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Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Summary of Company's Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables summarize the Company’s financial assets and liabilities that were measured at fair value on a recurring basis at December 31, 2017 and 2016:

						Fair Value Measurements Using
2017		Fair Value				Level 1				Level 2				Level 3
Financial assets
Securities available-for-sale
U.S. Treasury Notes		$	14,863			$	14,863			$	—			$	—
U.S. Government agencies			52,958				—				52,958				—
Obligations of states, municipalities, and political    subdivisions			33,170				—				32,795				375
Mortgage-backed securities; residential
Agency			307,457				—				307,457				—
Non-Agency			39,514				—				39,514				—
Mortgage-backed securities; commercial
Agency			69,043				—				69,043				—
Non-Agency			30,971				—				30,971				—
Corporate securities			29,976				—				29,976				—
Other securities			5,284				1,921				2,686				677
Servicing assets			21,400				—				—				21,400
Derivative assets			5,981				—				5,981				—
Financial liabilities
Derivative liabilities			994				—				994				—

						Fair Value Measurements Using
2016		Fair Value				Level 1				Level 2				Level 3
Financial assets
Securities available-for-sale
U.S. Treasury Notes		$	14,920			$	14,920			$	—			$	—
U.S. Government agencies			58,857				—				58,857				—
Obligations of states, municipalities, and political    subdivisions			16,059				—				15,509				550
Mortgage-backed securities; residential
Agency			368,160				—				368,160				—
Non-Agency			19,933				—				19,933				—
Mortgage-backed securities; commercial
Agency			77,403				—				77,403				—
Non-Agency			31,052				—				31,052				—
Corporate securities			17,329				—				17,329				—
Other securities			4,847				1,938				2,379				530
Servicing assets			21,091				—				—				21,091
Derivative assets			4,317				—				4,317				—
Financial liabilities
Derivative liabilities			559				—				559				—

Summary of Financial Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The following table presents additional information about financial assets measured at fair value on recurring basis for which the Company used significant unobservable inputs (Level 3):

	Twelve Months Ended
	December 31,
	2017			2016				2017			2016
	Investment Securities							Servicing Assets
Balance, beginning of period	$	1,080		$	—			$	21,091		$	—
Acquired at fair value		—			548				—			20,295
Additions, net		—			550				6,250			539
Maturities		(175	)		—				—			—
Amortization		5			—				—			—
Change in unrealized loss		142			(18	)			—			—
Change in fair value		—			—				(5,941	)		257
Balance, end of period	$	1,052		$	1,080			$	21,400		$	21,091

Summary of Unobservable Inputs Used in the Fair Value Measurements on Recurring Basis

The following table presents additional information about the unobservable inputs used in the fair value measurements on recurring basis that were categorized within Level 3 of the fair value hierarchy as of December 31, 2017:

Financial Instruments

Valuation Technique

Unobservable Inputs

Range of Inputs

Weighted Average Range

Impact to Valuation from an Increased or Higher Input Value

Obligations of states,      municipalities, and political    obligations

Discounted cash flow

Probability of default

2.2%—2.4%

2.3

%

Decrease

Single issuer trust preferred

Discounted cash flow

Probability of default

7.5%—9.9%

8.9

%

Decrease

Servicing assets

Discounted cash flow

Prepayment speeds

1.6%—9.9%

8.6

%

Decrease

Discount rate

9.9%—18.4%

13.8

%

Decrease

Expected weighted average loan life

0.2—8.2 years

5.8 years

Increase

Summary of Company's Assets Measured at Fair Value on a Non-Recurring Basis

The following tables summarize the Company’s assets that were measured at fair value on a non-recurring basis, excluding acquired impaired loans, as of December 31, 2017 and 2016:

						Fair Value Measurements Using
2017		Fair Value				Level 1				Level 2				Level 3
Non-recurring
Impaired loans
(excluding acquired impaired loans)
Commercial real estate		$	12,783			$	—			$	—			$	12,783
Residential real estate			2,271				—				—				2,271
Construction, land development, and other land			—				—				—				—
Commercial and industrial			12,092				—				—				12,092
Installment and other			—				—				—				—
Assets held for sale			9,779				—				—				9,779
Other real estate owned			10,626				—				—				10,626

						Fair Value Measurements Using
2016		Fair Value				Level 1				Level 2				Level 3
Non-recurring
Impaired loans
(excluding acquired impaired loans)
Commercial real estate		$	8,916			$	—			$	—			$	8,916
Residential real estate			1,007				—				—				1,007
Construction, land development, and other land			—				—				—				—
Commercial and industrial			986				—				—				986
Installment and other			—				—				—				—
Assets held for sale			14,748				—				—				14,748
Other real estate owned			16,570				—				—				16,570

Summary of the Valuation Technique, Unobservable Inputs and Qualitative Information About the Company's Assets and Liabilities

The following table provides a description of the valuation technique, unobservable inputs and qualitative information about the Company’s assets and liabilities classified as Level 3 and measured at fair value on a non-recurring basis as of December 31, 2017 and 2016:

Financial Instruments		Valuation Technique		Unobservable Inputs		Range of Inputs		Impact to Valuation from an Increased or Higher Input Value
Impaired loans (excluding    acquired impaired loans)		Appraisals		Appraisal adjustments, sales costs and other discount adjustments for market conditions		6% - 10%		Decrease
Assets held for sale		List price, contract price		Sales costs and other discount adjustments for market conditions		7%		Decrease
Other real estate owned		Appraisals		Appraisal adjustments, sales costs and other discount adjustments for market conditions		7% - 20%		Decrease

Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments and levels within the fair value hierarchy are as follows:

		Fair Value				2017								2016
		Hierarchy Level				Carrying Amount				Estimated Fair Value				Carrying Amount				Estimated Fair Value
Financial assets
Cash and due from banks			1			$	19,404			$	19,404			$	17,735			$	17,735
Interest bearing deposits with other banks			2				38,945				38,945				28,798				28,798
Securities held-to-maturity			2				117,163				117,277				138,846				138,082
Other restricted stock			2				16,343				16,343				14,993				14,993
Loans held for sale			3				5,212				5,851				23,976				26,487
Loans and lease receivables, net			3				2,260,786				2,240,235				2,137,088				2,068,157
Accrued interest receivable			3				7,670				7,670				6,866				6,866
Financial liabilities
Non-interest bearing deposits			2				760,887				760,887				724,457				724,457
Interest bearing deposits			2				1,682,442				1,678,535				1,765,937				1,764,078
Accrued interest payable			2				1,306				1,306				2,427				2,427
Line of credit			2				—				—				20,650				20,650
Federal Home Loan Bank advances			2				361,506				361,500				313,715				313,646
Securities sold under repurchase agreement			2				31,187				31,187				17,249				17,249
Junior subordinated debentures			3				27,647				33,907				26,926				26,943

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- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, used to measure similar assets in prior periods (non-recurring basis) by class of asset or liability.

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Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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-Publisher FASB
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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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Tabular disclosure of financial instrument classified as a derivative asset (liability) after deduction of derivative liability (asset) using recurring unobservable inputs that reflect the entity's own assumption about the assumptions market participants would use in pricing.

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