Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Summary of Financial Instruments Measured at Fair Value on a Recurring Basis

The following table summarizes financial instruments measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	September 30, 2019
(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
Assets
Securities available for sale
Obligations of U.S. Government-sponsored enterprises	$	—	$	10,033	$	—	$	10,033
Obligations of states and political subdivisions	—		170,313		—		170,313
Agency mortgage-backed securities	—		934,111		—		934,111
U.S. Treasury bills	—		10,247		—		10,247
Corporate debt securities	—		122,629				122,629
Total securities available for sale	—		1,247,333		—		1,247,333
Other investments	164		—		—		164
Derivatives	—		13,561		—		13,561
Total assets	$	164	$	1,260,894	$	—	$	1,261,058
Liabilities
Derivatives	$	—	$	18,451	$	—	$	18,451
Total liabilities	$	—	$	18,451	$	—	$	18,451

	December 31, 2018
(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
Assets
Securities available for sale
Obligations of U.S. Government-sponsored enterprises	$	—	$	98,498	$	—	$	98,498
Obligations of states and political subdivisions	—		26,810		—		26,810
Agency mortgage-backed securities	—		586,136		—		586,136
U.S. Treasury bills	—		9,925		—		9,925
Total securities available for sale	—		721,369		—		721,369
Other investments	121		—		—		121
Derivatives	—		3,023		—		3,023
Total assets	$	121	$	724,392	$	—	$	724,513
Liabilities
Derivatives	$	—	$	3,023	$	—	$	3,023
Total liabilities	$	—	$	3,023	$	—	$	3,023

Schedule of Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis

	State tax credits held for sale
	Three months ended September 30,					Nine months ended September 30,
(in thousands)	2019		2018			2019		2018
Beginning balance	$	—	$	299		$	—	$	400
Total gains:
Included in earnings	—		7			—		13
Purchases, sales, issuances and settlements:
Sales	—		(135		)	—		(242		)
Ending balance	$	—	$	171		$	—	$	171
Change in unrealized losses relating to assets still held at the reporting date	$	—	$	(34	)	$	—	$	(60	)

Summary of Financial Instruments and Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis

	(1)		(1)		(1)		(1)
(in thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total losses for the three months ended September 30, 2019		Total losses for the nine months ended September 30, 2019
Impaired loans	$	1,589	$	—	$	—	$	1,589	$	118	$	1,532
Total	$	1,589	$	—	$	—	$	1,589	$	118	$	1,532
(1) The amounts represent only balances measured at fair value during the period and still held as of the reporting date.

Summary of Carrying Amount and Fair Values of Financial Instruments Reported on the Balance Sheets

Following is a summary of the carrying amounts and fair values of the Company’s financial instruments on the consolidated balance sheets at September 30, 2019 and December 31, 2018.

	September 30, 2019				December 31, 2018
(in thousands)	Carrying Amount		Estimated fair value		Carrying Amount		Estimated fair value
Balance sheet assets
Cash and due from banks	$	153,730	$	153,730	$	91,511	$	91,511
Federal funds sold	2,829		2,829		1,714		1,714
Interest-bearing deposits	103,918		103,918		106,512		106,512
Securities available for sale	1,247,333		1,247,333		721,369		721,369
Securities held to maturity	60,786		61,623		65,679		63,934
Other investments, at cost	46,867		46,867		26,654		26,654
Loans held for sale	6,281		6,281		392		392
Derivative financial instruments	13,561		13,561		3,023		3,023
Portfolio loans, net	5,183,459		5,123,351		4,306,525		4,253,239
State tax credits, held for sale	43,808		46,981		37,587		39,169
Accrued interest receivable	21,097		21,097		16,069		16,069
Balance sheet liabilities
Deposits	5,624,380		5,604,045		4,587,985		4,583,047
Subordinated debentures and notes	141,179		131,603		118,156		106,316
Federal Home Loan Bank advances	461,426		464,033		70,000		70,000
Other borrowings and notes payable	199,634		199,539		223,450		223,260
Derivative financial instruments	18,451		18,451		3,023		3,023
Accrued interest payable	2,907		2,907		1,977		1,977

Schedule of Estimated Fair Values of Financial Instruments Not Recorded at Fair Value on Balance Sheet

The following table presents the level in the fair value hierarchy for the estimated fair values of only the Company’s financial instruments that are not already presented on the condensed consolidated balance sheets at fair value at September 30, 2019, and December 31, 2018.

	Estimated Fair Value Measurement at Reporting Date Using						Balance at September 30, 2019
(in thousands)	Level 1		Level 2		Level 3
Financial Assets:
Securities held to maturity	$	—	$	61,623	$	—	$	61,623
Portfolio loans, net	—		—		5,123,351		5,123,351
State tax credits, held for sale	—		—		46,981		46,981
Financial Liabilities:
Deposits	4,804,357		—		799,688		5,604,045
Subordinated debentures and notes	—		131,603		—		131,603
Federal Home Loan Bank advances	—		464,033		—		464,033
Other borrowings and notes payable	—		199,539		—		199,539
	Estimated Fair Value Measurement at Reporting Date Using						Balance at December 31, 2018
(in thousands)	Level 1		Level 2		Level 3
Financial Assets:
Securities held to maturity	$	—	$	63,934	$	—	$	63,934
Portfolio loans, net	—		—		4,253,239		4,253,239
State tax credits, held for sale	—		—		39,169		39,169
Financial Liabilities:
Deposits	3,903,556		—		679,491		4,583,047
Subordinated debentures and notes	—		106,316		—		106,316
Federal Home Loan Bank advances	—		70,000		—		70,000
Other borrowings and notes payable	—		223,260		—		223,260