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FAIR VALUE OF ASSETS AND LIABILITIES (Tables)
12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Schedule of carrying amount and estimated fair value of financial instruments
 
 
 
 
 
Fair Value Measurement Using
 
Carrying
Amount
 
Estimated
Fair Value
 
Quoted Prices
in Active 
Markets for 
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(Dollars in thousands)
December 31, 2017
 

 
 

 
 

 
 

 
 

Financial assets:
 

 
 

 
 

 
 

 
 

Cash and due from financial institutions
$
75,318

 
$
75,318

 
$
75,318

 
$
—

 
$
—

Interest-bearing deposits in other financial institutions
6,975

 
6,975

 
6,975

 
—

 
—

Investment securities
1,496,644

 
1,494,092

 
825

 
1,481,473

 
11,794

Loans held for sale
16,336

 
16,336

 
—

 
16,336

 
—

Loans and leases, net of allowance for loan and lease losses
3,720,614

 
3,684,834

 
—

 
21,280

 
3,663,554

Mortgage servicing rights
15,843

 
17,161

 
—

 
—

 
17,161

Federal Home Loan Bank stock
7,761

 
7,761

 
7,761

 
—

 
—

Accrued interest receivable
16,581

 
16,581

 
16,581

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
Noninterest-bearing deposits
1,395,556

 
1,395,556

 
1,395,556

 
—

 
—

Interest-bearing demand and savings deposits
2,414,930

 
2,414,930

 
2,414,930

 
—

 
—

Time deposits
1,145,868

 
1,140,064

 
—

 
—

 
1,140,064

Federal Home Loan Bank advances and other short-term borrowings
32,000

 
32,000

 
—

 
32,000

 
—

Long-term debt
92,785

 
70,139

 
—

 
70,139

 
—

Accrued interest payable (included in other liabilities)
3,698

 
3,698

 
3,698

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Off-balance sheet financial instruments:
 
 
 
 
 
 
 
 
 
Commitments to extend credit
917,405

 
1,140

 
—

 
1,140

 
—

Standby letters of credit and financial guarantees written
13,551

 
203

 
—

 
203

 
—

Derivatives:
 
 
 
 
 
 
 
 
 
Interest rate lock commitments
2,494

 
12

 
—

 
12

 
—

Forward sale commitments
18,748

 
(26
)
 
—

 
(26
)
 
—

 
 
 
 
 
Fair Value Measurement Using
 
Carrying
Amount
 
Estimated
Fair Value
 
Quoted Prices
in Active 
Markets for 
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(Dollars in thousands)
December 31, 2016
 

 
 

 
 

 
 

 
 

Financial assets:
 

 
 

 
 

 
 

 
 

Cash and due from financial institutions
$
75,272

 
$
75,272

 
$
75,272

 
$
—

 
$
—

Interest-bearing deposits in other financial institutions
9,069

 
9,069

 
9,069

 
—

 
—

Investment securities
1,461,515

 
1,458,213

 
660

 
1,445,357

 
12,196

Loans held for sale
31,881

 
31,881

 
—

 
31,881

 
—

Loans and leases, net of allowance for loan and lease losses
3,468,259

 
3,426,976

 
—

 
30,723

 
3,396,253

Mortgage servicing rights
15,779

 
18,087

 
—

 
—

 
18,087

Federal Home Loan Bank stock
11,572

 
11,572

 
11,572

 
—

 
—

Accrued interest receivable
15,675

 
15,675

 
15,675

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 

 
 

 
 

 
 

 
 

Deposits:
 

 
 

 
 

 
 

 
 

Noninterest-bearing deposits
1,265,246

 
1,265,246

 
1,265,246

 
—

 
—

Interest-bearing demand and savings deposits
2,253,591

 
2,253,591

 
2,253,591

 
—

 
—

Time deposits
1,089,364

 
1,088,436

 
—

 
—

 
1,088,436

Federal Home Loan Bank advances and other short-term borrowings
135,000

 
135,000

 
—

 
135,000

 
—

Long-term debt
92,785

 
68,186

 
—

 
68,186

 
—

Accrued interest payable (included in other liabilities)
1,556

 
1,556

 
1,556

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Off-balance sheet financial instruments:
 

 
 

 
 

 
 

 
 

Commitments to extend credit
825,304

 
1,046

 
—

 
1,046

 
—

Standby letters of credit and financial guarantees written
16,073

 
241

 
—

 
241

 
—

Derivatives:
 
