FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 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
	September 30,		Assets		Inputs		Inputs
(In thousands)	2019		(Level 1)		(Level 2)		(Level 3)
Assets:
Available for sale:
U.S. government-sponsored agencies	$	35,047	$	—	$	35,047	$	—
Mortgage-backed securities-residential		296,629		—		296,629		—
SBA pool securities		3,057		—		3,057		—
State and political subdivisions		12,196		—		12,196		—
Corporate bond		3,060		—		3,060		—
CRA investment fund		7,881		7,881		—		—
Loans held for sale, at fair value		1,756		—		1,756		—
Derivatives:
Cash flow hedges		56		—		56		—
Loan level swaps		43,023		—		43,023		—
Total	$	402,705	$	7,881	$	394,824	$	—

Liabilities:
Derivatives:
Cash flow hedges	$	4,996	$	—	$	4,996	$	—
Loan level swaps		43,023		—		43,023		—
Total	$	48,019	$	—	$	48,019	$	—

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)	September 30, 2019		December 31, 2018
Residential loans contractual balance	$	1,730	$	1,552
Fair value adjustment		26		24
Total fair value of residential loans held for sale	$	1,756	$	1,576

Schedule of carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments at September 30, 2019 are as follows:

			Fair Value Measurements at September 30, 2019 using
	Carrying
(In thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	227,113	$	227,113	$	—	$	—	$	227,113
Securities available for sale		349,989		—		349,989		—		349,989
CRA investment fund		7,881		7,881		—		—		7,881
FHLB and FRB stock		21,403		—		—		—	N/A
Loans held for sale, at fair value		1,756		—		1,756		—		1,756
Loans held for sale, at lower of cost or fair value		5,937		—		5,994		—		5,994
Loans, net of allowance for loan and lease losses		4,118,332		—		—		4,235,028		4,235,028
Accrued interest receivable		11,759		—		1,580		10,179		11,759
Cash flow hedges		56		—		56		—		56
Loan level swaps		43,023		—		43,023		—		43,023
Financial liabilities
Deposits	$	4,061,356	$	3,388,571	$	677,069	$	—	$	4,065,640
Short-term borrowings		67,000		—		67,000		—		67,000
Federal home loan bank advances		105,000		—		108,600		—		108,600
Subordinated debt		83,361		—		—		83,568		83,568
Accrued interest payable		3,661		444		1,996		1,221		3,661
Cash flow hedges		4,996		—		4,996		—		4,996
Loan level swap		43,023		—		43,023		—		43,023

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