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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Summary of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis Segregated by the Level of the Valuation Inputs Within the Fair Value Hierarchy Utilized to Measure Fair Value

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value.

	June 30, 2019
	Level 1				Level 2				Level 3				Total
(In thousands)	Inputs				Inputs				Inputs				Fair Value
Trading security	$	—			$	—			$	11,210			$	11,210
Securities available for sale:
Municipal bonds and obligations	—				119,873				—				119,873
Agency collateralized mortgage obligations	—				888,962				—				888,962
Agency residential mortgage-backed securities	—				182,258				—				182,258
Agency commercial mortgage-backed securities	—				60,651				—				60,651
Corporate bonds	—				119,743				—				119,743
Trust preferred securities	—				8,550				—				8,550
Other bonds and obligations	—				30,041				—				30,041
Marketable equity securities	58,521				1,057				—				59,578
Loans held for sale (1)	—				191,548				—				191,548
Derivative assets (1)	—				76,764				9,005				85,769
Capitalized servicing rights (1)	—				—				11,206				11,206
Derivative liabilities (1)	1,144				79,731				—				80,875

(1) Includes assets and liabilities classified as discontinued operations.

	December 31, 2018
	Level 1				Level 2				Level 3				Total
(In thousands)	Inputs				Inputs				Inputs				Fair Value
Trading security	$	—			$	—			$	11,212			$	11,212
Securities available for sale:
Municipal bonds and obligations	—				111,207				—				111,207
Agency collateralized mortgage obligations	—				930,884				—				930,884
Agency residential mortgage-backed securities	—				170,321				—				170,321
Agency commercial mortgage-backed securities	—				58,925				—				58,925
Corporate bonds	—				111,490				—				111,490
Trust preferred securities	—				8,466				—				8,466
Other bonds and obligations	—				8,354				—				8,354
Marketable equity securities	56,074				564				—				56,638
Loans held for sale (1)	—				96,233				—				96,233
Derivative assets (1)	—				31,727				3,927				35,654
Capitalized servicing rights (1)	—				—				11,485				11,485
Derivative liabilities (1)	734				33,239				—				33,973

 

(1) Includes assets and liabilities classified as discontinued operations.

Schedule of Loans Held for Sale

										Aggregate Fair Value
June 30, 2019		Aggregate				Aggregate				Less Aggregate
(In thousands)		Fair Value				Unpaid Principal				Unpaid Principal
Loans held for sale - continuing operations		$	8,666			$	8,533			$	133
Loans held for sale - discontinued operations		182,882				177,114				5,768
Total loans held for sale		$	191,548			$	185,647			$	5,901

										Aggregate Fair Value
December 31, 2018		Aggregate				Aggregate				Less Aggregate
(In thousands)		Fair Value				Unpaid Principal				Unpaid Principal
Loans held for sale - continuing operations		$	2,183			$	2,140			$	43
Loans held for sale - discontinued operations		94,050				90,879				3,171
Total loans held for sale		$	96,233			$	93,019			$	3,214

Schedule of Changes in Level 3 Assets and Liabilities That Were Measured at Fair Value on a Recurring Basis

The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis for the three and six months ended June 30, 2019 and 2018.

	Assets (Liabilities)
													Capitalized
	Trading				Commitments				Forward				Servicing
(In thousands)	Security				to Lend (1)				Commitments (1)				Rights (1)
Three Months Ended June 30, 2019
March 31, 2019	$	11,164			$	6,318			$	—			$	11,351
Unrealized gain/(loss), net recognized in other non-interest income	219				—				—				—
Unrealized gain/(loss), net recognized in discontinued operations	—				17,117				—				(1,972		)
Paydown of trading security	(173		)		—				—				—
Transfers to held for sale loans	—				(14,430		)		—				—
Additions to servicing rights	—				—				—				1,827
June 30, 2019	$	11,210			$	9,005			$	—			$	11,206
Six Months Ended June 30, 2019
December 31, 2018	$	11,212			$	3,927			$	—			$	11,485
Unrealized gain, net recognized in other non-interest income	345				—				—				—
Unrealized gain/(loss), net recognized in discontinued operations	—				28,338				—				(3,114		)
Paydown of trading security	(347		)		—				—				—
Transfers to held for sale loans	—				(23,260		)		—				—
Additions to servicing rights	—				—				—				2,835
June 30, 2019	$	11,210			$	9,005			$	—			$	11,206
Unrealized gains relating to instruments still held at June 30, 2019	$	1,466			$	9,005			$	—			—

