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Fair Value Measurement (Tables)
 3 Months Ended
Mar. 31, 2018
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 March 31, 2018

    Total      Level 1      Level 2      Level 3  

Marketable equity securities

    $ 2,890      $ 2,890      $ —        $ —    

Debt securities available for sale:

            

Obligations of U.S. government corporations and agencies

      616,657        —          616,657        —    

Obligations of states and political subdivisions

      119,238        —          119,238        —    

Mortgage servicing rights

      6,953        —          —          6,953  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets measured at fair value

    $ 745,738      $ 2,890      $ 735,895      $ 6,953  
  

 

 

     

 

 

     

 

 

     

 

 

  

Fair value at December 31, 2017

    Total      Level 1      Level 2      Level 3  

Marketable equity securities

    $ 2,938      $ 2,938      $ —        $ —    

Debt 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        —    

Mortgage servicing rights

      6,687        —          —          6,687  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets measured at fair value

    $ 737,570      $ 2,938      $ 727,945      $ 6,687  
  

 

 

     

 

 

     

 

 

     

 

 

  
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 March 31,

    Beginning
Balance		      Transfers
into (out of)
Level 3		      Change
Included
in Earnings		     Issuances      Ending
Balance		  

2018: Mortgage servicing rights

    $ 6,687        —        $ 111     $ 155      $ 6,953  

2017: Mortgage servicing rights

    $ 6,595        —        $ (13 )    $ 278      $ 6,860  
Quantitative Information about Recurring Level 3 Fair Value Measurements

The following table presents quantitative information about recurring Level 3 fair value measurements at March 31, 2018:

 

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

Mortgage Servicing Rights

    $ 6,953      Discounted

cash flow

    Constant

prepayment rate

      6.0%-19.7%, 7.5 % 
         Discount rate      11.0%-15.0%, 13.0%  

The following table presents quantitative information about recurring Level 3 fair value measurements at December 31, 2017:

 

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

Mortgage Servicing Rights

    $ 6,687      Discounted

cash flow

    Constant

prepayment rate

      6.2%-22.0%, 8.9 % 
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):

 

Three months ended March 31, 2018

    Total      Level 1      Level 2      Level 3      Total Gains
(Losses)		  

Fair value:

               

Impaired Originated & PNCI loans

    $ 2,103        —          —        $ 2,103      $ (795 ) 

Foreclosed assets

      774        —          —          774        (87 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total assets measured at fair value

    $ 2,877        —          —        $ 2,877      $ (882 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Year ended December 31, 2017    Total      Level 1      Level 2      Level 3      Total Gains
(Losses)		  

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 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Three months ended March 31, 2017    Total      Level 1      Level 2      Level 3      Total Gains
(Losses)		  

Fair value:

               

Impaired Originated & PNCI loans

    $ 824        —          —        $ 824      $ 30  

Foreclosed assets

      1,528        —          —          1,528        (22 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total assets measured at fair value

    $ 2,352        —          —        $ 2,352      $ 8  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
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 March 31, 2018:

 

March 31, 2018

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

Impaired Originated & PNCI loans

    $ 2,103      Sales comparison
approach

Income approach

    Adjustment for differences
between comparable sales
Capitalization rate		    Not meaningful
N/A

Foreclosed assets (Land & construction)

    $ 190      Sales comparison
approach		    Adjustment for differences
between comparable sales		    Not meaningful

Foreclosed assets (Residential real estate)

    $ 492      Sales comparison
approach		    Adjustment for differences
between comparable sales		    Not meaningful

Foreclosed assets (Commercial real estate)

    $ 92      Sales comparison
approach		    Adjustment for differences
between comparable sales		    Not meaningful

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:

 

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 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
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 Company’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):

 

     March 31, 2018      December 31, 2017  
     Carrying
Amount		      Fair
Value		      Carrying
Amount		      Fair
Value		  

Financial assets:

            

Level 1 inputs:

            

Cash and due from banks

    $ 87,138      $ 87,138      $ 105,968      $ 105,968  

Cash at Federal Reserve and other banks

      95,841        95,841        99,460        99,460  

Level 2 inputs:

            

Securities held to maturity

      496,035        488,639        514,844        518,165  

Restricted equity securities

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

Loans held for sale

      2,149        2,149        4,616        4,616  

Level 3 inputs:

            

Loans, net

      3,039,760        3,025,636        2,984,842        2,992,225  

Financial liabilities:

            

Level 2 inputs:

            

Deposits

      4,084,404        4,081,089        4,009,131        4,006,620  

Other borrowings

      65,041        65,041        122,166        122,166  

Level 3 inputs:

            

Junior subordinated debt

      56,905        59,982        56,858        58,466  
     Contract
Amount		      Fair
Value		      Contract
Amount		      Fair
Value		  

Off-balance sheet:

            

Level 3 inputs:

            

Commitments

    $ 1,001,059      $ 10,011      $ 933,542      $ 9,335  

Standby letters of credit

      11,573        116        13,075        131  

Overdraft privilege commitments

      101,411        1,014        98,260        983