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

3 Months Ended

Mar. 31, 2019

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following table sets forth the Company’s financial assets that were accounted for at fair value on a recurring basis as of the periods presented by level within the fair value hierarchy. During the three months ended March 31, 2019, the Company did not make any transfers between any levels within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:



(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
March 31, 2019
Assets:
Investment securities, available for sale
U.S. Treasury and government agencies	$	16,293	$	123,288	$	—	$	139,581
Mortgage-backed securities	—		469,636		—		469,636
Obligations of states and political subdivisions	—		45,017		—		45,017
Other debt securities	—		5,004		—		5,004
Total securities available for sale	16,293		642,945		—		659,238
Equity securities, at fair value	1,864		13,368		—		15,232
Derivative assets	—		15,178		—		15,178
Total Assets	$	18,157	$	671,491	$	—	$	689,648
Liabilities:
Derivative liabilities	$	—	$	14,350	$	—	$	14,350
Total Liabilities	$	—	$	14,350	$	—	$	14,350

December 31, 2018
Assets:
Investment securities, available for sale
U.S. Treasury and government agencies	$	4,920	$	136,007	$	—	$	140,927
Mortgage-backed securities	—		447,094		—		447,094
Obligations of states and political subdivisions	—		45,505		—		45,505
Corporate debt securities	—		5,092		—		5,092
Total securities available for sale	4,920		633,698		—		638,618
Equity securities, at fair value	2,731		13,190		—		15,921
Derivative assets	—		12,135		—		12,135
Total Assets	$	7,651	$	659,023	$	—	$	666,674
Liabilities:
Derivative liabilities	$	—	$	11,036	$	—	$	11,036
Total Liabilities	$	—	$	11,036	$	—	$	11,036

Fair Value of Assets Measured on Non-recurring Basis

The following table sets forth the Company’s 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:



(in thousands)	(Level 1)		(Level 2)		(Level 3)		Total Fair Value
March 31, 2019
Assets:
Impaired loans	$	—	$	—	$	20,236	$	20,236
Loans held for sale	—		600		—		600
Other real estate owned and other repossessed assets	—		—		715		715

December 31, 2018
Assets:
Impaired loans	$	—	$	—	$	19,702	$	19,702
Loans held for sale	—		1,113		—		1,113
Other real estate owned and other repossessed assets	—		—		830		830

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 March 31, 2019 and December 31, 2018:



(in thousands)	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)

March 31, 2019
Financial Assets:
Investment securities held to maturity	$	159,308	$	158,219	$	—	$	150,700	$	7,519
Federal Home Loan Bank and other membership bank stocks	16,951		16,951		—		16,951		—
Loans, net	4,883,412		4,899,288		—		—		4,899,288
Financial Liabilities:
Certificates of deposit	946,372		942,283		—		942,283		—
Other borrowings	175,783		174,569		—		174,569		—
Subordinated debentures	118,193		115,462		—		—		115,462
December 31, 2018
Financial Assets:
Investment securities held to maturity	$	153,646	$	150,932	$	—	$	143,913	$	7,019
Federal Home Loan Bank and other membership bank stocks	13,301		13,301		—		13,301		—
Loans, net	4,419,045		4,341,477		—		—		4,341,477
Financial Liabilities:
Certificates of deposit	757,038		750,801		—		750,801		—
Other borrowings	181,118		176,921		—		176,921		—
Subordinated debentures	105,027		102,497		—		—		102,497