Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2019

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

The following tables summarize assets measured at fair value on a recurring and nonrecurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands):



	September 30, 2019
			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	$	660,093	$	—	$	660,093	$	—
Other stocks and bonds	2,956		—		2,956		—
Mortgage-backed securities: ⁽¹⁾
Residential	1,338,789		—		1,338,789		—
Commercial	238,543		—		238,543		—
Equity investments:
Equity investments	5,993		5,993		—		—
Derivative assets:
Interest rate swaps	12,461		—		12,461		—
Total asset recurring fair value measurements	$	2,258,835	$	5,993	$	2,252,842	$	—

Derivative liabilities:
Interest rate swaps	$	16,665	$	—	$	16,665	$	—
Total liability recurring fair value measurements	$	16,665	$	—	$	16,665	$	—

Nonrecurring fair value measurements
Foreclosed assets	$	916	$	—	$	—	$	916
Impaired loans ⁽²⁾	31,445		—		—		31,445
Total asset nonrecurring fair value measurements	$	32,361	$	—	$	—	$	32,361



	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	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 ⁽²⁾	37,813		—		—		37,813
Total asset nonrecurring fair value measurements	$	39,019	$	—	$	—	$	39,019


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

(2)

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
September 30, 2019	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	114,824	$	114,824	$	114,824	$	—	$	—
Investment securities:
Held to maturity, at carrying value	2,895		2,928		—		2,928		—
Mortgage-backed securities:
Held to maturity, at carrying value	138,060		144,112		—		144,112		—
Federal Home Loan Bank stock, at cost	45,039		45,039		—		45,039		—
Equity investments	6,395		6,395		—		6,395		—
Loans, net of allowance for loan losses	3,474,788		3,560,407		—		—		3,560,407
Loans held for sale	1,000		1,000		—		1,000		—
Financial liabilities:
Deposits	$	4,490,767	$	4,491,593	$	—	$	4,491,593	$	—
Other borrowings	9,626		9,626		—		9,626		—
Federal Home Loan Bank borrowings	978,951		983,894		—		983,894		—
Subordinated notes, net of unamortized debt issuance costs	98,532		98,655		—		98,655		—
Trust preferred subordinated debentures, net of unamortized debt issuance costs	60,249		59,525		—		59,525		—



			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		—
Federal Home Loan Bank 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	$	—
Other borrowings	36,810		36,810		—		36,810		—
Federal Home Loan Bank 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		—