Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

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 segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:


	September 30, 2020
(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	$	—	$	10,200	$	—	$	10,200
Obligations of states and political subdivisions	—		366,122		—		366,122
Agency mortgage-backed securities	—		605,949		—		605,949
U.S. Treasury bills	—		11,521		—		11,521
Corporate debt securities	—		11,634		—		11,634
Total securities available for sale	—		1,005,426		—		1,005,426



Derivatives	—		33,999		—		33,999
Total assets	$	—	$	1,039,425	$	—	$	1,039,425

Liabilities
Derivatives	$	—	$	44,240	$	—	$	44,240
Total liabilities	$	—	$	44,240	$	—	$	44,240


	December 31, 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	$	—	$	10,046	$	—	$	10,046
Obligations of states and political subdivisions	—		213,024		—		213,024
Residential mortgage-backed securities	—		902,021		—		902,021
U.S. Treasury bills	—		10,226		—		10,226
Total securities available-for-sale	—		1,135,317		—		1,135,317



Derivative financial instruments	—		11,055		—		11,055
Total assets	$	—	$	1,146,372	$	—	$	1,146,372

Liabilities
Derivatives	$	—	$	14,747	$	—	$	14,747
Total liabilities	$	—	$	14,747	$	—	$	14,747

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 September 30, 2020		Total losses for the nine months ended September 30, 2020
Impaired loans	$	1,639	$	—	$	—	$	1,639	$	1,788	$	4,756
Other real estate	3,600		—		—		3,600		248		1,000
Total	$	5,239	$	—	$	—	$	5,239	$	2,036	$	5,756

(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 certain financial instruments:


	September 30, 2020									December 31, 2019
(in thousands)	Carrying Amount		Estimated fair value		Level	Carrying Amount		Estimated fair value		Level
Balance sheet assets




Securities held-to-maturity, net	$	327,049	$	338,774	Level 2	$	181,166	$	181,939	Level 2
Other investments	43,456		43,456		Level 2	38,044		38,044		Level 2
Loans held for sale	14,032		14,032		Level 2	5,570		5,570		Level 2

Loans, net	6,003,037		5,961,862		Level 3	5,271,049		5,205,651		Level 3
State tax credits, held for sale	42,497		48,327		Level 3	36,802		39,046		Level 3


Balance sheet liabilities
Certificates of deposit	$	612,045	$	617,277	Level 3	$	826,447	$	825,203	Level 3
Subordinated debentures and notes	203,510		193,059		Level 2	141,258		130,985		Level 2
FHLB advances	250,000		251,942		Level 2	222,406		221,402		Level 2
Other borrowings and notes payable	239,038		239,038		Level 2	265,172		265,172		Level 2