Fair Value Accounting and Measurement (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Inputs, Assets, Quantitative Information

The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at June 30, 2019 and December 31, 2018 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	Fair Value		Fair Value Measurements at Reporting Date Using
			Level 1		Level 2		Level 3
June 30, 2019	(in thousands)
Assets
Debt securities available for sale:
U.S. government agency and government-sponsored enterprise mortgage-back securities and collateralized mortgage obligations	$	2,139,496	$	—	$	2,139,496	$	—
State and municipal debt securities	509,679		—		509,679		—
U.S. government agency and government-sponsored enterprise securities	214,994		—		214,994		—
U.S. government securities	249		249		—		—
Total debt securities available for sale	$	2,864,418	$	249	$	2,864,169	$	—
Other assets:
Interest rate contracts	$	17,857	$	—	$	17,857	$	—
Interest rate collar	$	15,691	$	—	$	15,691	$	—
Liabilities
Other liabilities:
Interest rate contracts	$	17,858	$	—	$	17,858	$	—

	Fair Value		Fair Value Measurements at Reporting Date Using
			Level 1		Level 2		Level 3
December 31, 2018	(in thousands)
Assets
Debt securities available for sale:
U.S. government agency and government-sponsored enterprise mortgage-back securities and collateralized mortgage obligations	$	2,188,290	$	—	$	2,188,290	$	—
State and municipal debt securities	574,323		—		574,323		—
U.S. government agency and government-sponsored enterprise securities	404,587		—		404,587		—
U.S. government securities	248		248		—		—
Total debt securities available for sale	$	3,167,448	$	248	$	3,167,200	$	—
Other assets:
Interest rate contracts	$	7,033	$	—	$	7,033	$	—
Liabilities
Other liabilities:
Interest rate contracts	$	7,033	$	—	$	7,033	$	—

Financial Assets Accounted For Fair Value On Nonrecurring Basis

The following tables set forth information related to the Company’s assets that were measured using fair value estimates on a nonrecurring basis during the current and prior year quarterly periods:

	Fair value at June 30, 2019		Fair Value Measurements at Reporting Date Using						Losses During the Three Months Ended June 30, 2019		Losses During the Six Months Ended June 30, 2019
			Level 1		Level 2		Level 3
	(in thousands)
Impaired loans	$	4,837	$	—	$	—	$	4,837	$	2,124	$	2,525
	$	4,837	$	—	$	—	$	4,837	$	2,124	$	2,525

	Fair value at June 30, 2018		Fair Value Measurements at Reporting Date Using						Gains During the Three Months Ended June 30, 2018			Losses During the Six Months Ended June 30, 2018
			Level 1		Level 2		Level 3
	(in thousands)
Impaired loans	$	10,792	$	—	$	—	$	10,792	$	(1,032	)	$	3,398
	$	10,792	$	—	$	—	$	10,792	$	(1,032	)	$	3,398

Fair Value, by Balance Sheet Grouping

The following tables summarize carrying amounts and estimated fair values of selected financial instruments by level within the fair value hierarchy at June 30, 2019 and December 31, 2018:

	June 30, 2019
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Assets
Cash and due from banks	$	224,327	$	224,327	$	224,327	$	—	$	—
Interest-earning deposits with banks	34,332		34,332		34,332		—		—
Debt securities available for sale	2,864,418		2,864,418		249		2,864,169		—
FHLB stock	29,800		29,800		—		29,800		—
Loans held for sale	12,189		12,189		—		12,189		—
Loans	8,566,473		8,745,513		—		—		8,745,513
Interest rate contracts	17,857		17,857		—		17,857		—
Interest rate collar	15,691		15,691		—		15,691		—
Liabilities
Time deposits	$	391,496	$	388,103	$	—	$	388,103	$	—
FHLB advances	495,496		396,344		—		396,344		—
Repurchase agreements	50,226		50,226		—		50,226		—
Subordinated debentures	35,370		35,397		—		35,397		—
Interest rate contracts	17,858		17,858		—		17,858		—

	December 31, 2018
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Assets
Cash and due from banks	$	260,180	$	260,180	$	260,180	$	—	$	—
Interest-earning deposits with banks	17,407		17,407		17,407		—		—
Debt securities available for sale	3,167,448		3,167,448		248		3,167,200		—
FHLB stock	25,960		25,960		—		25,960		—
Loans held for sale	3,849		3,849		—		3,849		—
Loans	8,308,142		8,316,946		—		—		8,316,946
Interest rate contracts	7,033		7,033		—		7,033		—
Liabilities
Time deposits	$	414,443	$	407,659	$	—	$	407,659	$	—
FHLB advances	399,523		400,085		—		400,085		—
Repurchase agreements	61,094		61,094		—		61,094		—
Subordinated debentures	35,462		34,897		—		34,897		—
Interest rate contracts	7,033		7,033		—		7,033		—

Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Inputs, Assets, Quantitative Information

The range and weighted average of the significant unobservable inputs used to fair value our Level 3 nonrecurring assets, along with the valuation techniques used, are shown in the following table:

	Fair value at June 30, 2019		Valuation Technique	Unobservable Input	Range (Weighted Average) (1)
	(dollars in thousands)
Impaired loans - collateral-dependent (2)	$	4,837	Fair Market Value of Collateral	Adjustment to Stated Value	0.00% - 100.00% (35.67%)

__________

(1) Discount applied to appraised value or stated value (in the case of accounts receivable, fixed assets and inventory).

(2) Collateral consists of cash, accounts receivable, fixed assets, inventory and real estate.

	Fair value at June 30, 2018		Valuation Technique	Unobservable Input	Range (Weighted Average) (1)
	(dollars in thousands)
Impaired loans - collateral-dependent (2)	$	6,933	Fair Market Value of Collateral	Adjustment to Stated Value	0.00% - 62.81% (15.72%)
Impaired loans - other	$	3,859	Discounted Cash Flow	Discount Rate	4.25% - 6.50% (6.12%)

__________

(1) Discount rate applied to discounted cash flow valuation or discount applied to appraisal value or stated value (in the case of accounts receivable, fixed assets and inventory).

(2) Collateral consists of accounts receivable, fixed assets, inventory and real estate.