Fair Value Measurements (Tables)

9 Months Ended

Sep. 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 September 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.



	September 30, 2018
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Debt securities available-for-sale:
U.S. Treasury securities	$	—	$	9,556	$	—	$	9,556
Obligations of U.S. government corporations and agencies	—		136,984		—		136,984
Collateralized mortgage obligations of U.S. government corporations and agencies	—		137,660		—		137,660
Residential mortgage-backed securities of U.S. government corporations and agencies	—		26,450		—		26,450
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		244,596		—		244,596
Obligations of states and political subdivisions	—		121,975		—		121,975
Total Debt Securities Available-for-Sale	—		677,221		—		677,221
Marketable equity securities⁽¹⁾	—		5,314		—		5,314
Total Securities	—		682,535		—		682,535
Trading securities held in a Rabbi Trust	5,377		—		—		5,377
Derivative financial assets:
Interest rate swaps	—		7,448		—		7,448
Interest rate lock commitments	—		229		—		229
Forward sale contracts - mortgage loans	—		61		—		61
Total Assets	$	5,377	$	690,273	$	—	$	695,650
LIABILITIES
Derivative financial liabilities:
Interest rate swaps	$	—	$	7,483	$	—	$	7,483
Total Liabilities	$	—	$	7,483	$	—	$	7,483

⁽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

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:



	September 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	$	—	$	—	$	3,577	$	3,577	$	—	$	—	$	6,759	$	6,759
Other real estate owned	—		—		2,871		2,871		—		—		444		444
Mortgage servicing rights	—		—		85		85		—		—		178		178
Total Assets	$	—	$	—	$	6,533	$	6,533	$	—	$	—	$	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 September 30, 2018 and December 31, 2017 are presented in the following tables:



	Carrying Value⁽¹⁾		Fair Value Measurements at September 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	$	132,650	$	132,650	$	132,650	$	—	$	—
Securities	682,535		682,535		—		682,535		—
Loans held for sale	4,207		4,377		—		—		4,377
Portfolio loans, net	5,747,251		5,585,934		—		—		5,585,934
Bank owned life insurance	73,626		73,626		—		73,626		—
FHLB and other restricted stock	31,178		31,178		—		—		31,178
Trading securities held in a Rabbi Trust	5,377		5,377		5,377		—		—
Mortgage servicing rights	4,421		5,456		—		—		5,456
Interest rate swaps	7,448		7,448		—		7,448		—
Interest rate lock commitments	229		229		—		229		—
Forward sale contracts - mortgage loans	61		61		—		61		—
LIABILITIES
Deposits	$	5,467,509	$	5,451,776	$	—	$	—	$	5,451,776
Securities sold under repurchase agreements	45,200		45,200		—		—		45,200
Short-term borrowings	535,000		535,000		—		—		535,000
Long-term borrowings	45,434		45,564		—		—		45,564
Junior subordinated debt securities	45,619		45,619		—		—		45,619
Interest rate swaps	7,483		7,483		—		7,483		—
⁽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