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v3.19.3.a.u2

Fair Value Measurements (Tables) | 12 Months Ended
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Dec. 31, 2019
Fair Value Disclosures [Abstract] |
Assets Measured At Fair Value On A Recurring And Non-Recurring Basis | The following tables present for each of the fair-value hierarchy levels the Company’s assets that are measured at fair value on a recurring and non-recurring basis as of December 31 (in thousands):
|  | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Total |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Measured on a recurring basis: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies and government sponsored enterprises |  | $ | - |  |  | $ | 26,877 |  |  | $ | - |  |  | $ | 26,877 |
Mortgage-backed securities |  |  | - |  |  |  | 391,040 |  |  |  | - |  |  |  | 391,040 |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedging derivative instruments |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Fair value adjusted through comprehensive income |  | $ | - |  |  | $ | 417,917 |  |  | $ | - |  |  | $ | 417,917 |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments – interest rate products |  | $ | - |  |  | $ | 6,419 |  |  | $ | - |  |  | $ | 6,419 |
Derivative instruments – credit contracts |  |  | - |  |  |  | 13 |  |  |  | - |  |  |  | 13 |
Derivative instruments – mortgage banking |  |  | - |  |  |  | 119 |  |  |  | - |  |  |  | 119 |
Other liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments – interest rate products |  |  | - |  |  |  | (6,720 | ) |  |  | - |  |  |  | (6,720 | )
Derivative instruments – credit contracts |  |  | - |  |  |  | (18 | ) |  |  | - |  |  |  | (18 | )
Derivative instruments – mortgage banking |  |  | - |  |  |  | (7 | ) |  |  | - |  |  |  | (7 | )
Fair value adjusted through net income |  | $ | - |  |  | $ | (194 | ) |  | $ | - |  |  | $ | (194 | )
Measured on a nonrecurring basis: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans held for sale |  | $ | - |  |  | $ | 4,224 |  |  | $ | - |  |  | $ | 4,224 |
Collateral dependent impaired loans |  |  | - |  |  |  | - |  |  |  | 3,630 |  |  |  | 3,630 |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan servicing rights |  |  | - |  |  |  | - |  |  |  | 1,129 |  |  |  | 1,129 |
Other real estate owned |  |  | - |  |  |  | - |  |  |  | 468 |  |  |  | 468 |
Total |  | $ | - |  |  | $ | 4,224 |  |  | $ | 5,227 |  |  | $ | 9,451 |
There were no transfers between Levels 1 and 2 during the years ended December 31, 2019 and 2018. There were no liabilities measured at fair value on a nonrecurring basis during the years ended December 31, 2019 and 2018.
|  | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Total |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Measured on a recurring basis: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies 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 years ended December 31, 2018 and 2017. There were no liabilities measured at fair value on a nonrecurring basis during the years ended December 31, 2018 and 2017.
Additional Quantitative Information About Assets Measured At Fair Value On A Recurring And Non-Recurring Basis | The following table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands)
Asset |  | Fair Value |  |  | Valuation Technique |  | Unobservable Input |  | Unobservable Input Value or Range
Collateral dependent impaired loans |  | $ | 3,630 |  |  | Appraisal of collateral (1) |  | Appraisal adjustments (2) |  | 30% (3)
Loan servicing rights |  | $ | 1,129 |  |  | Discounted cash flow |  | Discount rate |  | 10.2% (3)
|  |  |  |  |  |  |  | Constant prepayment rate |  | 17.2% (3)
Other real estate owned |  | $ | 468 |  |  | Appraisal of collateral (1) |  | Appraisal adjustments (2) |  | 29% (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 years ended December 31, 2019 and 2018.
Carrying Amount, Estimated Fair Value, And Placement In Fair Value Hierarchy Of Financial Instruments | The following presents the carrying amount, estimated fair value, and placement in the fair value measurement hierarchy of the Company’s financial instruments as of December 31(in thousands)
|  | Level in |  | 2019 |  |  | 2018 |
|  | Fair Value |  |  |  |  |  | Estimated |  |  |  |  |  |  | Estimated |
|  | Measurement |  | Carrying |  |  | Fair |  |  | Carrying |  |  | Fair |
|  | Hierarchy |  | Amount |  |  | Value |  |  | Amount |  |  | Value |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | Level 1 |  | $ | 112,947 |  |  | $ | 112,947 |  |  | $ | 102,755 |  |  | $ | 102,755 |
Securities available for sale |  | Level 2 |  |  | 417,917 |  |  |  | 417,917 |  |  |  | 445,677 |  |  |  | 445,677 |
Securities held to maturity |  | Level 2 |  |  | 359,000 |  |  |  | 363,259 |  |  |  | 446,581 |  |  |  | 439,581 |
Loans held for sale |  | Level 2 |  |  | 4,224 |  |  |  | 4,224 |  |  |  | 2,868 |  |  |  | 2,868 |
Loans |  | Level 2 |  |  | 3,186,875 |  |  |  | 3,201,814 |  |  |  | 3,049,812 |  |  |  | 3,006,161 |
Loans (1) |  | Level 3 |  |  | 3,630 |  |  |  | 3,630 |  |  |  | 2,872 |  |  |  | 2,872 |
Accrued interest receivable |  | Level 1 |  |  | 11,308 |  |  |  | 11,308 |  |  |  | 11,990 |  |  |  | 11,990 |
FHLB and FRB stock |  | Level 2 |  |  | 20,637 |  |  |  | 20,637 |  |  |  | 26,375 |  |  |  | 26,375 |
Derivative instruments – cash flow hedge |  | Level 2 |  |  | - |  |  |  | - |  |  |  | 631 |  |  |  | 631 |
Derivative instruments – interest rate products |  | Level 2 |  |  | 6,419 |  |  |  | 6,419 |  |  |  | 1,803 |  |  |  | 1,803 |
Derivative instruments – credit contracts |  | Level 2 |  |  | 13 |  |  |  | 13 |  |  |  | - |  |  |  | - |
Derivative instruments – mortgage banking |  | Level 2 |  |  | 119 |  |  |  | 119 |  |  |  | 83 |  |  |  | 83 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-maturity deposits |  | Level 1 |  |  | 2,375,486 |  |  |  | 2,375,486 |  |  |  | 2,346,839 |  |  |  | 2,346,839 |
Time deposits |  | Level 2 |  |  | 1,180,189 |  |  |  | 1,179,991 |  |  |  | 1,020,068 |  |  |  | 1,014,532 |
Short-term borrowings |  | Level 1 |  |  | 275,500 |  |  |  | 275,500 |  |  |  | 469,500 |  |  |  | 469,500 |
Long-term borrowings |  | Level 2 |  |  | 39,273 |  |  |  | 41,083 |  |  |  | 39,202 |  |  |  | 38,415 |
Accrued interest payable |  | Level 1 |  |  | 10,942 |  |  |  | 10,942 |  |  |  | 9,280 |  |  |  | 9,280 |
Derivative instruments – interest rate products |  | Level 2 |  |  | 6,720 |  |  |  | 6,720 |  |  |  | 2,006 |  |  |  | 2,006 |
Derivative instruments – credit contracts |  | Level 2 |  |  | 18 |  |  |  | 18 |  |  |  | 24 |  |  |  | 24 |
Derivative instruments – mortgage banking |  | Level 2 |  |  | 7 |  |  |  | 7 |  |  |  | 27 |  |  |  | 27 |
(1) | Comprised of collateral dependent impaired loans.

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