10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 2015.

or

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from  to .

Commission File Number: 0-7617

UNIVEST CORPORATION OF PENNSYLVANIA

(Exact name of registrant as specified in its charter)

Pennsylvania	23-1886144
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

14 North Main Street, Souderton, Pennsylvania 18964

(Address of principal executive offices)(Zip Code)

Registrant’s telephone number, including area code: (215) 721-2400

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock, $5 par value	19,525,644
(Title of Class)	(Number of shares outstanding at October 30, 2015)

UNIVEST CORPORATION OF PENNSYLVANIA AND SUBSIDIARIES

INDEX

			Page Number
Part I.	Financial Information:
	Item 1.	Financial Statements (Unaudited)
		Consolidated Balance Sheets at September 30, 2015 and December 31, 2014	2
		Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2015 and 2014	3
		Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2015 and 2014	4
		Consolidated Statements of Changes in Shareholders’ Equity for the Nine Months Ended September 30, 2015 and 2014	5
		Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2015 and 2014	6
		Notes to Consolidated Financial Statements	7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	60
	Item 4.	Controls and Procedures	60
Part II.	Other Information
	Item 1.	Legal Proceedings	60
	Item 1A.	Risk Factors	60
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	61
	Item 3.	Defaults Upon Senior Securities	61
	Item 4.	Mine Safety Disclosures	61
	Item 5.	Other Information	61
	Item 6.	Exhibits	62
Signatures			63

1

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

UNIVEST CORPORATION OF PENNSYLVANIA

CONSOLIDATED BALANCE SHEETS

	(UNAUDITED)
(Dollars in thousands, except share data)	At September 30, 2015			At December 31, 2014
ASSETS
Cash and due from banks	$	32,058		$	31,995
Interest-earning deposits with other banks	76,486			6,570
Investment securities held-to-maturity (fair value $41,323 and $54,765 at September 30, 2015 and December 31, 2014, respectively)	41,058			54,347
Investment securities available-for-sale	333,500			314,283
Loans held for sale	9,151			3,302
Loans and leases held for investment	2,097,807			1,626,625
Less: Reserve for loan and lease losses	(18,620		)	(20,662		)
Net loans and leases held for investment	2,079,187			1,605,963
Premises and equipment, net	41,110			37,009
Goodwill	112,657			67,717
Other intangibles, net of accumulated amortization and fair value adjustments of $14,484 and $11,776 at September 30, 2015 and December 31, 2014, respectively	13,068			12,180
Bank owned life insurance	71,135			62,265
Accrued interest receivable and other assets	42,158			39,690
Total assets	$	2,851,568		$	2,235,321
LIABILITIES
Noninterest-bearing deposits	$	519,767		$	449,339
Interest-bearing deposits:
Demand deposits	773,508			640,095
Savings deposits	588,319			519,314
Time deposits	491,271			252,593
Total deposits	2,372,865			1,861,341
Customer repurchase agreements	21,191			41,974
Subordinated notes	49,340			—
Accrued interest payable and other liabilities	49,063			47,452
Total liabilities	2,492,459			1,950,767
SHAREHOLDERS’ EQUITY
Common stock, $5 par value: 48,000,000 shares authorized at September 30, 2015 and December 31, 2014; 22,054,270 and 18,266,404 shares issued at September 30, 2015 and December 31, 2014, respectively; 19,502,613 and 16,221,607 shares outstanding at September 30, 2015 and December 31, 2014, respectively	110,271			91,332
Additional paid-in capital	120,895			62,980
Retained earnings	190,159			181,851
Accumulated other comprehensive loss, net of tax benefit	(14,979		)	(14,462		)
Treasury stock, at cost; 2,551,657 and 2,044,797 shares at September 30, 2015 and December 31, 2014, respectively	(47,237		)	(37,147		)
Total shareholders’ equity	359,109			284,554
Total liabilities and shareholders’ equity	$	2,851,568		$	2,235,321

Note: See accompanying notes to the unaudited consolidated financial statements.

2

UNIVEST CORPORATION OF PENNSYLVANIA

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended   September 30,				Nine Months Ended   September 30,
(Dollars in thousands, except per share data)	2015		2014		2015		2014
Interest income
Interest and fees on loans and leases:
Taxable	$	21,890	$	15,921	$	65,083	$	46,916
Exempt from federal income taxes	1,602		1,433		4,765		4,177
Total interest and fees on loans and leases	23,492		17,354		69,848		51,093
Interest and dividends on investment securities:
Taxable	1,204		963		3,342		3,025
Exempt from federal income taxes	868		884		2,607		2,723
Interest on federal funds sold	—		—		2		—
Other interest income	21		18		37		49
Total interest income	25,585		19,219		75,836		56,890
Interest expense
Interest on deposits	1,543		971		4,405		2,932
Interest on short-term borrowings	10		7		33		25
Interest on long-term borrowings	667		—		1,349		—
Total interest expense	2,220		978		5,787		2,957
Net interest income	23,365		18,241		70,049		53,933
Provision for loan and lease losses	670		233		2,885		2,959
Net interest income after provision for loan and lease losses	22,695		18,008		67,164		50,974
Noninterest income
Trust fee income	1,904		1,862		5,878		5,692
Service charges on deposit accounts	1,069		1,073		3,171		3,134
Investment advisory commission and fee income	2,687		3,086		8,190		9,144
Insurance commission and fee income	3,232		2,881		10,812		8,647
Other service fee income	1,956		1,767		5,387		5,471
Bank owned life insurance income	306		346		870		1,167
Net gain on sales of investment securities	296		—		568		557
Net gain on mortgage banking activities	1,123		616		3,748		1,484
Net gain on sales of other real estate owned	14		195		14		195
Other income	268		684		999		1,084
Total noninterest income	12,855		12,510		39,637		36,575
Noninterest expense
Salaries and benefits	11,970		11,035		37,241		31,948
Commissions	2,174		2,200		6,143		5,585
Net occupancy	2,093		1,689		6,486		5,130
Equipment	1,831		1,426		5,228		4,170
Professional fees	1,096		744		2,969		2,399
Marketing and advertising	583		391		1,494		1,333
Deposit insurance premiums	433		386		1,267		1,162
Intangible expenses	710		352		2,389		1,762
Acquisition-related costs	—		180		507		739
Integration costs	—		8		1,484		8
Restructuring charges	—		—		1,642		—
Other expense	4,353		3,608		12,636		10,456
Total noninterest expense	25,243		22,019		79,486		64,692
Income before income taxes	10,307		8,499		27,315		22,857
Income taxes	2,779		2,264		7,205		5,816
Net income	$	7,528	$	6,235	$	20,110	$	17,041
Net income per share:
Basic	$	0.39	$	0.38	$	1.02	$	1.05
Diluted	0.39		0.38		1.02		1.05
Dividends declared	0.20		0.20		0.60		0.60

Note: See accompanying notes to the unaudited consolidated financial statements.

3

UNIVEST CORPORATION OF PENNSYLVANIA

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended September 30,
(Dollars in thousands)	2015									2014
	Before Tax Amount			Tax Expense (Benefit)			Net of Tax Amount			Before Tax Amount			Tax Expense (Benefit)			Net of Tax Amount
Income	$	10,307		$	2,779		$	7,528		$	8,499		$	2,264		$	6,235
Other comprehensive income:
Net unrealized gains (losses) on available-for-sale investment securities:
Net unrealized holding gains (losses) arising during the period	797			279			518			(486		)	(170		)	(316		)
Less: reclassification adjustment for net gains on sales realized in net income	(296		)	(104		)	(192		)	—			—			—
Less: reclassification adjustment for other-than-temporary impairment on equity securities realized in net income	5			2			3			—			—			—
Total net unrealized gains (losses) on available-for-sale investment securities	506			177			329			(486		)	(170		)	(316		)
Net change in fair value of interest rate swaps used in cash flow hedges	(483		)	(169		)	(314		)	—			—			—
Defined benefit pension plans:
Amortization of net actuarial loss included in net periodic pension costs	341			119			222			168			59			109
Accretion of prior service cost included in net periodic pension costs	(70		)	(24		)	(46		)	(72		)	(26		)	(46		)
Total defined benefit pension plans	271			95			176			96			33			63
Other comprehensive income (loss)	294			103			191			(390		)	(137		)	(253		)
Total comprehensive income	$	10,601		$	2,882		$	7,719		$	8,109		$	2,127		$	5,982

	Nine Months Ended September 30,
(Dollars in thousands)	2015									2014
	Before Tax Amount			Tax Expense (Benefit)			Net of Tax Amount			Before Tax Amount			Tax Expense (Benefit)			Net of Tax Amount
Income	$	27,315		$	7,205		$	20,110		$	22,857		$	5,816		$	17,041
Other comprehensive income:
Net unrealized (losses) gains on available-for-sale investment securities:
Net unrealized holding (losses) gains arising during the period	(600		)	(210		)	(390		)	4,972			1,741			3,231
Less: reclassification adjustment for net gains on sales realized in net income	(568		)	(199		)	(369		)	(557		)	(195		)	(362		)
Less: reclassification adjustment for other-than-temporary impairment on equity securities realized in net income	5			2			3			—			—			—
Total net unrealized (losses) gains on available-for-sale investment securities	(1,163		)	(407		)	(756		)	4,415			1,546			2,869
Net change in fair value of interest rate swaps used in cash flow hedges	(443		)	(155		)	(288		)	—			—			—
Defined benefit pension plans:
Amortization of net actuarial loss included in net periodic pension costs	1,022			358			664			499			175			324
Accretion of prior service cost included in net periodic pension costs	(210		)	(73		)	(137		)	(216		)	(77		)	(139		)
Total defined benefit pension plans	812			285			527			283			98			185
Other comprehensive (loss) income	(794		)	(277		)	(517		)	4,698			1,644			3,054
Total comprehensive income	$	26,521		$	6,928		$	19,593		$	27,555		$	7,460		$	20,095

Note: See accompanying notes to the unaudited consolidated financial statements.

