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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Assets and liabilities measured at fair value on a recurring basis

The following table presents assets and liabilities that are measured at fair value on a recurring basis as of the dates presented:



	Level 1		Level 2		Level 3		Totals
June 30, 2019
Financial assets:
Securities available for sale:
Obligations of other U.S. Government agencies and corporations	$	—	$	2,539	$	—	$	2,539
Obligations of states and political subdivisions	—		173,997		—		173,997
Residential mortgage-backed securities:
Government agency mortgage backed securities	—		606,453		—		606,453
Government agency collateralized mortgage obligations	—		321,211		—		321,211
Commercial mortgage-backed securities:
Government agency mortgage backed securities	—		32,545		—		32,545
Government agency collateralized mortgage obligations	—		72,069		—		72,069
Trust preferred securities	—		—		10,386		10,386
Other debt securities	—		49,080		—		49,080
Total securities available for sale	—		1,257,894		10,386		1,268,280
Derivative instruments:
Interest rate contracts	—		4,026		—		4,026
Interest rate lock commitments	—		7,154		—		7,154
Forward commitments	—		102		—		102
Total derivative instruments	—		11,282		—		11,282
Mortgage loans held for sale in loans held for sale	—		323,219		—		323,219
Total financial assets	$	—	$	1,592,395	$	10,386	$	1,602,781
Financial liabilities:
Derivative instruments:
Interest rate swaps	$	—	$	5,341	$	—	$	5,341
Interest rate contracts	—		4,026		—		4,026
Interest rate lock commitments	—		15		—		15
Forward commitments	—		4,184		—		4,184
Total derivative instruments	—		13,566		—		13,566
Total financial liabilities	$	—	$	13,566	$	—	$	13,566



	Level 1		Level 2		Level 3		Totals
December 31, 2018
Financial assets:
Securities available for sale:
Obligations of other U.S. Government agencies and corporations	$	—	$	2,511	$	—	$	2,511
Obligations of states and political subdivisions	—		203,269		—		203,269
Residential mortgage-backed securities:
Government agency mortgage backed securities	—		613,283		—		613,283
Government agency collateralized mortgage obligations	—		326,989		—		326,989
Commercial mortgage-backed securities:
Government agency mortgage backed securities	—		21,830		—		21,830
Government agency collateralized mortgage obligations	—		28,335		—		28,335
Trust preferred securities	—		—		10,633		10,633
Other debt securities	—		43,927		—		43,927
Total securities available for sale	—		1,240,144		10,633		1,250,777
Derivative instruments:
Interest rate contracts	—		2,779		—		2,779
Interest rate lock commitments	—		3,740		—		3,740
Total derivative instruments	—		6,519		—		6,519
Mortgage loans held for sale	—		219,848		—		219,848
Total financial assets	$	—	$	1,466,511	$	10,633	$	1,477,144
Financial liabilities:
Derivative instruments:
Interest rate swaps	$	—	$	2,046	$	—	$	2,046
Interest rate contracts	—		2,779		—		2,779
Forward commitments	—		3,563		—		3,563
Total derivative instruments	—		8,388		—		8,388
Total financial liabilities	$	—	$	8,388	$	—	$	8,388

Reconciliation for assets and liabilities measured at fair value on a recurring basis

The following tables provide a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, as of the dates presented:



Three Months Ended June 30, 2019	Trust preferred securities
Balance at April 1, 2019	$	10,246
Accretion included in net income	9
Unrealized gains included in other comprehensive income	154
Purchases	—
Sales	—
Issues	—
Settlements	(23		)
Transfers into Level 3	—
Transfers out of Level 3	—
Balance at June 30, 2019	$	10,386



Three Months Ended June 30, 2018	Trust preferred securities
Balance at April 1, 2018	$	10,045
Accretion included in net income	8
Unrealized gains included in other comprehensive income	383
Purchases	—
Sales	—
Issues	—
Settlements	(35		)
Transfers into Level 3	—
Transfers out of Level 3	—
Balance at June 30, 2018	$	10,401



Six Months Ended June 30, 2019	Trust preferred securities
Balance at January 1, 2019	$	10,633
Accretion included in net income	18
Unrealized losses included in other comprehensive income	(133		)
Purchases	—
Sales	—
Issues	—
Settlements	(132		)
Transfers into Level 3	—
Transfers out of Level 3	—
Balance at June 30, 2019	$	10,386



Six Months Ended June 30, 2018	Trust preferred securities
Balance at January 1, 2018	$	9,388
Accretion included in net income	17
Unrealized gains included in other comprehensive income	1,052
Reclassification adjustment	—
Purchases	—
Sales	—
Issues	—
Settlements	(56		)
Transfers into Level 3	—
Transfers out of Level 3	—
Balance at June 30, 2018	$	10,401

