Fair Value (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value, 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 December 31, 2018 and December 31, 2017 included:



	Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
(In thousands)	Measurements		Level 1		Level 2		Level 3
At December 31, 2018
Available for sale debt securities⁽¹⁾	$	865,831	$	100	$	865,731	$	—
Loans held for sale⁽²⁾	11,873		—		11,873		—
Loans⁽³⁾	8,590		—		2,290		6,300
Other real estate owned⁽⁴⁾	12,802		—		297		12,505
Equity securities⁽⁵⁾	6,205		6,205		—		—

At December 31, 2017
Available for sale debt securities⁽¹⁾⁽⁵⁾	$	949,460	$	100	$	949,360	$	—
Loans held for sale⁽²⁾	24,306		—		24,306		—
Loans⁽³⁾	4,192		—		3,454		738
Other real estate owned⁽⁴⁾	7,640		—		60		7,580
Equity securities⁽⁵⁾	6,344		6,344		—		—

⁽¹⁾See Note D for further detail of fair value of individual investment categories.

⁽²⁾Recurring fair value basis determined using observable market data.

⁽³⁾See 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.

⁽⁴⁾Fair value is measured on a nonrecurring basis in accordance with ASC Topic 360.

⁽⁵⁾Prior to adoption of ASU 2016-1 on January 1, 2018, an investment in shares of a mutual fund that invests primarily in CRA-qualified debt securities was classified as an available for sale security. Beginning in 2018, this security is reported at fair value in Other Assets. Fair value is determined based on market quotations.

Schedule of Contractual Balance and Gains or Losses

The aggregate fair value and contractual balance of loans held for sale as of December 31, 2018 and 2017 is as follows:



	December 31,
(In thousands)	2018		2017
Aggregate fair value	$	11,873	$	24,306
Contractual balance	11,562		23,627
Excess	311		679

Fair Value Measurements, Recurring and Nonrecurring

The carrying amount and fair value of the Company's other significant financial instruments that were not disclosed previously in the balance sheet and for which carrying amount is not fair value as of December 31, 2018 and December 31, 2017 is as follows:



	Carrying		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
(In thousands)	Amount		Level 1		Level 2		Level 3
At December 31, 2018
Financial Assets
Debt securities held to maturity ⁽¹⁾	$	357,949	$	—	$	349,895	$	—
Time deposits with other banks	8,243		—		—		8,132
Loans, net	4,784,201		—		—		4,835,248
Financial Liabilities
Deposits	5,177,240		—		—		5,172,098
Federal Home Loan Bank (FHLB) borrowings	380,000		—		—		380,027
Subordinated debt	70,804		—		61,224		—

At December 31, 2017
Financial Assets
Debt securities held to maturity ⁽¹⁾	$	416,863	$	—	$	414,470	$	—
Time deposits with other banks	12,553		—		—		12,493
Loans, net	3,786,063		—		—		3,760,754
Financial Liabilities
Deposits	4,592,720		—		—		4,588,515
Federal Home Loan Bank (FHLB) borrowings	211,000		—		—		211,000
Subordinated debt	70,521		—		61,530		—

⁽¹⁾See Note D for further detail of recurring fair value basis 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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