Fair Value (Tables)

9 Months Ended

Sep. 30, 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 September 30, 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)
September 30, 2020
Available for sale debt securities1	$	1,286,858	$	101	$	1,286,757	$	—
Loans held for sale2	73,046		—		73,046		—
Loans3	11,235		—		1,261		9,974
Other real estate owned4	15,890		—		875		15,015
Equity securities5	6,548		6,548		—		—

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 September 30, 2020 and December 31, 2019 is as follows:


(In thousands)	September 30, 2020		December 31, 2019
Aggregate fair value	$	73,046	$	20,029
Contractual balance	71,102		19,445
Excess	1,944		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 September 30, 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)
September 30, 2020
Financial Assets
Debt securities held-to-maturity1	$	207,376	$	—	$	216,000	$	—
Time deposits with other banks	2,247		—		—		2,274
Loans, net	5,752,781		—		—		5,882,185
Financial Liabilities
Deposit liabilities	6,914,843		—		—		6,920,231
Federal Home Loan Bank (FHLB) borrowings	35,000		—		—		34,897
Subordinated debt	71,295		—		64,206		—

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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