Fair Value of Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis comprise the following as of the dates indicated:

	Fair Value Measurement at March 31, 2020 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Assets:
Available for sale debt securities:
U.S. Government agencies and corporations	$	431	$	—	$	431	$	—
State and political subdivisions	286,377		—		286,377		—
Mortgage-backed securities	42,601		—		42,601		—
Collateralized mortgage obligations	306,860		—		306,860		—
Corporate debt securities	245,590		—		245,590		—
Derivative assets	12,500		—		12,500		—
Liabilities:
Derivative liabilities	$	16,305	$	—	$	16,305	$	—

	Fair Value Measurement at December 31, 2019 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Assets:
Debt securities available for sale:
U.S. Government agencies and corporations	$	441	$	—	$	441	$	—
State and political subdivisions	257,205		—		257,205		—
Mortgage-backed securities	43,530		—		43,530		—
Collateralized mortgage obligations	292,946		—		292,946		—
Corporate debt securities	191,855		—		191,855		—
Derivative assets	1,848		—		1,848		—
Liabilities:
Derivative liabilities	$	3,242	$	—	$	3,242	$	—

Schedule of Fair Value Measured on Nonrecurring Basis

The following tables present assets measured at fair value on a nonrecurring basis as of the dates indicated: 

	Fair Value Measurement at March 31, 2020 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Collateral dependent impaired loans	$	6,223	$	—	$	—	$	6,223
Foreclosed assets, net	968		—		—		968

	Fair Value Measurement at December 31, 2019 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Collateral dependent impaired loans	$	6,749	$	—	$	—	$	6,749
Foreclosed assets, net	3,706		—		—		3,706

Fair Value, by Balance Sheet Grouping

The carrying amount and estimated fair value of financial instruments at March 31, 2020 and December 31, 2019 were as follows:

	March 31, 2020
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	125,545	$	125,545	$	125,545	$	—	$	—
Debt securities available for sale	881,859		881,859		—		881,859		—
Loans held for sale	9,483		9,646		—		9,646		—
Loans held for investment, net	3,374,575		3,414,068		—		—		3,414,068
Interest receivable	17,029		17,029		—		17,029		—
Federal Home Loan Bank stock	13,773		13,773		—		13,773		—
Derivative assets	12,500		12,500		—		12,500		—
Financial liabilities:
Non-interest bearing deposits	637,127		637,127		637,127		—		—
Interest-bearing deposits	3,222,717		3,231,800		2,193,344		1,038,456		—
Short-term borrowings	129,489		129,489		129,489		—		—
Finance leases payable	1,194		1,194		—		1,194		—
Federal Home Loan Bank borrowings	125,673		129,372		—		129,372		—
Junior subordinated notes issued to capital trusts	41,631		34,655		—		34,655		—
Subordinated debentures	10,894		11,066		—		11,066		—
Other long-term debt	30,482		30,482		—		30,482		—
Derivative liabilities	16,305		16,305		—		16,305		—

	December 31, 2019
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	73,484	$	73,484	$	73,484	$	—	$	—
Debt securities available for sale	785,977		785,977		—		785,977		—
Loans held for sale	5,400		5,476		—		5,476		—
Loans held for investment, net	3,422,187		3,427,952		—		—		3,427,952
Interest receivable	18,525		18,525		—		18,525		—
Federal Home Loan Bank stock	15,381		15,381		—		15,381		—
Derivative assets	1,848		1,848		—		1,848		—
Financial liabilities:
Non-interest bearing deposits	662,209		662,209		662,209		—		—
Interest-bearing deposits	3,066,446		3,066,427		2,113,000		953,427		—
Short-term borrowings	139,349		139,349		139,349		—		—
Finance leases payable	1,224		1,224		—		1,224		—
Federal Home Loan Bank borrowings	145,700		146,913		—		146,913		—
Junior subordinated notes issued to capital trusts	41,587		39,391		—		39,391		—
Subordinated debentures	10,899		11,083		—		11,083		—
Other long-term debt	32,250		32,250		—		32,250		—
Derivative liabilities	3,242		3,242		—		3,242		—

Schedule of Valuation Techniques

The following table presents the valuation technique(s), unobservable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company and categorized within Level 3 of the fair value hierarchy as of the date indicated:

	Fair Value at
(dollars in thousands)	March 31, 2020		December 31, 2019		Valuation Techniques(s)	Unobservable Input	Range of Inputs					Weighted Average
Collateral dependent impaired loans	$	6,223	$	6,749	Fair value of collateral	Valuation adjustments	—	%	-	75	%	28	%
Foreclosed assets, net	$	968	3,706		Fair value of collateral	Valuation adjustments	5	%	-	46	%	23	%