Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

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 March 31, 2019 and December 31, 2018. There were no transfers between Level 1 and Level 2 for items measured at fair value on a recurring basis during the periods presented.



	March 31, 2019
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Debt securities available-for-sale:
U.S. Treasury securities	$	—	$	9,837	$	—	$	9,837
Obligations of U.S. government corporations and agencies	—		129,369		—		129,369
Collateralized mortgage obligations of U.S. government corporations and agencies	—		154,159		—		154,159
Residential mortgage-backed securities of U.S. government corporations and agencies	—		22,514		—		22,514
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		237,554		—		237,554
Obligations of states and political subdivisions	—		122,489		—		122,489
Total Debt Securities Available-for-Sale	—		675,922		—		675,922
Marketable equity securities	—		4,498		—		4,498
Total Securities	—		680,420		—		680,420
Securities held in a deferred compensation plan	5,343		—		—		5,343
Derivative financial assets:
Interest rate swaps	—		10,645		—		10,645
Interest rate lock commitments	—		339		—		339
Forward sale contracts - mortgage loans	—		88		—		88
Total Assets	$	5,343	$	691,492	$	—	$	696,835
LIABILITIES
Derivative financial liabilities:
Interest rate swaps	$	—	$	10,602	$	—	$	10,602
Total Liabilities	$	—	$	10,602	$	—	$	10,602



	December 31, 2018
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Debt securities available-for-sale:
U.S. Treasury securities	$	—	$	9,736	$	—	$	9,736
Obligations of U.S. government corporations and agencies	—		128,261		—		128,261
Collateralized mortgage obligations of U.S. government corporations and agencies	—		148,659		—		148,659
Residential mortgage-backed securities of U.S. government corporations and agencies	—		24,350		—		24,350
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		246,784		—		246,784
Obligations of states and political subdivisions	—		122,266		—		122,266
Total Debt Securities Available-for-Sale	—		680,056		—		680,056
Marketable equity securities	—		4,816		—		4,816
Total Securities	—		684,872		—		684,872
Securities held in a deferred compensation plan	4,725		—		—		4,725
Derivative financial assets:
Interest rate swaps	—		5,504		—		5,504
Interest rate lock commitments	—		251		—		251
Forward sale contracts - Mortgage Loans	—		55		—		55
Total Assets	$	4,725	$	690,682	$	—	$	695,407
LIABILITIES
Derivative financial liabilities:
Interest rate swaps	$	—	$	5,340	$	—	$	5,340
Total Liabilities	$	—	$	5,340	$	—	$	5,340

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:



	March 31, 2019								December 31, 2018
(dollars in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
ASSETS⁽¹⁾
Loans held for sale	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Impaired loans	—		—		30,601		30,601		—		—		21,441		21,441
Other real estate owned	—		—		2,613		2,613		—		—		2,826		2,826
Mortgage servicing rights	—		—		1,089		1,089		—		—		1,197		1,197
Total Assets	$	—	$	—	$	34,303	$	34,303	$	—	$	—	$	25,464	$	25,464
⁽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 March 31, 2019 and December 31, 2018 are presented in the following tables:



	Carrying Value⁽¹⁾		Fair Value Measurements at March 31, 2019
(dollars in thousands)	Carrying Value⁽¹⁾		Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	116,820	$	116,820	$	116,820	$	—	$	—
Securities	680,420		680,420		—		680,420		—
Loans held for sale	2,706		2,706		—		—		2,706
Portfolio loans, net	5,874,043		5,729,524		—		—		5,729,524
Bank owned life insurance	74,401		74,401		—		74,401		—
FHLB and other restricted stock	19,959		19,959		—		—		19,959
Securities held in a deferred compensation plan	5,343		5,343		5,343		—		—
Mortgage servicing rights	4,313		4,728		—		—		4,728
Interest rate swaps	10,645		10,645		—		10,645		—
Interest rate lock commitments	339		339		—		339		—
Forward sale contracts - mortgage loans	88		88		—		88		—
LIABILITIES
Deposits	$	5,833,401	$	5,825,873	$	4,432,629	$	1,393,244	$	—
Securities sold under repurchase agreements	23,427		23,427		23,427		—		—
Short-term borrowings	235,000		235,000		235,000		—		—
Long-term borrowings	70,418		70,801		39,335		31,467		—
Junior subordinated debt securities	45,619		45,619		45,619		—		—
Interest rate swaps	10,602		10,602		—		10,602		—
⁽¹⁾ As reported in the Consolidated Balance Sheets



	Carrying Value⁽¹⁾		Fair Value Measurements at December 31, 2018
(dollars in thousands)	Carrying Value⁽¹⁾		Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	155,489	$	155,489	$	155,489	$	—	$	—
Securities	684,872		684,872		—		684,872		—
Loans held for sale	2,371		2,469		—		—		2,469
Portfolio loans, net	5,885,652		5,728,843		—		—		5,728,843
Bank owned life insurance	73,900		73,900		—		73,900		—
FHLB and other restricted stock	29,435		29,435		—		—		29,435
Securities held in a Deferred Compensation Plan	4,725		4,725		4,725		—		—
Mortgage servicing rights	4,464		5,181		—		—		5,181
Interest rate swaps	5,504		5,504		—		5,504		—
Interest rate lock commitments	251		251		—		251		—
Forward sale contracts - mortgage loans	55		55		—		55		—
LIABILITIES
Deposits	$	5,673,922	$	5,662,193	$	4,261,884	$	1,400,309	$	—
Securities sold under repurchase agreements	18,383		18,383		18,383		—		—
Short-term borrowings	470,000		470,000		470,000		—		—
Long-term borrowings	70,314		70,578		38,610		31,968		—
Junior subordinated debt securities	45,619		45,619		45,619		—		—
Interest rate swaps	5,340		5,340		—		5,340		—
⁽¹⁾ As reported in the Consolidated Balance Sheets