4

UNIVEST CORPORATION OF PENNSYLVANIA

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)

(Dollars in thousands, except share and per share data)	Common Shares Outstanding		Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive (Loss) Income			Treasury Stock			Total
Nine Months Ended September 30, 2015
Balance at December 31, 2014	16,221,607		$	91,332	$	62,980		$	181,851		$	(14,462	)	$	(37,147	)	$	284,554
Net income	—		—		—			20,110			—			—			20,110
Other comprehensive income, net of income tax	—		—		—			—			(517		)	—			(517		)
Cash dividends declared ($0.60 per share)	—		—		—			(11,801		)	—			—			(11,801		)
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs	92,824		—		36			(1		)	—			1,801			1,836
Issuance of common stock, acquisition	3,787,866		18,939		57,727			—			—			—			76,666
Exercise of stock options	18,666		—		(36		)	—			—			342			306
Repurchase of cancelled restricted stock awards	(17,684	)	—		277			—			—			(277		)	—
Stock-based compensation	—		—		1,034			—			—			—			1,034
Net tax benefit on stock-based compensation	—		—		72			—			—			—			72
Purchases of treasury stock	(666,421	)	—		—			—			—			(13,151		)	(13,151		)
Restricted stock awards granted	65,755		—		(1,195		)	—			—			1,195			—
Balance at September 30, 2015	19,502,613		$	110,271	$	120,895		$	190,159		$	(14,979	)	$	(47,237	)	$	359,109

(Dollars in thousands, except share and per share data)	Common Shares Outstanding		Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive (Loss) Income			Treasury Stock			Total
Nine Months Ended September 30, 2014
Balance at December 31, 2013	16,287,812		$	91,332	$	62,417		$	172,602		$	(9,955	)	$	(35,890	)	$	280,506
Net income	—		—		—			17,041			—			—			17,041
Other comprehensive income, net of income tax benefit	—		—		—			—			3,054			—			3,054
Cash dividends declared ($0.60 per share)	—		—		—			(9,740		)	—			—			(9,740		)
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs	96,129		—		30			—			—			1,892			1,922
Exercise of stock options	9,500		—		11			—			—			173			184
Repurchase of cancelled restricted stock awards	(43,452	)	—		735			—			—			(735		)	—
Stock-based compensation	—		—		792			—			—			—			792
Net tax deficiency on stock-based compensation	—		—		(2		)	—			—			—			(2		)
Purchases of treasury stock	(204,044	)	—		—			—			—			(3,943		)	(3,943		)
Restricted stock awards granted	74,304		—		(1,349		)	—			—			1,349			—
Balance at September 30, 2014	16,220,249		$	91,332	$	62,634		$	179,903		$	(6,901	)	$	(37,154	)	$	289,814

Note: See accompanying notes to the unaudited consolidated financial statements.

5

UNIVEST CORPORATION OF PENNSYLVANIA

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months Ended September 30,
(Dollars in thousands)	2015			2014
Cash flows from operating activities:
Net income	$	20,110		$	17,041
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan and lease losses	2,885			2,959
Depreciation of premises and equipment	2,841			2,288
Net gain on sales of investment securities	(568		)	(557		)
Net gain on mortgage banking activities	(3,748		)	(1,484		)
Net gain on dispositions of fixed assets	(134		)	(40		)
Net gain on sales of other real estate owned	(14		)	(195		)
Bank owned life insurance income	(870		)	(1,167		)
Stock-based compensation	1,034			792
Intangible expenses	2,389			1,762
Other adjustments to reconcile net income to cash provided by operating activities	2,474			859
Originations of loans held for sale	(154,149		)	(86,457		)
Proceeds from the sale of loans held for sale	155,644			87,827
Contributions to pension and other postretirement benefit plans	(2,208		)	(159		)
(Increase) decrease in accrued interest receivable and other assets	(790		)	1,359
Increase (decrease) in accrued interest payable and other liabilities	273			(1,911		)
Net cash provided by operating activities	25,169			22,917
Cash flows from investing activities:
Net cash paid due to acquisitions	(2,967		)	(9,260		)
Net capital expenditures	(3,848		)	(3,158		)
Proceeds from maturities and calls of securities held-to-maturity	13,000			9,000
Proceeds from maturities and calls of securities available-for-sale	63,513			47,175
Proceeds from sales of securities available-for-sale	56,005			30,286
Purchases of investment securities available-for-sale	(127,271		)	(41,320		)
Proceeds from sale of credit card portfolio	—			8,943
Net increase in loans and leases	(97,768		)	(70,344		)
Net increase in interest-earning deposits	(64,997		)	(2,101		)
Proceeds from sales of other real estate owned	14			891
Net decrease in federal funds sold	17,442			—
Purchases of bank owned life insurance	(8,000		)	—
Net cash used in by investing activities	(154,877		)	(29,888		)
Cash flows from financing activities:
Net increase in deposits	126,000			15,645
Net (decrease) increase in short-term borrowings	(20,783		)	248
Proceeds from issuance of subordinated notes	49,267			—
Payment of contingent consideration on acquisitions	(2,631		)	(310		)
Purchases of treasury stock	(13,151		)	(3,943		)
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs	1,836			1,922
Proceeds from exercise of stock options, including excess tax benefits	378			184
Cash dividends paid	(11,145		)	(9,754		)
Net cash provided by financing activities	129,771			3,992
Net increase (decrease) in cash and due from banks	63			(2,979		)
Cash and due from banks at beginning of year	31,995			32,646
Cash and due from banks at end of period	$	32,058		$	29,667
Supplemental disclosures of cash flow information:
Cash paid for interest	$	6,103		$	3,122
Cash paid for income taxes, net of refunds	702			5,188
Non cash transactions:
Transfer of loans to loans held for sale	$	4,000		$	8,926
Assets acquired through acquisitions	425,185			—
Liabilities assumed through acquisitions	389,795			—
Contingent consideration recorded as goodwill	1,525			6,105

Note: See accompanying notes to the unaudited consolidated financial statements.

6

UNIVEST CORPORATION OF PENNSYLVANIA AND SUBSIDIARIES

Notes to the Unaudited Consolidated Financial Statements

Note 1. Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of Univest Corporation of Pennsylvania (the Corporation or Univest) and its wholly owned subsidiaries; the Corporation’s primary subsidiary is Univest Bank and Trust Co. (the Bank). All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited interim consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations for interim financial information. The accompanying unaudited consolidated financial statements reflect all adjustments which are of a normal recurring nature and are, in the opinion of management, necessary for a fair presentation of the financial statements for the interim periods presented. Certain prior period amounts have been reclassified to conform to the current-year presentation. Operating results for the nine-month period ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. It is suggested that these unaudited consolidated financial statements be read in conjunction with the audited financial statements and the notes thereto included in the registrant’s Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on March 9, 2015.

Use of Estimates

The preparation of the unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes include fair value measurement of investment securities available-for-sale and assessment for impairment of certain investment securities, reserve for loan and lease losses, valuation of goodwill and other intangible assets, mortgage servicing rights, deferred tax assets and liabilities, benefit plans and stock-based compensation expense.

Recent Accounting Pronouncements

In September 2015, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) simplifying the accounting for measurement-period adjustments related to business combinations. The ASU eliminates the requirement to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. Under this ASU, measurement-period adjustments are calculated as if they were known at the acquisition date, but are recognized in the reporting period in which they are determined. The ASU requires additional disclosures about the impact on current period income statement line items of adjustments that would have been recognized in prior periods if prior period information had been revised. The amendments in this ASU are effective for financial statements of public businesses issued for fiscal years and interim periods within those years beginning after December 15, 2015, or January 1, 2016 for the Corporation. The adoption of this guidance is not anticipated to have a material impact on the Corporation's financial statements.

In April 2015, the FASB issued an ASU simplifying the presentation of debt issuance costs. The ASU requires that debt issuance costs related to a recognized debt liability shall be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts.The costs will continue to be amortized to interest expense using the effective interest method. The ASU is effective for financial statements of public business issued for fiscal years beginning after December 15, 2015, or January 1, 2016 for the Corporation. The adoption of ASU will not impact the Corporation's balance sheet presentation as the Corporation currently follows this presentation consistent with the guidance in FASB Concepts Statement No. 6.

In May 2014, the FASB issued an ASU regarding revenue from contracts with customers which clarifies the principles for recognizing revenue and develops a common standard for U.S. GAAP and International Financial Reporting Standards. The ASU establishes a core principle that would require an entity to identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. The ASU provides for improved disclosure requirements that require entities to disclose sufficient information that enables users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued an ASU deferring the original effective date of this guidance by one year. This guidance is now effective for fiscal

7

years and interim periods within those years beginning after December 15, 2017, or January 1, 2018 for the Corporation. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements; however, it is anticipated the impact will be only related to timing.

In January 2014, the FASB issued an ASU regarding reclassification of residential real estate collateralized consumer mortgage loans upon foreclosure. The ASU clarifies that when an in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The ASU was issued to eliminate diversity in practice on this topic. The amendment is effective for fiscal years and interim periods within those years beginning after December 15, 2014, or January 1, 2015 for the Corporation. The adoption of this guidance did not have a material impact on the Corporation's financial statements but resulted in expanded disclosures effective March 31, 2015, which are included in Note 4, “Loans and Leases.”

