Fair Value Accounting and Measurement (Tables)

9 Months Ended

Sep. 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 September 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
September 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 (1)	$	2,482,835	$	—	$	2,482,835	$	—
Other asset-backed securities (1)	171,578		—		171,578		—
State and municipal debt securities	497,314		—		497,314		—
U.S. government agency and government-sponsored enterprise securities	215,595		—		215,595		—
U.S. government securities	250		250		—		—
Total debt securities available for sale	$	3,367,572	$	250	$	3,367,322	$	—
Other assets:
Interest rate contracts	$	25,045	$	—	$	25,045	$	—
Interest rate collar	$	19,703	$	—	$	19,703	$	—
Liabilities
Other liabilities:
Interest rate contracts	$	25,046	$	—	$	25,046	$	—

	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 (1)	$	2,013,355	$	—	$	2,013,355	$	—
Other asset-backed securities (1)	174,935		—		174,935		—
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 September 30, 2019		Fair Value Measurements at Reporting Date Using						Losses During the Three Months Ended September 30, 2019		Losses During the Nine Months Ended September 30, 2019
			Level 1		Level 2		Level 3
	(in thousands)
Impaired loans	$	8,990	$	—	$	—	$	8,990	$	1,722	$	3,299
	$	8,990	$	—	$	—	$	8,990	$	1,722	$	3,299

	Fair value at September 30, 2018		Fair Value Measurements at Reporting Date Using						Losses During the Three Months Ended September 30, 2018		Losses During the Nine Months Ended September 30, 2018
			Level 1		Level 2		Level 3
	(in thousands)
Impaired loans	$	14,616	$	—	$	—	$	14,616	$	1,208	$	1,208
OREO	1,240		—		—		1,240		445		445
	$	15,856	$	—	$	—	$	15,856	$	1,653	$	1,653

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 September 30, 2019 and December 31, 2018:

	September 30, 2019
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Assets
Cash and due from banks	$	278,461	$	278,461	$	278,461	$	—	$	—
Interest-earning deposits with banks	20,144		20,144		20,144		—		—
Debt securities available for sale	3,367,572		3,367,572		250		3,367,322		—
FHLB stock	29,680		29,680		—		29,680		—
Loans held for sale	15,036		15,036		—		15,036		—
Loans	8,673,695		8,895,564		—		—		8,895,564
Interest rate contracts	25,045		24,045		—		24,045		—
Interest rate collar	19,703		19,703		—		19,703		—
Liabilities
Time deposits	$	366,773	$	361,195	$	—	$	361,195	$	—
FHLB advances	492,482		493,736		—		493,736		—
Repurchase agreements	24,489		24,489		—		24,489		—
Subordinated debentures	35,323		35,255		—		35,255		—
Interest rate contracts	25,046		25,046		—		25,046		—

	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 September 30, 2019		Valuation Technique	Unobservable Input	Range (Weighted Average) (1)
	(dollars in thousands)
Impaired loans - collateral-dependent (2)	$	8,990	Fair Market Value of Collateral	Adjustment to Stated Value	0.00% - 100.00% (42.09%)

__________

(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 September 30, 2018		Valuation Technique	Unobservable Input	Range (Weighted Average) (1)
	(dollars in thousands)
Impaired loans - collateral-dependent (3)	$	14,616	Fair Market Value of Collateral	Adjustment to Stated Value	0.00% - 54.51% (6.66%)
OREO	$	1,240	Fair Market Value of Collateral	Adjustment to Appraisal Value	N/A (2)

__________

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

(2) Quantitative disclosures are not provided for OREO because there were no adjustments made to the appraisal values.

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