Fair Value (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31, 2020 and December 31, 2019 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)
March 31, 2020
Available for sale debt securities¹	$	910,311	$	102	$	910,209	$	—
Loans held for sale²	29,281		—		29,281		—
Loans³	9,105		—		1,596		7,509
Other real estate owned⁴	14,640		—		1,321		13,319
Equity securities⁵	6,506		6,506		—		—

December 31, 2019
Available for sale debt securities¹	$	946,855	$	100	$	946,755	$	—
Loans held for sale²	20,029		—		20,029		—
Loans³	5,123		—		1,419		3,704
Other real estate owned⁴	12,390		—		241		12,149
Equity securities⁵	6,392		6,392		—		—
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 March 31, 2020 and December 31, 2019 is as follows:



(In thousands)	March 31, 2020		December 31, 2019
Aggregate fair value	$	29,281	$	20,029
Contractual balance	28,591		19,445
Excess	690		584

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 March 31, 2020 and December 31, 2019 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)
March 31, 2020
Financial Assets
Debt securities held-to-maturity¹	$	252,373	$	—	$	261,218	$	—
Time deposits with other banks	3,742		—		—		3,763
Loans, net	5,222,692		—		—		5,277,017
Financial Liabilities
Deposit liabilities	5,887,499		—		—		5,892,960
Federal Home Loan Bank (FHLB) borrowings	265,000		—		—		264,813
Subordinated debt	71,155		—		64,080		—

December 31, 2019
Financial Assets
Debt securities held-to-maturity¹	$	261,369	$	—	$	262,213	$	—
Time deposits with other banks	3,742		—		—		3,744
Loans, net	5,158,127		—		—		5,139,491
Financial Liabilities
Deposit liabilities	5,584,753		—		—		5,584,621
Federal Home Loan Bank (FHLB) borrowings	315,000		—		—		314,995
Subordinated debt	71,085		—		64,017		—
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.

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