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

6 Months Ended

Jun. 30, 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 six months ended June 30, 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
June 30, 2019
Assets:
Investment securities, available for sale
U.S. Treasury and government agencies	$	16,525	$	123,345	$	—	$	139,870
Mortgage-backed securities	—		473,786		—		473,786
Obligations of states and political subdivisions	—		45,343		—		45,343
Debt securities	—		5,123		—		5,123
Total securities available for sale	16,525		647,597		—		664,122
Equity securities, at fair value	1,806		13,576		—		15,382
Derivative assets	—		23,372		—		23,372
Total Assets	$	18,331	$	684,545	$	—	$	702,876
Liabilities:
Derivative liabilities	$	—	$	22,969	$	—	$	22,969
Total Liabilities	$	—	$	22,969	$	—	$	22,969

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
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
June 30, 2019
Assets:
Impaired loans	$	—	$	—	$	17,385	$	17,385
Loans held for sale	—		1,391		—		1,391
Other real estate owned and other repossessed assets	—		—		532		532

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 June 30, 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)

June 30, 2019
Financial Assets:
Investment securities held to maturity	$	160,328	$	161,028	$	—	$	155,624	$	5,404
Federal Home Loan Bank and other membership bank stocks	23,642		23,642		—		23,642		—
Loans, net	4,883,711		4,936,965		—		—		4,936,965
Financial Liabilities:
Certificates of deposit	985,340		984,991		—		984,991		—
Other borrowings	175,820		175,998		—		175,998		—
Subordinated debentures	118,202		116,139		—		—		116,139
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