Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

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, 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
March 31, 2019	Inputs		Inputs		Inputs		Fair Value
Fair value adjusted through comprehensive income:
Securities available for sale
U.S. Treasury securities	$	—	$	64,309	$	—	$	64,309
Obligations of U.S. government corporations and agencies		—		325,420		—		325,420
Obligations of states and political subdivisions		—		283,478		—		283,478
Commercial mortgage-backed securities		—		55,562		—		55,562
Residential mortgage-backed securities		—		1,049,761		—		1,049,761
Corporate debt securities		—		139,765		—		139,765
Fair value adjusted through current period earnings:
Securities equity investments		6,378		—		—		6,378
Loans held for sale		—		20,291		—		20,291
Derivative assets		—		5,986		—		5,986
Derivative liabilities		—		6,269		—		6,269


	Level 1		Level 2		Level 3		Total
December 31, 2018	Inputs		Inputs		Inputs		Fair Value
Securities available for sale
U.S. Treasury securities	$	—	$	25,411	$	—	$	25,411
Obligations of U.S. government corporations and agencies		—		52,342		—		52,342
Obligations of states and political subdivisions		—		170,044		—		170,044
Commercial mortgage-backed securities		—		1,942		—		1,942
Residential mortgage-backed securities		—		315,748		—		315,748
Corporate debt securities		—		132,198		—		132,198
Fair value adjusted through period earnings:
Securities equity investments		6,169		—		—		6,169
Loans held for sale		—		25,895		—		25,895
Derivative assets		—		2,062		—		2,062
Derivative liabilities		—		2,643		—		2,643

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, 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
March 31, 2019
Impaired loans	$	—	$	—	$	10,001	$	10,001
OREO		—		—		84		84
Bank property held for sale		—		—		1,832		1,832


December 31, 2018
Impaired loans	$	—	$	—	$	10,999	$	10,999
OREO		—		—		55		55
Bank property held for sale		—		—		1,832		1,832

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)
March 31, 2019
Impaired loans	$	10,001	Appraisal of collateral	Appraisal adjustments	- 4.1	%	to	- 100.0	%
					(-25.6)%
OREO		84	Appraisal of collateral	Appraisal adjustments	- 25.0	%	to	- 100.0	%
					(-61.8)%
Bank property held for sale		1,832	Appraisal of collateral or real estate listing price	Appraisal adjustments	- 0.0	%	to	- 35.1	%
					(-28.3)%
	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value		Valuation	Unobservable	Range
	Estimate		Techniques	Input	(Weighted Average)
December 31, 2018
Impaired loans	$	10,999	Appraisal of collateral	Appraisal adjustments	- 3.3	%	to	- 100.0	%
					(-24.1)%
OREO		55	Appraisal of collateral	Appraisal adjustments	- 25.0	%	to	- 100.0	%
					(-65.0)%
Bank property held for sale		1,832	Appraisal of collateral or real estate listing price	Appraisal adjustments	- 0.0	%	to	- 35.1	%
					(-28.3)%

Schedule of estimated fair values of financial instruments


	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value		Valuation	Unobservable	Range
	Estimate		Techniques	Input	(Weighted Average)
March 31, 2019
Impaired loans	$	10,001	Appraisal of collateral	Appraisal adjustments	- 4.1	%	to	- 100.0	%
					(-25.6)%
OREO		84	Appraisal of collateral	Appraisal adjustments	- 25.0	%	to	- 100.0	%
					(-61.8)%
Bank property held for sale		1,832	Appraisal of collateral or real estate listing price	Appraisal adjustments	- 0.0	%	to	- 35.1	%
					(-28.3)%
	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value		Valuation	Unobservable	Range
	Estimate		Techniques	Input	(Weighted Average)
December 31, 2018
Impaired loans	$	10,999	Appraisal of collateral	Appraisal adjustments	- 3.3	%	to	- 100.0	%
					(-24.1)%
OREO		55	Appraisal of collateral	Appraisal adjustments	- 25.0	%	to	- 100.0	%
					(-65.0)%
Bank property held for sale		1,832	Appraisal of collateral or real estate listing price	Appraisal adjustments	- 0.0	%	to	- 35.1	%
					(-28.3)%

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):


	March 31, 2019				December 31, 2018
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Level 1 inputs:
Cash and cash equivalents	$	330,407	$	330,407	$	239,973	$	239,973
Level 2 inputs:
Securities held to maturity		15,846		15,975		608,660		603,360
Accrued interest receivable		29,748		29,748		22,314		22,314
Level 3 inputs:
Portfolio loans, net		6,464,166		6,402,404		5,517,780		5,473,063
Mortgage servicing rights		10,201		16,194		3,315		11,051
Other servicing rights		839		1,413		781		1,443

Financial liabilities:
Level 2 inputs:
Time deposits	$	1,757,078	$	1,746,252	$	1,497,003	$	1,482,301
Securities sold under agreements to repurchase		217,077		217,077		185,796		185,796
Short-term borrowings		30,739		30,871		—		—
Long-term debt		89,476		89,738		50,000		49,873
Junior subordinated debt owed to unconsolidated trusts		71,192		65,152		71,155		65,182
Accrued interest payable		7,589		7,589		6,568		6,568
Level 3 inputs:
Senior notes, net of unamortized issuance costs		39,573		39,797		39,539		39,452
Subordinated notes, net of unamortized issuance costs		59,172		58,748		59,147		58,186