FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of assets measured at fair value on a recurring basis

The following table summarizes, for the periods indicated, assets measured at fair value on a recurring basis, including financial assets for which the Corporation has elected the fair value option:

Assets Measured on a Recurring Basis

				Fair Value Measurements Using
				Quoted
				Prices in
				Active		Significant
				Markets For		Other			Significant
				Identical		Observable			Unobservable
	March 31,			Assets		Inputs			Inputs
(In thousands)	2019			(Level 1)		(Level 2)			(Level 3)
Assets:
Available for sale:
U.S. government-sponsored agencies	$	86,352		$	—	$	86,352		$	—
Mortgage-backed securities-residential		274,331			—		274,331			—
SBA pool securities		3,601			—		3,601			—
State and political subdivisions		17,097			—		17,097			—
Corporate bond		3,019			—		3,019			—
CRA investment fund		4,778			4,778		—			—
Derivatives:
Cash flow hedges		1,096			—		1,096			—
Loan level swaps		16,515			—		16,515			—
Total	$	406,789		$	4,778	$	402,011		$	—

Liabilities:
Derivatives:
Cash flow hedges	$	(1,835	)	$	—	$	(1,835	)	$	—
Loan level swaps		(16,515	)		—		(16,515	)		—
Total	$	(18,350	)	$	—	$	(18,350	)	$	—

Assets Measured on a Recurring Basis

				Fair Value Measurements Using
				Quoted
				Prices in
				Active		Significant
				Markets For		Other			Significant
				Identical		Observable			Unobservable
	December 31,			Assets		Inputs			Inputs
(In thousands)	2018			(Level 1)		(Level 2)			(Level 3)
Assets:
Securities available for sale:
U.S. government-sponsored agencies	$	102,013		$	—	$	102,013		$	—
Mortgage-backed securities-residential		251,362			—		251,362			—
SBA pool securities		3,839			—		3,839			—
State and political subdivisions		17,610			—		17,610			—
Corporate bond		3,112			—		3,112			—
CRA investment fund		4,719			4,719		—			—
Loans held for sale, at fair value		1,576			—		1,576			—
Derivatives:
Cash flow hedges		1,657			—		1,657			—
Loan level swaps		9,689			—		9,689			—
Total	$	395,577		$	4,719	$	390,858		$	—

Liabilities:
Derivatives:
Cash flow hedges	$	(849	)	$	—	$	(849	)	$	—
Loan level swaps		(9,689	)		—		(9,689	)		—
Total	$	(10,538	)	$	—	$	(10,538	)	$	—

Schedule of residential loans held for sale

The following tables present residential loans held for sale, at fair value for the periods indicated:

(In thousands)	March 31, 2019		December 31, 2018
Residential loans contractual balance	$	—	$	1,552
Fair value adjustment		—		24
Total fair value of residential loans held for sale	$	—	$	1,576

Schedule of carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments at March 31, 2019 are as follows:

			Fair Value Measurements at March 31, 2019 using
	Carrying
(In thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	240,314	$	240,314	$	—	$	—	$	240,314
Securities available for sale		384,400		—		384,400		—		384,400
CRA investment fund		4,778		4,778		—		—		4,778
FHLB and FRB stock		18,460		—		—		—	N/A
Loans held for sale, at lower of cost or fair value		3,931		—		4,300		—		4,300
Loans, net of allowance for loan and lease losses		3,858,763		—		—		3,900,892		3,900,892
Accrued interest receivable		11,688		—		1,607		10,081		11,688
Cash flow hedges		1,096		—		1,096		—		1,096
Loan level swaps		16,515		—		16,515		—		16,515
Financial liabilities
Deposits	$	3,919,206	$	3,249,536	$	668,534	$	—	$	3,918,070
Federal home loan bank advances		105,000		—		107,199		—		107,199
Subordinated debt		83,249		—		—		84,027		84,027
Accrued interest payable		4,274		358		2,695		1,221		4,274
Cash flow hedges		1,835		—		1,835		—		1,835
Loan level swap		16,515		—		16,515		—		16,515

The carrying amounts and estimated fair values of financial instruments at December 31, 2018 are as follows:

			Fair Value Measurements at December 31, 2018 using
	Carrying
(In thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	160,773	$	160,773	$	—	$	—	$	160,773
Securities available for sale		377,936		—		377,936		—		377,936
CRA investment fund		4,719		4,719		—		—		4,719
FHLB and FRB stock		18,533		—		—		—	N/A
Loans held for sale, at fair value		1,576		—		1,576		—		1,576
Loans held for sale, at lower of cost or fair value		3,542		—		3,654		—		3,654
Loans, net of allowance for loan and lease losses		3,889,427		—		—		3,852,004		3,852,004
Accrued interest receivable		10,814		—		1,875		8,939		10,814
Cash flow Hedges		1,657		—		1,657		—		1,657
Loan level swaps		9,689		—		9,689		—		9,689
Financial liabilities
Deposits	$	3,895,340	$	3,249,274	$	640,997	$	—	$	3,890,271
Federal home loan bank advances		108,000		—		108,950		—		108,950
Subordinated debt		83,193		—		—		82,207		82,207
Accrued interest payable		2,868		331		2,482		55		2,868
Cash flow hedges		849		—		849		—		849
Loan level swaps		9,689		—		9,689		—		9,689