Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018


		Quoted Prices
		in Active
		Markets for		Significant
		Identical		Other		Significant
		Assets or		Observable		Unobservable
		Liabilities		Inputs		Inputs
		(Level 1)		(Level 2)		(Level 3)		Total
March 31, 2018
Measured on a recurring basis:
Securities available for sale:
U.S. Government agency and government sponsored enterprises	$	-	$	158,816	$	-	$	158,816
Mortgage-backed securities		-		351,381		-		351,381
Other assets:
Hedging derivative instruments		-		899		-		899
Total fair value adjusted through comprehensive income	$	-	$	511,096	$	-	$	511,096
Other liabilities:
Derivative instruments – credit contracts	$	-	$	21	$	-	$	21
Total fair value adjusted through net income	$	-	$	21	$	-	$	21

Measured on a nonrecurring basis:
Loans:
Loans held for sale	$	-	$	1,523	$	-	$	1,523
Collateral dependent impaired loans		-		-		4,826		4,826
Other assets:
Loan servicing rights		-		-		983		983
Other real estate owned		-		-		480		480
	$	-	$	1,523	$	6,289	$	7,812

December 31, 2017
Measured on a recurring basis:
Securities available for sale:
U.S. Government agency and government sponsored enterprises	$	-	$	161,889	$	-	$	161,889
Mortgage-backed securities		-		363,084		-		363,084
Other assets:
Hedging derivative instruments		-		-		-		-
	$	-	$	524,973	$	-	$	524,973
Other liabilities:
Derivative instruments – credit contracts	$	-	$	4	$	-	$	4
	$	-	$	4	$	-	$	4

Measured on a nonrecurring basis:
Loans:
Loans held for sale	$	-	$	2,718	$	-	$	2,718
Collateral dependent impaired loans		-		-		3,847		3,847
Other assets:
Loan servicing rights		-		-		990		990
Other real estate owned		-		-		148		148
	$	-	$	2,718	$	4,985	$	7,703


		Fair			Unobservable Input
Asset		Value	Valuation Technique	Unobservable Input	Value or Range
Collateral dependent impaired loans	$	4,826	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾	0% - 45% discount

Loan servicing rights		983	Discounted cash flow	Discount rate	10.3	% ⁽³⁾
				Constant prepayment rate	13.1	% ⁽³⁾

Other real estate owned		480	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾	10% - 58% discount

⁽¹⁾	Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.
⁽²⁾	Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.
⁽³⁾	Weighted averages.


	Level in		March 31, 2018				December 31, 2017
	Fair Value				Estimated				Estimated
	Measurement		Carrying		Fair		Carrying		Fair
	Hierarchy		Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	Level 1	$	122,914	$	122,914	$	99,195	$	99,195
Securities available for sale	Level 2		510,197		510,197		524,973		524,973
Securities held to maturity	Level 2		501,905		493,501		516,466		512,983
Loans held for sale	Level 2		1,523		1,523		2,718		2,718
Loans	Level 2		2,752,844		2,684,421		2,696,498		2,660,936
Loans ⁽¹⁾	Level 3		4,826		4,826		3,847		3,847
Accrued interest receivable	Level 1		11,634		11,634		10,776		10,776
FHLB and FRB stock	Level 2		22,652		22,652		27,730		27,730
Derivative instruments – cash flow hedge	Level 2		899		899		-		-
Financial liabilities:
Non-maturity deposits	Level 1		2,472,737		2,472,737		2,358,018		2,358,018
Time deposits	Level 2		907,272		900,943		852,156		848,055
Short-term borrowings	Level 1		327,600		327,600		446,200		446,200
Long-term borrowings	Level 2		39,149		40,659		39,131		41,485
Accrued interest payable	Level 1		7,321		7,321		8,038		8,038
Derivative instruments – credit contracts	Level 2		21		21		4		4

⁽¹⁾Comprised of collateral dependent impaired loans.