH commercial land and development	—		—		2,076		2,076
Remaining commercial	—		—		3,199		3,199
Residential real estate	—		—		1,857		1,857
Total impaired loans recorded at fair value	$	—	$	—	$	9,295	$	9,295
Mortgage servicing rights	$	—	$	4,657	$	—	$	4,657
OREO:
Commercial real estate	—		—		862		862
Construction real estate	—		—		6,455		6,455
Residential real estate	—		—		2,576		2,576
Total OREO	$	—	$	—	$	9,893	$	9,893

Fair Value Measurements at December 31, 2014 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2014
Impaired loans recorded at fair value:
Commercial real estate	$	—	$	—	$	8,481	$	8,481
Construction real estate:
SEPH commercial land and development	—		—		2,078		2,078
Remaining commercial	—		—		3,483		3,483
Residential real estate	—		—		2,921		2,921
Total impaired loans recorded at fair value	$	—	$	—	$	16,963	$	16,963
Mortgage servicing rights	$	—	$	2,928	$	—	$	2,928
OREO:
Commercial real estate	—		—		1,470		1,470
Construction real estate	—		—		6,473		6,473
Residential real estate	—		—		2,369		2,369
Total OREO	$	—	$	—	$	10,312	$	10,312

Qualitative Information about Level 3 Fair Value Measurements Measured on Non-Recurring Basis

The following tables present qualitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at March 31, 2015 and December 31, 2014:

March 31, 2015
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial real estate	$	2,163	Sales comparison approach	Adj to comparables	0.0% - 137.3% (25.8%)
			Bulk sale approach	Discount rate	8.0% (8.0%)
			Income approach	Capitalization rate	8.0% - 10.3% (9.1%)
			Cost approach	Accumulated depreciation	23.0% - 50.0% (37.6%)
Construction real estate:
SEPH commercial land and development	$	2,076	Sales comparison approach	Adj to comparables	5.0% - 35.0% (17.5%)
			Bulk sale approach	Discount rate	10.8% (10.8%)
Remaining commercial	$	3,199	Sales comparison approach	Adj to comparables	0.2% - 67.0% (25.1%)
			Bulk sale approach	Discount rate	10.0% - 20.0% (14.8%)
Residential real estate	$	1,857	Sales comparison approach	Adj to comparables	0.0% - 83.0% (14.1%)
			Income approach	Capitalization rate	13.0% (13.0%)
Other real estate owned:
Commercial real estate	$	862	Sales comparison approach	Adj to comparables	0.0% - 60.0% (26.3%)
			Income approach	Capitalization rate	8.4% (8.4%)
			Cost approach	Accumulated depreciation	60.0% - 95.0% (77.5%)
Construction real estate	$	6,455	Sales comparison approach	Adj to comparables	0.0% - 82.9% (27.3%)
			Bulk sale approach	Discount rate	15.0% (15.0%)
Residential real estate	$	2,576	Sales comparison approach	Adj to comparables	0.0% - 51.2% (10.5%)
			Income approach	Capitalization rate	6.8% - 17.4% (8.3%)
			Cost approach	Accumulated depreciation	60.0% (60.0%)

Balance at December 31, 2014
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial real estate	$	8,481	Sales comparison approach	Adj to comparables	0.0% - 84.0% (38.8%)
			Income approach	Capitalization rate	8.0% - 9.5% (9.4%)
			Cost approach	Accumulated depreciation	23.0% (23.0%)
Construction real estate:
SEPH commercial land and development	$	2,078	Sales comparison approach	Adj to comparables	5.0% - 35.0% (17.5%)
			Bulk sale approach	Discount rate	10.8% (10.8%)
Remaining commercial	$	3,483	Sales comparison approach	Adj to comparables	0.2% - 76.0% (45.4%)
			Bulk sale approach	Discount rate	10.0% - 22.0% (16.5%)
Residential real estate	$	2,921	Sales comparison approach	Adj to comparables	0.0% - 120.6% (11.1%)
			Income approach	Capitalization rate	7.9% - 10.0% (8.0%)
Other real estate owned:
Commercial real estate	$	1,470	Sales comparison approach	Adj to comparables	0.0% - 87.0% (30.5%)
			Income approach	Capitalization rate	8.4% - 10.0% (9.4%)
			Cost approach	Accumulated depreciation	60.0% - 95.0% (77.5%)
Construction real estate	$	6,473	Sales comparison approach	Adj to comparables	0.0% - 82.9% (27.1%)
			Bulk sale approach	Discount rate	15.0% (15.0%)
Residential real estate	$	2,369	Sales comparison approach	Adj to comparables	0.0% - 38.3% (10.1%)
			Income approach	Capitalization rate	6.8% - 7.8% (7.6%)

