Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Assets Measured At Fair Value On A Recurring And Non-Recurring Basis

	Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
March 31, 2019
Measured on a recurring basis:
Securities available for sale:
U.S. Government agency and government sponsored enterprises	$	—	$	144,376		$	—	$	144,376
Mortgage-backed securities		—		283,169			—		283,169
Other assets:
Hedging derivative instruments		—		243			—		243
Fair value adjusted through comprehensive income	$	—	$	427,788		$	—	$	427,788
Other assets:
Derivative instruments - interest rate products	$	—	$	3,261		$	—	$	3,261
Derivative instruments - credit contracts		—		20			—		20
Derivative instruments - mortgage banking		—		132			—		132
Other liabilities:
Derivative instruments - interest rate products		—		(3,587	)		—		(3,587	)
Derivative instruments - credit contracts		—		(30	)		—		(30	)
Derivative instruments - mortgage banking		—		(23	)		—		(23	)
Fair value adjusted through net income	$	—	$	(227	)	$	—	$	(227	)
Measured on a nonrecurring basis:
Loans:
Loans held for sale	$	—	$	2,069		$	—	$	2,069
Collateral dependent impaired loans		—		—			1,894		1,894
Other assets:
Loan servicing rights		—		—			1,030		1,030
Other real estate owned		—		—			41		41
Total	$	—	$	2,069		$	2,965	$	5,034

There were no transfers between Levels 1 and 2 during the three months ended March 31, 2019. There were no liabilities measured at fair value on a nonrecurring basis during the three months ended March 31, 2019.

	Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
December 31, 2018
Measured on a recurring basis:
Securities available for sale:
U.S. Government agency and government sponsored enterprises	$	—	$	152,028		$	—	$	152,028
Mortgage-backed securities		—		293,649			—		293,649
Other assets:
Hedging derivative instruments		—		631			—		631
Fair value adjusted through comprehensive income	$	—	$	446,308		$	—	$	446,308
Other assets:
Derivative instruments - interest rate products	$	—	$	1,803		$	—	$	1,803
Derivative instruments - mortgage banking		—		83			—		83
Other liabilities:
Derivative instruments - interest rate products		—		(2,006	)		—		(2,006	)
Derivative instruments - credit contracts		—		(24	)		—		(24	)
Derivative instruments - mortgage banking		—		(27	)		—		(27	)
Fair value adjusted through net income	$	—	$	(171	)	$	—	$	(171	)
Measured on a nonrecurring basis:
Loans:
Loans held for sale	$	—	$	2,868		$	—	$	2,868
Collateral dependent impaired loans		—		—			2,872		2,872
Other assets:
Loan servicing rights		—		—			1,022		1,022
Other real estate owned		—		—			230		230
Total	$	—	$	2,868		$	4,124	$	6,992

There were no transfers between Levels 1 and 2 during the three months ended March 31, 2018. There were no liabilities measured at fair value on a nonrecurring basis during the three months ended March 31, 2018.

Additional Quantitative Information About Assets Measured At Fair Value On A Recurring And Non-Recurring Basis

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input Value or Range
Collateral dependent impaired loans	$	1,894	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾	25% ⁽³⁾
Loan servicing rights		1,030	Discounted cash flow	Discount rate	10.2% ⁽³⁾
				Constant prepayment rate	13.4% ⁽³⁾
Other real estate owned		41	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾	11% ⁽³⁾

⁽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.

Changes in Level 3 Fair Value Measurements

There were no assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of or during the three months ended March 31, 2019.

Carrying Amount, Estimated Fair Value, And Placement In Fair Value Hierarchy Of Financial Instruments

	Level in	March 31, 2019				December 31, 2018
	Fair Value			Estimated				Estimated
	Measurement	Carrying		Fair		Carrying		Fair
	Hierarchy	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	Level 1	$	79,786	$	79,786	$	102,755	$	102,755
Securities available for sale	Level 2		427,545		427,545		445,677		445,677
Securities held to maturity	Level 2		438,984		436,974		446,581		439,581
Loans held for sale	Level 2		2,069		2,069		2,868		2,868
Loans	Level 2		3,073,958		3,061,505		3,049,812		3,006,161
Loans ⁽¹⁾	Level 3		1,894		1,894		2,872		2,872
Accrued interest receivable	Level 1		13,429		13,429		11,990		11,990
FHLB and FRB stock	Level 2		21,056		21,056		26,375		26,375
Derivative instruments – cash flow hedge	Level 2		243		243		631		631
Derivative instruments – interest rate products	Level 2		3,261		3,261		1,803		1,803
Derivative instruments – credit contracts	Level 2		20		20		—		—
Derivative instruments – mortgage banking	Level 2		132		132		83		83
Financial liabilities:
Non-maturity deposits	Level 1		2,456,727		2,456,727		2,346,839		2,346,839
Time deposits	Level 2		1,052,110		1,048,583		1,020,068		1,014,532
Short-term borrowings	Level 1		287,300		287,300		469,500		469,500
Long-term borrowings	Level 2		39,220		39,641		39,202		38,415
Accrued interest payable	Level 1		10,478		10,478		9,280		9,280
Derivative instruments – interest rate products	Level 2		3,587		3,587		2,006		2,006
Derivative instruments – credit contracts	Level 2		30		30		24		24
Derivative instruments – mortgage banking	Level 2		23		23		27		27

⁽¹⁾	Comprised of collateral dependent impaired loans.