 
 
 
 
 
 
 
 
Interest rate lock commitments
879

 
6

 
—

 
6

 
—

Forward sale commitments
32,497

 
136

 
—

 
136

 
—

Schedule of balances of assets and liabilities measured at fair value on a recurring basis
The following table below presents the the fair value of assets and liabilities measured on a recurring basis:
 
 
 
 
Fair Value at Reporting Date Using
 
Fair
Value
 
Quoted Prices
in Active 
Markets for 
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(Dollars in thousands)
December 31, 2017
 

 
 

 
 

 
 

Available for sale securities:
 

 
 

 
 

 
 

Debt securities:
 

 
 

 
 

 
 

States and political subdivisions
$
179,781

 
$
—

 
$
167,987

 
$
11,794

Corporate securities
74,278

 
—

 
74,278

 
—

U.S. Treasury obligations and direct obligations of U.S Government agencies
25,510

 
—

 
25,510

 
—

Mortgage-backed securities:
 
 
 
 
 
 
 
Residential-U.S. Government sponsored entities
800,683

 
—

 
800,683

 
—

Residential-Non-government agencies
46,763

 
—

 
46,763

 
—

Commercial-U.S. Government agencies and sponsored entities
39,725

 
—

 
39,725

 
—

Commercial-Non-government agencies
137,326

 
—

 
137,326

 
—

Other
825

 
825

 
—

 
—

Derivatives: Interest rate lock and forward sale commitments
(14
)
 
—

 
(14
)
 
—

Total
$
1,304,877

 
$
825

 
$
1,292,258

 
$
11,794

 
 
 
Fair Value at Reporting Date Using
 
Fair
Value
 
Quoted Prices
in Active 
Markets for 
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(Dollars in thousands)
December 31, 2016
 

 
 

 
 

 
 

Available for sale securities:
 

 
 

 
 

 
 

Debt securities:
 

 
 

 
 

 
 

States and political subdivisions
$
185,041

 
$
—

 
$
172,845

 
$
12,196

Corporate securities
99,389

 
—

 
99,389

 
—

U.S. Treasury obligations and direct obligations of U.S Government agencies
—

 
—

 
—

 
—

Mortgage-backed securities:
 

 
 

 
 

 
 

U.S. Government sponsored entities
769,986

 
—

 
769,986

 
—

Non-government sponsored entities
188,771

 
—

 
188,771

 
—

Other
660

 
660

 
—

 
—

Derivatives: Interest rate lock and forward sale commitments
142

 
—

 
142

 
—

Total
$
1,243,989

 
$
660

 
$
1,231,133

 
$
12,196

Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis
The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:
 
 
Available for Sale 
Debt Securities - 
States and
Political 
Subdivisions
 
(Dollars in thousands)
Balance as of December 31, 2015
$
12,479

Principal payments received
(338
)
Purchases
—

Unrealized net loss included in other comprehensive gain
55

Balance as of December 31, 2016
$
12,196

Principal payments received
(358
)
Purchases


Unrealized net loss included in other comprehensive loss
(44
)
Balance as of December 31, 2017
$
11,794

Schedule of level of valuation assumptions used to determine the fair value of assets measured on a nonrecurring basis
:
 
 
 
 
Fair Value Measurements Using
 
 
 
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
 
(Dollars in thousands)
December 31, 2017
 

 
 

 
 

 
 

 
 

Impaired loans (1)
$
21,280

 
$
—

 
$
21,280

 
$
—

 
$
—

Mortgage servicing rights
17,161

 
—

 
—

 
17,161

 
—

Other real estate (2)
851

 
—

 
851

 
—

 
—

Total
 

 
 

 
 

 
 

 
$
—

 
 
 
 
 
 
 
 
 
 
December 31, 2016
 

 
 

 
 

 
 

 
 

Impaired loans (1)
$
30,723

 
$
—

 
$
30,723

 
$
—

 
$
—

Mortgage servicing rights
18,087

 
—

 
—

 
18,087

 
—

Other real estate (2)
791

 
—

 
791

 
—

 
—

Total
 

 
 

 
 

 
 

 
$
—


 
 
(1)
Represents carrying value and related write-downs of loans for which adjustments are based on agreed upon purchase prices for the loans or the appraised value of the collateral.

(2)
Represents other real estate that is carried at the lower of carrying value or fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral.