Fair Value (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Fair Value of Assets Measured on Recurring and Nonrecurring Basis

Under ASC Topic 820, fair value measurements for items measured at fair value on a recurring and nonrecurring basis at September 30, 2019 and December 31, 2018 included:



(In thousands)	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2019
Available for sale debt securities¹	$	920,811	$	100	$	920,711	$	—
Loans held for sale²	26,768		—		26,768		—
Loans³	4,606		—		1,737		2,869
Other real estate owned⁴	13,593		—		241		13,352
Equity securities⁵	6,422		6,422		—		—

December 31, 2018
Available for sale debt securities¹	$	865,831	$	100	$	865,731	$	—
Loans held for sale²	11,873		—		11,873		—
Loans³	8,590		—		2,290		6,300
Other real estate owned⁴	12,802		—		297		12,505
Equity securities⁵	6,205		6,205		—		—
¹See Note D for further detail of fair value of individual investment categories.
²Recurring fair value basis determined using observable market data.
³See Note E. Nonrecurring fair value adjustments to loans identified as impaired reflect full or partial write-downs that are based on the loan’s observable market price or current appraised value of the collateral in accordance with ASC Topic 310.
⁴Fair value is measured on a nonrecurring basis in accordance with ASC Topic 360.
⁵An investment in shares of a mutual fund that invests primarily in CRA-qualified debt securities, reported at fair value in Other Assets. Recurring fair value basis is determined using market quotations.

Schedule of Aggregate Fair Value and Contractual Balance of Loans for Sale

The aggregate fair value and contractual balance of loans held for sale as of September 30, 2019 and December 31, 2018 is as follows:



(In thousands)	September 30, 2019		December 31, 2018
Aggregate fair value	$	26,768	$	11,873
Contractual balance	25,803		11,562
Excess	965		311

Schedule of Carrying Amount and Fair Value of Other Significant Financial Instruments Not Measured on a Recurring Basis

The carrying amount and fair value of the Company’s other financial instruments that were not disclosed previously in the balance sheet and for which carrying amount is not fair value as of September 30, 2019 and December 31, 2018 is as follows:



(In thousands)	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2019
Financial Assets
Debt securities held to maturity¹	$	273,644	$	—	$	276,069	$	—
Time deposits with other banks	4,579		—		—		4,473
Loans, net	4,948,078		—		—		4,961,833
Financial Liabilities
Deposit liabilities	5,673,141		—		—		5,672,972
Federal Home Loan Bank (FHLB) borrowings	50,000		—		—		49,996
Subordinated debt	71,014		—		61,160		—

December 31, 2018
Financial Assets
Debt securities held to maturity¹	$	357,949	$	—	$	349,895	$	—
Time deposits with other banks	8,243		—		—		8,132
Loans, net	4,784,201		—		—		4,835,248
Financial Liabilities
Deposit liabilities	5,177,240		—		—		5,172,098
Federal Home Loan Bank (FHLB) borrowings	380,000		—		—		380,027
Subordinated debt	70,804		—		61,224		—
¹See Note D for further detail of individual investment categories.

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details