Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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 September 30, 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.



	September 30, 2019
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Debt securities available-for-sale:
U.S. Treasury securities	$	—	$	10,049	$	—	$	10,049
Obligations of U.S. government corporations and agencies	—		130,165		—		130,165
Collateralized mortgage obligations of U.S. government corporations and agencies	—		155,010		—		155,010
Residential mortgage-backed securities of U.S. government corporations and agencies	—		18,826		—		18,826
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		237,951		—		237,951
Obligations of states and political subdivisions	—		112,519		—		112,519
Total Debt Securities Available-for-Sale	—		664,520		—		664,520
Marketable equity securities	—		4,706		—		4,706
Total Securities	—		669,226		—		669,226
Securities held in a deferred compensation plan	5,611		—		—		5,611
Derivative financial assets:
Interest rate swaps	—		32,825		—		32,825
Interest rate lock commitments	—		455		—		455
Forward sale contracts - mortgage loans	—		64		—		64
Total Assets	$	5,611	$	702,570	$	—	$	708,181
LIABILITIES
Derivative financial liabilities:
Interest rate swaps	$	—	$	32,772	$	—	$	32,772
Total Liabilities	$	—	$	32,772	$	—	$	32,772



	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	—		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:



	September 30, 2019								December 31, 2018
(dollars in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
ASSETS⁽¹⁾
Impaired loans	$	—	$	—	$	33,473	$	33,473	$	—	$	—	$	21,441	$	21,441
Other real estate owned	—		—		1,353		1,353		—		—		2,826		2,826
Mortgage servicing rights	—		—		3,485		3,485		—		—		1,197		1,197
Total Assets	$	—	$	—	$	38,311	$	38,311	$	—	$	—	$	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 September 30, 2019 and December 31, 2018 are presented in the following tables:



	Carrying Value⁽¹⁾		Fair Value Measurements at September 30, 2019
(dollars in thousands)	Carrying Value⁽¹⁾		Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	173,609	$	173,609	$	173,609	$	—	$	—
Securities	669,226		669,226		—		669,226		—
Loans held for sale	8,371		8,371		—		—		8,371
Portfolio loans, net	6,133,650		6,022,385		—		—		6,022,385
Bank owned life insurance	75,386		75,386		—		75,386		—
FHLB and other restricted stock	25,397		25,397		—		—		25,397
Securities held in a deferred compensation plan	5,611		5,611		5,611		—		—
Mortgage servicing rights	4,172		4,189		—		—		4,189
Interest rate swaps	32,825		32,825		—		32,825		—
Interest rate lock commitments	455		455		—		455		—
Forward sale contracts	64		64		—		64		—
LIABILITIES
Deposits	$	5,982,692	$	5,981,492	$	4,656,323	$	1,325,169	$	—
Securities sold under repurchase agreements	13,925		13,925		13,925		—		—
Short-term borrowings	370,000		370,000		370,000		—		—
Long-term borrowings	69,156		69,738		39,329		30,409		—
Junior subordinated debt securities	45,619		45,619		45,619		—		—
Interest rate swaps	32,772		32,772		—		32,772		—
⁽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	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