FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2022

Financial Assets and Liabilities at Dates Indicated that were Accounted for at Fair Value

The following tables set forth the Company’s financial assets and liabilities at the dates indicated that were accounted for or disclosed at fair value. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:


	September 30, 2022
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Residential mortgage loans held for sale (1)	$	—	$	11,469	$	—	$	11,469
Available-for-sale debt securities:
U.S. treasuries and government agencies	—		92,805		—		92,805
State and municipal	—		276,939		—		276,939
Mortgage-backed and asset-backed	—		874,591		—		874,591

Total available-for-sale debt securities	—		1,244,335		—		1,244,335
Interest rate swap agreements	—		19,546		—		19,546
Total assets	$	—	$	1,275,350	$	—	$	1,275,350

Liabilities:
Interest rate swap agreements	$	—	$	(19,546)	$	—	$	(19,546)
Total liabilities	$	—	$	(19,546)	$	—	$	(19,546)

(1) The outstanding principal balance for residential loans held for sale as of September 30, 2022 was $11.6 million.


	December 31, 2021
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Residential mortgage loans held for sale (1)	$	—	$	39,409	$	—	$	39,409
Investments available-for-sale:
U.S. treasuries and government agencies	—		68,539		—		68,539
State and municipal	—		326,402		—		326,402
Mortgage-backed and asset-backed	—		1,070,955		—		1,070,955




Total investments available-for-sale	—		1,465,896		—		1,465,896
Interest rate swap agreements	—		5,880		—		5,880
Total assets	$	—	$	1,511,185	$	—	$	1,511,185

Liabilities:
Interest rate swap agreements	$	—	$	(5,880)	$	—	$	(5,880)
Total liabilities	$	—	$	(5,880)	$	—	$	(5,880)

(1) The outstanding principal balance for residential loans held for sale as of December 31, 2021 was $38.2 million.

Assets Measured at Fair Value on Nonrecurring Basis

The following tables set forth the Company’s financial assets subject to fair value adjustments on a nonrecurring basis at the date indicated that are valued at the lower of cost or market. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:


	September 30, 2022
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Total Losses
Loans (1)	$	—	$	—	$	193	$	193	$	(883)
Other real estate owned	—		—		739		739		(81)
Total	$	—	$	—	$	932	$	932	$	(964)

(1) Amounts represent the fair value of collateral for collateral dependent non-accrual loans allocated to the allowance for credit losses. Fair values are determined using actual market prices (Level 2), independent third-party valuations and borrower records, discounted as appropriate (Level 3).


	December 31, 2021
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Total Losses
Loans (1)	$	—	$	—	$	404	$	404	$	(1,353)
Other real estate owned	—		—		1,034		1,034		(81)
Total	$	—	$	—	$	1,438	$	1,438	$	(1,434)

Carrying Amounts And Fair Values of Company's Financial Instruments

The carrying amounts and fair values of the Company’s financial instruments at the dates indicated are presented in the following tables:


					Fair Value Measurements
	September 30, 2022				Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(In thousands)	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	258,808	$	258,808	$	258,808	$	—	$	—
Residential mortgage loans held for sale	11,469		11,469		—		11,469		—
Available-for-sale debt securities	1,244,335		1,244,335		—		1,244,335		—
Held-to-maturity debt securities	265,648		226,030		—		226,030		—
Other investments	77,296		77,296		—		77,296		—
Loans, net of allowance	11,090,545		10,765,365		—		—		10,765,365
Interest rate swap agreements	19,546		19,546		—		19,546		—
Accrued interest receivable	37,074		37,074		37,074		—		—
Bank owned life insurance	152,065		152,065		—		152,065		—

Financial liabilities:
Time deposits	$	1,682,790	$	1,646,655	$	—	$	1,646,655	$	—
Other deposits	9,066,696		9,066,696		9,066,696		—		—
Securities sold under retail repurchase agreements and
federal funds purchased	206,287		206,287		—		206,287		—
Advances from FHLB	840,000		839,859		—		839,859		—
Subordinated debt	370,056		328,855		—		—		328,855
Interest rate swap agreements	19,546		19,546		—		19,546		—
Accrued interest payable	6,957		6,957		6,957		—		—


					Fair Value Measurements
	December 31, 2021				Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(In thousands)	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	420,020	$	420,020	$	420,020	$	—	$	—
Residential mortgage loans held for sale	39,409		39,409		—		39,409		—
Investments available-for-sale	1,465,896		1,465,896		—		1,465,896		—
Other investments	41,166		41,166		—		41,166		—
Loans, net of allowance	9,857,946		9,964,924		—		—		9,964,924
Interest rate swap agreements	5,880		5,880		—		5,880		—
Accrued interest receivable	34,349		34,349		34,349		—		—
Bank owned life insurance	147,528		147,528		—		147,528		—

Financial liabilities:
Time deposits	$	1,290,862	$	1,292,598	$	—	$	1,292,598	$	—
Other deposits	9,333,869		9,333,869		9,333,869		—		—
Securities sold under retail repurchase agreements and
federal funds purchased	141,086		141,086		—		141,086		—

Subordinated debt	172,712		175,780		—		—		175,780
Interest rate swap agreements	5,880		5,880		—		5,880		—
Accrued interest payable	1,516		1,516		1,516		—		—