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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Summary of financial assets and financial liabilities measured at fair value on recurring basis

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020, segregated by the level of valuation inputs within the fair value hierarchy used to measure fair value.

Recurring Fair Value Measurements
June 30, 2021
(In thousands)			Total			(Level 1)			(Level 2)			(Level 3)
Available-for-sale debt securities
U.S. Treasuries			$	129,091		$	0		$	129,091		$	0
Obligations of U.S. Government sponsored entities			823,718			$	0		823,718			$	0
Obligations of U.S. states and political subdivisions			113,789			0			113,789			0
Mortgage-backed securities – residential, issued by:
U.S. Government agencies			114,422			0			114,422			0
U.S. Government sponsored entities			830,656			0			830,656			0
U.S. corporate debt securities			2,413			0			2,413			0
Total Available-for-sale debt securities			$	2,014,089		$	0		$	2,014,089		$	0
Equity securities, at fair value			$	916		$	0		$	0		$	916

Recurring Fair Value Measurements
December 31, 2020
(In thousands)			Total			(Level 1)			(Level 2)			(Level 3)
Available-for-sale debt securities
Obligations of U.S. Government sponsored entities			$	607,480		$	0		$	607,480		$	0
Obligations of U.S. states and political subdivisions			129,746			0			129,746			0
Mortgage-backed securities – residential, issued by:
U.S. Government agencies			182,108			0			182,108			0
U.S. Government sponsored entities			705,480			0			705,480			0
U.S. corporate debt securities			2,379			0			2,379			0
Total Available-for-sale debt securities			$	1,627,193		$	0		$	1,627,193		$	0
Equity securities, at fair value			$	929		$	0		$	0		$	929

Schedule of assets measured at fair value on nonrecurring basis

Three months ended June 30, 2021
(In thousands)						Fair value measurements at reporting date using:									Gain (losses) from fair value changes
Assets:			As of 06/30/2021			Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Three months ended 06/30/2021
Individually evaluated			$	8,922		$	0		$	8,922		$	0		$	0
Other real estate owned			0			0			0			0			0

Three months ended June 30, 2020
(In thousands)						Fair value measurements at reporting date using:									Gain (losses) from fair value changes
Assets:			As of 06/30/2020			Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Three months ended 06/30/2020
Individually evaluated			$	2,560		$	0		$	2,560		$	0		$	(15)
Other real estate owned			0			0			0			0			23

Six months ended June 30, 2021
(In thousands)						Fair value measurements at reporting date using:									Gain (losses) from fair value changes
Assets:			As of 06/30/2021			Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Six months ended 06/30/2021
Individually evaluated			$	31,619		$	0		$	31,619		$	0		$	0
Other real estate owned			0			0			0			0			0

Six months ended June 30, 2020
(In thousands)						Fair value measurements at reporting date using:									Gain (losses) from fair value changes
Assets:			As of 06/30/2020			Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Six months ended 06/30/2020
Individually evaluated			$	10,130		$	0		$	10,130		$	0		$	(1,305)
Other real estate owned			274			0			274			0			23

Schedule of carrying amount and estimated fair value of financial instruments

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments at June 30, 2021 and December 31, 2020. The carrying amounts shown in the table are included in the Consolidated Statements of Condition under the indicated captions.

The fair value estimates, methods and assumptions set forth below for the Company's financial instruments, including those financial instruments carried at cost, are made solely to comply with disclosures required by U.S. GAAP and should be read in conjunction with the financial statements and notes included in this Report.

For loans where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. For real estate loans, fair value of the loan’s collateral is determined by third party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 5% to 8% of the appraised value. For non-real estate loans, fair value of the loan’s collateral may be determined using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business. 

Estimated Fair Value of Financial Instruments
June 30, 2021
(In thousands)			Carrying Amount			Fair Value			(Level 1)			(Level 2)			(Level 3)
Financial Assets:
Cash and cash equivalents			$	291,014		$	291,014		$	291,014		$	0		$	0
Securities - held-to-maturity			151,848			154,299			0			154,299			0
FHLB and other stock			15,991			15,991			0			15,991			0
Accrued interest receivable			27,575			27,575			0			27,575			0
Loans/leases, net1			5,127,624			5,111,354			0			31,619			5,079,735
Financial Liabilities:
Time deposits			$	710,170		$	715,382		$	0		$	715,382		$	0
Other deposits			6,126,830			6,126,830			0			6,126,830			0
Fed funds purchased and securities sold
under agreements to repurchase			52,134			52,134			0			52,134			0
Other borrowings			245,000			251,406			0			251,406			0
Trust preferred debentures			8,799			12,832			0			12,832			0
Accrued interest payable			1,411			1,411			0			1,411			0

Estimated Fair Value of Financial Instruments
December 31, 2020
(In thousands)			Carrying Amount			Fair Value			(Level 1)			(Level 2)			(Level 3)
Financial Assets:
Cash and cash equivalents			$	388,462		$	388,462		$	388,462		$	0		$	0
FHLB and other stock			16,382			16,382			0			16,382			0
Accrued interest receivable			32,025			32,025			0			32,025			0
Loans/leases, net1			5,208,658			5,226,301			0			22,171			5,204,130
Financial Liabilities:
Time deposits			$	746,234		$	753,045		$	0		$	753,045		$	0
Other deposits			5,691,518			5,691,518			0			5,691,518			0
Fed funds purchased and securities
sold under agreements to repurchase			65,845			65,845			0			65,845			0
Other borrowings			265,000			274,238			0			274,238			0
Trust preferred debentures			13,220			18,483			0			18,483			0
Accrued interest payable			1,727			1,727			0			1,727			0

1 Lease receivables, although excluded from the scope of ASC Topic 825, are included in the estimated fair value amounts at their carrying value.

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- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

+ References

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
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