Note 2. Acquisition

Valley Green Bank

On January 1, 2015, the Corporation completed the acquisition of Valley Green Bank. The merger of Valley Green Bank with and into the Bank was effected pursuant to the terms and conditions of the Agreement and Plan of Merger (Merger Agreement) dated June 17, 2014. Headquartered in the Mt. Airy neighborhood of Philadelphia, Pennsylvania, Valley Green operated three full-service banking offices and two administrative offices for loan production in the greater Philadelphia marketplace. With the assumption of Valley Green Bank’s three branches and two administrative offices for loan production in the Philadelphia marketplace, the Corporation entered a new small business and consumer market and expanded its existing lending network within southeastern Pennsylvania.

The acquisition was an all-stock transaction with an aggregate value of approximately $77 million. Pursuant to the Merger Agreement, each share of Valley Green Bank common stock was cancelled and converted into the right to receive 1.3541 shares of Univest common stock, $5 par value, with any fractional share entitled to payment in cash. As a result, the Corporation delivered 3,787,866 shares of the Corporation's common stock to the former shareholders of Valley Green Bank. Valley Green Bank outstanding stock options of 122,377 were exchanged for cash and related payroll taxes of $2.2 million. Approximately $3 thousand in cash was paid for fractional shares.

The transaction is being accounted for using the acquisition method of accounting, which requires the Corporation to allocate the total consideration transferred to the assets acquired and liabilities assumed, based on their respective fair values at the merger date, with remaining excess consideration recorded as goodwill. The fair value of total assets acquired as a result of the merger totaled $425.2 million, which included $380.9 million in loans and $385.9 million in deposits at January 1, 2015. The fair value estimates are subject to adjustment if additional information becomes available during the measurement period in accordance with Accounting Standards Codification (ASC) Topic 805. Such adjustments, may change the amount of the purchase price allocation to goodwill while changes to other assets and liabilities may impact the statement of income due to adjustments in the yield and/or amortization/accretion of the adjusted assets and liabilities. The results of Valley Green Bank's operations have been included in the Corporation consolidated financial statements prospectively from the date of the merger.

8

The following table summarized the consideration paid for Valley Green Bank and the fair value of assets acquired and liabilities assumed at the acquisition date:

(Dollars in thousands, except share data)
Purchase price consideration in common stock:
Valley Green common shares outstanding	2,797,454
Exchange ratio	1.3541
Univest shares issued	3,787,866
Univest closing stock price at December 31, 2014	$	20.24
Purchase price assigned to Valley Green common shares exchanged for Univest stock			$	76,667
Purchase price assigned to cash in lieu of fractional shares			3
Purchase price assigned to Valley Green options settled for cash			2,236
Total purchase price			$	78,906
Fair value of assets acquired:
Cash and due from banks	$	4,919
Federal funds sold	17,442
Investment securities available-for-sale	12,766
Loans held for investment	380,924
Premises and equipment, net	2,973
Core deposit intangible *	1,520
Accrued interest receivable and other assets	4,641
Total identifiable assets			425,185
Fair value of liabilities assumed:
Deposits - noninterest bearing	$	49,102
Deposits - interest bearing	336,810
Change in control accrued payments	2,070
Accrued interest payable and other liabilities	1,813
Total liabilities			389,795
Identifiable net assets			35,390
Goodwill resulting from merger *			$	43,516

* - Goodwill is not expected to be deductible for federal income tax purposes. The goodwill and core deposit intangible are allocated to

the Banking business segment.

The following is a description of the valuation methodologies used to estimate the fair values of major categories of assets acquired and liabilities assumed. In many cases, determining the fair value of the acquired assets and assumed liabilities required the Corporation to estimate cash flows expected to result from those assets and liabilities and to discount those cash flows at appropriate rates of interest, which required the utilization of significant estimates and judgment in accounting for the acquisition.

Cash and due from banks and federal funds sold: The estimated fair values of cash and due from banks and federal fund sold approximated their stated value.

Investment securities available-for-sale: The estimated fair values of the investment securities available for sale, comprised of U.S. government corporations and agencies, were determined using Level 2 inputs in the fair value hierarchy. The fair values were determined using independent pricing services and market-participating brokers. The Corporation’s independent pricing service utilized evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information for structured securities, cash flow and, when available, loan performance data. Because many fixed income securities do not trade on a daily basis, the pricing service’s evaluated pricing applications apply information as applicable through processes, such as benchmarking of like securities, sector groupings, and matrix pricing, to prepare evaluations. Management reviewed the data and assumptions used in pricing the securities.

Loans held for investment: The most significant fair value determination related to the valuation of acquired loans. The acquisition resulted in loans acquired with and without evidence of credit quality deterioration. There was no carryover related allowance for loan and lease losses.

9

The acquired loan portfolio was valued based on current guidance which defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Level 3 inputs were utilized to value the portfolio and included the use of present value techniques employing cash flow estimates and incorporated assumptions that marketplace participants would use in estimating fair values. In instances where reliable market information was not available, the Corporation used assumptions in an effort to determine reasonable fair value. Specifically, management utilized three separate fair value analyses which a market participant would employ in estimating the total fair value adjustment. The three separate fair valuation methodologies used were: 1) interest rate loan fair value analysis; 2) general credit fair value analysis; and 3) specific credit fair value analysis.

For loans acquired without evidence of credit quality deterioration, the Corporation prepared the interest rate loan fair value analysis. Loans were grouped by characteristics such as loan type, term, collateral and rate. Market rates for similar loans were obtained from various external data sources and reviewed by management for reasonableness. The average of these rates was used as the fair value interest rate a market participant would utilize. A present value approach was utilized to calculate the interest rate fair value adjustment. Additionally a general credit fair value adjustment was calculated using a two part general credit fair value analysis: 1) expected lifetime losses; and 2) estimated fair value adjustment for qualitative factors. The expected lifetime losses were calculated using an average of historical losses of the Bank, Valley Green Bank and peer banks. The adjustment related to qualitative factors was impacted by general economic conditions and the risk related to a lack of specific familiarity with Valley Green Bank's underwriting process. Valley Green's loan portfolio without evidence of credit quality deterioration was recorded at a current fair value of $379.2 million. A fair value premium of $4.4 million was recognized to reflect the fair values of loans. A fair value discount of $5.5 million was recognized to reflect the general credit risk of the loan portfolio. The adjustment will be substantially recognized as interest income over approximately 10 years on a level yield amortization method based upon the expected life of the loans.

For loans acquired with evidence of credit quality deterioration the Corporation prepared a specific credit fair value adjustment. Management reviewed the acquired loan portfolio for loans meeting the definition of an impaired loan with deteriorated credit quality. Loans meeting this definition were reviewed by comparing the contractual cash flows to expected collectible cash flows. The aggregate expected cash flows less the acquisition date fair value results in an accretable yield amount. The accretable yield amount will be recognized over the life of the loans on a level yield basis as an adjustment to yield. Any disposals of loans, including sales of loans, payments in full or foreclosures result in the derecognition of the loan at its carrying value with differences in actual results reflected in interest income.

At the acquisition date, the Corporation recorded $1.7 million of acquired impaired loans subject to a nonaccretable discount difference of $5.3 million. The aggregate expected cash flows less the acquisition date fair value results in an accretable yield amount of $305 thousand, which will be recognized over the life of the loans on a level yield basis as an adjustment to yield.

The following is a summary of the acquired impaired loans at January 1, 2015 resulting from the acquisition with Valley Green:

(Dollars in thousands)
Contractually required principal and interest payments	$	7,377
Contractual cash flows not expected to be collected (nonaccretable difference)	(5,344		)
Cash flows expected to be collected	2,033
Interest component of expected cash flows (accretable difference)	(305		)
Fair value of loans acquired with a deterioration of credit quality	$	1,728

Bank premises - leased: The Corporation assumed five facility lease contracts and no owned properties. The fair value of the lease contracts represents the present value of the pre-tax differential between the expected contractual payments and current market rate lease payments to the first lease termination date discounted by an assumed required rate of return.

Core deposit intangible: Core deposit intangible represents the value assigned to demand, interest checking, money market and savings accounts acquired as part of the acquisition. The core deposit intangible fair value represents the future economic benefit, including the present value of future tax benefits, of the potential cost savings from acquiring core deposits as part of an acquisition compared to the cost of alternative funding sources and was valued utilizing Level 3 inputs. The core deposit intangible of $1.5 million will be amortized using the sum of the years digits method over an estimated life of 10 years.

Deposits: The fair values of demand and saving deposits, with no stated maturities, approximated the carrying value as these accounts are payable on demand. The fair values of time deposits with fixed maturities were estimated by discounting the final maturity using current market interest rate for similar instruments. A fair value premium of $686 thousand was recognized and will be recognized as a reduction to interest expense using a level yield amortization method over the life of the time deposit. The fair value of time deposits were determined using Level 2 inputs in the fair value hierarchy.

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Deferred tax assets and liabilities: Deferred tax assets and liabilities were established for purchase accounting fair value adjustments as the future amortization/accretion of these adjustments represent temporary differences between book income and taxable income.

Direct costs related to the acquisition were expensed as incurred. For the nine months ended September 30, 2015, the Corporation incurred $2.0 million of Valley Green Bank integration and acquisition-related costs, which have been separately stated in the Corporation's consolidated statements of income.

