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Disclosures About Fair Value of Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Fair value measurements of assets and liabilities recognized in Consolidated Condensed Balance Sheets measured at fair value The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the ASC 820-10 fair value hierarchy in which the fair value measurements fall at June 30, 2019, and December 31, 2018.

 
 
 
Fair Value Measurements Using:
June 30, 2019
Fair Value
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Available for sale securities:
 
 
 
 
 
 
 
U.S. Government-sponsored agency securities
$
33,947

 
$
—

 
$
33,947

 
$
—

State and municipal
715,758

 
—

 
712,818

 
2,940

U.S. Government-sponsored mortgage-backed securities
650,223

 
—

 
650,219

 
4

Corporate obligations
31

 
—

 
—

 
31

Interest rate swap asset
25,059

 
—

 
25,059

 
—

Interest rate swap liability
26,668

 
—

 
26,668

 
—


 
 
 
Fair Value Measurements Using:
December 31, 2018
Fair Value
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Available for sale securities:
 
 
 
 
 
 
 
U.S. Government-sponsored agency securities
$
13,582


$
—


$
13,582


$
—

State and municipal
606,135

 
—

 
602,842

 
3,293

U.S. Government-sponsored mortgage-backed securities
522,447

 
—

 
522,443

 
4

Corporate obligations
31

 
—

 
—

 
31

Interest rate swap and cap asset
12,083

 
—

 
12,083

 
—

Interest rate swap liability
12,636

 
—

 
12,636

 
—
Reconciliation of beginning and ending balances of recurring fair value measurements recognized in Consolidated Condensed Balance Sheets using significant unobservable Level 3 inputs the three and six months ended June 30, 2019 and 2018.
 
Available for Sale Securities
 
Three Months Ended
 
Six Months Ended
 
June 30, 2019
 
June 30, 2018
 
June 30, 2019
 
June 30, 2018
Balance at beginning of the period
$
2,936

 
$
3,966

 
$
3,328

 
$
3,978

Included in other comprehensive income
37

 
1

 
80

 
(24
)
Principal payments
2

 
3

 
(433
)
 
16

Ending balance
$
2,975

 
$
3,970

 
$
2,975

 
$
3,970
Description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in Consolidated Condensed Balance Sheets
Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy for June 30, 2019, and December 31, 2018.
 

 

Fair Value Measurements Using
June 30, 2019

Fair Value

Quoted Prices in
Active Markets for
Identical Assets
(Level 1)

Significant Other
Observable
Inputs
(Level 2)

Significant Unobservable
Inputs
(Level 3)
Impaired loans (collateral dependent)

$
12,966


$
—


$
—


$
12,966

Other real estate owned

174


—


—


174

 
 

 

Fair Value Measurements Using
December 31, 2018

Fair Value

Quoted Prices in
Active Markets for
Identical Assets
(Level 1)

Significant Other
Observable
 Inputs
(Level 2)

Significant Unobservable
Inputs
(Level 3)
Impaired loans (collateral dependent)

$
11,866


$
—


$
—


$
11,866

Other real estate owned

657


—


—


657
Unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill
The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at June 30, 2019 and December 31, 2018.
June 30, 2019
Fair Value

Valuation Technique

Unobservable Inputs

Range (Weighted-Average)
State and municipal securities
$
2,940


Discounted cash flow

Maturity/Call date

1 month to 15 yrs
 
 

 

US Muni BQ curve

A- to BBB-
 
 

 

Discount rate

2% - 5%
 
 
 
 
 
 
 
 
Corporate obligations and U.S. Government-sponsored mortgage backed securities
$
35


Discounted cash flow

Risk free rate

3 month LIBOR
 
 

 

plus premium for illiquidity

plus 200bps
 
 
 
 
 
 
 
 
Impaired loans (collateral dependent)
$
12,966


Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

0% - 10% (4%)
 
 





 
Other real estate owned
$
174


Appraisals

Discount to reflect current market conditions

0% - 51% (30%)


December 31, 2018
Fair Value
 
Valuation Technique
 
Unobservable Inputs
 
Range (Weighted-Average)
State and municipal securities
$
3,293

 
Discounted cash flow
 
Maturity/Call date
 
1 month to 20 yrs
 
 
 
 
 
US Muni BQ curve
 
A- to BBB-
 
 
 
 
 
Discount rate
 
.69% - 5%
 
 
 
 
 
 
 
 
Corporate obligations and equity securities
$
35

 
Discounted cash flow
 
Risk free rate
 
3 month LIBOR
 
 
 
 
 
plus premium for illiquidity
 
plus 200bps
 
 
 
 
 
 
 
 
Impaired loans (collateral dependent)
$
11,866

 
Collateral based measurements
 
Discount to reflect current market conditions and ultimate collectability
 
0% - 10% (6%)
 
 
 
 
 
 
 
 
Other real estate owned
$
657

 
Appraisals
 
Discount to reflect current market conditions
 
0% - 10% (4%)
Estimated fair values of financial instruments
The following table presents estimated fair values of the Corporation’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2019, and December 31, 2018.



June 30, 2019


 


Quoted Prices in Active Markets
for Identical
Assets

Significant
Other
Observable
Inputs

Significant Unobservable
Inputs
 
Carrying Amount
 
(Level 1)

(Level 2)

(Level 3)
Assets:
 

 

 

 
Cash and cash equivalents
$
128,185


$
128,185


$
—


$
—

Interest-bearing time deposits
129,614


129,614


—


—

Investment securities available for sale
1,399,959


—


1,396,984


2,975

Investment securities held to maturity
692,965


—


701,905


7,010

Loans held for sale
5,854


—


5,854


—

Loans
7,430,096


—


—


7,408,511

Federal Home Loan Bank stock
24,588


—


24,588


—

Interest rate swap asset
25,059


—


25,059


—

Interest receivable
45,150


—


45,150


—

Liabilities:
 

 

 

 
Deposits
$
8,319,328


$
6,688,194


$
1,627,381


$
—

Borrowings:




 

 
Federal funds purchased
75,000

 
—

 
75,000

 
—

Securities sold under repurchase agreements
119,674


—


119,488


—

Federal Home Loan Bank advances
460,042


—


461,582


—

Subordinated debentures and term loans
138,574


—


127,594


—

Interest rate swap liability
26,668


—


26,668


—

Interest payable
6,740


—


6,740


—





December 31, 2018


 


Quoted Prices in Active Markets
for Identical
Assets

Significant
Other
Observable
Inputs

Significant Unobservable
Inputs
 
Carrying Amount
 
(Level 1)

(Level 2)

(Level 3)
Assets:
 

 

 

 
Cash and cash equivalents
$
139,247


$
139,247


$
—


$
—

Interest-bearing time deposits
36,963


36,963


—


—

Investment securities available for sale
1,142,195


—


1,138,867


3,328

Investment securities held to maturity
490,387


—


481,377


7,840

Loans held for sale
4,778


—


4,778


—

Loans
7,143,915


—


—


7,004,193

Federal Home Loan Bank stock
24,588


—


24,588


—

Interest rate swap and cap asset
12,083


—


12,083


—

Interest receivable
40,881


—


40,881


—

Liabilities:
 

 

 

 
Deposits
$
7,754,593


$
6,267,879


$
1,464,129


$
—

Borrowings:
 

 

 

 
Federal funds purchased
104,000


—


104,000


—

Securities sold under repurchase agreements
113,512


—


113,437


—

Federal Home Loan Bank advances
314,986


—


318,728


—

Subordinated debentures and term loans
138,463


—


127,298


—

Interest rate swap liability
12,636


—


12,636


—

Interest payable
5,607


—


5,607


—