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Disclosures About Fair Value of Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Schedule of 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 fair value hierarchy in which the fair value measurements fall at June 30, 2020, and December 31, 2019.
 
 
 
Fair Value Measurements Using:
June 30, 2020
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
$
600

 
$
—

 
$
600

 
$
—

U.S. Government-sponsored agency securities
2,453

 
—

 
2,453

 
—

State and municipal
1,094,218

 
—

 
1,091,753

 
2,465

U.S. Government-sponsored mortgage-backed securities
790,234

 
—

 
790,230

 
4

Corporate obligations
3,088

 
—

 
3,057

 
31

Interest rate swap asset
84,658

 
—

 
84,658

 
—

Interest rate swap liability
87,205

 
—

 
87,205

 
—


 
 
 
Fair Value Measurements Using:
December 31, 2019
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
$
38,875


$
—


$
38,875


$
—

State and municipal
899,796

 
—

 
896,938

 
2,858

U.S. Government-sponsored mortgage-backed securities
851,323

 
—

 
851,319

 
4

Corporate obligations
31

 
—

 
—

 
31

Interest rate swap asset
27,855

 
—

 
27,855

 
—

Interest rate swap liability
29,299

 
—

 
29,299

 
—
Schedule of 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 accompanying
balance sheets using significant unobservable Level 3 inputs for the three and six months ended June 30, 2020 and 2019.
 
Available for Sale Securities
 
Three Months Ended
 
Six Months Ended
 
June 30, 2020
 
June 30, 2019
 
June 30, 2020
 
June 30, 2019
Balance at beginning of the period
$
2,528

 
$
2,936

 
$
2,892

 
$
3,328

Included in other comprehensive income
(30
)
 
37

 
(50
)
 
80

Principal payments
2

 
2

 
(342
)
 
(433
)
Ending balance
$
2,500

 
$
2,975

 
$
2,500

 
$
2,975
Schedule of 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 June 30, 2020, and December 31, 2019.
 

 

Fair Value Measurements Using
June 30, 2020

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)

$
22,690


$
—


$
—


$
22,690

Other real estate owned

464


—


—


464

 
 

 

Fair Value Measurements Using
December 31, 2019

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)

$
5,653


$
—


$
—


$
5,653

Other real estate owned

194


—


—


194
Schedule of 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 June 30, 2020 and December 31, 2019.
June 30, 2020
Fair Value
 
Valuation Technique
 
Unobservable Inputs
 
Range (Weighted-Average)
State and municipal securities
$
2,465

 
Discounted cash flow
 
Maturity/Call date
 
1 month to 15 yrs

 
 
 
 
 
US Muni BQ curve
 
A- to BBB-

 
 
 
 
 
Discount rate
 
1.5% - 4%

 
 
 
 
 
Weighted-average coupon
 
3.87
%
 
 
 
 
 
 
 
 
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

 
 
 
 
 
Weighted-average coupon
 
—
%
 
 
 
 
 
 
 
 
Impaired loans (collateral dependent)
$
22,690

 
Collateral based measurements
 
Discount to reflect current market conditions and ultimate collectability
 
0% - 10%

 
 
 
 
 
Weighted-average discount by loan balance
 
10
%
 
 
 
 
 
 
 
 
Other real estate owned
$
464

 
Appraisals
 
Discount to reflect current market conditions
 
0% - 72%

 
 
 
 
 
Weighted-average discount of other real estate owned balance
 
32
%


December 31, 2019
Fair Value
 
Valuation Technique
 
Unobservable Inputs
 
Range (Weighted-Average)
State and municipal securities
$
2,858

 
Discounted cash flow
 
Maturity/Call date
 
1 month to 15 yrs

 
 
 
 
 
US Muni BQ curve
 
A- to BBB-

 
 
 
 
 
Discount rate
 
2% - 5%

 
 
 
 
 
Weighted-average coupon
 
3.92
%
 
 
 
 
 
 
 
 
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

 
 
 
 
 
Weighted-average coupon
 
—
%
 
 
 
 
 
 
 
 
Impaired loans (collateral dependent)
$
5,653

 
Collateral based measurements
 
Discount to reflect current market conditions and ultimate collectability
 
0% - 10%

 
 
 
 
 
Weighted-average discount by loan balance
 
1
%
 
 
 
 
 
 
 
 
Other real estate owned
$
194

 
Appraisals
 
Discount to reflect current market conditions
 
0% - 37%

 
 
 
 
 
Weighted-average discount of other real estate owned balance
 
37
%
Schedule of 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 June 30, 2020, and December 31, 2019.



June 30, 2020


 


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
$
229,759


$
229,759


$
—


$
—

Interest-bearing time deposits
380,021


380,021


—


—

Investment securities available for sale
1,890,593


—


1,888,093


2,500

Investment securities held to maturity
898,786


—


920,146


21,280

Loans held for sale
901


—


901


—

Loans
9,177,422


—


—


9,253,762

Federal Home Loan Bank stock
28,736


—


28,736


—

Interest rate swap asset
84,658


—


84,658


—

Interest receivable
57,063


—


57,063


—

Liabilities:
 

 

 

 
Deposits
$
10,965,988


$
9,566,516


$
1,395,002


$
—

Borrowings:




 

 
Securities sold under repurchase agreements
181,150


—


181,150


—

Federal Home Loan Bank advances
400,817


—


415,737


—

Subordinated debentures and other borrowings
285,197


—


276,306


—

Interest rate swap liability
87,205


—


87,205


—

Interest payable
5,587


—


5,587


—





December 31, 2019


 


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
$
177,201


$
177,201


$
—


$
—

Interest-bearing time deposits
118,263


118,263


—


—

Investment securities available for sale
1,790,025


—


1,787,132


2,893

Investment securities held to maturity
806,038


—


799,884


27,682

Loans held for sale
9,037


—


9,037


—

Loans
8,379,026


—


—


8,335,340

Federal Home Loan Bank stock
28,736


—


28,736


—

Interest rate swap asset
27,855


—


27,855


—

Interest receivable
48,901


—


48,901


—

Liabilities:
 

 

 

 
Deposits
$
9,839,956


$
8,146,745


$
1,675,202


$
—

Borrowings:
 

 

 

 
Federal funds purchased
55,000


—


55,000


—

Securities sold under repurchase agreements
187,946


—


187,801


—

Federal Home Loan Bank advances
351,072


—


352,581


—

Subordinated debentures and other borrowings
138,685


—


123,571


—

Interest rate swap liability
29,299


—


29,299


—

Interest payable
6,754


—


6,754


—