Disclosures about Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value Measurements of Assets and Liabilities Recognized on a Recurring Basis

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated financial statements measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at the following:


	Fair Value			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
March 31, 2017
Available-for-sale securities
U.S. Treasury and federal agencies	$	13,480		$	—	$	13,480		$	—
State and municipal		127,105			—		127,105			—
Federal agency collateralized mortgage obligations		136,189			—		136,189			—
Federal agency mortgage-backed pools		193,711			—		193,711			—
Private labeled mortgage-backed pools		1,882			—		1,882			—
Corporate notes		1,855			—		1,855			—

Total available-for-sale securities		474,222			—		474,222			—

Hedged loans		137,202			—		137,202			—
Forward sale commitments		521			—		521			—
Interest rate swap agreements		(2,485	)		—		(2,485	)		—
Commitments to originate loans		—			—		—			—

December 31, 2016
Available-for-sale securities
U.S. Treasury and federal agencies	$	7,989		$	—	$	7,989		$	—
State and municipal		116,592			—		116,592			—
Federal agency collateralized mortgage obligations		137,195			—		137,195			—
Federal agency mortgage-backed pools		176,726			—		176,726			—
Corporate notes		1,329			—		1,329			—

Total available-for-sale securities		439,831			—		439,831			—

Hedged loans		122,345			—		122,345			—
Forward sale commitments		602			—		602			—
Interest rate swap agreements		(3,138	)		—		(3,138	)		—
Commitments to originate loans		(22	)		—		(22	)		—

Realized Gains and Losses Included in Net Income for Periods in Consolidated Statements of Income

Realized gains and losses included in net income for the periods are reported in the condensed consolidated statements of income as follows:


	Three Months Ended March 31
Non Interest Income Total gains and losses from:	2017 (Unaudited)			2016 (Unaudited)
Hedged loans	$	253		$	1,478
Fair value interest rate swap agreements		(253	)		(1,478	)
Derivative loan commitments		(59	)		2

	$	(59	)	$	2

Other Assets Measured at Fair Value on Nonrecurring Basis

Certain other assets are measured at fair value on a nonrecurring basis in the ordinary course of business and are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment):


	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2017
Impaired loans	$	1,379	$	—	$	—	$	1,379
Mortgage servicing rights		11,257		—		—		11,257

December 31, 2016
Impaired loans	$	2,246	$	—	$	—	$	2,246
Mortgage servicing rights		11,174		—		—		11,174

Qualitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements, Other than Goodwill

The following table presents qualitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill.


	Fair Value at		Valuation		Range (Weighted
	March 31, 2017		Technique	Unobservable Inputs	Average)

Impaired loans	$	1,379	Collateral based measurement	Discount to reflect current market conditions and ultimate collectability	11% - 17% (14%)
Mortgage servicing rights	$	11,257	Discounted cashflows	Discount rate, Constant prepayment rate, Probability of default	11% - 17% (14%), 4% - 8% (5.1%), 1% - 11% (5.0%)

	Fair Value at		Valuation		Range (Weighted
	December 31, 2016		Technique	Unobservable Inputs	Average)

Impaired loans	$	2,246	Collateral based measurement	Discount to reflect current market conditions and ultimate collectability	10% - 16% (13%)
Mortgage servicing rights	$	11,174	Discounted cashflows	Discount rate, Constant prepayment rate, Probability of default	10% - 16% (13%), 4% - 7% (4.6%), 1% - 10% (4.5%)