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

9 Months Ended

Sep. 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 nine months ended September 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
September 30, 2019
Assets:
Investment securities, available for sale
U.S. Treasury and government agencies	$	12,618	$	133,712	$	—	$	146,330
Mortgage-backed securities	—		524,898		—		524,898
Obligations of states and political subdivisions	—		44,044		—		44,044
Debt securities	—		5,133		—		5,133
Total securities available for sale	12,618		707,787		—		720,405
Equity securities, at fair value	1,843		13,709		—		15,552
Derivative assets	—		34,722		—		34,722
Total Assets	$	14,461	$	756,218	$	—	$	770,679
Liabilities:
Derivative liabilities	$	—	$	34,430	$	—	$	34,430
Total Liabilities	$	—	$	34,430	$	—	$	34,430

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
September 30, 2019
Assets:
Impaired loans	$	—	$	—	$	17,653	$	17,653
Loans held for sale	—		3,077		—		3,077
Properties held for sale	$	—	$	—	$	1,836	$	1,836
Other real estate owned and other repossessed assets	—		—		944		944

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 September 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)

September 30, 2019
Financial Assets:
Investment securities held to maturity	$	151,115	$	152,495	$	—	$	149,093	$	3,402
Federal Home Loan Bank and other membership bank stocks	18,006		18,006		—		18,006		—
Loans, net	4,884,759		4,964,970		—		—		4,964,970
Financial Liabilities:
Certificates of deposit	913,213		913,550		—		913,550		—
Other borrowings	165,818		166,581		—		166,581		—
Subordinated debentures	118,211		116,160		—		—		116,160
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