Supplemental Pro Forma Financial Information (unaudited)

The following unaudited pro forma combined consolidated financial information for the three and nine months ended September 30, 2015 and 2014 combine the historical consolidated results of the Corporation and Valley Green Bank and give effect to the merger as if the merger occurred on January 1, 2015 and January 1, 2014, respectively. The pro forma information has been prepared to include the estimated adjustments necessary to record the assets and liabilities of Valley Green Bank at their respective fair values and are subject to adjustment if additional information becomes available. Such adjustments, may change the amount of the purchase price allocation to goodwill while changes to other assets and liabilities may impact the statement of income due to adjustments in the yield and/or amortization/accretion of the adjusted assets and liabilities. Furthermore, the unaudited proforma information does not reflect management’s estimate of any revenue-enhancing opportunities or anticipated cost savings

The pro forma data is not necessarily indicative of the operating results that the Corporation would have achieved had it completed the merger as of the beginning of the period presented and should not be considered as representative of future operations.

The unaudited pro forma data presented below is based on, and should be read together with, the historical financial information of the Corporation included in this Form 10-Q for the indicated periods and the historical information of Valley Green Bank included in the Corporation's Current Report on Form 8-K filed with the SEC on January 7, 2015.

	Pro Forma				Pro Forma
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Dollars in thousands, except share data)	2015		2014		2015		2014
Net interest income	$	23,365	$	23,360	$	70,049	$	69,005
Noninterest income	12,855		12,671		39,637		37,036
Noninterest expense	25,243		25,002		79,486		72,563
Net income	7,528		7,605		20,110		21,508
Earnings per share
Basic	0.39		0.38		1.02		1.07
Diluted	0.39		0.38		1.02		1.07

* Theninemonths endedSeptember 30, 2015included integration and acquisition-related costs associated with Valley Green Bank incurred during the first and second quarters of$2.0 million($1.3 million, net of tax),or$0.07diluted earnings per share on a tax affected basis. The nine months endedSeptember 30, 2015also included restructuring charges of$1.6 million($1.1 million, net of tax), incurred in the second quarter, related to the consolidation of six financial centers in September of 2015 under the Bank's optimization plan or$0.05diluted earnings per share on a tax affected basis.

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Note 3. Investment Securities

The following table shows the amortized cost and the estimated fair value of the held-to-maturity securities and available-for-sale securities at September 30, 2015 and December 31, 2014, by contractual maturity within each type:

	At September 30, 2015									At December 31, 2014
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Held-to-Maturity
Corporate bonds:
Within 1 year	$	17,066	$	176	$	—		$	17,242	$	13,088	$	82	$	—		$	13,170
After 1 year to 5 years	23,992		111		(22		)	24,081		41,259		388		(52		)	41,595
	41,058		287		(22		)	41,323		54,347		470		(52		)	54,765
Total	$	41,058	$	287	$	(22	)	$	41,323	$	54,347	$	470	$	(52	)	$	54,765
Securities Available-for-Sale
U.S. treasuries:
After 1 year to 5 years	$	4,977	$	—	$	(32	)	$	4,945	$	4,972	$	—	$	(127	)	$	4,845
	4,977		—		(32		)	4,945		4,972		—		(127		)	4,845
U.S. government corporations and agencies:
After 1 year to 5 years	104,893		491		(13		)	105,371		122,328		48		(532		)	121,844
	104,893		491		(13		)	105,371		122,328		48		(532		)	121,844
State and political subdivisions:
Within 1 year	—		—		—			—		600		2		—			602
After 1 year to 5 years	15,664		91		(15		)	15,740		12,326		17		(59		)	12,284
After 5 years to 10 years	51,605		1,446		(34		)	53,017		49,554		1,616		(77		)	51,093
Over 10 years	38,428		1,285		(50		)	39,663		37,004		1,792		(1		)	38,795
	105,697		2,822		(99		)	108,420		99,484		3,427		(137		)	102,774
Residential mortgage-backed securities:
After 1 year to 5 years	9,767		110		—			9,877		5,066		17		—			5,083
After 5 years to 10 years	—		—		—			—		4,856		—		(32		)	4,824
Over 10 years	3,598		69		—			3,667		3,661		75		—			3,736
	13,365		179		—			13,544		13,583		92		(32		)	13,643
Collateralized mortgage obligations:
Over 10 years	3,352		—		(49		)	3,303		3,810		—		(85		)	3,725
	3,352		—		(49		)	3,303		3,810		—		(85		)	3,725
Corporate bonds:
Within 1 year	—		—		—			—		4,998		22		—			5,020
After 1 year to 5 years	19,768		80		(165		)	19,683		29,505		88		(244		)	29,349
After 5 years to 10 years	10,403		1		(157		)	10,247		20,442		—		(371		)	20,071
Over 10 years	60,000		88		(2,105		)	57,983		—		—		—			—
	90,171		169		(2,427		)	87,913		54,945		110		(615		)	54,440
Money market mutual funds:
No stated maturity	9,020		—		—			9,020		11,675		—		—			11,675
	9,020		—		—			9,020		11,675		—		—			11,675
Equity securities:
No stated maturity	556		428		—			984		854		483		—			1,337
	556		428		—			984		854		483		—			1,337
Total	$	332,031	$	4,089	$	(2,620	)	$	333,500	$	311,651	$	4,160	$	(1,528	)	$	314,283

Expected maturities may differ from contractual maturities because debt issuers may have the right to call or prepay obligations without call or prepayment penalties. Unrealized losses in investment securities at September 30, 2015 and December 31, 2014 do not represent other-than-temporary impairments.

Securities with a carrying value of $204.5 million and $230.9 million at September 30, 2015 and December 31, 2014, respectively, were pledged to secure public deposits and for other purposes as required by law.

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The following table presents information related to sales of securities available-for-sale during the nine months ended September 30, 2015 and 2014:

	Nine Months Ended September 30,
(Dollars in thousands)	2015		2014
Securities available-for-sale:
Proceeds from sales	$	56,005	$	30,286
Gross realized gains on sales	591		557
Gross realized losses on sales	23		—
Tax expense related to net realized gains on sales	199		195

Management evaluates debt securities, which are comprised of U.S. government, government sponsored agencies, municipalities, corporate bonds and other issuers, for other-than-temporary impairment by considering the current economic conditions, the length of time and the extent to which the fair value has been less than cost, market interest rates and the bond rating of each security. All of the debt securities are rated as investment grade and management believes that it will not incur any losses. The unrealized losses on the Corporation’s investments in debt securities are temporary in nature since they are primarily related to market interest rates and are not related to the underlying credit quality of the issuers. The Corporation does not have the intent to sell the debt securities and believes it is more likely than not, that it will not have to sell the securities before recovery of their cost basis. The Corporation did not recognize any other-than-temporary impairment charges on debt securities for the nine months ended September 30, 2015 and 2014.

The Corporation evaluates its equity securities for other-than-temporary impairment and recognizes other-than-temporary impairment charges when it has determined that it is probable that the fair value of certain equity securities will not recover to the Corporation’s cost basis in the individual securities within a reasonable period of time due to a decline in the financial stability of the underlying companies. Management evaluates the near-term prospects of the issuers in relation to the severity and duration of the impairment. The Corporation has the intent and ability to hold these securities until recovery of the Corporation’s cost basis occurs. The Corporation realized other-than-temporary impairment charges to noninterest income of $5 thousand on its equity portfolio during the three and nine months ended September 30, 2015.

At September 30, 2015 and December 31, 2014, there were no investments in any single non-federal issuer representing more than 10% of shareholders’ equity.

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The following table shows the fair value of securities that were in an unrealized loss position at September 30, 2015 and December 31, 2014 by the length of time those securities were in a continuous loss position:

	Less than Twelve Months					Twelve Months or Longer					Total
(Dollars in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
At September 30, 2015
Securities Held-to-Maturity
Corporate bonds	$	—	$	—		$	4,987	$	(22	)	$	4,987	$	(22	)
Total	$	—	$	—		$	4,987	$	(22	)	$	4,987	$	(22	)
Securities Available-for-Sale
U.S. treasuries	$	—	$	—		$	4,945	$	(32	)	$	4,945	$	(32	)
U.S. government corporations and agencies	3,004		(8		)	4,995		(5		)	7,999		(13		)
State and political subdivisions	11,924		(90		)	1,340		(9		)	13,264		(99		)
Collateralized mortgage obligations	—		—			3,304		(49		)	3,304		(49		)
Corporate bonds	49,961		(2,228		)	10,799		(199		)	60,760		(2,427		)
Total	$	64,889	$	(2,326	)	$	25,383	$	(294	)	$	90,272	$	(2,620	)
At December 31, 2014
Securities Held-to-Maturity
Corporate bonds	$	15,036	$	(27	)	$	4,987	$	(25	)	$	20,023	$	(52	)
Total	$	15,036	$	(27	)	$	4,987	$	(25	)	$	20,023	$	(52	)
Securities Available-for-Sale
U.S. treasuries	$	—	$	—		$	4,845	$	(127	)	$	4,845	$	(127	)
U.S. government corporations and agencies	39,607		(80		)	62,140		(452		)	101,747		(532		)
State and political subdivisions	10,246		(31		)	9,303		(106		)	19,549		(137		)
Residential mortgage-backed securities	4,824		(32		)	—		—			4,824		(32		)
Collateralized mortgage obligations	—		—			3,725		(85		)	3,725		(85		)
Corporate bonds	21,949		(328		)	15,805		(287		)	37,754		(615		)
Total	$	76,626	$	(471	)	$	95,818	$	(1,057	)	$	172,444	$	(1,528	)

Note 4. Loans and Leases

Summary of Major Loan and Lease Categories

	At September 30, 2015								At December 31, 2014
(Dollars in thousands)	Originated			Acquired		Total			Total
Commercial, financial and agricultural	$	455,469		$	27,873	$	483,342		$	457,827
Real estate-commercial	692,284			131,019		823,303			628,478
Real estate-construction	89,856			27,359		117,215			79,887
Real estate-residential secured for business purpose	65,371			138,593		203,964			36,932
Real estate-residential secured for personal purpose	178,387			4,199		182,586			166,850
Real estate-home equity secured for personal purpose	120,677			11,919		132,596			108,250
Loans to individuals	29,575			342		29,917			29,941
Lease financings	124,884			—		124,884			118,460
Total loans and leases held for investment, net of deferred income	$	1,756,503		$	341,304	$	2,097,807		$	1,626,625
Unearned lease income, included in the above table	$	(13,822	)	$	—	$	(13,822	)	$	(14,131	)
Net deferred costs, included in the above table	3,700			—		3,700			3,218
Overdraft deposits included in the above table	76			—		76			50

Overdraft deposits are re-classified as loans and are included in the total loans and leases on the balance sheet.

