Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Summary of Financial Instruments Measured at Fair Value on a Recurring Basis

The following table summarizes financial instruments measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	June 30, 2019
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets
Securities available for sale
Obligations of U.S. Government-sponsored enterprises	$	—	$	50,151	$	—	$	50,151
Obligations of states and political subdivisions	—		118,696		—		118,696
Agency mortgage-backed securities	—		924,047		—		924,047
U.S. Treasury bills	—		10,205		—		10,205
Corporate debt securities	—		119,953				119,953
Total securities available for sale	—		1,223,052		—		1,223,052
Other investments	145		—		—		145
Derivatives	—		11,124		—		11,124
Total assets	$	145	$	1,234,176	$	—	$	1,234,321
Liabilities
Derivatives	$	—	$	14,938	$	—	$	14,938
Total liabilities	$	—	$	14,938	$	—	$	14,938

	December 31, 2018
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets
Securities available for sale
Obligations of U.S. Government-sponsored enterprises	$	—	$	98,498	$	—	$	98,498
Obligations of states and political subdivisions	—		26,810		—		26,810
Agency mortgage-backed securities	—		586,136		—		586,136
U.S. Treasury bills	—		9,925		—		9,925
Total securities available for sale	—		721,369		—		721,369
Other investments	121		—		—		121
Derivatives	—		3,023		—		3,023
Total assets	$	121	$	724,392	$	—	$	724,513
Liabilities
Derivatives	$	—	$	3,023	$	—	$	3,023
Total liabilities	$	—	$	3,023	$	—	$	3,023

Schedule of Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis

	State tax credits held for sale
	Three months ended June 30,					Six months ended June 30,
(in thousands)	2019		2018			2019		2018
Beginning balance	$	—	$	350		$	—	$	400
Total gains:
Included in earnings	—		3			—		6
Purchases, sales, issuances and settlements:
Sales	—		(54		)	—		(107		)
Ending balance	$	—	$	299		$	—	$	299
Change in unrealized gains (losses) relating to assets still held at the reporting date	$	—	$	(13	)	$	—	$	(26	)

Summary of Financial Instruments and Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis

	(1)		(1)		(1)		(1)
(in thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total losses for the three months ended June 30, 2019		Total losses for the six months ended June 30, 2019
Impaired loans	$	1,054	$	—	$	—	$	1,054	$	1,199	$	1,199
Total	$	1,054	$	—	$	—	$	1,054	$	1,199	$	1,199
(1) The amounts represent only balances measured at fair value during the period and still held as of the reporting date.

Summary of Carrying Amount and Fair Values of Financial Instruments Reported on the Balance Sheets

Following is a summary of the carrying amounts and fair values of the Company’s financial instruments on the consolidated balance sheets at June 30, 2019 and December 31, 2018. Fair values that are not estimable are listed at the carrying value.

	June 30, 2019				December 31, 2018
(in thousands)	Carrying Amount		Estimated fair value		Carrying Amount		Estimated fair value
Balance sheet assets
Cash and due from banks	$	106,835	$	106,835	$	91,511	$	91,511
Federal funds sold	2,744		2,744		1,714		1,714
Interest-bearing deposits	82,571		82,571		106,512		106,512
Securities available for sale	1,223,052		1,223,052		721,369		721,369
Securities held to maturity	62,725		63,061		65,679		63,934
Other investments, at cost	42,990		42,990		26,654		26,654
Loans held for sale	1,437		1,437		392		392
Derivative financial instruments	11,124		11,124		3,023		3,023
Portfolio loans, net	5,105,675		5,049,215		4,306,525		4,253,239
State tax credits, held for sale	37,294		39,037		37,587		39,169
Accrued interest receivable	27,008		27,008		16,069		16,069
Balance sheet liabilities
Deposits	5,559,338		5,536,456		4,587,985		4,583,047
Subordinated debentures and notes	141,100		132,301		118,156		106,316
Federal Home Loan Bank advances	389,446		389,471		70,000		70,000
Other borrowings	198,104		197,988		223,450		223,260
Derivative financial instruments	14,938		14,938		3,023		3,023
Accrued interest payable	2,701		2,701		1,977		1,977

Schedule of Estimated Fair Values of Financial Instruments Not Recorded at Fair Value on Balance Sheet

The following table presents the level in the fair value hierarchy for the estimated fair values of only the Company’s financial instruments that are not already presented on the condensed consolidated balance sheets at fair value at June 30, 2019, and December 31, 2018.

	Estimated Fair Value Measurement at Reporting Date Using						Balance at June 30, 2019
(in thousands)	Level 1		Level 2		Level 3
Financial Assets:
Securities held to maturity	$	—	$	63,031	$	—	$	63,031
Portfolio loans, net	—		—		5,049,215		5,049,215
State tax credits, held for sale	—		—		39,037		39,037
Financial Liabilities:
Deposits	4,736,768		—		799,688		5,536,456
Subordinated debentures and notes	—		132,301		—		132,301
Federal Home Loan Bank advances	—		389,471		—		389,471
Other borrowings	—		197,988		—		197,988
	Estimated Fair Value Measurement at Reporting Date Using						Balance at December 31, 2018
(in thousands)	Level 1		Level 2		Level 3
Financial Assets:
Securities held to maturity	$	—	$	63,934	$	—	$	63,934
Portfolio loans, net	—		—		4,253,239		4,253,239
State tax credits, held for sale	—		—		39,169		39,169
Financial Liabilities:
Deposits	3,903,556		—		679,491		4,583,047
Subordinated debentures and notes	—		106,316		—		106,316
Federal Home Loan Bank advances	—		70,000		—		70,000
Other borrowings	—		223,260		—		223,260