Fair Value (Tables)

6 Months Ended

Jun. 30, 2022

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 June 30, 2022 and December 31, 2021 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)
At June 30, 2022
Financial Assets
Available-for-sale debt securities1	$	1,800,791	$	189	$	1,800,602	$	—
Derivative financial instruments2	9,361		—		9,361		—
Loans held for sale2	14,205		—		14,205		—
Loans3	5,300		—		1,343		3,957
Other real estate owned4	2,419		—		2,419		—
Equity securities5	8,564		8,564		—		—
Financial Liabilities
Derivative financial instruments2	$	9,320	$	—	$	9,320	$	—

At December 31, 2021
Financial Assets
Available-for-sale debt securities1	$	1,644,319	$	197	$	1,644,122	$	—
Derivative financial instruments2	8,312		—		8,312		—
Loans held for sale2	31,791		—		31,791		—
Loans3	8,443		—		1,558		6,885
Other real estate owned4	13,618		—		—		13,618
Equity securities5	9,316		9,316		—		—
Financial Liabilities
Derivative financial instruments2	$	8,022	$	—	$	8,022	$	—
1See “Note 3 – Securities” for further detail of fair value of individual investment categories.
2Recurring fair value basis determined using observable market data.
3See “Note 4 – Loans.” Nonrecurring fair value adjustments to collateral-dependent loans reflect full or partial write-downs that are based on current appraised values 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 June 30, 2022 and December 31, 2021 is as follows:


(In thousands)	June 30, 2022		December 31, 2021
Aggregate fair value	$	14,205	$	31,791
Contractual balance	13,746		30,963
Excess	459		828

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 June 30, 2022 and December 31, 2021 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)
June 30, 2022
Financial Assets
Debt securities held-to-maturity1	$	794,785	$	—	$	706,170	$	—
Time deposits with other banks	4,730		—		4,598		—
Loans, net	6,445,479		—		—		6,511,612
Financial Liabilities
Deposit liabilities	9,188,953		—		—		9,182,221

Subordinated debt	71,786		—		69,484		—

December 31, 2021
Financial Assets
Debt securities held-to-maturity1	$	638,640	$	—	$	627,398	$	—

Loans, net	5,833,271		—		—		5,907,447
Financial Liabilities
Deposit liabilities	8,067,589		—		—		8,067,995

Subordinated debt	71,646		—		69,348		—
1See “Note 3 – Securities” 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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