FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Financial Instruments Carried at Fair Value

The following tables present financial instruments carried at fair value as of June 30, 2018 and December 31, 2017 by level in the valuation hierarchy (as described above):



	June 30, 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	$	—	$	298,263	$	—	$	298,263
FNMA MBS	—		538,240		—		538,240
FHLMC MBS	—		93,738		—		93,738
GNMA MBS	—		33,879		—		33,879
Other assets	—		1,047		—		1,047
Total assets measured at fair value on a recurring basis	$	—	$	965,167	$	—	$	965,167

Liabilities measured at fair value on a recurring basis:
Other liabilities	$	—	$	4,616	$	—	$	4,616

Assets measured at fair value on a nonrecurring basis:
Other investments ⁽¹⁾	$	—	$	—	$	33,589	$	33,589
Other real estate owned	—		—		2,609		2,609
Loans held for sale	—		31,672		—		31,672
Impaired loans, net	—		—		53,392		53,392
Total assets measured at fair value on a nonrecurring basis	$	—	$	31,672	$	89,590	$	121,262

⁽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:



(Dollars in thousands)		June 30, 2018				December 31, 2017
	Fair Value Measurement	Book Value		Fair Value		Book Value		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	703,480	$	703,480	$	723,866	$	723,866
Investment securities available for sale	See previous table	964,120		964,120		837,499		837,499
Investment securities held to maturity	Level 2	156,456		155,644		161,186		162,853
Other investments	Level 1,3	33,589		33,589		14,671		45,326
Loans, held for sale	Level 2	31,672		31,672		31,055		31,055
Loans, net⁽¹⁾⁽²⁾	Level 2,3	4,815,663		4,656,304		4,719,229		4,699,458
Impaired loans, net	Level 3	53,392		53,392		57,089		57,089
Stock in FHLB of Pittsburgh	Level 2	29,805		29,805		31,284		31,284
Accrued interest receivable	Level 2	20,393		20,393		19,405		19,405
Other assets	Level 3	1,047		1,047		2,883		2,883
Financial liabilities:
Deposits	Level 2	5,366,555		5,341,346		5,247,604		4,848,588
Borrowed funds	Level 2	896,350		890,793		937,806		937,605
Standby letters of credit	Level 3	381		381		603		603
Accrued interest payable	Level 2	4,131		4,131		1,037		1,037
Other liabilities	Level 2	4,616		4,616		3,188		3,188

⁽¹⁾ Excludes impaired loans, net.

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