Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of financial assets and financial liabilities measured at fair value on a recurring basis

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):

	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
September 30, 2017
Securities available for sale
U.S. Treasury securities	$	—	$	60,800	$	—	$	60,800
Obligations of U.S. government corporations and agencies	—		64,456		—		64,456
Obligations of states and political subdivisions	—		217,108		—		217,108
Residential mortgage-backed securities	—		329,793		—		329,793
Corporate debt securities	—		32,868		—		32,868
Mutual funds and other equity securities	3,222		—		—		3,222
Loans
Loans held for sale	—		139,696		—		139,696
Derivative assets
Derivative financial assets	—		2,529		—		2,529
Derivative liabilities
Derivative financial liabilities	—		4,172		—		4,172

	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
December 31, 2016
Securities available for sale
U.S. Treasury securities	$	—	$	74,944	$	—	$	74,944
Obligations of U.S. government corporations and agencies	—		79,127		—		79,127
Obligations of states and political subdivisions	—		154,938		—		154,938
Residential mortgage-backed securities	—		302,249		—		302,249
Corporate debt securities	—		143,343		—		143,343
Mutual funds and other equity securities	5,210		—		—		5,210
Loans
Loans held for sale	—		256,319		—		256,319
Derivative assets
Derivative financial assets	—		6,403		—		6,403
Derivative liabilities
Foreign currency forward contracts	—		7		—		7
Derivative financial liabilities	—		3,098		—		3,098

Schedule of assets and liabilities measured at fair value on a non-recurring basis

The following table summarizes assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2017 and December 31, 2016, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):

	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
September 30, 2017
Impaired loans	$	—	$	—	$	3,301	$	3,301
OREO	—		—		16		16

December 31, 2016
Impaired loans	$	—	$	—	$	3,885	$	3,885
OREO(1)	—		—		—		—

(1) OREO fair value was less than one thousand dollars.

Schedule of quantitative information about Level 3 fair value measurements

The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized level 3 inputs to determine fair value (dollars in thousands):

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value		Valuation	Unobservable	Range
	Estimate		Techniques	Input	(Weighted Average)
September 30, 2017
Impaired loans	$	3,301	Appraisal of collateral	Appraisal adjustments	-21.3% to -100.0% (-32.6)%
OREO	16		Appraisal of collateral	Appraisal adjustments	-71.9% to -100.0% (-88.4)%
December 31, 2016
Impaired loans	$	3,885	Appraisal of collateral	Appraisal adjustments	-19.2% to -100.0% (-38.4)%
OREO(1)	—		Appraisal of collateral	Appraisal adjustments	-100.0% (-100.0)%

(1) OREO fair value was less than one thousand dollars.

Schedule of estimated fair values of financial instruments

The estimated fair values of financial instruments that are reported at amortized cost in the Company’s Consolidated Balance Sheets, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, were as follows (dollars in thousands):

	September 30, 2017				December 31, 2016
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Level 1 inputs:
Cash and cash equivalents	$	214,381	$	214,381	$	166,706	$	166,706
Level 2 inputs:
Securities held to maturity	281,975		282,488		47,820		47,683
Accrued interest receivable	19,780		19,780		15,562		15,562
Level 3 inputs:
Portfolio loans, net	5,034,829		5,043,585		3,831,105		3,841,760
Mortgage servicing rights	3,168		7,314		3,074		7,803
Other servicing rights	204		921		—		—

Financial liabilities:
Level 2 inputs:
Deposits	$	5,373,283	$	5,370,642	$	4,374,298	$	4,368,891
Securities sold under agreements to repurchase	219,071		219,071		189,157		189,157
Short-term borrowings	212,850		212,850		75,000		75,000
Long-term debt	50,000		50,000		80,000		80,000
Junior subordinated debt owed to unconsolidated trusts	70,973		70,973		70,868		70,868
Accrued interest payable	3,122		3,122		987		987
Level 3 inputs:
Senior notes, net of unamortized issuance costs	39,370		39,776		—		—
Subordinated notes, net of unamortized issuance costs	64,745		66,186		—		—