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Fair Value Measurement (Tables)
12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Recorded Amount of Assets and Liabilities Measured at Fair Value on Recurring Basis
The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis (in thousands):
Fair value at December 31, 2019TotalLevel 1Level 2Level 3
Marketable equity securities$2,960  $2,960  $—  $—  
Debt securities available for sale:
Obligations of U.S. government agencies472,980  —  472,980  —  
Obligations of states and political subdivisions109,601  —  109,601  —  
Corporate bonds2,532  —  2,532  —  
Asset backed securities365,025  —  365,025  —  
Loans held for sale5,265  —  5,265  —  
Mortgage servicing rights6,200  —  —  6,200  
Total assets measured at fair value$964,563  $2,960  $955,403  $6,200  
Fair value at December 31, 2018Total  Level 1  Level 2  Level 3  
Marketable equity securities$2,874  $2,874  $—  $—  
Debt securities available for sale:
Obligations of U.S. government agencies629,981  —  629,981  —  
Obligations of states and political subdivisions126,072  —  126,072  —  
Corporate bonds4,478  —  4,478  —  
Asset backed securities354,505  —  354,505  —  
Loans held for sale3,687  —  3,687  —  
Mortgage servicing rights7,098  —  —  7,098  
Total assets measured at fair value$1,128,695  $2,874  $1,118,723  $7,098  
Reconciliation of Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) on Recurring Basis
The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended December 31, 2019, 2018, and 2017. Had there been any transfer into or out of Level 3 during 2019, 2018, or 2017, the amount included in the “Transfers into (out of) Level 3” column would represent the beginning balance of an item in the period (interim quarter) during which it was transferred (in thousands):
Year ended December 31,Beginning
Balance
Transfers
into (out of)
Level 3
Change
Included
in Earnings
IssuancesEnding
Balance
2019: Mortgage servicing rights$7,098  —  $(1,811) $913  $6,200  
2018: Mortgage servicing rights$6,687  —  $(146) $557  $7,098  
2017: Mortgage servicing rights$6,595  —  $(718) $810  $6,687  
Quantitative Information about Recurring Level 3 Fair Value Measurements
The following table presents quantitative information about recurring Level 3 fair value measurements at December 31, 2019 and 2018:
December 31, 2019Fair Value
(in thousands)
Valuation
Technique
Unobservable
Inputs
Range,
Weighted
Average
Mortgage Servicing Rights$6,200  Discounted
cash flow
Constant
prepayment rate
5.0%-27.3%, 7.6%
December 31, 2018Discount rate
12%-13%, 12%
Mortgage Servicing Rights$7,098  Discounted
cash flow
Constant
prepayment rate
6.2%-42.0%, 11.0%
Discount rate
10.0%-14.0%, 12.0%
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis
The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis, as of the dates indicated, that had a write-down or an additional allowance provided during the periods indicated (in thousands):
Year ended December 31, 2019TotalLevel 1Level 2Level 3Total Gains
(Losses)
Fair value:
Impaired Originated & PNCI loans$1,055  —  —  $1,055  $(652) 
Real estate owned417  —  —  417  (27) 
Total assets measured at fair value$1,472  —  —  $1,472  $(679) 
Year ended December 31, 2018TotalLevel 1Level 2Level 3Total Gains
(Losses)
Fair value:
Impaired Originated & PNCI loans$281  —  —  $281  $(294) 
Real estate owned1,311  —  —  1,311  (8) 
Total assets measured at fair value$1,592  —  —  $1,592  $(302) 
Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Nonrecurring Basis
The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2019 and 2018:
December 31, 2019Fair Value
(in thousands)
Valuation TechniqueUnobservable InputsRange,
Weighted Average
Impaired Originated & PNCI loans$1,055  Sales comparison
approach
Income approach
Adjustment for differences between
comparable sales; Capitalization rate
Not meaningful;
N/A
Real estate owned (Residential)$417  Sales comparison
approach
Adjustment for differences between
comparable sales
Not meaningful;
N/A

December 31, 2018Fair Value
(in thousands)
Valuation TechniqueUnobservable InputsRange,
Weighted Average
Impaired Originated & PNCI loans$281  Sales comparison
approach Income
approach
Adjustment for differences between
comparable sales Capitalization rate
(74%)—23%;
(19.76%)
N/A
Real estate owned (Residential)$693  Sales comparison
approach
Adjustment for differences between
comparable sales
(47%)—39%;
(3.13%)
Real estate owned (Commercial)$618  Sales comparison
approach
Adjustment for differences between
comparable sales
(84%)—19%; (84%)
Estimated Fair Values of Financial Instruments that are Reported at Amortized Cost in Consolidated Balance Sheets The estimated fair values of financial instruments that are reported at amortized cost in the Corporation’s consolidated balance sheets, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, were as follows (in thousands):
December 31, 2019December 31, 2018
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Financial assets:
Level 1 inputs:
Cash and due from banks$92,816  $92,816  $119,781  $119,781  
Cash at Federal Reserve and other banks183,691  183,691  107,752  107,752  
Level 2 inputs:
Securities held to maturity375,606  381,525  444,936  437,370  
Restricted equity securities17,250   N/A   17,250  N/A  
Level 3 inputs:
Loans, net
4,276,750  4,263,064  3,989,432  4,006,986  
Financial liabilities:
Level 2 inputs:
Deposits5,366,994  5,365,921  5,366,466  5,362,173  
Other borrowings18,454  18,454  15,839  15,839  
Level 3 inputs:
Junior subordinated debt57,232  56,297  57,042  62,610  

Contract
Amount
Fair
Value
Contract
Amount
Fair
Value
Off-balance sheet:
Level 3 inputs:
Commitments$1,309,326  $13,093  $1,192,054  $11,921  
Standby letters of credit12,014  120  11,346  113  
Overdraft privilege commitments110,402  1,104  111,956  1,120