Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Fair Value Mortgage Loans Held For Sale, Interest Rate Lock Commitments and Commitments to Sell

The following table presents the changes in fair value related to mortgage loans held for sale, interest rate lock commitments and commitments to sell residential real estate mortgage loans, for which the fair value option was elected. Changes in fair values are reported as a component of mortgage banking revenues in the Consolidated Statements of Income.

(Dollars in thousands)
Years ended December 31,	2017			2016			2015
Mortgage loans held for sale		$503			($691	)		($48	)
Interest rate lock commitments	(100		)	(175		)	28
Commitments to sell	(328		)	942			3
Total changes in fair value		$75			$76			($17	)

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the balances of assets and liabilities reported at fair value on a recurring basis:

(Dollars in thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2017
Assets:
Securities available for sale:
Obligations of U.S. government-sponsored enterprises		$157,604		$—		$157,604		$—
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises	590,882		—		590,882		—
Obligations of states and political subdivisions	2,359		—		2,359		—
Individual name issuer trust preferred debt securities	16,984		—		16,984		—
Corporate bonds	13,125		—		13,125		—
Mortgage loans held for sale	26,943		—		26,943		—
Derivative assets	2,759		—		2,759		—
Total assets at fair value on a recurring basis		$810,656		$—		$810,656		$—
Liabilities:
Derivative liabilities		$3,047		$—		$3,047		$—
Contingent consideration liability	1,404		—		—		1,404
Total liabilities at fair value on a recurring basis		$4,451		$—		$3,047		$1,404

(Dollars in thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2016
Assets:
Securities available for sale:
Obligations of U.S. government-sponsored enterprises		$108,440		$—		$108,440		$—
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises	588,085		—		588,085		—
Obligations of states and political subdivisions	14,485		—		14,485		—
Individual name issuer trust preferred debt securities	26,736		—		26,736		—
Corporate bonds	2,166		—		2,166		—
Mortgage loans held for sale	29,434		—		29,434		—
Derivative assets	3,582		—		3,582		—
Total assets at fair value on a recurring basis		$772,928		$—		$772,928		$—
Liabilities:
Derivative liabilities		$4,043		$—		$4,043		$—
Contingent consideration liability	2,047		—		—		2,047
Total liabilities at fair value on a recurring basis		$6,090		$—		$4,043		$2,047

Fair value of Contingent Consideration Rollforward

The following table presents the change in the contingent consideration liability, which is included in other liabilities in the Consolidated Balance Sheets.

(Dollars in thousands)
Years ended December 31,	2017			2016
Beginning Balance		$2,047			$2,945
Change in fair value	(643		)	(898		)
Payments	—			—
Ending Balance		$1,404			$2,047

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The following table presents the carrying value of assets held at December 31, 2017, which were written down to fair value during the year ended December 31, 2017:

(Dollars in thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Collateral dependent impaired loans		$1,425		$—		$—		$1,425
Property acquired through foreclosure or repossession	131		—		—		131
Total assets at fair value on a nonrecurring basis		$1,556		$—		$—		$1,556

The allowance for loan losses on the collateral dependent impaired loans included in the table above amounted to $690 thousand at December 31, 2017.

The following table summarizes the carrying value of assets held at December 31, 2016, which were written down to fair value during the year ended December 31, 2016:

(Dollars in thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Collateral dependent impaired loans		$3,828		$—		$—		$3,828
Property acquired through foreclosure or repossession	605		—		—		605
Total assets at fair value on a nonrecurring basis		$4,433		$—		$—		$4,433

The allowance for loan losses on the collateral dependent impaired loans included in the table above amounted to $469 thousand at December 31, 2016.

Qualitative Information About Level 3 Assets Measured at Fair Value on a Nonrecurring Basis

The following tables present valuation techniques and unobservable inputs for assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value:

(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range of Inputs Utilized (Weighted Average)
December 31, 2017
Collateral dependent impaired loans		$1,425	Appraisals of collateral	Discount for costs to sell	0% - 15% (15%)
Property acquired through foreclosure or repossession	131		Appraisals of collateral	Discount for costs to sell	10%
				Appraisal adjustments (1)	12% - 17% (15%)

(1) Management adjusts appraisal values to reflect market value declines or other discounts resulting from its knowledge of the property.

(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range of Inputs Utilized (Weighted Average)
December 31, 2016
Collateral dependent impaired loans		$3,828	Appraisals of collateral	Discount for costs to sell	10% - 20% (15%)
				Appraisal adjustments (1)	0% - 10% (9%)
Property acquired through foreclosure or repossession	605		Appraisals of collateral	Discount for costs to sell	10% - 12% (11%)
				Appraisal adjustments (1)	6% - 50% (24%)

(1) Management adjusts appraisal values to reflect market value declines or other discounts resulting from its knowledge of the property.

Carrying Amounts, Estimated Fair Values and Fair Value Hierarchy of Financial Instruments

The following tables present the carrying amount, estimated fair value and placement in the fair value hierarchy of the Corporation’s financial instruments. The tables exclude financial instruments for which the carrying value approximates fair value such as cash and cash equivalents, FHLB stock, accrued interest receivable, bank-owned life insurance, non-maturity deposits and accrued interest payable.

(Dollars in thousands)	Carrying Amount		Total  Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2017
Financial Assets:
Securities held to maturity		$12,541		$12,721		$—		$12,721		$—
Loans, net of allowance for loan losses	3,347,583		3,369,932		—		—		3,369,932
Financial Liabilities:
Time deposits		$1,015,095		$1,018,396		$—		$1,018,396		$—
FHLB advances	791,356		792,887		—		792,887		—
Junior subordinated debentures	22,681		18,559		—		18,559		—

(Dollars in thousands)	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2016
Financial Assets:
Securities held to maturity		$15,633		$15,920		$—		$15,920		$—
Loans, net of allowance for loan losses	3,208,367		3,218,651		—		—		3,218,651
Financial Liabilities:
Time deposits		$961,613		$962,374		$—		$962,374		$—
FHLB advances	848,930		852,888		—		852,888		—
Junior subordinated debentures	22,681		16,970		—		16,970		—