Fair Value Disclosures of Financial Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Financial Instruments Carried at Fair Value

The following tables present financial instruments carried at fair value as of June 30, 2017 and December 31, 2016 by level in the valuation hierarchy (as described above):



	June 30, 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	$	—	$	314,839	$	—	$	314,839
FNMA MBS	—		395,960		—		395,960
FHLMC MBS	—		77,144		—		77,144
GNMA MBS	—		26,939		—		26,939
GSE	—		2,993		—		2,993
Other investments	620		—		—		620
Other assets	—		1,002		—		1,002
Total assets measured at fair value on a recurring basis	$	620	$	818,877	$	—	$	819,497

Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	2,708	$	—	$	2,708

Assets measured at fair value on a nonrecurring basis:
Other real estate owned	$	—	$	—	$	2,121	$	2,121
Loans held for sale	—		35,425		—		35,425
Impaired loans, net	—		—		62,884		62,884
Total assets measured at fair value on a nonrecurring basis	$	—	$	35,425	$	65,005	$	100,430



	December 31, 2016
(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	$	—	$	261,215	$	—	$	261,215
FNMA MBS	—		405,764		—		405,764
FHLMC MBS	—		63,515		—		63,515
GNMA MBS	—		28,416		—		28,416
GSE	—		35,010		—		35,010
Other investments	623		—		—		623
Other assets	—		1,508		—		1,508
Total assets measured at fair value on a recurring basis	$	623	$	795,428	$	—	$	796,051

Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	3,380	$	—	$	3,380

Assets measured at fair value on a nonrecurring basis
Other real estate owned	$	—	$	—	$	3,591	$	3,591
Loans held for sale	—		54,782		—		54,782
Impaired loans, net	—		—		46,499		46,499
Total assets measured at fair value on a nonrecurring basis	$	—	$	54,782	$	50,090	$	104,872

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	June 30, 2017				December 31, 2016
	Measurement	Book Value		Fair Value		Book Value		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	745,311	$	745,311	$	821,923	$	821,923
Investment securities available for sale	See previous table	818,495		818,495		794,543		794,543
Investment securities held to maturity	Level 2	162,598		163,903		164,346		163,232
Loans, held for sale	Level 2	35,425		35,425		54,782		54,782
Loans, net⁽¹⁾⁽²⁾	Level 2, 3	4,516,831		4,459,104		4,397,876		4,300,963
Impaired loans, net	Level 3	62,884		62,884		46,499		46,499
Stock in FHLB of Pittsburgh	Level 2	35,832		35,832		38,248		38,248
Accrued interest receivable	Level 2	16,742		16,742		17,027		17,027
Other assets	Level 3	17,229		41,702		9,189		15,787
Financial liabilities:
Deposits	Level 2	4,834,050		4,482,483		4,738,438		4,423,921
Borrowed funds	Level 2	1,162,754		1,159,990		1,267,447		1,264,170
Standby letters of credit	Level 3	503		503		468		468
Accrued interest payable	Level 2	2,405		2,405		1,151		1,151
Other liabilities	Level 2	2,708		2,708		3,380		3,380

⁽¹⁾ Excludes impaired loans, net.

⁽²⁾ Includes reverse mortgage loans, which are categorized as Level 3.