FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Financial Instruments Carried at Fair Value

The following tables present financial instruments carried at fair value as of September 30, 2018 and December 31, 2017 by level in the valuation hierarchy (as described above):



	September 30, 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	$	—	$	300,030	$	—	$	300,030
FNMA MBS	—		548,738		—		548,738
FHLMC MBS	—		112,422		—		112,422
GNMA MBS	—		35,941		—		35,941
Other assets	—		977		—		977
Total assets measured at fair value on a recurring basis	$	—	$	998,108	$	—	$	998,108

Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	4,781	$	—	$	4,781

Assets measured at fair value on a nonrecurring basis:
Other investments⁽¹⁾	$	—	$	—	$	35,083	$	35,083
Other real estate owned	—		—		2,004		2,004
Loans held for sale	—		35,855		—		35,855
Impaired loans, net	—		—		50,545		50,545
Total assets measured at fair value on a nonrecurring basis	$	—	$	35,855	$	87,632	$	123,487

⁽¹⁾ See Note 1 for additional disclosures resulting from the Company's adoption of ASU 2016-01.



	December 31, 2017
(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	$	—	$	246,539	$	—	$	246,539
FNMA MBS	—		473,987		—		473,987
FHLMC MBS	—		87,875		—		87,875
GNMA MBS	—		29,098		—		29,098
Other investments	623		—		—		623
Other assets	—		747		—		747
Total assets measured at fair value on a recurring basis	$	623	$	838,246	$	—	$	838,869

Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	3,225	$	—	$	3,225

Assets measured at fair value on a nonrecurring basis
Other real estate owned	—		—		2,503		2,503
Loans held for sale	—		31,055		—		31,055
Impaired loans, net	—		—		57,089		57,089
Total assets measured at fair value on a nonrecurring basis	$	—	$	31,055	$	59,592	$	90,647

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, 2018				December 31, 2017
(Dollars in thousands)	Fair Value Measurement	Book Value		Fair Value		Book Value		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	711,372	$	711,372	$	723,866	$	723,866
Investment securities available for sale	See previous table	997,131		997,131		837,499		837,499
Investment securities held to maturity	Level 2	152,577		150,583		161,186		162,853
Other investments	Level 1,3	35,083		35,083		14,671		45,326
Loans, held for sale	Level 2	35,855		35,855		31,055		31,055
Loans, net⁽¹⁾⁽²⁾	Level 2,3	4,835,591		4,802,841		4,719,229		4,699,458
Impaired loans, net	Level 3	50,545		50,545		57,089		57,089
Stock in FHLB of Pittsburgh	Level 2	16,540		16,540		31,284		31,284
Accrued interest receivable	Level 2	21,331		21,331		19,405		19,405
Other assets	Level 3	977		977		2,883		2,883
Financial liabilities:
Deposits	Level 2	5,723,916		5,685,435		5,247,604		4,848,588
Borrowed funds	Level 2	545,089		538,395		937,806		937,605
Standby letters of credit	Level 3	328		328		603		603
Accrued interest payable	Level 2	7,119		7,119		1,037		1,037
Other liabilities	Level 2	4,781		4,781		3,188		3,188

⁽¹⁾ Excludes impaired loans, net.

⁽²⁾ Includes reverse mortgage loans, which are categorized as Level 3.