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Fair Values (Tables)
 12 Months Ended
Dec. 31, 2015
Fair Value Inputs, Assets, Quantitative Information [Line Items]  
Schedule of financial assets and liabilities measured on a recurring basis
The following table presents assets and liabilities measured at fair value on a recurring basis:
 
Fair Value Measurements at December 31, 2015 using:
(In thousands)
 
Level 1
 
Level 2
 
Level 3
 
Balance at December 31, 2015
Assets
 
 

 
 

 
 

 
 

Investment securities:
 
 

 
 

 
 

 
 

Obligations of U.S. Treasury and other U.S. Government sponsored entities
 
$
—

 
$
522,063

 
$
—

 
$
522,063

U.S. Government sponsored entities’ asset-backed securities
 
—

 
911,493

 
—

 
911,493

Equity securities
 
1,941

 
—

 
769

 
2,710

Mortgage loans held for sale
 
—

 
7,306

 
—

 
7,306

Mortgage IRLCs
 
—

 
165

 
—

 
165

 
 
 
 
 
 
 
 
 
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
Schedule of 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 years ended December 31, 2015 and 2014, for financial instruments measured on a recurring basis and classified as Level 3:
 
Level 3 Fair Value Measurements
(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 loss
 
(7
)
 
—

Purchases, sales, issuances and settlements, other, net
 
—

 
—

Re-evaluation of fair value swap
 
—

 
—

Balance at December 31, 2015
 
$
769

 
$
(226
)
Balance at January 1, 2014
 
$
759

 
$
(135
)
Total Gains (Losses)
 
 
 
 
Included in earnings - realized
 
—

 
—

Included in earnings - unrealized
 
—

 
—

Included in other comprehensive income
 
17

 
—

Purchases, sales, issuances and settlements, other, net
 
—

 
—

Re-evaluation of fair value swap
 
—

 
(91
)
Balance at December 31, 2014
 
$
776

 
$
(226
)
Schedule of assets and liabilities measured at fair value on a nonrecurring basis
The following table presents assets and liabilities measured at fair value on a nonrecurring basis:
Fair Value Measurements at December 31, 2015 Using:
(In thousands)
 
Level 1
 
Level 2
 
Level 3
 
Balance at December 31, 2015
Impaired Loans:
 
 
 
 
 
 
 
 
   Commercial real estate
 
$
—

 
$
—

 
$
3,698

 
$
3,698

   Construction real estate:
 
 
 
 
 
 
 
 
        SEPH commercial land and development
 
—

 
—

 
2,044

 
2,044

        Remaining commercial
 
—

 
—

 
1,872

 
1,872

   Residential real estate
 
—

 
—

 
1,882

 
1,882

Total impaired loans
 
$
—

 
$
—

 
$
9,496

 
$
9,496

Mortgage Servicing Rights
 
$
—

 
$
1,867

 
$
—

 
$
1,867

Other Real Estate Owned:
 
 
 
 
 
 
 
 
    Commercial real estate
 
—

 
—

 
2,796

 
2,796

    Construction real estate
 
—

 
—

 
3,387

 
3,387

    Residential real estate
 
—

 
—

 
2,332

 
2,332

Total Other Real Estate Owned
 
$
—

 
$
—

 
$
8,515

 
$
8,515

Fair Value Measurements at December 31, 2014 Using:
(In thousands)
 
Level 1
 
Level 2
 
Level 3
 
Balance at December 31, 2014
Impaired Loans:
 
 
 
 
 
 
 
 
   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
 
$
—

 
$
—

 
$
16,963

 
$
16,963

Mortgage Servicing Rights
 
$
—

 
$
2,928

 
$
—

 
$
2,928

Other Real Estate Owned:
 
 
 
 
 
 
 
 
  Commercial real estate
 
—

 
—

 
1,470

 
1,470

  Construction real estate
 
—

 
—

 
6,473

 
6,473

  Residential real estate
 
—

 
—

 
2,369

 
2,369

Total Other Real Estate Owned
 
$
—

 
$
—

 
$
10,312

 
$
10,312
Schedule of qualitative information about Level 3 fair value measurements for financial instruments measured at fair value on a 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 December 31, 2015 and December 31, 2014:

December 31, 2015
(In thousands)
 
Fair Value
 
Valuation Technique
 
Unobservable Input(s)
 
Range (Weighted Average)
Impaired loans:
 
 

 
 
 
 
 
 
Commercial real estate
 
$
3,698

 
Sales comparison approach
 
Adj to comparables
 
0.0% - 45.9% (20.3%)
 
 
 
 
Income approach
 
Capitalization rate
 
7.0% - 13.3% (9.5%)
 
 
 
 
Cost approach
 
Accumulated depreciation
 
50.0% (50.0%)
 
 
 
 
 
 
 
 
 
Construction real estate:
 
 

 
 
 
 
 
 
SEPH commercial land and development
 
$
2,044

 
Sales comparison approach
 
Adj to comparables
 
5.0% - 40.0% (22.1%)
 
 
 
 
Bulk sale approach
 
Discount rate
 
10.7% (10.7%)
 
 
 
 
 
 
 
 
 
