FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Financial Instruments Carried at Fair Value

The following tables present financial instruments carried at fair value as of September 30, 2019 and December 31, 2018 by level in the valuation hierarchy (as described above):


	September 30, 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	$	—	$	365,246	$	—	$	365,246
FNMA MBS	—		1,162,747		—		1,162,747
FHLMC MBS	—		346,755		—		346,755
GNMA MBS	—		34,073		—		34,073


Other assets	—		6,540		—		6,540
Total assets measured at fair value on a recurring basis	$	—	$	1,915,361	$	—	$	1,915,361

Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	5,974	$	—	$	5,974

Assets measured at fair value on a nonrecurring basis:
Other investments	$	—	$	—	$	70,055	$	70,055
Other real estate owned	—		—		3,693		3,693
Loans held for sale	—		67,428		—		67,428
Impaired loans, net	—		—		50,536		50,536
Total assets measured at fair value on a nonrecurring basis	$	—	$	67,428	$	124,284	$	191,712


	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:


		September 30, 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	$	580,299	$	580,299	$	620,757	$	620,757
Investment securities available for sale	See previous table	1,908,821		1,908,821		1,205,079		1,205,079
Investment securities held to maturity	Level 2	134,961		138,262		149,950		149,431
Other investments	Level 3	70,055		70,055		37,233		37,233
Loans, held for sale	Level 2	67,428		67,428		25,318		25,318
Loans, net⁽¹⁾⁽²⁾	Level 3	8,430,176		8,530,619		4,816,825		4,772,377
Impaired loans, net	Level 3	50,536		50,536		47,094		47,094
Stock in FHLB of Pittsburgh	Level 2	22,630		22,630		19,259		19,259
Accrued interest receivable	Level 2	38,771		38,771		22,001		22,001
Other assets	Level 2	6,540		6,540		2,098		2,098
Financial liabilities:
Deposits	Level 2	9,533,193		9,835,611		5,640,431		5,597,227
Borrowed funds	Level 2	554,783		555,555		699,788		694,526
Standby letters of credit	Level 3	461		461		495		495
Accrued interest payable	Level 2	9,481		9,481		1,900		1,900
Other liabilities	Level 2	5,974		5,974		3,493		3,493

⁽¹⁾ Excludes impaired loans, net.

⁽²⁾ Includes reverse mortgage loans.