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Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]  
Fair value of Mortgage Loans Held for Sale
The following table presents a summary of mortgage loans held for sale accounted for under the fair value option:
(Dollars in thousands)
March 31,
2019
December 31,
2018
Aggregate fair value

$14,608


$20,996

Aggregate principal balance
14,244

20,498

Difference between fair value and principal balance

$364


$498

Items Recorded 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)
March 31, 2019
Assets:
 
 
 
 
Available for sale debt securities:
 
 
 
 
Obligations of U.S. government-sponsored enterprises

$245,472


$—


$245,472


$—

Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
723,505


723,505


Obligations of states and political subdivisions
937


937


Individual name issuer trust preferred debt securities
12,370


12,370


Corporate bonds
12,597


12,597


Mortgage loans held for sale
14,608


14,608


Derivative assets
13,983


13,983


Total assets at fair value on a recurring basis

$1,023,472


$—


$1,023,472


$—

Liabilities:
 
 
 
 
Derivative liabilities

$13,108


$—


$13,108


$—

Total liabilities at fair value on a recurring basis

$13,108


$—


$13,108


$—




(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, 2018
Assets:
 
 
 
 
Available for sale debt securities:
 
 
 
 
Obligations of U.S. government-sponsored enterprises

$242,683


$—


$242,683


$—

Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
660,793


660,793


Obligations of states and political subdivisions
937


937


Individual name issuer trust preferred debt securities
11,772


11,772


Corporate bonds
11,625


11,625


Mortgage loans held for sale
20,996


20,996


Derivative assets
3,966


3,966


Total assets at fair value on a recurring basis

$952,772


$—


$952,772


$—

Liabilities:
 
 
 
 
Derivative liabilities

$3,202


$—


$3,202


$—

Total liabilities at fair value on a recurring basis

$3,202


$—


$3,202


$—



Items Recorded at Fair Value on a Nonrecurring Basis
The following table presents the carrying value of assets held at December 31, 2018, which were written down to fair value during the year ended December 31, 2018:
(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

$883

 

$—

 

$—

 

$883

Property acquired through foreclosure or repossession
2,142

 

 

 
2,142

Total assets at fair value on a nonrecurring basis

$3,025

 

$—

 

$—

 

$3,025

Quantitative 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)
March 31, 2019
Collateral dependent impaired loans

$—

Appraisals of collateral
Appraisal adjustments (1)
100%
(1)
Management may adjust 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, 2018
Collateral dependent impaired loans

$883

Appraisals of collateral
Discount for costs to sell
0% - 10% (10%)
 
 
 
Appraisal adjustments (1)
0% - 100% (2%)
Property acquired through foreclosure or repossession

$2,142

Appraisals of collateral
Discount for costs to sell
13%
 
 
 
Appraisal adjustments (1)
12% - 28% (20%)
(1)
Management may adjust appraisal values to reflect market value declines or other discounts resulting from its knowledge of the property.

Carrying Amounts and Estimated Fair Values of Financial Instruments
The estimated fair values and related carrying amounts for financial instruments for which fair value is only disclosed are presented below as of the periods indicated. 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)
 
 
 
 
 
March 31, 2019
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)
Financial Assets:
 
 
 
 
 
Loans, net of allowance for loan losses

$3,710,825


$3,664,361


$—


$—


$3,664,361

 
 
 
 
 
 
Financial Liabilities:
 
 
 
 
 
Time deposits

$1,276,464


$1,292,947


$—


$1,292,947


$—

FHLB advances
1,056,129

1,058,936


1,058,936


Junior subordinated debentures
22,681

19,363


19,363




(Dollars in thousands)
 
 
 
 
 
December 31, 2018
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)
Financial Assets:
 
 
 
 
 
Held to maturity debt securities

$10,415


$10,316


$—


$10,316


$—

Loans, net of allowance for loan losses
3,653,288

3,598,025



3,598,025

 
 
 
 
 
 
Financial Liabilities:
 
 
 
 
 
Time deposits

$1,255,108


$1,269,433


$—


$1,269,433


$—

FHLB advances
950,722

950,691


950,691


Junior subordinated debentures
22,681

19,226


19,226