Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 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):

	Total		Level 1		Level 2		Level 3
Fair value at December 31, 2017
Securities available-for-sale:
Obligations of U.S. government corporations and agencies	$	604,789		—	$	604,789		—
Obligations of states and political subdivisions		123,156		—		123,156		—
Marketable equity securities		2,938	$	2,938		—		—
Mortgage servicing rights		6,687		—		—	$	6,687
Total assets measured at fair value	$	737,570	$	2,938	$	727,945	$	6,687
	Total		Level 1		Level 2		Level 3
Fair value at December 31, 2016
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 years ended December 31, 2017, 2016, and 2015. Had there been any transfer into or out of Level 3 during 2017, 2016, or 2015, 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):

	Ending Balance		Transfers into (out of) Level 3		Change Included in Earnings			Issuances		Beginning Balance
Year ended December 31,
2017: Mortgage servicing rights	$	6,687		—	$	(718	)	$	810	$	6,595
2016: Mortgage servicing rights	$	6,595		—	$	(2,184	)	$	1,161	$	7,618
2015: Mortgage servicing rights	$	7,618		—	$	(701	)	$	941	$	7,378

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, 2017 and 2016:

	Fair Value (in thousands)		Valuation Technique		Unobservable Inputs		Range, Weighted Average
December 31, 2017
Mortgage Servicing Rights	$	6,687		Discounted cash flow		Constant prepayment rate		6.2%-22.0%, 8.9%
						Discount rate		13.0%-15.0%, 13.0%
December 31, 2016
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 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):

	Total		Level 1		Level 2		Level 3		Total Gains (Losses)
Year ended December 31, 2017
Fair value:
Impaired Originated & PNCI loans	$	2,767		—		—	$	2,767	$	(1,452	)
Foreclosed assets		2,217						2,217		(135	)
Total assets measured at fair value	$	4,984		—		—	$	4,984	$	(1,587	)
	Total		Level 1		Level 2		Level 3		Total Gains (Losses)
Year ended December 31, 2016
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	)

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, 2017 and 2016:

December 31, 2017	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Impaired Originated & PNCI loans	$	2,767	Sales comparison approach Income approach	Adjustment for differences between comparable sales Capitalization rate	Not meaningful N/A
Foreclosed assets (Land & construction)	$	1,341	Sales comparison approach	Adjustment for differences between comparable sales	Not meaningful
Foreclosed assets (residential (Residential real estate)	$	622	Sales comparison approach	Adjustment for differences between comparable sales	Not meaningful
Foreclosed assets (Commercial real estate)	$	254	Sales comparison approach	Adjustment for differences between comparable sales	Not meaningful

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 (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):

	December 31, 2017				December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Level 1 inputs:
Cash and due from banks	$	105,968	$	105,968	$	92,197	$	92,197
Cash at Federal Reserve and other banks		99,460		99,460		213,415		213,415
Level 2 inputs:
Securities held to maturity		514,844		518,165		602,536		603,203
Restricted equity securities		16,956		N/A		16,596		N/A
Loans held for sale		4,616		4,616		2,998		2,998
Level 3 inputs:
Loans, net		2,984,842		2,992,225		2,727,090		2,763,473
Financial liabilities:
Level 2 inputs:
Deposits		4,009,131		4,006,620		3,895,560		3,893,941
Other borrowings		122,166		122,166		17,493		17,493
Level 3 inputs:
Junior subordinated debt	$	56,858	$	58,466	$	56,667	$	49,033
	Contract Amount		Fair Value		Contract Amount		Fair Value
Off-balance sheet:
Level 3 inputs:
Commitments	$	933,542	$	9,335	$	767,274	$	7,673
Standby letters of credit	$	13,075	$	131	$	12,763	$	128
Overdraft privilege commitments	$	98,260	$	983	$	98,583	$	986