The carrying amount of acquired loans at September 30, 2015 totaled $341.3 million, including $1.4 million of loans acquired with deteriorated credit quality, or acquired credit impaired loans from the Valley Green Bank acquisition. Acquired credit impaired loans are accounted for in accordance with ASC Topic 310-30. See Note 2, "Acquisition" for additional information.

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The outstanding principal balance and carrying amount for acquired credit impaired loans at September 30, 2015 were as follows:

(Dollars in thousands)	At September 30, 2015
Outstanding principal balance	$	3,949
Carrying amount	1,379
Allowance for loan losses	21

The following table presents the changes in accretable yield on acquired credit impaired loans:

(Dollars in thousands)	Nine Months Ended September 30, 2015
Beginning of period	$	—
Acquisition of credit impaired loans	305
Reclassification from nonaccretable difference	476
Accretable yield amortized to interest income	(595		)
Disposals	(1		)
End of period	$	185

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Age Analysis of Past Due Loans and Leases

The following presents, by class of loans and leases, an aging of past due loans and leases, loans and leases which are current and the recorded investment in loans and leases 90 days or more past due which are accruing interest at September 30, 2015 and December 31, 2014:

(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current		Acquired Credit Impaired		Total Loans and Leases Held for Investment		Recorded Investment 90 Days or more Past Due and Accruing Interest
At September 30, 2015
Commercial, financial and agricultural	$	914	$	351	$	6,731	$	7,996	$	475,035	$	311	$	483,342	$	—
Real estate—commercial real estate and construction:
Commercial real estate	1,798		228		857		2,883		819,908		512		823,303		—
Construction	20		—		363		383		116,832		—		117,215		—
Real estate—residential and home equity:
Residential secured for business purpose	1,740		84		1,787		3,611		199,860		493		203,964		—
Residential secured for personal purpose	991		—		386		1,377		181,209		—		182,586		41
Home equity secured for personal purpose	445		201		95		741		131,792		63		132,596		35
Loans to individuals	203		203		237		643		29,274		—		29,917		237
Lease financings	1,406		2,032		536		3,974		120,910		—		124,884		115
Total	$	7,517	$	3,099	$	10,992	$	21,608	$	2,074,820	$	1,379	$	2,097,807	$	428
At December 31, 2014
Commercial, financial and agricultural	$	145	$	747	$	2,567	$	3,459	$	454,368	$	—	$	457,827	$	—
Real estate—commercial real estate and construction:
Commercial real estate	361		913		1,163		2,437		626,041		—		628,478		—
Construction	—		405		5,525		5,930		73,957		—		79,887		—
Real estate—residential and home equity:
Residential secured for business purpose	167		56		713		936		35,996		—		36,932		—
Residential secured for personal purpose	409		604		60		1,073		165,777		—		166,850		—
Home equity secured for personal purpose	348		—		215		563		107,687		—		108,250		31
Loans to individuals	365		65		365		795		29,146		—		29,941		365
Lease financings	1,610		406		435		2,451		116,009		—		118,460		55
Total	$	3,405	$	3,196	$	11,043	$	17,644	$	1,608,981	$	—	$	1,626,625	$	451

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Non-Performing Loans and Leases

The following presents, by class of loans and leases, non-performing loans and leases at September 30, 2015 and December 31, 2014:

	At September 30, 2015								At December 31, 2014
(Dollars in thousands)	Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Non- Performing Loans and Leases		Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Non- Performing Loans and Leases
Loans held for sale **	$	4,000	$	—	$	—	$	4,000	$	—	$	—	$	—	$	—
Loans and leases held for investment:
Commercial, financial and agricultural	8,593		1,959		—		10,552		5,002		2,851		—		7,853
Real estate—commercial real estate and construction:
Commercial real estate	4,223		2,474		—		6,697		4,413		2,618		—		7,031
Construction	363		—		—		363		5,931		—		—		5,931
Real estate—residential and home equity:
Residential secured for business purpose	2,301		343		—		2,644		915		—		—		915
Residential secured for personal purpose	776		—		41		817		512		—		—		512
Home equity secured for personal purpose	160		—		35		195		184		—		31		215
Loans to individuals	—		—		237		237		—		—		365		365
Lease financings	422		13		115		550		380		—		55		435
Total	$	20,838	$	4,789	$	428	$	26,055	$	17,337	$	5,469	$	451	$	23,257

* Includes nonaccrual troubled debt restructured loans and lease modifications of $742 thousand and $3.1 million at September 30, 2015 and December 31, 2014, respectively.

** Includes two real estate construction loans for one borrower of $4.0 million at September 30, 2015.

Credit Quality Indicators

The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at September 30, 2015 and December 31, 2014.

The Corporation employs a ten (10) grade risk rating system related to the credit quality of commercial loans and residential real estate loans secured for a business purpose of which the first six categories are pass categories (credits not adversely rated). The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. Loans with risk ratings of one through five are reviewed based on the relationship dollar amount with the borrower: loans with a relationship total of $2.5 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.5 million but greater than $500 thousand are reviewed annually based on the borrower’s fiscal year; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with risk ratings of six are also reviewed based on the relationship dollar amount with the borrower: loans with a relationship balance of $2.0 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.0 million but greater than $500 thousand are reviewed annually; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with risk ratings of seven are reviewed at least quarterly, and as often as monthly, at management’s discretion. Loans with risk ratings of eight through ten are reviewed monthly.

1. Cash Secured—No credit risk

2. Fully Secured—Negligible credit risk

3. Strong—Minimal credit risk

4. Satisfactory—Nominal credit risk

5. Acceptable—Moderate credit risk

6. Pre-Watch—Marginal, but stable credit risk

7. Special Mention—Potential weakness

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8. Substandard—Well-defined weakness

9. Doubtful—Collection in-full improbable

10. Loss—Considered uncollectible

Commercial Credit Exposure Credit Risk by Internally Assigned Grades

The following table presents classifications for originated loans:

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial		Real Estate— Construction		Real Estate— Residential Secured for Business Purpose		Total
At September 30, 2015
Grade:
1. Cash secured/ 2. Fully secured	$	664	$	—	$	3,103	$	—	$	3,767
3. Strong	16,985		11,217		—		—		28,202
4. Satisfactory	25,761		20,487		8,980		11		55,239
5. Acceptable	299,950		467,266		66,203		54,479		887,898
6. Pre-watch	65,733		159,961		11,207		3,777		240,678
7. Special Mention	11,724		6,674		—		2,676		21,074
8. Substandard	34,652		26,679		363		4,428		66,122
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	455,469	$	692,284	$	89,856	$	65,371	$	1,302,980
At December 31, 2014
Grade:
1. Cash secured/ 2. Fully secured	$	4,248	$	—	$	1,262	$	—	$	5,510
3. Strong	14,013		8,504		3,897		—		26,414
4. Satisfactory	23,931		30,587		8,731		339		63,588
5. Acceptable	301,425		402,719		55,111		24,535		783,790
6. Pre-watch	65,993		123,129		4,956		5,384		199,462
7. Special Mention	7,166		17,505		—		1,304		25,975
8. Substandard	41,051		46,034		5,930		5,370		98,385
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	457,827	$	628,478	$	79,887	$	36,932	$	1,203,124

The following table presents classifications for acquired loans:

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial		Real Estate— Construction		Real Estate— Residential Secured for Business Purpose		Total
At September 30, 2015
Grade:
1. Cash secured/ 2. Fully secured	$	1,013	$	—	$	—	$	—	$	1,013
3. Strong	—		—		—		—		—
4. Satisfactory	1,199		4,094		—		2,603		7,896
5. Acceptable	23,902		120,364		27,024		131,237		302,527
6. Pre-watch	212		4,252		—		2,218		6,682
7. Special Mention	442		1,466		—		257		2,165
8. Substandard	1,105		843		335		2,278		4,561
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	27,873	$	131,019	$	27,359	$	138,593	$	324,844

The Corporation did not have any acquired loans at December 31, 2014.

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Credit Exposure—Real Estate—Residential Secured for Personal Purpose, Real Estate—Home Equity Secured for Personal Purpose, Loans to individuals, Lease Financing Credit Risk Profile by Payment Activity

The Corporation monitors the credit risk profile by payment activity for the following classifications of loans and leases: residential real estate loans secured for a personal purpose, home equity loans secured for a personal purpose, loans to individuals and lease financings. Nonperforming loans and leases are loans past due 90 days or more, loans and leases on nonaccrual of interest and troubled debt restructured loans and lease modifications. Performing loans and leases are reviewed only if the loan becomes 60 days or more past due. Nonperforming loans and leases are reviewed monthly. Performing loans and leases have a nominal to moderate risk of loss. Nonperforming loans and leases are loans or leases with a well-defined weakness and where collection in-full is unlikely.