													Capitalized
	Trading				Commitments				Forward				Servicing
(In thousands)	Security				to Lend (1)				Commitments (1)				Rights (1)
Three Months Ended June 30, 2018
March 31, 2018	$	11,795			$	6,531			$	—			$	5,705
Unrealized gain/(loss), net recognized in other non-interest income	(148		)		—				—				—
Unrealized gain/(loss), net recognized in discontinued operations	—				12,787				—				339
Paydown of trading security	(164		)		—				—				—
Transfers to held for sale loans	—				(12,033		)		—				—
Additions to servicing rights	—				—				—				1,795
June 30, 2018	$	11,483			$	7,285			$	—			$	7,839
Six Months Ended June 30, 2018
December 31, 2017	$	12,277			$	5,259			$	19			$	3,834
Unrealized gain, net recognized in other non-interest income	(465		)		—				(19		)		—
Unrealized gain/(loss), net recognized in discontinued operations	—				25,000				—				804
Paydown of trading security	(329		)		—				—				—
Transfers to held for sale loans	—				(22,974		)		—
Additions to servicing rights	—				—				—				3,201
June 30, 2018	$	11,483			$	7,285			$	—			$	7,839
Unrealized gains relating to instruments still held at June 30, 2018	$	1,056			$	7,285			$	—			—

(1) Classified as assets from discontinued operations on the consolidated balance sheets.

Schedule of Quantitative Information About the Significant Unobservable Inputs Within Level 3

Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows:

		Fair Value								Significant Unobservable Input
(In thousands)		June 30, 2019				Valuation Techniques		Unobservable Inputs		Value
Assets (Liabilities)
Trading security		$	11,210			Discounted Cash Flow		Discount Rate		2.28		%
Commitments to lend (1)		9,005				Historical Trend		Closing Ratio		72.48		%
						Pricing Model		Origination Costs, per loan		$	3,137
Capitalized servicing rights (1)		11,206				Discounted cash flow		Constant Prepayment Rate (CPR)		12.74		%
								Discount Rate		9.99		%
Total		$	31,421

(1) Classified as assets from discontinued operations on the consolidated balance sheets.

		Fair Value								Significant Unobservable Input
(In thousands)		December 31, 2018				Valuation Techniques		Unobservable Inputs		Value
Assets (Liabilities)
Trading security		$	11,212			Discounted Cash Flow		Discount Rate		3.07		%
Commitments to lend (1)		3,927				Historical Trend		Closing Ratio		82.36		%
						Pricing Model		Origination Costs, per loan		$	3,063
Capitalized servicing rights (1)		11,485				Discounted Cash Flow		Constant Prepayment Rate (CPR)		9.30		%
								Discount Rate		10.00		%
Total		$	26,624

(1) Classified as assets from discontinued operations on the consolidated balance sheets.

The following is a summary of applicable non-recurring fair value measurements. There are no liabilities measured at fair value on a non-recurring basis.

		June 30, 2019				December 31, 2018				Fair Value Measurement Date as of June 30, 2019
		Level 3				Level 3				Level 3
(In thousands)		Inputs				Inputs				Inputs
Assets
Impaired loans		$	4,614			$	4,892			June 2019
Capitalized servicing rights		14,221				11,891				June 2019
Other real estate owned		154				—				June 2019
Total		$	18,989			$	16,783

Summary of Applicable Non-Recurring Fair Value Measurements

Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is as follows:

		Fair Value
(In thousands)		June 30, 2019				Valuation Techniques		Unobservable Inputs		Range (Weighted Average) (a)
Assets
Impaired Loans		$	4,614			Fair Value of Collateral		Discounted Cash Flow - Loss Severity		25.66% to 0.11% (3.44%)
								Appraised Value		$0.3 to $731 ($316.8)
Capitalized servicing rights		14,221				Discounted Cash Flow		Constant Prepayment Rate (CPR)		8.40% to 12.73% (11.50%)
								Discount Rate		10.00% to 12.73% (11.30%)
Other Real Estate Owned		154				Fair Value of Collateral		Appraised Value		$49 to $105 ($87)
Total		$	18,989

(a)  Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.

