Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2018

Fair value measurement of assets and liabilities measured at fair value on a recurring basis

The following tables disclose the fair value measurement of assets and liabilities measured at fair value on a recurring basis:



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value December 31, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Debt securities, available-for-sale
U.S. government and federal agency	$	23,649	—	23,649	—
U.S. government sponsored enterprises	120,208		—	120,208	—
State and local governments	852,250		—	852,250	—
Corporate bonds	290,817		—	290,817	—
Residential mortgage-backed securities	792,915		—	792,915	—
Commercial mortgage-backed securities	491,824		—	491,824	—
Loans held for sale, at fair value	33,156		—	33,156	—
Total assets measured at fair value on a recurring basis	$	2,604,819	—	2,604,819	—
Interest rate swaps	$	3,769	—	3,769	—
Total liabilities measured at fair value on a recurring basis	$	3,769	—	3,769	—

Note 20. Fair Value of Assets and Liabilities (continued)



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Debt securities, available-for-sale
U.S. government and federal agency	$	31,127	—	31,127	—
U.S. government sponsored enterprises	19,091		—	19,091	—
State and local governments	629,501		—	629,501	—
Corporate bonds	216,762		—	216,762	—
Residential mortgage-backed securities	779,283		—	779,283	—
Commercial mortgage-backed securities	102,479		—	102,479	—
Loans held for sale, at fair value	38,833		—	38,833	—
Total assets measured at fair value on a recurring basis	$	1,817,076	—	1,817,076	—
Interest rate swaps	$	9,389	—	9,389	—
Total liabilities measured at fair value on a recurring basis	$	9,389	—	9,389	—

Fair value measurement of assets measured at fair value on a non-recurring basis

The following tables disclose the fair value measurement of assets with a recorded change during the period resulting from re-measuring the assets at fair value on a non-recurring basis:



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value December 31, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Other real estate owned	$	1,011	—	—	1,011
Collateral-dependent impaired loans, net of ALLL	6,985		—	—	6,985
Total assets measured at fair value on a non-recurring basis	$	7,996	—	—	7,996



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Other real estate owned	$	2,296	—	—	2,296
Collateral-dependent impaired loans, net of ALLL	6,339		—	—	6,339
Total assets measured at fair value on a non-recurring basis	$	8,635	—	—	8,635

Quantitative information about assets measured at fair value on a non-recurring basis for which Level 3 inputs were used

The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized Level 3 inputs to determine fair value:



	Fair Value		Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	December 31, 2018		Valuation Technique	Unobservable Input	Range (Weighted- Average) ¹
Other real estate owned	$	1,011	Sales comparison approach	Selling costs	8.0% - 15.0% (9.2%)
Collateral-dependent impaired loans, net of ALLL	$	2,384	Sales comparison approach	Selling costs	8.0% - 20.0% (9.9%)
	4,601		Combined approach	Selling costs	10.0% - 10.0% (10.0%)
	$	6,985

Note 20. Fair Value of Assets and Liabilities (continued)



	Fair Value		Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	December 31, 2017		Valuation Technique	Unobservable Input	Range (Weighted- Average) ¹
Other real estate owned	$	2,296	Sales comparison approach	Selling costs	0.0% - 10.0% (6.0%)
Collateral-dependent impaired loans, net of ALLL	$	238	Cost approach	Selling costs	10.0% - 20.0% (10.6%)
	2,541		Sales comparison approach	Selling costs	8.0% - 10.0% (9.4%)
	3,560		Combined approach	Selling costs	10.0% - 10.0% (10.0%)
	$	6,339

______________________________

¹The range for selling cost inputs represents reductions to the fair value of the assets.

Carrying amounts and estimated fair values of financial instruments

The following tables present the carrying amounts, estimated fair values and the level within the fair value hierarchy of the Company’s financial instruments not carried at fair value. Receivables and payables due in one year or less, equity securities without readily determinable fair values and deposits with no defined or contractual maturities are excluded.



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Carrying Amount December 31, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	203,790	203,790	—	—
Debt securities, held-to-maturity	297,915		—	288,256	—
Loans receivable, net of ALLL	8,156,310		—	—	8,079,112
Total financial assets	$	8,658,015	203,790	288,256	8,079,112
Financial liabilities
Term deposits	$	1,070,208	—	1,069,777	—
FHLB advances	440,175		—	439,615	—
Repurchase agreements and other borrowed funds	410,859		—	410,859	—
Subordinated debentures	134,051		—	120,302	—
Total financial liabilities	$	2,055,293	—	2,040,553	—

Note 20. Fair Value of Assets and Liabilities (continued)



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Carrying Amount December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	200,004	200,004	—	—
Debt securities, held-to-maturity	648,313		—	660,086	—
Loans receivable, net of ALLL	6,448,256		—	6,219,515	114,771
Total financial assets	$	7,296,573	200,004	6,879,601	114,771
Financial liabilities
Term deposits	$	977,302	—	978,803	—
FHLB advances	353,995		—	352,886	—
Repurchase agreements and other borrowed funds	370,797		—	370,797	—
Subordinated debentures	126,135		—	98,023	—
Total financial liabilities	$	1,828,229	—	1,800,509	—