The following table presents classifications for originated loans:

(Dollars in thousands)	Real Estate— Residential Secured for Personal Purpose		Real Estate— Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financing		Total
At September 30, 2015
Performing	$	177,570	$	120,482	$	29,338	$	124,334	$	451,724
Nonperforming	817		195		237		550		1,799
Total	$	178,387	$	120,677	$	29,575	$	124,884	$	453,523
At December 31, 2014
Performing	$	166,338	$	108,035	$	29,576	$	118,025	$	421,974
Nonperforming	512		215		365		435		1,527
Total	$	166,850	$	108,250	$	29,941	$	118,460	$	423,501

The following table presents classifications for acquired loans:

(Dollars in thousands)	Real Estate— Residential Secured for Personal Purpose		Real Estate— Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financing		Total
At September 30, 2015
Performing	$	4,199	$	11,919	$	342	$	—	$	16,460
Nonperforming	—		—		—		—		—
Total	$	4,199	$	11,919	$	342	$	—	$	16,460

The Corporation did not have any acquired loans at December 31, 2014.

Risks associated with lending activities include, among other things, the impact of changes in interest rates and economic conditions, which may adversely impact the ability of borrowers to repay outstanding loans, and impact the value of the associated collateral.

Commercial, financial and agricultural loans, commercial real estate loans, construction loans and residential real estate loans with a business purpose are generally perceived as having more risk of default than residential real estate loans with a personal purpose and consumer loans. These types of loans involve larger loan balances to a single borrower or groups of related borrowers. Commercial real estate loans may be affected to a greater extent than residential loans by adverse conditions in real estate markets or the economy because commercial real estate borrowers’ ability to repay their loans depends on successful development of their properties and factors affecting residential real estate borrowers.

Commercial, financial and agricultural business loans are typically based on the borrowers’ ability to repay the loans from the cash flow of their businesses. These loans may involve greater risk because the availability of funds to repay each loan depends substantially on the success of the business. In addition, the collateral securing the loans often depreciates over time, is difficult to appraise and liquidate and fluctuates in value based on the success of the business.

Risk of loss on a construction loan depends largely upon whether our initial estimate of the property’s value at completion of construction equals or exceeds the cost of the property construction (including interest). During the construction phase, a number of factors can result in delays and cost overruns. If estimates of value are inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan or by seizure of collateral. Included in real estate-construction is track development financing. Risk factors related to track

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development financing include the demand for residential housing and the real estate valuation market. When projects move slower than anticipated, the properties may have significantly lower values than when the original underwriting was completed, resulting in lower collateral values to support the loan. Extended time frames also cause the interest carrying cost for a project to be higher than the builder projected, negatively impacting the builder’s profit and cash flow and, therefore, their ability to make principal and interest payments.

Commercial real estate loans and residential real estate loans with a business purpose secured by owner-occupied properties are dependent upon the successful operation of the borrower’s business. If the operating company suffers difficulties in terms of sales volume and/or profitability, the borrower’s ability to repay the loan may be impaired. Loans secured by properties where repayment is dependent upon payment of rent by third party tenants or the sale of the property may be impacted by loss of tenants, lower lease rates needed to attract new tenants or the inability to sell a completed project in a timely fashion and at a profit.

Commercial, financial and agricultural loans, commercial real estate loans, construction loans and residential real estate loans secured for a business purpose are more susceptible to a risk of loss during a downturn in the business cycle. The Corporation has strict underwriting, review, and monitoring procedures in place, however, these procedures cannot eliminate all of the risks related to these loans.

The Corporation focuses on both assessing the borrower’s capacity and willingness to repay and on obtaining sufficient collateral. Commercial, financial and agricultural loans are generally secured by the borrower’s assets and by personal guarantees. Commercial real estate and residential real estate loans secured for a business purpose are originated primarily within the Southeastern Pennsylvania market area at conservative loan-to-value ratios and often with a guarantee of the borrowers. Management closely monitors the composition and quality of the total commercial loan portfolio to ensure that any credit concentrations by borrower or industry are closely monitored.

The Corporation originates fixed-rate and adjustable-rate real estate-residential mortgage loans that are secured by the underlying 1- to 4-family residential properties for personal purposes. Credit risk exposure in this area of lending is minimized by the evaluation of the credit worthiness of the borrower, including debt-to-equity ratios, credit scores and adherence to underwriting policies that emphasize conservative loan-to-value ratios of generally no more than 80%. Residential mortgage loans granted in excess of the 80% loan-to-value ratio criterion are generally insured by private mortgage insurance.

In the real estate-home equity loan portfolio secured for a personal purpose, credit exposure is minimized by the evaluation of the creditworthiness of the borrower, including debt-to-equity ratios, credit scores and adherence to the Corporation’s underwriting policies. Combined loan-to-value ratios are generally limited to 80%, but increased to 85% for the Corporation’s strongest profile borrower. Other credit considerations and compensating factors may support higher combined loan-to-value ratios.

Credit risk for direct consumer loans is controlled by strict adherence to underwriting standards that consider debt-to-income levels and the creditworthiness of the borrower and, if secured, collateral values. These loans are included within the portfolio of loans to individuals.

The primary risks that are involved with lease financing receivables are credit underwriting and borrower industry concentrations. The Corporation has strict underwriting, review, and monitoring procedures in place to mitigate this risk. Risk also lies in the residual value of the underlying equipment. Residual values are subject to judgments as to the value of the underlying equipment that can be affected by changes in economic and market conditions and the financial viability of the residual guarantors and insurers. To the extent not guaranteed or assumed by a third party, or otherwise insured against, the Corporation bears the risk of ownership of the leased assets. This includes the risk that the actual value of the leased assets at the end of the lease term will be less than the residual value. The Corporation greatly reduces this risk primarily by using $1.00 buyout leases, in which the entire cost of the leased equipment is included in the contractual payments, leaving no residual payment at the end of the lease term.

Reserve for Loan and Lease Losses and Recorded Investment in Loans and Leases

The following presents, by portfolio segment, a summary of the activity in the reserve for loan and lease losses, the balance in the reserve for loan and lease losses disaggregated on the basis of impairment method and the recorded investment in loans and leases disaggregated on the basis of impairment method for the three and nine months ended September 30, 2015 and 2014:

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(Dollars in thousands)	Commercial, Financial and Agricultural			Real Estate— Commercial and Construction			Real Estate— Residential Secured for Business Purpose			Real Estate— Residential and Home Equity Secured for Personal Purpose			Loans to Individuals			Lease Financings			Unallocated			Total
Three Months Ended September 30, 2015
Reserve for loan and lease losses:
Beginning balance	$	6,847		$	7,801		$	616		$	1,188		$	389		$	1,125		$	1,636		$	19,602
Charge-offs	(1,917		)	(138		)	(90		)	(10		)	(144		)	(172		)	N/A			(2,471		)
Recoveries	682			34			8			8			40			47			N/A			819
Provision (recovery of provision)	1,382			(795		)	(41		)	(3		)	130			(1		)	(24		)	648
Provision for acquired credit impaired loans	—			9			13			—			—			—			—			22
Ending balance	$	6,994		$	6,911		$	506		$	1,183		$	415		$	999		$	1,612		$	18,620
Three Months Ended September 30, 2014
Reserve for loan and lease losses:
Beginning balance	$	9,714		$	9,263		$	1,025		$	1,248		$	405		$	1,101		$	1,338		$	24,094
Charge-offs	(968		)	(1,570		)	(26		)	(18		)	(169		)	(106		)	N/A			(2,857		)
Recoveries	88			58			9			2			53			82			N/A			292
(Recovery of provision) provision	(1,219		)	1,337			(48		)	(54		)	43			38			136			233
Ending balance	$	7,615		$	9,088		$	960		$	1,178		$	332		$	1,115		$	1,474		$	21,762
Nine Months Ended September 30, 2015
Reserve for loan and lease losses:
Beginning balance	$	6,920		$	8,943		$	763		$	1,124		$	360		$	985		$	1,567		$	20,662
Charge-offs*	(3,255		)	(1,834		)	(114		)	(148		)	(392		)	(591		)	N/A			(6,334		)
Recoveries	907			190			21			9			129			151			N/A			1,407
Provision (recovery of provision)	2,422			(397		)	(177		)	198			318			454			45			2,863
Provision for acquired credit impaired loans	—			9			13			—			—			—			—			22
Ending balance	$	6,994		$	6,911		$	506		$	1,183		$	415		$	999		$	1,612		$	18,620
Nine Months Ended September 30, 2014
Reserve for loan and lease losses:
Beginning balance	$	9,789		$	8,780		$	1,062		$	1,284		$	694		$	1,285		$	1,600		$	24,494
Charge-offs	(2,657		)	(2,878		)	(140		)	(108		)	(659		)	(396		)	N/A			(6,838		)
Recoveries	197			428			57			29			212			224			N/A			1,147
Provision (recovery of provision)	286			2,758			(19		)	(27		)	85			2			(126		)	2,959
Ending balance	$	7,615		$	9,088		$	960		$	1,178		$	332		$	1,115		$	1,474		$	21,762

N/A – Not applicable

* Includes charge-offs of $1.3 million on two real estate construction loans for one borrower which were subsequently transferred to loans held for sale in the second quarter of 2015.

