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Fair Value Measurement (Tables)
 9 Months Ended
Sep. 30, 2017
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 September 30, 2017    Total      Level 1      Level 2      Level 3  

Securities available for sale:

            

Obligations of U.S. government corporations and agencies

    $ 554,062        —        $ 554,062        —    

Obligations of states and political subdivisions

      121,217        —          121,217        —    

Marketable equity services

      2,957      $ 2,957        —          —    

Mortgage servicing rights

      6,419        —          —        $ 6,419  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets measured at fair value

    $ 684,655      $ 2,957      $ 675,279      $ 6,419  
  

 

 

     

 

 

     

 

 

     

 

 

  
Fair value at December 31, 2016    Total      Level 1      Level 2      Level 3  

Securities available-for-sale:

            

Obligations of U.S. government corporations and agencies

    $ 429,678        —        $ 429,678        —    

Obligations of states and political subdivisions

      117,617        —          117,617        —    

Marketable equity securities

      2,938      $ 2,938        —          —    

Mortgage servicing rights

      6,595        —          —        $ 6,595  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets measured at fair value

    $ 556,828      $ 2,938      $ 547,295      $ 6,595  
  

 

 

     

 

 

     

 

 

     

 

 

  
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 time periods indicated. Had there been any transfer into or out of Level 3 during the time periods indicated, 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):

 

     Three months ended September 30,      Nine months ended September 30,  
     2017      2016      2017      2016  

Mortgage servicing rights:

            

Balance at beginning of period

    $ 6,596      $ 6,720      $ 6,595      $ 7,618  

Additions

      147        287        619        788  

Change in fair value

      (324 )       (799 )       (795 )       (2,198 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Balance at end of period

    $ 6,419      $ 6,208      $ 6,419      $ 6,208  
  

 

 

     

 

 

     

 

 

     

 

 

  
Quantitative Information about Recurring Level 3 Fair Value Measurements

The following table presents quantitative information about recurring Level 3 fair value measurements at September 30, 2017:

 

     Fair Value
(in thousands)		      Valuation
Technique		      Unobservable
Inputs		    Range,
Weighted Average

Mortgage Servicing Rights

    $ 6,419        Discounted cash flow      Constant prepayment rate    6.5%-21.4%, 9.2%
         Discount rate    14.0%-16.0%, 14.0%

The following table presents quantitative information about recurring Level 3 fair value measurements at December 31, 2016:

 

     Fair Value
(in thousands)		      Valuation
Technique		      Unobservable
Inputs		    Range,
Weighted Average

Mortgage Servicing Rights

    $ 6,595        Discounted cash flow      Constant prepayment rate    6.9%-16.6%, 8.8%
         Discount rate    14.0%-16.0%, 14.0%
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

The tables below present the recorded investment in assets and liabilities measured at fair value on a nonrecurring basis, as of the dates indicated (in thousands):

 

Nine months ended September 30, 2017    Total      Level 1      Level 2      Level 3     

Total Gains

(Losses)

  

Fair value:

               

Impaired Originated & PNCI loans

    $ 1,026        —          —        $ 1,026      $ (892 ) 

Foreclosed assets

      2,062        —          —          2,062        (157 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total assets measured at fair value

    $ 3,088        —          —        $ 3,088      $ (1,049 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Year ended December 31, 2016    Total      Level 1      Level 2      Level 3      Total Gains
(Losses)		  

Fair value:

               

Impaired Originated & PNCI loans

    $ 1,107        —          —        $ 1,107      $ (409 ) 

Foreclosed assets

      2,253              2,253        (86 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total assets measured at fair value

    $ 3,360        —          —        $ 3,360      $ (495 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Nine months ended September 30, 2016    Total      Level 1      Level 2      Level 3      Total
Gains/(Losses)		  

Fair value:

               

Impaired Originated & PNCI loans

    $ 5,941        —          —        $ 5,941      $ (570 ) 

Foreclosed assets

      1,801        —          —          1,801        14  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total assets measured at fair value

    $ 7,742        —          —        $ 7,742      $ (556 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 
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 September 30, 2017:

 

     Fair Value
(in thousands)		      Valuation
Technique		   

Unobservable

Inputs

   

Range, Weighted
Average

Impaired Originated & PNCI loans

    $ 1,026      Sales comparison
approach Income
approach		   

Adjustment for differences between comparable sales

Capitalization rate

    (74)%-21%, (32%) N/A

Foreclosed assets (Land & construction)

    $ 960      Sales comparison
approach		    Adjustment for differences between comparable sales    (53)%-283%, 230%

Foreclosed assets (residential
(Residential real estate)

    $ 822      Sales comparison
approach		    Adjustment for differences between comparable sales    (47%)-39%, 3.3%

Foreclosed assets
(Commercial real estate)

    $ 280      Sales comparison
approach		    Adjustment for differences between comparable sales    (46%)-63%, 26%

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, 2016:

 

     Fair Value
(in thousands)		      Valuation
Technique		   

Unobservable

Inputs

   

Range,
Weighted Average

Impaired Originated & PNCI loans

    $ 1,107      Sales comparison
approach Income
approach		    Adjustment for differences between comparable sales Capitalization rate    Not meaningful N/A

Foreclosed assets
(Land & construction)

    $ 15      Sales comparison
approach		    Adjustment for differences between comparable sales    Not meaningful

Foreclosed assets
(Residential real estate)

    $ 1,564      Sales comparison
approach		    Adjustment for differences between comparable sales    Not meaningful

Foreclosed assets
(Commercial real estate)

    $ 674      Sales comparison
approach		    Adjustment for differences between comparable sales    Not meaningful
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):

 

     September 30, 2017      December 31, 2016  
     Carrying
Amount		      Fair
Value		      Carrying
Amount		      Fair
Value		  

Financial assets:

            

Level 1 inputs:

            

Cash and due from banks

    $ 86,815      $ 86,815      $ 92,197      $ 92,197  

Cash at Federal Reserve and other banks

      101,219        101,219        213,415        213,415  

Level 2 inputs:

            

Securities held to maturity

      536,567        542,123        602,536        603,203  

Restricted equity securities

      16,956        N/A        16,956        N/A  

Loans held for sale

      2,733        2,733        2,998        2,998  

Level 3 inputs:

            

Loans, net

      2,902,866        2,928,059        2,727,090        2,763,473  

Financial liabilities:

            

Level 2 inputs:

            

Deposits

      3,927,456        3,925,527        3,895,560        3,893,941  

Other borrowings

      98,730        98,730        17,493        17,493  

Level 3 inputs:

            

Junior subordinated debt

    $ 56,810      $ 55,259      $ 56,667      $ 49,033  
     Contract
Amount		      Fair
Value		      Contract
Amount		      Fair
Value		  

Off-balance sheet:

            

Level 3 inputs:

            

Commitments

    $ 909,900      $ 9,099      $ 767,274      $ 7,673  

Standby letters of credit

    $ 12,700      $ 128      $ 12,763      $ 128  

Overdraft privilege commitments

    $ 96,650      $ 967      $ 98,583      $ 986