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

12 Months Ended

Dec. 31, 2019

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, 2019	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	$	12,580	$	123,067	$	—	$	135,647
Mortgage-backed securities	—		551,064		—		551,064
Obligations of states and political subdivisions	—		60,021		—		60,021
Corporate debt securities	—		9,168		—		9,168
Total securities available for sale	12,580		743,320		—		755,900
Equity securities, at fair value	1,735		14,738		—		16,473
Derivative assets	—		27,123		—		27,123
Total Assets	$	14,315	$	785,181	$	—	$	799,496
Liabilities:
Derivative liabilities	$	—	$	26,852	$	—	$	26,852
Total Liabilities	$	—	$	26,852	$	—	$	26,852



December 31, 2018	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	$	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 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, 2019	(Level 1)		(Level 2)		(Level 3)		Total Fair Value
(in thousands)
Assets:
Impaired loans	$	—	$	—	$	5,789	$	5,789
Loans held for sale	—		1,743		—		1,743
Other real estate owned and other repossessed assets	—		—		563		563



December 31, 2018	(Level 1)		(Level 2)		(Level 3)		Total Fair Value
(in thousands)
Assets:
Impaired loans	$	—	$	—	$	8,966	$	8,966
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 December 31, 2019 and December 31, 2018:



December 31, 2019	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	$	123,975	$	124,904	$	—	$	121,503	$	3,401
Federal Home Loan and other membership bank stock	22,505		22,505		—		22,505		—
Loans, net	5,097,820		5,194,065		—		—		5,194,065
Financial Liabilities:
Certificates of deposit	870,804		871,418		—		871,418		—
Other borrowings	165,816		166,505		—		166,505		—
Subordinated debentures	118,220		117,992		—		—		117,992



December 31, 2018	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	$	153,646	$	150,932	$	—	$	143,913	$	7,019
Federal Home Loan and other membership bank stock	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