Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2017 and 2016, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(Dollars in thousands)
December 31, 2017
Securities available for sale:
U.S. Treasury	$	312,802	$	—	$	—	$	312,802
U.S. federal agencies		—		88,851		—		88,851
Mortgage-backed securities		—		3,509		14,467		17,976
States and political subdivisions		—		42,370		—		42,370
Other securities		—		—		5,704		5,704
Derivative assets		—		295		—		295
Derivative liabilities		—		261		—		261
Loans held for sale		—		6,173		—		6,173

December 31, 2016
Securities available for sale:
U.S. Treasury	$	268,543	$	—	$	—	$	268,543
U.S. federal agencies		—		129,642		—		129,642
Mortgage-backed securities		—		4,856		14,816		19,672
States and political subdivisions		—		41,042		—		41,042
Other securities		—		—		6,569		6,569
Derivative assets		—		1,569		—		1,569
Derivative liabilities		—		1,306		—		1,306
Loans held for sale		—		9,318		—		9,318

Changes in Level 3 Assets Measured at Estimated Fair Value on Recurring Basis

The changes in Level 3 assets measured at estimated fair value on a recurring basis during the years ended December 31, 2017 and 2016 were as follows:

	Twelve Months Ended December 31,
	2017			2016
	(Dollars in thousands)
Balance at the beginning of the year	$	21,385		$	21,124
Purchases		1,668			1,096
Settlements		(722	)		(191	)
Sales		(5,412	)		(429	)
(Losses) gains included in earnings		4,060			(111	)
Total unrealized losses		(808	)		(104	)
Balance at the end of the period	$	20,171		$	21,385

Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes assets measured at fair value on a nonrecurring basis. The fair value represents end of period values, which approximate fair value measurements that occurred on various measurement dates throughout the period:

	Total Fair Value Level 3
	(Dollars in thousands)
As of and for the Year-to-date Period Ended December 31, 2017
Impaired loans (less specific allowance)	$	34,041
Repossessed assets		288
Other real estate owned		1,995

As of and for the Year-to-date Period Ended December 31, 2016
Impaired loans (less specific allowance)	$	29,912
Repossessed assets		340
Other real estate owned		1,480

Estimated Fair Values of Financial Instruments

The estimated fair values of the Company’s financial instruments that are reported at amortized cost in the Company’s consolidated balance sheets, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value, are as follows:

	December 31,
	2017				2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(Dollars in thousands)
FINANCIAL ASSETS
Level 2 inputs:
Cash and cash equivalents	$	1,758,575	$	1,758,575	$	1,851,161	$	1,851,161
Securities held for investment		1,792		1,803		3,722		3,760
Level 3 inputs:
Securities held for investment		500		500		643		643
Loans, net of allowance for loan losses		4,670,329		4,663,608		4,351,539		4,367,363
FINANCIAL LIABILITIES
Level 2 inputs:
Deposits		6,415,045		6,490,309		6,248,057		6,313,622
Short-term borrowings		900		900		500		500
Junior subordinated debentures		31,959		34,661		31,959		34,339
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS
Loan commitments				1,839				1,718
Letters of credit				428				424