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(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial and Construction		Real Estate— Residential Secured for Business Purpose		Real Estate— Residential and Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financings		Unallocated		Total
At September 30, 2015
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	344	$	—	$	—	$	36	$	—	$	—	N/A		$	380
Ending balance: collectively evaluated for impairment	6,650		6,903		493		1,147		415		999		1,612		18,219
Ending balance: acquired credit impaired loans evaluated for impairment	—		8		13		—		—		—		—		21
Total ending balance	$	6,994	$	6,911	$	506	$	1,183	$	415	$	999	$	1,612	$	18,620
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	13,932	$	13,622	$	4,278	$	936	$	—	$	—			$	32,768
Ending balance: collectively evaluated for impairment	441,537		768,518		61,093		298,128		29,575		124,884				1,723,735
Acquired non-credit impaired loans	27,562		157,866		138,100		16,055		342		—				339,925
Acquired credit impaired loans	311		512		493		63		—		—				1,379
Total ending balance	$	483,342	$	940,518	$	203,964	$	315,182	$	29,917	$	124,884			$	2,097,807
At September 30, 2014
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	685	$	27	$	430	$	—	$	—	$	—	N/A		$	1,142
Ending balance: collectively evaluated for impairment	6,930		9,061		530		1,178		332		1,115		1,474		20,620
Total ending balance	$	7,615	$	9,088	$	960	$	1,178	$	332	$	1,115	$	1,474	$	21,762
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	18,214	$	37,341	$	2,921	$	603	$	—	$	—			$	59,079
Ending balance: collectively evaluated for impairment	420,342		675,817		32,446		267,956		30,144		111,952				1,538,657
Total ending balance	$	438,556	$	713,158	$	35,367	$	268,559	$	30,144	$	111,952			$	1,597,736

N/A – Not applicable

Subsequent to the acquisition date, the methods utilized to estimate the required allowance for loan losses for acquired non-impaired loans is similar to originated loans, however, the Corporation records a provision for loan loss only when the required allowance exceeds the remaining unamortized credit mark. The present value of any decreases in expected cash flows after the acquisition date of purchased impaired loans will generally result in an impairment charge recorded as a provision for loan loss, resulting in an increase to the allowance.

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Impaired Loans

The following presents, by class of loans, the recorded investment and unpaid principal balance of impaired loans , the amounts of the impaired loans for which there is not an allowance for credit losses and the amounts for which there is an allowance for credit losses at September 30, 2015 and December 31, 2014. The impaired loans exclude loans acquired with deteriorated credit quality.

	At September 30, 2015						At December 31, 2014
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans with no related allowance recorded:
Loans held for sale	$	4,000	$	5,229			$	—	$	—
Loans held for investment:
Commercial, financial and agricultural	10,966		12,676				12,628		13,050
Real estate—commercial real estate	13,259		14,167				29,779		30,810
Real estate—construction	363		638				5,931		6,474
Real estate—residential secured for business purpose	4,278		4,394				3,008		3,044
Real estate—residential secured for personal purpose	524		578				512		547
Real estate—home equity secured for personal purpose	101		101				184		184
Total impaired loans with no allowance recorded	$	33,491	$	37,783			$	52,042	$	54,109
Impaired loans with an allowance recorded:
Commercial, financial and agricultural	$	2,966	$	3,037	$	344	$	3,933	$	3,935	$	920
Real estate—commercial real estate	—		—		—		216		216		78
Real estate—residential secured for personal purpose	252		252		23		—		—		—
Real estate—home equity secured for personal purpose	59		60		13		—		—		—
Total impaired loans with an allowance recorded	$	3,277	$	3,349	$	380	$	4,149	$	4,151	$	998

	At September 30, 2015						At December 31, 2014
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Total impaired loans:
Loans held for sale	$	4,000	$	5,229	$	—	$	—	$	—	$	—
Loans held for investment:
Commercial, financial and agricultural	13,932		15,713		344		16,561		16,985		920
Real estate—commercial real estate	13,259		14,167		—		29,995		31,026		78
Real estate—construction	363		638		—		5,931		6,474		—
Real estate—residential secured for business purpose	4,278		4,394		—		3,008		3,044		—
Real estate—residential secured for personal purpose	776		830		23		512		547		—
Real estate—home equity secured for personal purpose	160		161		13		184		184		—
Total impaired loans	$	36,768	$	41,132	$	380	$	56,191	$	58,260	$	998

Impaired loans includes nonaccrual loans and leases, accruing troubled debt restructured loans and lease modifications and other accruing impaired loans for which it is probable that not all principal and interest payments due will be collectible in accordance with the contractual terms. These loans are individually measured to determine the amount of potential impairment.

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The loans are reviewed for impairment based on the fair value of the collateral for collateral dependent loans and for certain loans based on discounted cash flows using the loans’ initial effective interest rates. Impaired loans included other accruing impaired loans of $11.6 million and $33.8 million at September 30, 2015 and December 31, 2014, respectively. Specific reserves on other accruing impaired loans were $215 thousand and $476 thousand at September 30, 2015 and December 31, 2014, respectively.

The following presents by class of loans, the average recorded investment in impaired loans and an analysis of interest on impaired loans. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Therefore, interest income on accruing impaired loans is recognized using the accrual method. 

	Three Months Ended September 30, 2015						Three Months Ended September 30, 2014
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms		Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms
Loans held for sale	$	4,000	$	—	$	56	$	—	$	—	$	—
Loans held for investment:
Commercial, financial and agricultural	15,099		88		185		16,577		150		72
Real estate—commercial real estate	15,430		152		92		26,531		281		82
Real estate—construction	607		—		6		9,982		20		116
Real estate—residential secured for business purpose	4,394		47		58		2,643		19		13
Real estate—residential secured for personal purpose	782		—		10		590		—		9
Real estate—home equity secured for personal purpose	160		—		2		84		—		1
Loans to individuals	—		—		—		1		—		—
Total	$	40,472	$	287	$	409	$	56,408	$	470	$	293

* Includes interest income recognized on a cash basis for nonaccrual loans of $15 thousand and $0 thousand for the three months ended September 30, 2015 and 2014, respectively and interest income recognized on the accrual method for accruing impaired loans of $272 thousand and $470 thousand for the three months ended September 30, 2015 and 2014, respectively.

	Nine Months Ended September 30, 2015						Nine Months Ended September 30, 2014
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms		Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms
Loans held for sale	$	1,233	$	—	$	57	$	—	$	—	$	—
Loans held for investment:
Commercial, financial and agricultural	15,691		346		371		14,806		401		188
Real estate—commercial real estate	23,577		778		257		25,734		816		248
Real estate—construction	4,041		—		159		11,499		103		363
Real estate—residential secured for business purpose	3,698		115		112		2,400		52		48
Real estate—residential secured for personal purpose	706		—		34		779		—		41
Real estate—home equity secured for personal purpose	174		—		8		82		—		3
Loans to individuals	—		—		—		5		—		—
Total	$	49,120	$	1,239	$	998	$	55,305	$	1,372	$	891

* Includes interest income recognized on a cash basis for nonaccrual loans of $37 thousand and $23 thousand for the nine months ended September 30, 2015 and 2014, respectively and interest income recognized on the accrual method for accruing impaired loans of $1.2 million and $1.3 million for the nine months ended September 30, 2015 and 2014, respectively.

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Troubled Debt Restructured Loans

The following presents, by class of loans, information regarding accruing and nonaccrual loans that were restructured:

	Three Months Ended September 30, 2015							Three Months Ended September 30, 2014
(Dollars in thousands)	Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance		Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	50	$	50	$	—	3	$	1,424	$	1,424	$	132
Real estate—commercial real estate	—	—		—		—		1	1,000		1,000		—
Total	1	$	50	$	50	$	—	4	$	2,424	$	2,424	$	132
Nonaccrual Troubled Debt Restructured Loans:
Total	—	$	—	$	—	$	—	—	$	—	$	—	$	—

	Nine Months Ended September 30, 2015							Nine Months Ended September 30, 2014
(Dollars in thousands)	Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance		Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	4	$	1,140	$	1,140	$	71	3	$	1,424	$	1,424	$	132
Real estate—commercial real estate	1	405		405		—		1	1,000		1,000		—
Real estate—residential secured for business purpose	1	353		353		—		—	—		—		—
Total	6	$	1,898	$	1,898	$	71	4	$	2,424	$	2,424	$	132
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	122	$	122	$	22	—	$	—	$	—	$	—
Real estate—commercial real estate	—	—		—		—		1	50		50		—
Real estate—residential secured for business purpose	—	—		—		—		2	688		688		—
Total	1	$	122	$	122	$	22	3	$	738	$	738	$	—

The Corporation grants concessions primarily related to extensions of interest-only payment periods and an occasional payment modification. These modifications typically are for a short-term basis up to one year. The goal when restructuring a credit is to establish a reasonable period of time to provide cash flow relief to customers experiencing cash flow difficulties. Accruing troubled debt restructured loans are primarily comprised of loans on which interest is being accrued under the restructured terms, and the loans are current or less than ninety days past due.

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The following presents, by class of loans, information regarding the types of concessions granted on accruing and nonaccrual loans that were restructured during the three and nine months ended September 30, 2015 and 2014.

