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.

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, 2019 and December 31, 2018 were measured using an exit 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, 2019 and December 31, 2018:



	Carrying Amount		Estimated Fair Value at March 31, 2019
(In thousands)			Level 1		Level 2		Level 3		Total
Financial Assets
Loans:
Business	$	5,175,541	$	—	$	—	$	5,110,404	$	5,110,404
Real estate - construction and land	925,269		—		—		922,877		922,877
Real estate - business	2,859,614		—		—		2,847,793		2,847,793
Real estate - personal	2,125,087		—		—		2,076,475		2,076,475
Consumer	1,893,212		—		—		1,851,010		1,851,010
Revolving home equity	364,010		—		—		359,856		359,856
Consumer credit card	772,396		—		—		720,563		720,563
Overdrafts	5,593		—		—		3,994		3,994
Total loans	14,120,722		—		—		13,892,972		13,892,972
Loans held for sale	20,085		—		20,085		—		20,085
Investment securities	8,792,515		880,729		7,765,867		145,919		8,792,515
Federal funds sold	250		250		—		—		250
Securities purchased under agreements to resell	700,000		—		—		700,588		700,588
Interest earning deposits with banks	166,077		166,077		—		—		166,077
Cash and due from banks	428,018		428,018		—		—		428,018
Derivative instruments	51,691		—		50,776		915		51,691
Assets held in trust for deferred compensation plan	14,897		14,897		—		—		14,897
Total	$	24,294,255	$	1,489,971	$	7,836,728	$	14,740,394	$	24,067,093
Financial Liabilities
Non-interest bearing deposits	$	6,298,724	$	6,298,724	$	—	$	—	$	6,298,724
Savings, interest checking and money market deposits	11,799,346		11,799,346		—		—		11,799,346
Certificates of deposit	1,876,283		—		—		1,887,103		1,887,103
Federal funds purchased	262,375		262,375		—		—		262,375
Securities sold under agreements to repurchase	1,460,376		—		—		1,461,343		1,461,343
Other borrowings	1,932		—		1,035		897		1,932
Derivative instruments	10,300		—		10,190		110		10,300
Liabilities held in trust for deferred compensation plan	14,897		14,897		—		—		14,897
Total	$	21,724,233	$	18,375,342	$	11,225	$	3,349,453	$	21,736,020



	Carrying Amount		Estimated Fair Value at December 31, 2018
(In thousands)			Level 1		Level 2		Level 3		Total
Financial Assets
Loans:
Business	$	5,106,427	$	—	$	—	$	5,017,694	$	5,017,694
Real estate - construction and land	869,659		—		—		868,274		868,274
Real estate - business	2,875,788		—		—		2,846,095		2,846,095
Real estate - personal	2,127,083		—		—		2,084,370		2,084,370
Consumer	1,955,572		—		—		1,916,627		1,916,627
Revolving home equity	376,399		—		—		365,069		365,069
Consumer credit card	814,134		—		—		756,651		756,651
Overdrafts	15,236		—		—		11,223		11,223
Total loans	14,140,298		—		—		13,866,003		13,866,003
Loans held for sale	20,694		—		20,694		—		20,694
Investment securities	8,698,666		910,237		7,643,290		145,139		8,698,666
Federal funds sold	3,320		3,320		—		—		3,320
Securities purchased under agreements to resell	700,000		—		—		693,228		693,228
Interest earning deposits with banks	689,876		689,876		—		—		689,876
Cash and due from banks	507,892		507,892		—		—		507,892
Derivative instruments	41,210		—		40,627		583		41,210
Assets held in trust for deferred compensation plan	12,968		12,968		—		—		12,968
Total	$	24,814,924	$	2,124,293	$	7,704,611	$	14,704,953	$	24,533,857
Financial Liabilities
Non-interest bearing deposits	$	6,980,298	$	6,980,298	$	—	$	—	$	6,980,298
Savings, interest checking and money market deposits	11,685,239		11,685,239		—		—		11,685,239
Certificates of deposit	1,658,122		—		—		1,663,748		1,663,748
Federal funds purchased	13,170		13,170		—		—		13,170
Securities sold under agreements to repurchase	1,943,219		—		—		1,944,458		1,944,458
Other borrowings	8,702		—		7,751		951		8,702
Derivative instruments	13,421		—		13,328		93		13,421
Liabilities held in trust for deferred compensation plan	12,968		12,968		—		—		12,968
Total	$	22,315,139	$	18,691,675	$	21,079	$	3,609,250	$	22,322,004