FAIR VALUE MEASUREMENT (Tables)

12 Months Ended

Dec. 31, 2018

Summary of fair value measurement on recurring and nonrecurring basis segregated by level of valuation inputs within fair value hierarchy utilized to measure fair value



	December 31, 2018
			Fair Value Measurements at the End of the Reporting Period Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring fair value measurements
Investment Securities:
State and Political Subdivisions	$	716,601	$	—	$	716,601	$	—
Other Stocks and Bonds	2,709		—		2,709		—
Mortgage-backed Securities: ⁽¹⁾
Residential	732,972		—		732,972		—
Commercial	537,154		—		537,154		—
Equity Investments:
Equity Investments ⁽²⁾	5,791		5,791		—		—
Derivative assets:
Interest rate swaps	11,594		—		11,594		—
Total asset recurring fair value measurements	$	2,006,821	$	5,791	$	2,001,030	$	—

Derivative liabilities:
Interest rate swaps	$	3,320	$	—	$	3,320	$	—
Total liability recurring fair value measurements	$	3,320	$	—	$	3,320	$	—

Nonrecurring fair value measurements
Foreclosed assets	$	1,206	$	—	$	—	$	1,206
Impaired loans ⁽³⁾	37,813		—		—		37,813
Total asset nonrecurring fair value measurements	$	39,019	$	—	$	—	$	39,019



	December 31, 2017
			Fair Value Measurements at the End of the Reporting Period Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring fair value measurements
Investment Securities:
U.S. Government Agency Debentures	$	108,869	$	—	$	108,869	$	—
State and Political Subdivisions	392,664		—		392,664		—
Other Stocks and Bonds	5,055		—		5,055		—
Equity Investments ⁽²⁾	5,920		5,920		—		—
Mortgage-backed Securities: ⁽¹⁾
Residential	718,029		—		718,029		—
Commercial	308,218		—		308,218		—
Derivative assets:
Interest rate swaps	8,626		—		8,626		—
Total asset recurring fair value measurements	$	1,547,381	$	5,920	$	1,541,461	$	—

Derivative liabilities:
Interest rate swaps	$	726	$	—	$	726	$	—
Total liability recurring fair value measurements	$	726	$	—	$	726	$	—

Nonrecurring fair value measurements
Foreclosed assets	$	1,767	$	—	$	—	$	1,767
Impaired loans ⁽³⁾	6,536		—		—		6,536
Total asset nonrecurring fair value measurements	$	8,303	$	—	$	—	$	8,303


(1)	All mortgage-backed securities are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.


(2)	With the adoption of ASU 2016-01 on January 1, 2018, these investments are included in equity investments on our consolidated balance sheets. The guidance was applied on a prospective approach resulting in prior-periods no longer being comparable. See “Note 1 - Summary of Significant Accounting and Reporting Policies” for further information.


(3)	Impaired loans represent collateral-dependent loans with a specific valuation allowance. Losses on these loans represent charge-offs which are netted against the allowance for loan losses.

Financial assets, financial liabilities, and unrecognized financial instruments at carrying amount and fair value

The following tables present our financial assets and financial liabilities measured on a nonrecurring basis at both their respective carrying amounts and estimated fair value (in thousands):



			Estimated Fair Value
December 31, 2018	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	120,719	$	120,719	$	120,719	$	—	$	—
Investment Securities:
Held to maturity, at carrying value	3,083		3,046		—		3,046		—
Mortgage-backed Securities:
Held to maturity, at carrying value	159,848		156,735		—		156,735		—
FHLB stock, at cost	32,583		32,583		—		32,583		—
Equity investments	6,302		6,302		—		6,302		—
Loans, net of allowance for loan losses	3,285,780		3,251,923		—		—		3,251,923
Loans held for sale	601		601		—		601		—
Financial Liabilities:
Deposits	$	4,425,030	$	4,417,902	$	—	$	4,417,902	$	—
Federal funds purchased and repurchase agreements	36,810		36,810		—		36,810		—
FHLB borrowings	719,065		708,904		—		708,904		—
Subordinated notes, net of unamortized debt issuance costs	98,407		97,611		—		97,611		—
Trust preferred subordinated debentures, net of unamortized debt issuance costs	60,246		54,729		—		54,729		—



			Estimated Fair Value
December 31, 2017	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	198,692	$	198,692	$	198,692	$	—	$	—
Investment Securities:
Held to maturity, at carrying value	413,632		421,928		—		421,928		—
Mortgage-backed Securities:
Held to maturity, at carrying value	495,874		499,872		—		499,872		—
FHLB stock, at cost	55,729		55,729		—		55,729		—
Equity investments	5,821		5,821		—		5,821		—
Loans, net of allowance for loan losses	3,273,575		3,269,316		—		—		3,269,316
Loans held for sale	2,001		2,001		—		2,001		—
Financial Liabilities:
Deposits	$	4,515,447	$	4,506,133	$	—	$	4,506,133	$	—
Federal funds purchased and repurchase agreements	9,498		9,498		—		9,498		—
FHLB borrowings	1,017,361		1,008,292		—		1,008,292		—
Subordinated notes, net of unamortized debt issuance costs	98,248		99,665		—		99,665		—
Trust preferred subordinated debentures, net of unamortized debt issuance costs	60,241		47,622		—		47,622		—