FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Financial Instruments Carried at Fair Value

The following tables present financial instruments carried at fair value as of March 31, 2019 and December 31, 2018 by level in the valuation hierarchy (as described above):



	March 31, 2019
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Asset (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets measured at fair value on a recurring basis:
Available-for-sale securities:
CMO	$	—	$	395,180	$	—	$	395,180
FNMA MBS	—		877,773		—		877,773
FHLMC MBS	—		214,932		—		214,932
GNMA MBS	—		35,311		—		35,311
Other assets	—		4,020		—		4,020
Total assets measured at fair value on a recurring basis	$	—	$	1,527,216	$	—	$	1,527,216

Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	5,315	$	—	$	5,315

Assets measured at fair value on a nonrecurring basis:
Other investments	$	—	$	—	$	48,450	$	48,450
Other real estate owned	—		—		2,233		2,233
Loans held for sale	—		33,893		—		33,893
Impaired loans, net	—		—		45,324		45,324
Total assets measured at fair value on a nonrecurring basis	$	—	$	33,893	$	96,007	$	129,900



	December 31, 2018
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Asset (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets measured at fair value on a recurring basis:
Available-for-sale securities:
CMO	$	—	$	371,750	$	—	$	371,750
FNMA MBS	—		644,073		—		644,073
FHLMC MBS	—		153,922		—		153,922
GNMA MBS	—		35,334		—		35,334
Other assets	—		2,098		—		2,098
Total assets measured at fair value on a recurring basis	$	—	$	1,207,177	$	—	$	1,207,177

Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	3,493	$	—	$	3,493

Assets measured at fair value on a nonrecurring basis
Other investments	—		—		37,233		37,233
Other real estate owned	—		—		2,668		2,668
Loans held for sale	—		25,318		—		25,318
Impaired loans, net	—		—		47,094		47,094
Total assets measured at fair value on a nonrecurring basis	$	—	$	25,318	$	86,995	$	112,313

Book Value and Estimated Fair Value of Financial Instruments

The book value and estimated fair value of our financial instruments are as follows:



		March 31, 2019				December 31, 2018
(Dollars in thousands)	Fair Value Measurement	Book Value		Fair Value		Book Value		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	647,812	$	647,812	$	620,757	$	620,757
Investment securities available for sale	See previous table	1,523,196		1,523,196		1,205,079		1,205,079
Investment securities held to maturity	Level 2	148,190		149,732		149,950		149,431
Other investments	Level 3	48,450		48,450		37,233		37,233
Loans, held for sale	Level 2	33,893		33,893		25,318		25,318
Loans, net⁽¹⁾⁽²⁾	Level 3	8,610,280		8,672,826		4,816,825		4,772,377
Impaired loans, net	Level 3	45,324		45,324		47,094		47,094
Stock in FHLB of Pittsburgh	Level 2	12,429		12,429		19,259		19,259
Accrued interest receivable	Level 2	40,441		40,441		22,001		22,001
Other assets	Level 2	4,020		4,020		2,098		2,098
Financial liabilities:
Deposits	Level 2	9,673,704		9,737,150		5,640,431		5,597,227
Borrowed funds	Level 2	406,368		219,430		699,788		694,526
Standby letters of credit	Level 3	410		410		495		495
Accrued interest payable	Level 2	6,331		6,331		1,900		1,900
Other liabilities	Level 2	5,315		5,315		3,493		3,493

⁽¹⁾ Excludes impaired loans, net.

⁽²⁾ Includes reverse mortgage loans.