Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2019

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 March 31, 2019		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	$	21,521	—	21,521	—
U.S. government sponsored enterprises	106,457		—	106,457	—
State and local governments	725,191		—	725,191	—
Corporate bonds	218,548		—	218,548	—
Residential mortgage-backed securities	825,048		—	825,048	—
Commercial mortgage-backed securities	625,557		—	625,557	—
Loans held for sale, at fair value	29,389		—	29,389	—
Total assets measured at fair value on a recurring basis	$	2,551,711	—	2,551,711	—
Interest rate swaps	$	5,380	—	5,380	—
Total liabilities measured at fair value on a recurring basis	$	5,380	—	5,380	—



			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	—

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 March 31, 2019		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	$	204	—	—	204
Collateral-dependent impaired loans, net of ALLL	8		—	—	8
Total assets measured at fair value on a non-recurring basis	$	212	—	—	212



			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

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 March 31, 2019		Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value March 31, 2019		Valuation Technique	Unobservable Input	Range (Weighted-Average) ¹
Other real estate owned	$	204	Sales comparison approach	Selling costs	8.0% - 15.0% (10.6%)
Collateral-dependent impaired loans, net of ALLL	$	8	Sales comparison approach	Selling costs	10.0% - 10.0% (10.0%)



	Fair Value December 31, 2018		Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value 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

______________________________

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

Carrying amounts and estimated fair values of financial instruments not carried at fair value

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 March 31, 2019		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	$	202,527	202,527	—	—
Debt securities, held-to-maturity	255,572		—	261,408	—
Loans receivable, net of ALLL	8,196,284		—	—	8,148,954
Total financial assets	$	8,654,383	202,527	261,408	8,148,954
Financial liabilities
Term deposits	$	1,089,684	—	1,089,785	—
FHLB advances	154,683		—	154,915	—
Repurchase agreements and other borrowed funds	504,358		—	504,358	—
Subordinated debentures	134,048		—	121,369	—
Total financial liabilities	$	1,882,773	—	1,870,427	—



			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	—