Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Measurements

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 June 30, 2018 and December 31, 2017, 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
June 30, 2018
Fair value adjusted throughcomprehensive income:
Securities available for sale
U.S. Treasury securities	$	—	$	59,958	$	—	$	59,958
Obligations of U.S. government corporations and agencies	—		94,497		—		94,497
Obligations of states and political subdivisions	—		246,654		—		246,654
Residential mortgage-backed securities	—		354,055		—		354,055
Corporate debt securities	—		116,174		—		116,174
Fair value adjusted throughcurrent period earnings:
Securities equity investments	5,689		—		—		5,689
Loans held for sale	—		33,974		—		33,974
Derivative assets	—		2,465		—		2,465
Derivative liabilities	—		2,759		—		2,759

	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
December 31, 2017
Securities available for sale
U.S. Treasury securities	$	—	$	60,348	$	—	$	60,348
Obligations of U.S. government corporations and agencies	—		103,665		—		103,665
Obligations of states and political subdivisions	—		280,199		—		280,199
Residential mortgage-backed securities	—		397,436		—		397,436
Corporate debt securities	—		31,034		—		31,034
Securities equity investments	5,378		—		—		5,378
Loans held for sale	—		94,848		—		94,848
Derivative assets	—		937		—		937
Derivative liabilities	—		2,410		—		2,410

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 June 30, 2018 and December 31, 2017, 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
June 30, 2018
Impaired loans	$	—	$	—	$	3,319	$	3,319
OREO	—		—		55		55
Bank property held for sale	—		—		3,711		3,711
December 31, 2017
Impaired loans	$	—	$	—	$	1,313	$	1,313
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)
June 30, 2018
Impaired loans	$	3,319	Appraisal of collateral	Appraisal adjustments	-0.1% to -100.0% (-36.5)%
OREO	55		Appraisal of collateral	Appraisal adjustments	-25.0% to -100.0% (-65.0)%
Bank property held for sale	3,711		Appraisal of collateral or real estate listing price	Appraisal adjustments	-0.0% to -35.1% (-18.0)%
December 31, 2017
Impaired loans	$	1,313	Appraisal of collateral	Appraisal adjustments	-20.3% to -100.0% (-30.8)%
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):

	June 30, 2018				December 31, 2017
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Level 1 inputs:
Cash and cash equivalents	$	230,730	$	230,730	$	353,272	$	353,272
Level 2 inputs:
Securities held to maturity	507,780		496,715		443,550		441,052
Accrued interest receivable	22,476		22,476		22,591		22,591
Level 3 inputs:
Portfolio loans, net	5,501,982		5,423,322		5,465,918		5,361,406
Mortgage servicing rights	3,502		10,813		3,680		8,635
Other servicing rights	390		1,041		280		901
Financial liabilities:
Level 2 inputs:
Time deposits(2)	$	1,474,506	$	1,461,928	$	—	$	—
Deposits(2)	—		—		6,125,965		6,119,135
Securities sold under agreements to repurchase	240,109		240,109		304,566		304,566
Short-term borrowings	150,000		150,000		220,000		220,000
Long-term debt	50,000		50,000		50,000		50,000
Junior subordinated debt owed to unconsolidated trusts	71,081		71,081		71,008		71,008
Accrued interest payable	4,198		4,198		2,581		2,581
Level 3 inputs:
Senior notes, net of unamortized issuance costs	39,472		38,328		39,404		39,104
Subordinated notes, net of unamortized issuance costs	64,653		63,103		64,715		64,350

(2)In connection with the adoption of ASU 2016-01 in 2018, only deposits with stated maturities are required to be disclosed.