FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of Assets Measured at Fair Value on Recurring Basis

The following table summarizes, at the dates 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)	2021		(Level 1)		(Level 2)		(Level 3)
Assets:
Available for sale:
U.S. government-sponsored agencies	$	274,433	$	—	$	274,433	$	—
Mortgage-backed securities-residential		515,131		—		515,131		—
SBA pool securities		42,930		—		42,930		—
State and political subdivisions		5,750		—		5,750		—
Corporate bond		5,535		—		5,535		—
CRA investment fund		14,824		14,824		—		—
Loans held for sale, at fair value		3,013		—		3,013		—
Derivatives:
Loan level swaps		43,133		—		43,133		—
Total	$	904,749	$	14,824	$	889,925	$	—

Liabilities:
Derivatives:
Cash flow hedges	$	5,267	$	—	$	5,267	$	—
Loan level swaps		44,483		—		44,483		—
Total	$	49,750	$	—	$	49,750	$	—

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)	2020		(Level 1)		(Level 2)		(Level 3)
Assets:
Securities available for sale:
U.S. treasuries	$	2,613	$	—	$	2,613	$	—
U.S. government-sponsored agencies		83,771		—		83,771		—
Mortgage-backed securities-residential		476,058		—		476,058		—
SBA pool securities		49,129		—		49,129		—
State and political subdivisions		8,089		—		8,089		—
Corporate bond		3,029		—		3,029		—
CRA investment fund		15,117		15,117		—		—
Loans held for sale, at fair value		13,588		—		13,588		—
Derivatives:
Loan level swaps		79,529		—		79,529		—
Total	$	730,923	$	15,117	$	715,806	$	—

Liabilities:
Derivatives:
Cash flow hedges	$	9,616	$	—	$	9,616	$	—
Loan level swaps		79,529		—		79,529		—
Total	$	89,145	$	—	$	89,145	$	—

Schedule of Residential Loans Held for Sale

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

(In thousands)	September 30, 2021		December 31, 2020
Residential loans contractual balance	$	2,960	$	13,295
Fair value adjustment		53		293
Total fair value of residential loans held for sale	$	3,013	$	13,588

Schedule of Assets Measured at Fair Value on Non-Recurring Basis

The following tables summarize, at the dates indicated, assets measured at fair value on a non-recurring basis:

Fair Value Measurements Using

Quoted

Prices in

Active

Significant

Markets For

Other

Significant

Identical

Observable

Unobservable

September 30,

Assets

Inputs

(In thousands)

2021

(Level 1)

(Level 2)

(Level 3)

Assets:

Impaired loans:

Primary residential mortgage

1,057

—

1,057

Investment commercial real estate

12,750

—

12,750

Fair Value Measurements Using

Quoted

Prices in

Active

Significant

Markets For

Other

Significant

Identical

Observable

Unobservable

December 31,

Assets

Inputs

(In thousands)

2020

(Level 1)

(Level 2)

(Level 3)

Assets:

Impaired loans:

Commercial and industrial

2,300

—

2,300

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at September 30, 2021 are as follows:

			Fair Value Measurements at September 30, 2021 using
	Carrying
(In thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	616,212	$	616,212	$	—	$	—	$	616,212
Securities available for sale		843,779		—		843,779		—		843,779
CRA investment fund		14,824		14,824		—		—		14,824
FHLB and FRB stock		12,950		—		—		—	N/A
Loans held for sale, at fair value		3,013		—		3,013		—		3,013
Loans held for sale, at lower of cost or fair value		17,235		—		18,627		—		18,627
Loans, net of allowance for loan and lease losses		4,510,265		—		—		4,619,193		4,619,193
Accrued interest receivable		22,790		—		2,028		20,762		22,790
Accrued interest receivable loan level swaps (A)		4,688		—		4,688		—		4,688
Loan level swaps		43,133		—		43,133		—		43,133
Financial liabilities
Deposits	$	5,376,341	$	4,884,174	$	495,816	$	—	$	5,379,990
Paycheck Protection Program Liquidity Facility		48,496		—		48,496		—		48,496
Subordinated debt		132,629		—		—		130,917		130,917
Accrued interest payable		2,157		132		659		1,366		2,157
Accrued interest payable loan level swaps (B)		4,688		—		4,688		—		4,688
Cash flow hedges		5,267		—		5,267		—		5,267
Loan level swap		44,483		—		44,483		—		44,483

(A)

Included in other assets in the Consolidated Statement of Condition.

(B)

Included in accrued expenses and other liabilities in the Consolidated Statement of Condition.

The carrying amounts and estimated fair values of financial instruments at December 31, 2020 are as follows:

			Fair Value Measurements at December 31, 2020 using
	Carrying
(In thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	653,322	$	653,322	$	—	$	—	$	653,322
Securities available for sale		622,689		—		622,689		—		622,689
CRA investment fund		15,117		15,117		—		—		15,117
FHLB and FRB stock		13,709		—		—		—	N/A
Loans held for sale, at fair value		13,588		—		13,588		—		13,588
Loans held for sale, at lower of cost or fair value		18,520		—		19,115		—		19,115
Loans, net of allowance for loan and lease losses		4,305,128		—		—		4,462,243		4,462,243
Accrued interest receivable		22,495		—		1,653		20,842		22,495
Loan level swaps		79,529		—		79,529		—		79,529
Financial liabilities
Deposits	$	4,818,484	$	4,222,370	$	604,036	$	—	$	4,826,406
Short-term borrowings		15,000		—		15,000		—		15,000
Paycheck Protection Program Liquidity Facility		177,086		—		177,086		—		177,086
Subordinated debt		181,794		—		—		183,348		183,348
Accrued interest payable		1,650		150		1,347		153		1,650
Cash flow hedges		9,616		—		9,616		—		9,616
Loan level swaps		79,529		—		79,529		—		79,529