Fair Value Disclosures of Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Financial Instruments Carried at Fair Value

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



	September 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	$	—	$	267,808	$	—	$	267,808
FNMA MBS	—		431,242		—		431,242
FHLMC MBS	—		85,062		—		85,062
GNMA MBS	—		25,697		—		25,697
Other investments	624		—		—		624
Other assets	—		1,338		—		1,338
Total assets measured at fair value on a recurring basis	$	624	$	811,147	$	—	$	811,771

Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	2,736	$	—	$	2,736

Assets measured at fair value on a nonrecurring basis:
Other real estate owned	$	—	$	—	$	3,924	$	3,924
Loans held for sale	—		19,313		—		19,313
Impaired loans, net	—		—		52,903		52,903
Total assets measured at fair value on a nonrecurring basis	$	—	$	19,313	$	56,827	$	76,140



	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)		September 30, 2017				December 31, 2016
	Fair Value Measurement	Book Value		Fair Value		Book Value		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	733,365	$	733,365	$	821,923	$	821,923
Investment securities available for sale	See previous table	810,433		810,433		794,543		794,543
Investment securities held to maturity	Level 2	161,721		163,397		164,346		163,232
Loans, held for sale	Level 2	19,313		19,313		54,782		54,782
Loans, net⁽¹⁾⁽²⁾	Level 2,3	4,617,313		4,596,437		4,397,876		4,300,963
Impaired loans, net	Level 3	52,903		52,903		46,499		46,499
Stock in FHLB of Pittsburgh	Level 2	33,277		33,277		38,248		38,248
Accrued interest receivable	Level 2	17,789		17,789		17,027		17,027
Other assets	Level 3	19,618		49,697		9,189		15,787
Financial liabilities:
Deposits	Level 2	5,051,719		4,681,111		4,738,438		4,423,921
Borrowed funds	Level 2	1,003,308		999,551		1,267,447		1,264,170
Standby letters of credit	Level 3	463		463		468		468
Accrued interest payable	Level 2	3,882		3,882		1,151		1,151
Other liabilities	Level 2	2,736		2,736		3,380		3,380

⁽¹⁾ Excludes impaired loans, net.

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