Significant unobservable inputs (Level 3) used in valuation of assets and liabilities measured at fair value on recurring basis

The following table presents information as of June 30, 2019 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a recurring basis:



Financial instrument	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range of Inputs
Trust preferred securities	$	10,386	Discounted cash flows	Default rate	0-100%

Assets measured at fair value on a nonrecurring basis

The following table provides the fair value measurement for assets measured at fair value on a nonrecurring basis that were still held on the Consolidated Balance Sheets as of the dates presented and the level within the fair value hierarchy each is classified:



June 30, 2019	Level 1		Level 2		Level 3		Totals
Impaired loans	$	—	$	—	$	14,746	$	14,746
OREO	—		—		2,626		2,626
Total	$	—	$	—	$	17,372	$	17,372



December 31, 2018	Level 1		Level 2		Level 3		Totals
Impaired loans	$	—	$	—	$	21,686	$	21,686
OREO	—		—		4,319		4,319
Total	$	—	$	—	$	26,005	$	26,005

OREO measured at fair value on a nonrecurring basis

The following table presents OREO measured at fair value on a nonrecurring basis that was still held in the Consolidated Balance Sheets as of the dates presented:



	June 30, 2019			December 31, 2018
Carrying amount prior to remeasurement	$	3,312		$	5,258
Impairment recognized in results of operations	(686		)	(939		)
Fair value	$	2,626		$	4,319

Significant unobservable inputs (Level 3) used in valuation of assets and liabilities measured at fair value on non recurring basis

The following table presents information as of June 30, 2019 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis:



Financial instrument	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range of Inputs
Impaired loans	$	14,746	Appraised value of collateral less estimated costs to sell	Estimated costs to sell	4-10%
OREO	2,626		Appraised value of property less estimated costs to sell	Estimated costs to sell	4-10%

Summarizes differences between fair value and principal balance for mortgage loans held for sale measure at fair value

The following table summarizes the differences between the fair value and the principal balance for mortgage loans held for sale measured at fair value as of June 30, 2019:



	Aggregate Fair Value		Aggregate Unpaid Principal Balance		Difference
Mortgage loans held for sale measured at fair value	$	323,219	$	310,845	$	12,374
Past due loans of 90 days or more	—		—		—
Nonaccrual loans	—		—		—

Assets and liabilities not measured and reported at fair value on a recurring basis or nonrecurring basis

The carrying amounts and estimated fair values of the Company’s financial instruments, including those assets and liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis, were as follows as of the dates presented:



			Fair Value
As of June 30, 2019	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	443,862	$	443,862	$	—	$	—	$	443,862
Securities available for sale	1,268,280		—		1,257,894		10,386		1,268,280
Loans held for sale	461,681		—		323,219		138,462		461,681
Loans, net	9,004,595		—		—		8,728,122		8,728,122
Mortgage servicing rights	48,779		—		—		49,757		49,757
Derivative instruments	11,282		—		11,282		—		11,282
Financial liabilities
Deposits	$	10,190,061	$	7,825,733	$	2,358,108	$	—	$	10,183,841
Short-term borrowings	139,011		139,011		—		—		139,011
Other long-term borrowings	23		23		—		—		23
Federal Home Loan Bank advances	6,290		—		6,493		—		6,493
Junior subordinated debentures	109,926		—		103,346		—		103,346
Subordinated notes	146,684		—		147,888		—		147,888
Derivative instruments	13,566		—		13,566		—		13,566



			Fair Value
As of December 31, 2018	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	569,111	$	569,111	$	—	$	—	$	569,111
Securities available for sale	1,250,777		—		1,240,144		10,633		1,250,777
Loans held for sale	411,427		—		219,848		191,579		411,427
Loans, net	9,034,103		—		—		8,818,039		8,818,039
Mortgage servicing rights	48,230		—		—		61,111		61,111
Derivative instruments	6,519		—		6,519		—		6,519
Financial liabilities
Deposits	$	10,128,557	$	7,765,773	$	2,337,334	$	—	$	10,103,107
Short-term borrowings	387,706		387,706		—		—		387,706
Other long-term borrowings	53		53		—		—		53
Federal Home Loan Bank advances	6,690		—		6,751		—		6,751
Junior subordinated debentures	109,636		—		109,766		—		109,766
Subordinated notes	147,239		—		148,875		—		148,875
Derivative instruments	8,388		—		8,388		—		8,388

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details