Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

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, 2020		December 31, 2019
Aggregate fair value		$49,751		$27,833
Aggregate principal balance	48,199		27,168
Difference between fair value and principal balance		$1,552		$665

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, 2020
Assets:
Available for sale debt securities:
Obligations of U.S. government-sponsored enterprises		$133,501		$—		$133,501		$—
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises	764,344		—		764,344		—
Individual name issuer trust preferred debt securities	11,096		—		11,096		—
Corporate bonds	8,451		—		8,451		—
Mortgage loans held for sale	49,751		—		49,751		—
Derivative assets	89,909		—		89,909		—
Total assets at fair value on a recurring basis		$1,057,052		$—		$1,057,052		$—
Liabilities:
Derivative liabilities		$91,146		$—		$91,146		$—
Total liabilities at fair value on a recurring basis		$91,146		$—		$91,146		$—

(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, 2019
Assets:
Available for sale debt securities:
Obligations of U.S. government-sponsored enterprises		$157,648		$—		$157,648		$—
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises	719,080		—		719,080		—
Individual name issuer trust preferred debt securities	12,579		—		12,579		—
Corporate bonds	10,183		—		10,183		—
Mortgage loans held for sale	27,833		—		27,833		—
Derivative assets	28,864		—		28,864		—
Total assets at fair value on a recurring basis		$956,187		$—		$956,187		$—
Liabilities:
Derivative liabilities		$29,381		$—		$29,381		$—
Total liabilities at fair value on a recurring basis		$29,381		$—		$29,381		$—

Items Recorded at Fair Value on a Nonrecurring Basis

The following table presents the carrying value of assets held at March 31, 2020, which were written down to fair value during the three months ended March 31, 2020:

(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 individually analyzed CRE loan		$444		$—		$—		$444
Total assets at fair value on a nonrecurring basis		$444		$—		$—		$444

The ACL on all collateral dependent individually analyzed loans amounted to $529 thousand at March 31, 2020.

The following table presents the carrying value of assets held at December 31, 2019, which were written down to fair value during the year ended December 31, 2019:

(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		$1,448		$—		$—		$1,448
Property acquired through foreclosure or repossession	1,109		—		—		1,109
Total assets at fair value on a nonrecurring basis		$2,557		$—		$—		$2,557

The allowance for loan losses on all collateral dependent impaired loans amounted to $871 thousand at December 31, 2019.

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, 2020
Collateral dependent individually analyzed loans		$444	Appraisals of collateral	Discount for costs to sell	10% - 100% (42%)
				Appraisal adjustments (1)	0% - 23% (15%)

(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, 2019
Collateral dependent impaired loans		$1,448	Appraisals of collateral	Discount for costs to sell	0% - 20% (5%)
				Appraisal adjustments (1)	0% - 100% (67%)
Property acquired through foreclosure or repossession		$1,109	Appraisals of collateral	Discount for costs to sell	12%
				Appraisal adjustments (1)	22%

(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, 2020	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 credit losses on loans		$4,050,731		$4,013,945		$—		$—		$4,013,945
Financial Liabilities:
Time deposits		$1,208,978		$1,220,528		$—		$1,220,528		$—
FHLB advances	1,198,534		1,211,630		—		1,211,630		—
Junior subordinated debentures	22,681		17,714		—		17,714		—

(Dollars in thousands)
December 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		$3,865,985		$3,869,192		$—		$—		$3,869,192
Financial Liabilities:
Time deposits		$1,069,323		$1,082,830		$—		$1,082,830		$—
FHLB advances	1,141,464		1,145,242		—		1,145,242		—
Junior subordinated debentures	22,681		19,628		—		19,628		—