		Fair Value
(In thousands)		December 31, 2018				Valuation Techniques		Unobservable Inputs		Range (Weighted Average) (a)
Assets
Impaired Loans		$	4,892			Fair Value of Collateral		Discounted Cash Flow - loss severity		51.16% to 0.00% (6.75%)
								Appraised Value		$0.3 to $877 ($363)
Capitalized servicing rights		11,891				Discounted Cash Flow		Constant Prepayment Rate (CPR)		7.74% to 11.29% (9.74%)
								Discount Rate		10.00% to 14.13% (11.99%)
Total		$	16,783

(a) 

Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.

Summary of Estimated Fair Values, and Related Carrying Amounts, of Financial Instruments

The following tables summarize the estimated fair values (represents exit price), and related carrying amounts, of the Company’s financial instruments. Certain financial instruments and all non-financial instruments are excluded. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Certain assets and liabilities in the following disclosures include balances classified as discontinued operations. See Note 3 - Discontinued Operations for more information on assets and liabilities classified as discontinued operations.

		June 30, 2019
		Carrying				Fair
(In thousands)		Amount				Value				Level 1				Level 2				Level 3
Financial Assets
Cash and cash equivalents		$	229,306			$	229,306			$	229,306			$	—			$	—
Trading security		11,210				11,210				—				—				11,210
Marketable equity securities		59,578				59,578				58,521				1,057				—
Securities available for sale		1,410,078				1,410,078				—				1,410,078				—
Securities held to maturity		364,463				377,056				—				359,084				17,972
FHLB bank stock and restricted securities		59,356				N/A				N/A				N/A				N/A
Net loans		9,879,672				10,151,656				—				—				10,151,656
Loans held for sale (1)		367,692				370,114				—				191,548				178,566
Accrued interest receivable		41,864				41,864				—				41,864				—
Cash surrender value of bank-owned life insurance policies		227,458				227,458				—				227,458				—
Derivative assets (1)		85,769				85,769				—				76,764				9,005
Financial Liabilities
Total deposits		$	10,565,956			$	10,576,006			$	—			$	10,576,006			$	—
Short-term debt		608,928				608,946				—				608,946				—
Long-term Federal Home Loan Bank advances		295,886				297,184				—				297,184				—
Subordinated borrowings		96,927				100,924				—				100,924				—
Derivative liabilities (1)		80,875				80,875				1,144				79,731				—

(1) Includes assets and liabilities classified as discontinued operations.

		December 31, 2018
		Carrying				Fair
(In thousands)		Amount				Value				Level 1				Level 2				Level 3
Financial Assets
Cash and cash equivalents		$	183,189			$	183,189			$	183,189			$	—			$	—
Trading security		11,212				11,212				—				—				11,212
Marketable equity securities		56,638				56,638				56,074				564				—
Securities available for sale and other		1,399,647				1,399,647				—				1,399,647				—
Securities held to maturity		373,763				371,224				—				353,182				18,042
FHLB bank stock and restricted securities		77,344				N/A				N/A				N/A				N/A
Net loans		8,981,784				9,026,442				—				—				9,026,442
Loans held for sale (1)		96,233				96,233				—				96,233				—
Accrued interest receivable		36,879				36,879				—				36,879				—
Derivative assets (1)		35,654				35,654				—				31,727				3,927
Financial Liabilities
Total deposits		$	8,982,381			$	8,970,321			$	—			$	8,970,321			$	—
Short-term debt		1,118,832				1,118,820				—				1,118,820				—
Long-term Federal Home Loan Bank advances		309,466				308,336				—				308,336				—
Subordinated borrowings		89,518				97,376				—				97,376				—
Derivative liabilities (1)		33,973				33,973				734				33,239				—

(1) Includes assets and liabilities classified as discontinued operations.

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- Definition

Tabular disclosure of the fair value measurement of assets and liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset and liabilities.

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