Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

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
September 30, 2019
Financial assets:
Securities available for sale:
U.S. Treasury securities	$	—	$	498	$	—	$	498
Obligations of other U.S. Government agencies and corporations	—		2,537		—		2,537
Obligations of states and political subdivisions	—		216,988		—		216,988
Residential mortgage backed securities:
Government agency mortgage backed securities	—		666,167		—		666,167
Government agency collateralized mortgage obligations	—		191,187		—		191,187
Commercial mortgage backed securities:
Government agency mortgage backed securities	—		27,666		—		27,666
Government agency collateralized mortgage obligations	—		75,423		—		75,423
Trust preferred securities	—		—		9,862		9,862
Other debt securities	—		48,249		—		48,249
Total securities available for sale	—		1,228,715		9,862		1,238,577
Derivative instruments:
Interest rate contracts	—		5,055		—		5,055
Interest rate lock commitments	—		6,694		—		6,694
Forward commitments	—		580		—		580
Total derivative instruments	—		12,329		—		12,329
Mortgage loans held for sale in loans held for sale	—		392,448		—		392,448
Total financial assets	$	—	$	1,633,492	$	9,862	$	1,643,354
Financial liabilities:
Derivative instruments:
Interest rate swaps	$	—	$	6,290	$	—	$	6,290
Interest rate contracts	—		5,055		—		5,055
Interest rate lock commitments	—		14		—		14
Forward commitments	—		1,136		—		1,136
Total derivative instruments	—		12,495		—		12,495
Total financial liabilities	$	—	$	12,495	$	—	$	12,495

	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 September 30, 2019	Trust preferred securities
Balance at July 1, 2019	$	10,386
Accretion included in net income	9
Unrealized losses included in other comprehensive income	(439		)
Purchases	—
Sales	—
Issues	—
Settlements	(94		)
Transfers into Level 3	—
Transfers out of Level 3	—
Balance at September 30, 2019	$	9,862

 

Three Months Ended September 30, 2018	Trust preferred securities
Balance at July 1, 2018	$	10,401
Accretion included in net income	8
Unrealized losses included in other comprehensive income	(45		)
Purchases	—
Sales	—
Issues	—
Settlements	(60		)
Transfers into Level 3	—
Transfers out of Level 3	—
Balance at September 30, 2018	$	10,304

Nine Months Ended September 30, 2019	Trust preferred securities
Balance at January 1, 2019	$	10,633
Accretion included in net income	26
Unrealized losses included in other comprehensive income	(572		)
Purchases	—
Sales	—
Issues	—
Settlements	(225		)
Transfers into Level 3	—
Transfers out of Level 3	—
Balance at September 30, 2019	$	9,862

Nine Months Ended September 30, 2018	Trust preferred securities
Balance at January 1, 2018	$	9,388
Accretion included in net income	25
Unrealized gains included in other comprehensive income	1,007
Reclassification adjustment	—
Purchases	—
Sales	—
Issues	—
Settlements	(116		)
Transfers into Level 3	—
Transfers out of Level 3	—
Balance at September 30, 2018	$	10,304

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 September 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	$	9,862	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:

September 30, 2019	Level 1		Level 2		Level 3		Totals
Impaired loans	$	—	$	—	$	25,418	$	25,418
OREO	—		—		2,911		2,911
Mortgage servicing rights	—		—		48,286		48,286
Total	$	—	$	—	$	76,615	$	76,615

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:

	September 30, 2019			December 31, 2018
Carrying amount prior to remeasurement	$	3,799		$	5,258
Impairment recognized in results of operations	(888		)	(939		)
Fair value	$	2,911		$	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 September 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	$	25,418	Appraised value of collateral less estimated costs to sell	Estimated costs to sell	4-10%
OREO	2,911		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 September 30, 2019:

	Aggregate Fair  Value		Aggregate Unpaid Principal Balance		Difference
Mortgage loans held for sale measured at fair value	$	392,448	$	379,727	$	12,721
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 September 30, 2019	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	409,661	$	409,661	$	—	$	—	$	409,661
Securities available for sale	1,238,577		—		1,228,715		9,862		1,238,577
Loans held for sale	392,448		—		392,448		—		392,448
Loans, net	9,262,970		—		—		9,040,016		9,040,016
Mortgage servicing rights	48,286		—		—		48,286		48,286
Derivative instruments	12,329		—		12,329		—		12,329
Financial liabilities
Deposits	$	10,286,036	$	8,011,246	$	2,273,658	$	—	$	10,284,904
Short-term borrowings	205,602		205,602		—		—		205,602
Other long-term borrowings	10		10		—		—		10
Federal Home Loan Bank advances	4,055		—		4,252		—		4,252
Junior subordinated debentures	110,070		—		104,330		—		104,330
Subordinated notes	113,969		—		117,525		—		117,525
Derivative instruments	12,495		—		12,495		—		12,495

			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