Fair Value Disclosures of Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Financial Instruments Carried at Fair Value

The following tables present financial instruments carried at fair value as of December 31, 2018 and December 31, 2017 by level in the valuation hierarchy (as described above):



	December 31, 2018
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Asset (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets measured at fair value on a recurring basis:
Available-for-sale securities:
CMO	$	—	$	371,750	$	—	$	371,750
FNMA MBS	—		644,073		—		644,073
FHLMC MBS	—		153,922		—		153,922
GNMA MBS	—		35,334		—		35,334
Other assets	—		2,098		—		2,098
Total assets measured at fair value on a recurring basis	$	—	$	1,207,177	$	—	$	1,207,177
Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	3,493	$	—	$	3,493
Assets measured at fair value on a nonrecurring basis:
Other investments⁽¹⁾	$	—	$	—	$	37,233	$	37,233
Other real estate owned	—		—		2,668		2,668
Loans held for sale	—		25,318		—		25,318
Impaired loans, net	—		—		47,094		47,094
Total assets measured at fair value on a nonrecurring basis	$	—	$	25,318	$	86,995	$	112,313


(1)	See Note 1 for additional disclosures resulting from the Company's adoption of ASU 2016-01.



	December 31, 2017
(Dollars in thousands)	Quoted Prices in Active Markets for Identical Asset (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets measured at fair value on a recurring basis:
Available-for-sale securities:
CMO	$	—	$	246,539	$	—	$	246,539
FNMA MBS	—		473,987		—		473,987
FHLMC MBS	—		87,875		—		87,875
GNMA MBS	—		29,098		—		29,098
Other investments	623		—		—		623
Other assets	—		747		—		747
Total assets measured at fair value on a recurring basis	$	623	$	838,246	$	—	$	838,869
Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	3,225	$	—	$	3,225
Assets measured at fair value on a nonrecurring basis:
Other real estate owned	$	—	$	—	$	2,503	$	2,503
Loans held for sale	—		31,055		—		31,055
Impaired loans, net	—		—		57,089		57,089
Total assets measured at fair value on a nonrecurring basis	$	—	$	31,055	$	59,592	$	90,647

Book Value and Estimated Fair Value of Financial Instruments

The book value and estimated fair value of our financial instruments are as follows:



		December 31,
	Fair Value Measurement	2018				2017
(Dollars in thousands)	Fair Value Measurement	Book Value		Fair Value		Book Value		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	620,757	$	620,757	$	723,866	$	723,866
Investment securities available for sale	See previous table	1,205,079		1,205,079		837,499		837,499
Investment securities held to maturity	Level 2	149,950		149,431		161,186		162,853
Other investments	Level 1,3	37,233		37,233		14,671		45,326
Loans, held for sale	Level 2	25,318		25,318		31,055		31,055
Loans, net⁽¹⁾⁽²⁾	Level 3	4,816,825		4,772,377		4,719,229		4,699,458
Impaired loans, net	Level 3	47,094		47,094		57,089		57,089
Stock in FHLB of Pittsburgh	Level 2	19,259		19,259		31,284		31,284
Accrued interest receivable	Level 2	22,001		22,001		19,405		19,405
Other assets	Level 2	2,098		2,098		2,883		2,883
Financial liabilities:
Deposits	Level 2	$	5,640,431	$	5,597,227	$	5,247,604	$	4,848,588
Borrowed funds	Level 2	699,788		694,526		937,806		937,605
Standby letters of credit	Level 3	495		495		603		603
Accrued interest payable	Level 2	1,900		1,900		1,037		1,037
Other liabilities	Level 2	3,493		3,493		3,188		3,188