Fair Value Disclosures of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2017

Schedule of Financial Instruments Carried at Fair Value

The following tables present financial instruments carried at fair value as of March 31, 2017 and December 31, 2016 by level in the valuation hierarchy (as described above):



	March 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	$	—	$	277,711	$	—	$	277,711
FNMA MBS	—		386,051		—		386,051
FHLMC MBS	—		64,171		—		64,171
GNMA MBS	—		27,597		—		27,597
GSE	—		32,981		—		32,981
Other investments	614		—		—		614
Other assets	—		1,108		—		1,108
Total assets measured at fair value on a recurring basis	$	614	$	789,619	$	—	$	790,233

Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	3,194	$	—	$	3,194

Assets measured at fair value on a nonrecurring basis:
Other real estate owned	$	—	$	—	$	3,582	$	3,582
Loans held for sale	—		29,394		—		29,394
Impaired loans, net	—		—		62,443		62,443
Total assets measured at fair value on a nonrecurring basis	$	—	$	29,394	$	66,025	$	95,419

Book Value and Estimated Fair Value of Financial Instruments

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



(Dollars in thousands)	Fair Value	March 31, 2017				December 31, 2016
	Measurement	Book Value		Fair Value		Book Value		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	855,263	$	855,263	$	821,923	$	821,923
Investment securities available for sale	See previous table	789,125		789,125		794,543		794,543
Investment securities held to maturity	Level 2	163,611		163,241		164,346		163,232
Loans, held for sale	Level 2	29,394		29,394		54,782		54,782
Loans, net⁽¹⁾⁽²⁾	Level 2, 3	4,489,708		4,450,924		4,397,876		4,300,963
Impaired loans, net	Level 3	62,443		62,443		46,499		46,499
Stock in FHLB of Pittsburgh	Level 2	20,002		20,002		38,248		38,248
Accrued interest receivable	Level 2	16,712		16,712		17,027		17,027
Other assets	Level 3	13,920		28,527		9,189		15,787
Financial liabilities:
Deposits	Level 2	5,376,830		5,040,211		4,738,438		4,423,921
Borrowed funds	Level 2	700,849		697,952		1,267,447		1,264,170
Standby letters of credit	Level 3	507		507		468		468
Accrued interest payable	Level 2	2,931		2,931		1,151		1,151
Other liabilities	Level 2	3,194		3,194		3,380		3,380

⁽¹⁾ Excludes impaired loans, net.

⁽²⁾