FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Financial Instruments Carried at Fair Value

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



	March 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	$	—	$	269,236	$	—	$	269,236
FNMA MBS	—		509,000		—		509,000
FHLMC MBS	—		97,299		—		97,299
GNMA MBS	—		32,283		—		32,283
Other investments	617		—		—		617
Other assets	—		1,168		—		1,168
Total assets measured at fair value on a recurring basis	$	617	$	908,986	$	—	$	909,603

Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	4,335	$	—	$	4,335

Assets measured at fair value on a nonrecurring basis:
Other investments	$	—	$	—	$	32,746	$	32,746
Other real estate owned	—		—		2,567		2,567
Loans held for sale	—		15,937		—		15,937
Impaired loans, net	—		—		56,154		56,154
Total assets measured at fair value on a nonrecurring basis	$	—	$	15,937	$	91,467	$	107,404



	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
GSE	—		—		—		—
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 investments	$	—	$	—	$	17,348	$	17,348
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	$	76,940	$	107,995

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)		March 31, 2018				December 31, 2017
	Fair Value Measurement	Book Value		Fair Value		Book Value		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	711,089	$	711,089	$	723,866	$	723,866
Investment securities available for sale	See previous table	907,818		907,818		837,499		837,499
Investment securities held to maturity	Level 2	159,672		159,164		161,186		162,853
Other investments	Level 1,3	33,363		33,363		17,971		48,050
Loans, held for sale	Level 2	15,937		15,937		31,055		31,055
Loans, net⁽¹⁾⁽²⁾	Level 2,3	4,749,604		4,732,340		4,719,229		4,699,458
Impaired loans, net	Level 3	56,154		56,154		57,089		57,089
Stock in FHLB of Pittsburgh	Level 2	28,854		28,854		31,284		31,284
Accrued interest receivable	Level 2	19,969		19,969		19,405		19,405
Other assets	Level 3	1,606		1,606		790		790
Financial liabilities:
Deposits	Level 2	5,202,515		4,768,066		5,247,604		4,848,588
Borrowed funds	Level 2	932,197		925,902		937,806		937,605
Standby letters of credit	Level 3	562		562		603		603
Accrued interest payable	Level 2	3,450		3,450		1,037		1,037
Other liabilities	Level 2	4,335		4,335		3,188		3,188

⁽¹⁾ Excludes impaired loans, net.

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