Fair Value of Financial Instruments

The carrying amounts and estimated fair values of financial instruments held by the Company are set forth below. Fair value estimates are made at a specific point in time based on relevant market information. They do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for many of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, risk characteristics and economic conditions. These estimates are subjective, involve uncertainties, and cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

As mentioned in Note 3, the Company prospectively adopted ASU 2016-01 on January 1, 2018. In accordance with its requirements, the fair value of loans as of March 31, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion.

The estimated fair values of the Company’s financial instruments and the classification of their fair value measurement within the valuation hierarchy are as follows at March 31, 2018 and December 31, 2017:



	Carrying Amount		Estimated Fair Value at March 31, 2018
(In thousands)			Level 1		Level 2		Level 3		Total
Financial Assets
Loans:
Business	$	4,960,614	$	—	$	—	$	4,861,150	$	4,861,150
Real estate - construction and land	932,058		—		—		927,316		927,316
Real estate - business	2,724,584		—		—		2,690,305		2,690,305
Real estate - personal	2,069,012		—		—		2,009,625		2,009,625
Consumer	2,069,235		—		—		2,032,968		2,032,968
Revolving home equity	382,825		—		—		376,043		376,043
Consumer credit card	752,651		—		—		701,833		701,833
Overdrafts	2,382		—		—		1,777		1,777
Total loans	13,893,361		—		—		13,601,017		13,601,017
Loans held for sale	16,435		—		16,435		—		16,435
Investment securities	8,624,037		932,074		7,564,757		127,206		8,624,037
Federal funds sold	17,000		17,000		—		—		17,000
Securities purchased under agreements to resell	700,000		—		—		685,539		685,539
Interest earning deposits with banks	134,697		134,697		—		—		134,697
Cash and due from banks	423,048		423,048		—		—		423,048
Derivative instruments	5,092		—		4,481		611		5,092
Assets held in trust for deferred compensation plan	13,582		13,582		—		—		13,582
Total	$	23,827,252	$	1,520,401	$	7,585,673	$	14,414,373	$	23,520,447
Financial Liabilities
Non-interest bearing deposits	$	6,953,430	$	6,953,430	$	—	$	—	$	6,953,430
Savings, interest checking and money market deposits	11,828,138		11,828,138		—		—		11,828,138
Time open and certificates of deposit	1,756,903		—		—		1,755,581		1,755,581
Federal funds purchased	104,940		104,940		—		—		104,940
Securities sold under agreements to repurchase	1,027,389		—		—		1,027,814		1,027,814
Other borrowings	9,214		—		7,530		1,684		9,214
Derivative instruments	16,373		—		16,282		91		16,373
Liabilities held in trust for deferred compensation plan	13,582		13,582		—		—		13,582
Total	$	21,709,969	$	18,900,090	$	23,812	$	2,785,170	$	21,709,072



	Carrying Amount		Estimated Fair Value at December 31, 2017
(In thousands)			Level 1		Level 2		Level 3		Total
Financial Assets
Loans:
Business	$	4,958,554	$	—	$	—	$	4,971,401	$	4,971,401
Real estate - construction and land	968,820		—		—		979,389		979,389
Real estate - business	2,697,452		—		—		2,702,598		2,702,598
Real estate - personal	2,062,787		—		—		2,060,443		2,060,443
Consumer	2,104,487		—		—		2,074,129		2,074,129
Revolving home equity	400,587		—		—		400,333		400,333
Consumer credit card	783,864		—		—		798,093		798,093
Overdrafts	7,123		—		—		7,123		7,123
Total loans	13,983,674		—		—		13,993,509		13,993,509
Loans held for sale	21,398		—		21,398		—		21,398
Investment securities	8,893,307		937,011		7,838,522		117,774		8,893,307
Federal funds sold	42,775		42,775		—		—		42,775
Securities purchased under agreements to resell	700,000		—		—		695,194		695,194
Interest earning deposits with banks	30,631		30,631		—		—		30,631
Cash and due from banks	438,439		438,439		—		—		438,439
Derivative instruments	8,349		—		7,723		626		8,349
Assets held in trust for deferred compensation plan	12,843		12,843		—		—		12,843
Total	$	24,131,416	$	1,461,699	$	7,867,643	$	14,807,103	$	24,136,445
Financial Liabilities
Non-interest bearing deposits	$	7,158,962	$	7,158,962	$	—	$	—	$	7,158,962
Savings, interest checking and money market deposits	11,499,620		11,499,620		—		—		11,499,620
Time open and certificates of deposit	1,766,864		—		—		1,768,780		1,768,780
Federal funds purchased	202,370		202,370		—		—		202,370
Securities sold under agreements to repurchase	1,304,768		—		—		1,305,375		1,305,375
Other borrowings	1,758		—		—		1,758		1,758
Derivative instruments	8,074		—		7,951		123		8,074
Liabilities held in trust for deferred compensation plan	12,843		12,843		—		—		12,843
Total	$	21,955,259	$	18,873,795	$	7,951	$	3,076,036	$	21,957,782