FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2022

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
	March 31,		Assets		Inputs		Inputs
(In thousands)	2022		(Level 1)		(Level 2)		(Level 3)
Assets:
Available for sale:
U.S. government-sponsored agencies	$	218,263	$	—	$	218,263	$	—
Mortgage-backed securities-residential		340,513		—		340,513		—
SBA pool securities		35,475		—		35,475		—
State and political subdivisions		4,520		—		4,520		—
Corporate bond		2,392		—		2,392		—
CRA investment fund		14,003		14,003		—		—
Loans held for sale, at fair value		605		—		605		—
Derivatives:
Cash flow hedges		391		—		391		—
Loan level swaps		8,908		—		8,908		—
Total	$	625,070	$	14,003	$	611,067	$	—

Liabilities:
Derivatives:
Cash flow hedges	$	1,074	$	—	$	1,074	$	—
Loan level swaps		9,034		—		9,034		—
Total	$	10,108	$	—	$	10,108	$	—

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)	2021		(Level 1)		(Level 2)		(Level 3)
Assets:
Securities available for sale:
U.S. government-sponsored agencies	$	272,221	$	—	$	272,221	$	—
Mortgage-backed securities-residential		476,974		—		476,974		—
SBA pool securities		39,561		—		39,561		—
State and political subdivisions		5,476		—		5,476		—
Corporate bond		2,521		—		2,521		—
CRA investment fund		14,685		14,685		—		—
Loans held for sale, at fair value		3,040		—		3,040		—
Derivatives:
Loan level swaps		32,326		—		32,326		—
Total	$	846,804	$	14,685	$	832,119	$	—

Liabilities:
Derivatives:
Cash flow hedges	$	3,479	$	—	$	3,479	$	—
Loan level swaps		34,569		—		34,569		—
Total	$	38,048	$	—	$	38,048	$	—

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)	March 31, 2022		December 31, 2021
Residential loans contractual balance	$	595	$	2,992
Fair value adjustment		10		48
Total fair value of residential loans held for sale	$	605	$	3,040

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

March 31,

Assets

Inputs

(In thousands)

2022

(Level 1)

(Level 2)

(Level 3)

Assets:

Individually evaluated loans:

Investment commercial real estate

10,000

—

10,000

Fair Value Measurements Using

Quoted

Prices in

Active

Significant

Markets For

Other

Significant

Identical

Observable

Unobservable

December 31,

Assets

Inputs

(In thousands)

2021

(Level 1)

(Level 2)

(Level 3)

Assets:

Impaired loans:

Investment commercial real estate

8,516

—

8,516

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at March 31, 2022 are as follows:

			Fair Value Measurements at March 31, 2022 using
	Carrying
(In thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	113,960	$	113,960	$	—	$	—	$	113,960
Securities available for sale		601,163		—		601,163		—		601,163
Securities held to maturity		106,816		—		100,314		—		100,314
CRA investment fund		14,003		14,003		—		—		14,003
FHLB and FRB stock		18,570		—		—		—	N/A
Loans held for sale, at fair value		605		—		605		—		605
Loans held for sale, at lower of cost or fair value		26,350		—		29,644		—		29,644
Loans, net of allowance for credit losses		5,063,816		—		—		4,887,836		4,887,836
Accrued interest receivable		22,890		—		2,071		20,819		22,890
Accrued interest receivable loan level swaps (1)		3,642		—		3,642		—		3,642
Cash flow hedges		391		—		391		—		391
Loan level swaps		8,908		—		8,908		—		8,908
Financial liabilities
Deposits	$	5,387,416	$	4,937,328	$	446,422	$	—	$	5,383,750
Short-term borrowings		122,085		—		122,085		—		122,085
Subordinated debt		132,772		—		—		131,839		131,839
Accrued interest payable		1,928		163		400		1,365		1,928
Accrued interest payable loan level swaps (2)		3,642		—		3,642		—		3,642
Cash flow hedges		1,074		—		1,074		—		1,074
Loan level swap		9,034		—		9,034		—		9,034

(1)

Included in other assets in the Consolidated Statement of Condition.

(2)

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, 2021 are as follows:

			Fair Value Measurements at December 31, 2021 using
	Carrying
(In thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	146,804	$	146,804	$	—	$	—	$	146,804
Securities available for sale		796,753		—		796,753		—		796,753
Securities held to maturity		108,680		—		108,460		—		108,460
CRA investment fund		14,685		14,685		—		—		14,685
FHLB and FRB stock		12,950		—		—		—	N/A
Loans held for sale, at fair value		3,040		—		3,040		—		3,040
Loans held for sale, at lower of cost or fair value		34,051		—		37,538		—		37,538
Loans, net of allowance for loan and lease losses		4,745,024		—		—		4,767,293		4,767,293
Accrued interest receivable		21,589		—		2,443		19,146		21,589
Accrued interest receivable loan level swaps (1)		4,842		—		4,842		—		4,842
Loan level swaps		32,326		—		32,326		—		32,326
Financial liabilities
Deposits	$	5,266,149	$	4,791,341	$	476,659	$	—	$	5,268,000
Subordinated debt		132,701		—		—		140,556		140,556
Accrued interest payable		651		130		446		75		651
Accrued interest payable loan level swaps (2)		4,842		—		4,842		—		4,842
Cash flow hedges		3,479		—		3,479		—		3,479
Loan level swaps		34,569		—		34,569		—		34,569

(1)

Included in other assets in the Consolidated Statement of Condition.

(2)

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