Disclosures about Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Measurements of Assets and Liabilities Recognized on a Recurring Basis

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated financial statements measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at the following:


	March 31, 2018
	Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Available for sale securities
U.S. Treasury and federal agencies	$	24,284		$	—	$	24,284		$	—
State and municipal		133,371			—		133,371			—
Federal agency collateralized mortgage obligations		133,408			—		133,408			—
Federal agency mortgage-backed pools		212,173			—		212,173			—
Private labeled mortgage-backed pools		4,110			—		4,110			—
Corporate notes		390			—		390			—

Total available for sale securities		507,736			—		507,736			—

Hedged loans		155,013			—		155,013			—
Forward sale commitments		257			—		257			—
Interest rate swap agreements		2,610			—		2,610			—
Commitments to originate loans		(4	)		—		(4	)		—

	December 31, 2017
	Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Available for sale securities
U.S. Treasury and federal agencies	$	19,052		$	—	$	19,052		$	—
State and municipal		149,564			—		149,564			—
Federal agency collateralized mortgage obligations		130,365			—		130,365			—
Federal agency mortgage-backed pools		208,657			—		208,657			—
Private labeled mortgage-backed pools		1,642			—		1,642			—
Corporate notes		385			—		385			—

Total available for sale securities		509,665			—		509,665			—

Hedged loans		154,575			—		154,575			—
Forward sale commitments		143			—		143			—
Interest rate swap agreements		(917	)		—		(917	)		—
Commitments to originate loans		(3	)		—		(3	)		—

Realized Gains and Losses Included in Net Income for Periods in Condensed Consolidated Statements of Income

Realized gains and losses included in net income for the periods are reported in the condensed consolidated statements of income as follows:


	Three Months Ended
	March 31, 2018			March 31, 2017
	(Unaudited)			(Unaudited)
Non-interest Income
Total gains and losses from:
Hedged loans	$	2,768		$	253
Fair value interest rate swap agreements		(2,768	)		(253	)
Derivative loan commitments		112			(59	)

	$	112		$	(59	)

Other Assets Measured at Fair Value on Non-recurring Basis

Certain other assets are measured at fair value on a non-recurring basis in the ordinary course of business and are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment):


	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2018
Impaired loans	$	6,593	$	—	$	—	$	6,593
Mortgage servicing rights		11,477		—		—		11,477
December 31, 2017
Impaired loans	$	6,957	$	—	$	—	$	6,957
Mortgage servicing rights		11,602		—		—		11,602

Qualitative Information About Unobservable Inputs Used in Recurring and Non-recurring Level 3 Fair Value Measurements, Other than Goodwill

The following table presents qualitative information about unobservable inputs used in recurring and non-recurring Level 3 fair value measurements, other than goodwill.


	March 31, 2018
	Fair		Valuation	Unobservable	Range
	Value		Technique	Inputs	(Weighted Average)
Impaired loans	$	6,593	Collateral based measurement	Discount to reflect current market conditions and ultimate collectability	0%-53.7% (2.7%)
Mortgage servicing rights		11,477	Discounted cash flows	Discount rate, Constant prepayment rate, Probability of default	10.0%-11.0% (10.0%), 8.6%-18.6% (9.8%), 0.2%-25.9% (2.4%)

	December 31, 2017
	Fair		Valuation	Unobservable	Range
	Value		Technique	Inputs	(Weighted Average)
Impaired loans	$	6,957	Collateral based measurement	Discount to reflect current market conditions and ultimate collectability	0%-46.8% (2.6%)
Mortgage servicing rights		11,602	Discounted cash flows	Discount rate, Constant prepayment rate, Probability of default	9.6%-10.8% (9.7%), 9.2%-27.7% (10.5%), 0%-1.5% (0.2%)