Fair Value Measurement and Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:



December 31, 2017	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
	(in thousands)
Assets:
Investment securities, available for sale
U.S. Treasury and government agencies	$	5,415	$	141,840	$	—	$	147,255
Mortgage-backed securities	—		424,331		—		424,331
Obligations of states and political subdivisions	—		51,320		—		51,320
Corporate debt securities	—		5,140		—		5,140
Equity securities	5,147		12,942		—		18,089
Total securities available for sale	10,562		635,573		—		646,135
Other Assets(1)	—		6,555		—		6,555
Total Assets	$	10,562	$	642,128	$	—	$	652,690
Liabilities:
Other Liabilities(1)	$	—	$	5,465	$	—	$	5,465
Total Liabilities	$	—	$	5,465	$	—	$	5,465


(1)	Derivatives



December 31, 2016	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
	(in thousands)
Assets:
Investment securities, available for sale
U.S. Treasury and government agencies	$	5,931	$	111,428	$	—	$	117,359
Mortgage-backed securities	—		413,725		—		413,725
Obligations of states and political subdivisions	—		48,326		—		48,326
Corporate debt securities	—		5,412		—		5,412
Equity securities	7,748		14,134		—		21,882
Total securities available for sale	13,679		593,025		—		606,704
Other Assets(1)	—		3,378		—		3,378
Total Assets	$	13,679	$	596,403	$	—	$	610,082
Liabilities:
Other Liabilities(1)	$	—	$	2,345	$	—	$	2,345
Total Liabilities	$	—	$	2,345	$	—	$	2,345


(1)	Derivatives

Fair Value of Financial Assets Measured on Non-recurring Basis

The following table sets forth the Company’s financial assets subject to fair value adjustments (impairment) on a non-recurring basis. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:



December 31, 2017	(Level 1)		(Level 2)		(Level 3)		Total Fair Value
	(in thousands)
Assets:
Impaired loans and leases	$	—	$	—	$	22,591	$	22,591
Loans held for sale	—		456		—		456
Other real estate owned and other repossessed assets	—		—		843		843



December 31, 2016	(Level 1)		(Level 2)		(Level 3)		Total Fair Value
	(in thousands)
Assets:
Impaired loans and leases	$	—	$	—	$	25,285	$	25,285
Loans held for sale	—		1,742		—		1,742
Other real estate owned and other repossessed assets	—		—		1,072		1,072

Carrying Values and Fair Values of Company's Financial Instruments

The following table presents the carrying values, fair values and placement in the fair value hierarchy of the Company’s financial instruments as of December 31, 2017 and December 31, 2016:



December 31, 2017	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Financial Assets:
Investment securities held to maturity	$	139,685	$	138,688	$	—	$	127,901	$	10,787
Federal Home Loan and other membership bank stock	12,576		12,576		—		12,576		—
Loans and leases, net	4,117,265		4,114,516		—		—		4,114,516
Financial Liabilities:
Certificates of deposit	737,428		732,417		—		732,417		—
Other borrowings	192,011		189,080		—		189,080		—
Subordinated debentures	104,902		97,244		—		—		97,244



December 31, 2016	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Financial Assets:
Investment securities held to maturity	$	147,614	$	146,990	$	—	$	111,403	$	35,587
Federal Home Loan and other membership bank stock	15,099		15,099		—		15,099		—
Loans and leases, net	3,839,353		3,832,465		—		—		3,832,465
Financial Liabilities:
Certificates of deposit	544,908		543,399		—		543,399		—
Other borrowings	260,866		264,586		—		264,586		—
Subordinated debentures	104,784		94,476		—		—		94,476