Remaining commercial
 
$
1,872

 
Sales comparison approach
 
Adj to comparables
 
0.0% - 25.3% (1.0%)
 
 
 
 
Bulk sale approach
 
Discount rate
 
10.0% - 10.7% (10.0%)
 
 
 
 
 
 
 
 
 
Residential real estate
 
$
1,882

 
Sales comparison approach
 
Adj to comparables
 
0.0% - 96.7% (12.5%)
 
 
 
 
Income approach
 
Capitalization rate
 
3.8% - 10.1% (9.1%)
 
 
 
 
Cost approach
 
Accumulated depreciation
 
33.3% - 50.0% (43.4%)
Other real estate owned:
 
 
 
 
 
 
 
 
Commercial real estate
 
$
2,796

 
Sales comparison approach
 
Adj to comparables
 
2.0% - 71.0% (26.9%)
 
 
 
 
Income approach
 
Capitalization rate
 
9.5% (9.5%)
 
 
 
 
 
 
 
 
 
Construction real estate
 
$
3,387

 
Sales comparison approach
 
Adj to comparables
 
0.0% - 85.0% (24.3%)
 
 
 
 
Bulk sale approach
 
Discount rate
 
15.0% (15.0%)
 
 
 
 
 
 
 
 
 
Residential real estate
 
$
2,332

 
Sales comparison approach
 
Adj to comparables
 
0.1% - 61.8% (23.0%)

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 December 31, 2015 and December 31, 2014, was as follows:
 
 
December 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
 
$
149,459

 
$
149,459

 
$
—

 
$
—

 
$
149,459

Investment securities
 
1,585,568

 
1,941

 
1,584,984

 
769

 
1,587,694

Accrued interest receivable - securities
 
4,436

 
—

 
4,436

 
—

 
4,436

Accrued interest receivable - loans
 
14,239

 
—

 
—

 
14,239

 
14,239

 
 
 
 
 
 
 
 
 
 
 
Mortgage loans held for sale
 
7,306

 
—

 
7,306

 
—

 
7,306

Impaired loans carried at fair value
 
9,496

 
—

 
—

 
9,496

 
9,496

Mortgage IRLCs
 
165

 
—

 
165

 
—

 
165

Other loans
 
4,994,624

 
—

 
—

 
4,997,318

 
4,997,318

Loans receivable, net
 
$
5,011,591

 
$
—

 
$
7,471

 
$
5,006,814

 
$
5,014,285

 
 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 

 
 

 
 

 
 

 
 

Non-interest bearing checking accounts
 
$
1,404,032

 
$
1,404,032

 
$
—

 
$
—

 
$
1,404,032

Interest bearing transaction accounts
 
1,107,200

 
1,107,200

 
—

 
—

 
1,107,200

Savings accounts
 
1,544,708

 
1,544,708

 
—

 
—

 
1,544,708

Time deposits
 
1,290,412

 
—

 
1,295,329

 
—

 
1,295,329

Other
 
1,290

 
1,290

 
—

 
—

 
1,290

Total deposits
 
$
5,347,642

 
$
4,057,230

 
$
1,295,329

 
$
—

 
$
5,352,559

 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings
 
$
394,242

 
$
—

 
$
394,242

 
$
—

 
$
394,242

Long-term debt
 
738,105

 
—

 
771,420

 
—

 
771,420

Subordinated notes
 
45,000

 
—

 
41,596

 
—

 
41,596

Accrued interest payable – deposits
 
987

 
66

 
921

 
—

 
987

Accrued interest payable – debt/borrowings
 
1,351

 
4

 
1,347

 
—

 
1,351

 
 
 
 
 
 
 
 
 
 
 
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

 
 
 
 
 
 
 
 
 
 
 
Mortgage loans held for sale
 
5,264

 
—

 
5,264

 
—

 
5,264

Impaired loans carried at fair value
 
16,963

 
—

 
—

 
16,963

 
16,963

Mortgage IRLCs
 
70

 
—

 
70

 
—

 
70

Other loans
 
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:
 
 

 
 

 
 

 
 

 
 

Non-interest bearing checking accounts
 
$
1,269,296

 
$
1,269,296

 
$
—

 
—

 
$
1,269,296

Interest bearing transaction 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 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
Impaired Financing Receivables [Table Text Block]
 
 
December 31, 2015
(In thousands)
 
Recorded Investment
 
Prior Charge-Offs
 
Specific Valuation Allowance
 
Carrying Balance
Impaired loans recorded at fair value
 
$
11,783

 
$
10,512

 
$
2,287

 
$
9,496

Remaining impaired loans
 
68,881

 
18,193

 
1,904

 
66,977

Total impaired loans
 
$
80,664

 
$
28,705

 
$
4,191

 
$
76,473


 
 
December 31, 2014
(In thousands)
 
Recorded Investment
 
Prior Charge-Offs
 
Specific Valuation Allowance
 
Carrying Balance
Impaired loans recorded at fair value
 
$
19,643

 
$
19,731

 
$
2,680

 
$
16,963

Remaining impaired loans
 
54,069

 
12,749

 
980

 
53,089

Total impaired loans
 
$
73,712

 
$
32,480

 
$
3,660

 
$
70,052