Fair Value, by Balance Sheet Grouping

The fair value of financial instruments at March 31, 2015 and December 31, 2014, was as follows:

	March 31, 2015
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	580,485	$	580,485	$	—	$	—	$	580,485
Investment securities	1,398,860		1,891		1,399,265		739		1,401,895
Accrued interest receivable - securities	4,313		—		4,313		—		4,313
Accrued interest receivable - loans	13,666		—		—		13,666		13,666
Loans held for sale	7,987		—		7,987		—		7,987
Mortgage IRLCs	189		—		189		—		189
Impaired loans carried at fair value	9,295		—		—		9,295		9,295
Other loans, net	4,757,951		—		—		4,775,046		4,775,046
Loans receivable, net	$	4,775,422	$	—	$	8,176	$	4,784,341	$	4,792,517
Financial liabilities:
Noninterest bearing checking accounts	$	1,262,442	$	1,262,442	$	—	$	—	$	1,262,442
Interest bearing transactions accounts	1,311,827		1,311,827		—		—		1,311,827
Savings accounts	1,558,128		1,558,128		—		—		1,558,128
Time deposits	1,380,750		—		1,392,772		—		1,392,772
Other	2,700		2,700		—		—		2,700
Total deposits	$	5,515,847	$	4,135,097	$	1,392,772	$	—	$	5,527,869
Short-term borrowings	$	239,961	$	—	$	239,961	$	—	$	239,961
Long-term debt	733,555		—		778,231		—		778,231
Subordinated debentures/notes	45,000		—		43,421		—		43,421
Accrued interest payable – deposits	1,136		14		1,122		—		1,136
Accrued interest payable – debt/borrowings	1,452		7		1,445		—		1,452
Derivative financial instruments:
Fair value swap	$	226	$	—	$	—	$	226	$	226

	December 31, 2014
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	237,699	$	237,699	$	—	$	—	$	237,699
Investment securities	1,442,477		1,922		1,442,708		775		1,445,405
Accrued interest receivable - securities	4,048		—		4,048		—		4,048
Accrued interest receivable - loans	13,629		—		—		13,629		13,629
Loans held for sale	5,264		—		5,264		—		5,264
Mortgage IRLCs	70		—		70		—		70
Impaired loans carried at fair value	16,963		—		—		16,963		16,963
Other loans, net	4,753,033		—		—		4,757,461		4,757,461
Loans receivable, net	$	4,775,330	$	—	$	5,334	$	4,774,424	$	4,779,758
Financial liabilities:
Noninterest bearing checking accounts	$	1,269,296	$	1,269,296	$	—	—		$	1,269,296
Interest bearing transactions accounts	1,122,079		1,122,079		—		—		1,122,079
Savings accounts	1,325,445		1,325,445		—		—		1,325,445
Time deposits	1,409,911		—		1,422,885		—		1,422,885
Other	1,269		1,269		—		—		1,269
Total deposits	$	5,128,000	$	3,718,089	$	1,422,885	$	—	$	5,140,974
Short-term borrowings	$	276,980	$	—	$	276,980	$	—	$	276,980
Long-term debt	786,602		—		827,500		—		827,500
Subordinated debentures/notes	45,000		—		42,995		—		42,995
Accrued interest payable – deposits	1,125		14		1,111		—		1,125
Accrued interest payable – debt/borrowings	1,426		3		1,423		—		1,426
Derivative financial instruments:
Fair value swap	$	226	$	—	$	—	$	226	$	226