Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2021

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):



			Fair Value Measurements at the End of the Reporting Period Using
June 30, 2021	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. Treasury	$	43,736	$	43,736	$	—	$	—

State and political subdivisions	1,864,879		—		1,864,879		—
Corporate bonds and other	114,247		—		114,247		—
MBS: (1)
Residential	632,900		—		632,900		—
Commercial	110,273		—		110,273		—
Equity investments:
Equity investments	6,004		6,004		—		—
Derivative assets:
Interest rate swaps	18,026		—		18,026		—
Total asset recurring fair value measurements	$	2,790,065	$	49,740	$	2,740,325	$	—

Derivative liabilities:
Interest rate swaps	$	28,574	$	—	$	28,574	$	—
Total liability recurring fair value measurements	$	28,574	$	—	$	28,574	$	—

Nonrecurring fair value measurements
Foreclosed assets	$	566	$	—	$	—	$	566
Collateral-dependent loans (2)	9,004		—		—		9,004
Total asset nonrecurring fair value measurements	$	9,570	$	—	$	—	$	9,570



			Fair Value Measurements at the End of the Reporting Period Using
December 31, 2020	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	$	1,580,594	$	—	$	1,580,594	$	—
Corporate bonds and other	78,255		—		78,255		—
MBS: (1)
Residential	810,010		—		810,010		—
Commercial	118,446		—		118,446		—
Equity investments:
Equity investments	6,094		6,094		—		—
Derivative assets:
Interest rate swaps	18,537		—		18,537		—
Total asset recurring fair value measurements	$	2,611,936	$	6,094	$	2,605,842	$	—

Derivative liabilities:
Interest rate swaps	$	40,172	$	—	$	40,172	$	—
Total liability recurring fair value measurements	$	40,172	$	—	$	40,172	$	—

Nonrecurring fair value measurements
Foreclosed assets	$	120	$	—	$	—	$	120
Collateral-dependent loans (2)	10,653		—		—		10,653

Total asset nonrecurring fair value measurements	$	10,773	$	—	$	—	$	10,773

(1)All MBS are issued and/or guaranteed by U.S. government agencies or U.S. GSEs.

(2)Consists of individually evaluated loans. Loans for which the fair value of the collateral and commercial real estate fair value of the properties is less than cost basis are presented net of 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
June 30, 2021	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	128,488	$	128,488	$	128,488	$	—	$	—
Investment securities:
HTM, at carrying value	908		913		—		913		—
MBS:
HTM, at carrying value	93,942		100,455		—		100,455		—
FHLB stock, at cost	28,081		28,081		—		28,081		—
Equity investments	5,817		5,817		—		5,817		—
Loans, net of allowance for loan losses	3,599,433		3,765,725		—		—		3,765,725
Loans held for sale	2,510		2,510		—		2,510		—
Financial liabilities:
Deposits	$	5,156,167	$	5,158,210	$	—	$	5,158,210	$	—
Other borrowings	23,783		23,783		—		23,783		—
FHLB borrowings	721,368		732,425		—		732,425		—
Subordinated notes, net of unamortized debt issuance costs	197,312		201,322		—		201,322		—
Trust preferred subordinated debentures, net of unamortized debt issuance costs	60,258		49,267		—		49,267		—


			Estimated Fair Value
December 31, 2020	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	108,408	$	108,408	$	108,408	$	—	$	—
Investment securities:
HTM, at carrying value	907		920		—		920		—
Mortgage-backed securities:
HTM, at carrying value	108,091		117,278		—		117,278		—
Federal Home Loan Bank stock, at cost	25,259		25,259		—		25,259		—
Equity investments	5,811		5,811		—		5,811		—
Loans, net of allowance for loan losses	3,608,773		3,784,291		—		—		3,784,291
Loans held for sale	3,695		3,695		—		3,695		—
Financial liabilities:
Deposits	$	4,932,322	$	4,936,188	$	—	$	4,936,188	$	—
Other borrowings	23,172		23,172		—		23,172		—
FHLB borrowings	832,527		854,865		—		854,865		—
Subordinated notes, net of unamortized debt issuance costs	197,251		198,391		—		198,391		—
Trust preferred subordinated debentures, net of unamortized debt issuance costs	60,255		51,993		—		51,993		—