Disclosures About Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2018

Fair value measurements of assets and liabilities recognized in Consolidated Condensed Balance Sheets measured at fair value

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the ASC 820-10 fair value hierarchy in which the fair value measurements fall at March 31, 2018, and December 31, 2017.



			Fair Value Measurements Using:
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. Government-sponsored agency securities	$	6,498		$	6,498
State and municipal	510,234			506,303		$	3,931
U.S. Government-sponsored mortgage-backed securities	487,036			487,032		4
Corporate obligations	31					31
Interest rate swap asset	11,376			11,376
Interest rate cap	258			258
Interest rate swap liability	12,065			12,065



			Fair Value Measurements Using:
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:
State and municipal	$	526,693		$	522,750	$	3,943
U.S. Government-sponsored mortgage-backed securities	470,866			470,866
Corporate obligations	31					31
Equity securities	2,357			2,353		4
Interest rate swap asset	7,305			7,305
Interest rate cap	18			18
Interest rate swap liability	8,688			8,688

Reconciliation of beginning and ending balances of recurring fair value measurements recognized in Consolidated Condensed Balance Sheets using significant unobservable Level 3 inputs

The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the Consolidated Condensed Balance Sheets using significant unobservable (Level 3) inputs for the three months ended March 31, 2018 and 2017.



	Available for Sale Securities
	Three Months Ended
	March 31, 2018			March 31, 2017
Balance at beginning of the period	$	3,978		$	5,169
Included in other comprehensive income	(25		)	11
Principal payments	13			(1,901		)
Ending balance	$	3,966		$	3,279

Description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in Consolidated Condensed Balance Sheets

Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy for March 31, 2018, and December 31, 2017.



			Fair Value Measurements Using
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)
Impaired loans (collateral dependent)	$	7,833			$	7,833
Other real estate owned	119				119



			Fair Value Measurements Using
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)
Impaired loans (collateral dependent)	$	9,576			$	9,576
Other real estate owned	859				859

Unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at March 31, 2018 and December 31, 2017.



March 31, 2018	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted-Average)
State and municipal securities	$	3,931	Discounted cash flow	Maturity/Call date	1 month to 20 yrs
				US Muni BQ curve	A- to BBB-
				Discount rate	1% - 5%

Corporate obligations and U.S. Government-sponsored mortgage backed securities	$	35	Discounted cash flow	Risk free rate	3 month LIBOR
				plus premium for illiquidity	plus 200bps

Impaired loans (collateral dependent)	$	7,833	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	0% - 10% (1%)

Other real estate owned	$	119	Appraisals	Discount to reflect current market conditions	0% - 24% (24%)



December 31, 2017	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted-Average)
State and municipal securities	$	3,943	Discounted cash flow	Maturity/Call date	1 month to 20 yrs
				US Muni BQ curve	A- to BBB-
				Discount rate	.69% - 5%

Corporate obligations and equity securities	$	35	Discounted cash flow	Risk free rate	3 month LIBOR
				plus premium for illiquidity	plus 200bps

Impaired loans (collateral dependent)	$	9,576	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	0% - 10% (1%)

Other real estate owned	$	859	Appraisals	Discount to reflect current market conditions	0% - 10% (2%)

Estimated fair values of financial instruments

The following table presents estimated fair values of the Corporation’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at March 31, 2018, and December 31, 2017.



			March 31, 2018
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Carrying Amount		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash and cash equivalents	$	128,828	$	128,828
Interest-bearing time deposits	24,233		24,233
Investment securities available for sale	1,003,799				$	999,833	$	3,966
Investment securities held to maturity	540,021				527,253		11,146
Loans held for sale	4,469				4,469
Loans	6,825,276						6,649,237
Federal Home Loan Bank stock	24,588				24,588
Interest rate swap and cap asset	11,634				11,634
Interest receivable	35,223				35,223
Liabilities:
Deposits	$	7,327,635	$	5,849,466	$	1,450,066
Borrowings:
Federal funds purchased	50,000				50,000
Securities sold under repurchase agreements	138,910				138,770
Federal Home Loan Bank advances	449,419				443,804
Subordinated debentures and term loans	138,297				123,485
Interest rate swap liability	12,065				12,065
Interest payable	5,376				5,376



			December 31, 2017
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Carrying Amount		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash and cash equivalents	$	154,905	$	154,905
Interest-bearing time deposits	35,027		35,027
Investment securities available for sale	999,947				$	995,969	$	3,978
Investment securities held to maturity	560,655				556,305		11,903
Loans held for sale	7,216				7,216
Loans	6,676,167						6,534,877
Federal Home Loan Bank stock	23,825				23,825
Interest rate swap and cap asset	7,323				7,323
Interest receivable	37,130				37,130
Liabilities:
Deposits	$	7,172,530	$	5,741,019	$	1,406,526
Borrowings:
Federal funds purchased	144,038				144,038
Securities sold under repurchase agreements	136,623				136,562
Federal Home Loan Bank advances	414,377				361,085
Subordinated debentures and term loans	139,349				120,085
Interest rate swap liability	8,688				8,688
Interest payable	4,390				4,390