Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present our assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy level at June 30, 2018 and December 31, 2017. There were no transfers between Level 1 and Level 2 for items measured at fair value on a recurring basis during the periods presented.



	June 30, 2018
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Debt securities available-for-sale:
U.S. Treasury securities	$	—	$	9,619	$	—	$	9,619
Obligations of U.S. government corporations and agencies	—		155,069		—		155,069
Collateralized mortgage obligations of U.S. government corporations and agencies	—		118,742		—		118,742
Residential mortgage-backed securities of U.S. government corporations and agencies	—		28,442		—		28,442
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		247,128		—		247,128
Obligations of states and political subdivisions	—		123,916		—		123,916
Total Debt Securities Available-for-Sale	—		682,916		—		682,916
Marketable equity securities⁽¹⁾	—		5,425		—		5,425
Total Securities	—		688,341		—		688,341
Trading securities held in a Rabbi Trust	4,988		—		—		4,988
Derivative financial assets:
Interest rate swaps	—		6,157		—		6,157
Interest rate lock commitments	—		398		—		398
Total Assets	$	4,988	$	694,896	$	—	$	699,884
LIABILITIES
Derivative financial liabilities:
Interest rate swaps	$	—	$	6,223	$	—	$	6,223
Forward sale contracts	—		39		—		39
Total Liabilities	$	—	$	6,262	$	—	$	6,262

⁽¹⁾ASU No. 2016-01 was adopted January 1, 2018, resulting in separate classification of our marketable equity securities previously included in available-for-sale securities.



	December 31, 2017
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Debt securities available-for-sale:
U.S. Treasury securities	$	—	$	19,789	$	—	$	19,789
Obligations of U.S. government corporations and agencies	—		162,193		—		162,193
Collateralized mortgage obligations of U.S. government corporations and agencies	—		108,688		—		108,688
Residential mortgage-backed securities of U.S. government corporations and agencies	—		32,854		—		32,854
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		242,221		—		242,221
Obligations of states and political subdivisions	—		127,402		—		127,402
Total Debt Securities Available-for-Sale	—		693,147		—		693,147
Marketable equity securities	—		5,144		—		5,144
Total Securities	—		698,291		—		698,291
Trading securities held in a Rabbi Trust	5,080		—		—		5,080
Derivative financial assets:
Interest rate swaps	—		3,074		—		3,074
Interest rate lock commitments	—		226		—		226
Total Assets	$	5,080	$	701,591	$	—	$	706,671
LIABILITIES
Derivative financial liabilities:
Interest rate swaps	$	—	$	3,055	$	—	$	3,055
Forward sale contracts	—		5		—		5
Total Liabilities	$	—	$	3,060	$	—	$	3,060

⁽¹⁾ASU No. 2016-01 was adopted January 1, 2018, resulting in separate classification of our marketable equity securities previously included in available-for-sale securities.

Schedule of Assets Measured at Estimated Fair Value on Nonrecurring Basis by Fair Value Hierarchy

The following table presents our assets that are measured at fair value on a nonrecurring basis by the fair value hierarchy level as of the dates presented:



	June 30, 2018								December 31, 2017
(dollars in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
ASSETS⁽¹⁾
Impaired loans	$	—	$	—	$	5,487	$	5,487	$	—	$	—	$	6,759	$	6,759
Other real estate owned	—		—		2,719		2,719		—		—		444		444
Mortgage servicing rights	—		—		89		89		—		—		178		178
Total Assets	$	—	$	—	$	8,295	$	8,295	$	—	$	—	$	7,381	$	7,381
⁽¹⁾This table presents only the nonrecurring items that are recorded at fair value in our financial statements.

Schedule of Carrying Values and Fair Values of Financial Instruments

The carrying values and fair values of our financial instruments at June 30, 2018 and December 31, 2017 are presented in the following tables:



	Carrying Value⁽¹⁾		Fair Value Measurements at June 30, 2018
(dollars in thousands)	Carrying Value⁽¹⁾		Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	137,933	$	137,933	$	137,933	$	—	$	—
Securities	688,341		688,341		—		688,341		—
Loans held for sale	3,801		3,927		—		—		3,927
Portfolio loans, net	5,725,601		5,558,333		—		—		5,558,333
Bank owned life insurance	73,122		73,122		—		73,122		—
FHLB and other restricted stock	35,782		35,782		—		—		35,782
Trading securities held in a Rabbi Trust	4,988		4,988		4,988		—		—
Mortgage servicing rights	4,296		5,198		—		—		5,198
Interest rate swaps	6,157		6,157		—		6,157		—
Interest rate lock commitments	398		398		—		398		—
LIABILITIES
Deposits	$	5,393,533	$	5,378,467	$	—	$	—	$	5,378,467
Securities sold under repurchase agreements	44,724		44,724		—		—		44,724
Short-term borrowings	600,000		600,000		—		—		600,000
Long-term borrowings	46,062		46,226		—		—		46,226
Junior subordinated debt securities	45,619		45,619		—		—		45,619
Interest rate swaps	6,223		6,223		—		6,223		—
Forward sales contracts	39		39		—		39		—
⁽¹⁾ As reported in the Consolidated Balance Sheets



	Carrying Value⁽¹⁾		Fair Value Measurements at December 31, 2017
(dollars in thousands)	Carrying Value⁽¹⁾		Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	117,152	$	117,152	$	117,152	$	—	$	—
Securities	698,291		698,291		—		698,291		—
Loans held for sale	4,485		4,583		—		—		4,583
Portfolio loans, net	5,705,059		5,690,292		—		—		5,690,292
Bank owned life insurance	72,150		72,150		—		72,150		—
FHLB and other restricted stock	29,270		29,270		—		—		29,270
Trading securities held in a Rabbi Trust	5,080		5,080		5,080		—		—
Mortgage servicing rights	4,133		4,571		—		—		4,571
Interest rate swaps	3,074		3,074		—		3,074		—
Interest rate lock commitments	226		226		—		226		—
LIABILITIES
Deposits	$	5,427,891	$	5,426,928	$	—	$	—	$	5,426,928
Securities sold under repurchase agreements	50,161		50,161		—		—		50,161
Short-term borrowings	540,000		540,000		—		—		540,000
Long-term borrowings	47,301		47,618		—		—		47,618
Junior subordinated debt securities	45,619		45,619		—		—		45,619
Interest rate swaps	3,055		3,055		—		3,055		—
Forward sales contracts	5		5		—		5		—
⁽¹⁾ As reported in the Consolidated Balance Sheets.