	Temporary Payment Reduction			Interest Rate Reduction			Maturity Date Extension			Payments Suspended			Amortization Period Extension			Total Concessions Granted
(Dollars in thousands)	No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount
Three Months Ended September 30, 2015
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	—	$	—	—	$	—	—	$	—	1	$	50	1	$	50
Total	—	$	—	—	$	—	—	$	—	—	$	—	1	$	50	1	$	50
Nonaccrual Troubled Debt Restructured Loans:
Total	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Three Months Ended September 30, 2014
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	—	$	—	2	$	1,299	1	$	125	—	$	—	3	$	1,424
Real estate—commercial real estate	—	—		—	—		1	1,000		—	—		—	—		1	1,000
Total	—	$	—	—	$	—	3	$	2,299	1	$	125	—	$	—	4	$	2,424
Nonaccrual Troubled Debt Restructured Loans:
Total	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Nine Months Ended September 30, 2015
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	143	—	$	—	1	$	500	—	$	—	2	$	497	4	$	1,140
Real estate—commercial real estate	—	—		—	—		—	—		—	—		1	405		1	405
Real estate—residential secured for business purpose	1	353		—	—		—	—		—	—		—	—		1	353
Total	2	$	496	—	$	—	1	$	500	—	$	—	3	$	902	6	$	1,898
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	122	—	$	—	—	$	—	—	$	—	—	$	—	1	$	122
Total	1	$	122	—	$	—	—	$	—	—	$	—	—	$	—	1	$	122
Nine Months Ended September 30, 2014
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	—	$	—	2	$	1,299	1	$	125	—	$	—	3	$	1,424
Real estate—commercial real estate	—	—		—	—		1	1,000		—	—		—	—		1	1,000
Total	—	$	—	—	$	—	3	$	2,299	1	$	125	—	$	—	4	$	2,424
Nonaccrual Troubled Debt Restructured Loans:
Real estate—commercial real estate	—	$	—	1	$	50	—	$	—	—	$	—	—	$	—	1	$	50
Real estate—residential secured for business purpose	—	—		1	55		1	633		—	—		—	—		2	688
Total	—	$	—	2	$	105	1	$	633	—	$	—	—	$	—	3	$	738

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The following presents, by class of loans, information regarding accruing and nonaccrual troubled debt restructured loans, for which there were payment defaults within twelve months of the restructuring date:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
(Dollars in thousands)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Accruing Troubled Debt Restructured Loans:
Total	—	$	—	—	$	—	—	$	—	—	$	—
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	2	$	219	—	$	—	4	$	419	—	$	—
Total	2	$	219	—	$	—	4	$	419	—	$	—

As a result of payment defaults during the first quarter of 2015, commercial accruing troubled debt restructured loans totaling $200 thousand were placed on nonaccrual of interest status and subsequently charged-off. As a result of payment defaults during the third quarter of 2015, commercial nonaccruing troubled debt restructured loans totaling $219 thousand incurred $98 thousand in charge-offs.

The following presents, by class of loans, information regarding consumer mortgages collateralized by residential real estate property that are in the process of foreclosure at September 30, 2015 and December 31, 2014:

(Dollars in thousands)	At September 30, 2015		At December 31, 2014
Real estate-residential secured for personal purpose	$	313	$	62
Real estate-home equity secured for personal purpose	60		—
Total	$	373	$	62

The Corporation held no foreclosed consumer residential real estate property at September 30, 2015 and December 31, 2014.

Note 5. Goodwill and Other Intangible Assets

The Corporation has core deposit and customer-related intangibles and mortgage servicing rights, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The Corporation also has goodwill which is deemed to be an indefinite intangible asset and is not amortized.

Changes in the carrying amount of the Corporation's goodwill by business segment for the nine months ended September 30, 2015 were as follows:

(Dollars in thousands)	Banking		Wealth Management		Insurance		Consolidated
Balance at December 31, 2014	$	35,058	$	15,434	$	17,225	$	67,717
Addition to goodwill from acquisitions	43,516		—		1,424		44,940
Balance at September 30, 2015	$	78,574	$	15,434	$	18,649	$	112,657

The following table reflects the components of intangible assets at the dates indicated:

	At September 30, 2015						At December 31, 2014
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization and Fair Value Adjustments		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization and Fair Value Adjustments		Net Carrying Amount
Amortized intangible assets:
Core deposit intangibles	$	1,520	$	207	$	1,313	$	—	$	—	$	—
Customer related intangibles	14,227		8,244		5,983		13,397		6,726		6,671
Mortgage servicing rights	11,805		6,033		5,772		10,559		5,050		5,509
Total amortized intangible assets	$	27,552	$	14,484	$	13,068	$	23,956	$	11,776	$	12,180

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The estimated aggregate amortization expense for core deposit and customer related intangibles for the remainder of 2015 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2015		$	553
2016		1,871
2017		1,544
2018		1,170
2019		847
Thereafter		1,311

The Corporation has originated mortgage servicing rights which are included in other intangible assets on the consolidated balance sheets. Mortgage servicing rights are amortized in proportion to, and over the period of, estimated net servicing income on a basis similar to the interest method and an accelerated amortization method for loan payoffs. Mortgage servicing rights are subject to impairment testing on a quarterly basis. The aggregate fair value of these rights was $7.6 million and $6.9 million at September 30, 2015 and December 31, 2014, respectively. The fair value of mortgage servicing rights was determined using a discount rate of 10.0% at September 30, 2015, and December 31, 2014.

Changes in the mortgage servicing rights balance are summarized as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Beginning of period	$	5,696		$	5,378		$	5,509		$	5,519
Servicing rights capitalized	365			365			1,246			724
Amortization of servicing rights	(289		)	(561		)	(983		)	(1,068		)
Changes in valuation allowance	—			243			—			250
End of period	$	5,772		$	5,425		$	5,772		$	5,425
Mortgage loans serviced for others	$	848,160		$	779,701		$	848,160		$	779,701

Activity in the valuation allowance for mortgage servicing rights was as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands)	2015		2014			2015		2014
Valuation allowance, beginning of period	$	—	$	(243	)	$	—	$	(250	)
Additions	—		—			—		—
Reductions	—		243			—		250
Direct write-downs	—		—			—		—
Valuation allowance, end of period	$	—	$	—		$	—	$	—

The estimated amortization expense of mortgage servicing rights for the remainder of 2015 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2015		$	229
2016		885
2017		761
2018		649
2019		550
Thereafter		2,698

Note 6. Income Taxes

At September 30, 2015 and December 31, 2014, the Corporation had no material unrecognized tax benefits, accrued interest or penalties. Penalties are recorded in noninterest expense in the year they are assessed and are treated as a non-deductible expense for tax purposes. Interest is recorded in noninterest expense in the year it is assessed and is treated as a deductible expense for tax

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purposes. At September 30, 2015, the Corporation’s tax years 2012 through 2014 remain subject to federal examination as well as examination by state taxing jurisdictions.

Note 7. Retirement Plans and Other Postretirement Benefits

Substantially all employees who were hired before December 8, 2009 are covered by a noncontributory retirement plan. Employees hired on or after December 8, 2009 are not eligible to participate in the noncontributory retirement plan. The Corporation also provides supplemental executive retirement benefits, a portion of which is in excess of limits imposed on qualified plans by federal tax law; these plans are non-qualified benefit plans. These non-qualified benefit plans are not offered to new participants; all current participants are now retired. Information on these plans are aggregated and reported under “Retirement Plans” within this footnote.

The Corporation also provides certain postretirement healthcare and life insurance benefits for retired employees. Information on these benefits is reported under “Other Postretirement Benefits” within this footnote.

The Corporation sponsors a Supplemental Non-Qualified Pension Plan which was established in 1981 prior to the existence of a 401(k) deferred salary savings plan, employee stock purchase plan and long-term incentive plans and therefore is not offered to new participants; all current participants are now retired.

Components of net periodic benefit cost (income) were as follows:

	Three Months Ended September 30,
	2015			2014			2015		2014
(Dollars in thousands)	Retirement Plans						Other Post Retirement Benefits
Service cost	$	193		$	137		$	15	$	19
Interest cost	488			476			28		32
Expected return on plan assets	(756		)	(746		)	—		—
Amortization of net actuarial loss	328			164			13		4
Accretion of prior service cost	(70		)	(71		)	—		(1		)
Net periodic benefit cost (income)	$	183		$	(40	)	$	56	$	54

	Nine Months Ended September 30,
	2015			2014			2015		2014
(Dollars in thousands)	Retirement Plans						Other Post Retirement Benefits
Service cost	$	579		$	410		$	44	$	56
Interest cost	1,463			1,426			83		99
Expected return on plan assets	(2,268		)	(2,236		)	—		—
Amortization of net actuarial loss	982			490			40		9
Accretion of prior service cost	(210		)	(212		)	—		(4		)
Net periodic benefit cost (income)	$	546		$	(122	)	$	167	$	160

The Corporation contributed $2.0 million to its qualified retirement plan during the nine months ended September 30, 2015. The Corporation previously disclosed in its financial statements for the year ended December 31, 2014, that it expected to make contributions of $166 thousand to its non-qualified retirement plans and $113 thousand to its other postretirement benefit plans in 2015. During the nine months ended September 30, 2015, the Corporation contributed $138 thousand to its non-qualified retirement plans and $70 thousand to its other postretirement plans. During the nine months ended September 30, 2015, $1.8 million was paid to participants from the retirement plans and $70 thousand was paid to participants from the other postretirement plans.

Note 8. Subordinated Debt

On March 30, 2015, the Corporation completed the issuance of $50 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the "Notes") due 2025 in a private placement transaction to institutional accredited investors.

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The net proceeds of the offering, which approximated $49 million, increased regulatory capital and will be used for general corporate purposes and to support both organic growth as well as acquisitions, should such opportunities arise. The debt issuance costs are included as a direct deduction from the debt liability and the costs are amortized to interest expense using the effective interest method.

The Notes bear interest at an annual fixed rate of 5.10% from the date of issuance until March 30, 2020, or any early redemption date, with the first interest payment on the Notes occurring on September 30, 2015 and semi-annually thereafter each March 30 and September 30 until March 30, 2020. Thereafter, the Notes will bear interest at an annual rate equal to the three-month LIBOR rate plus 3.544% until March 30, 2025, or any early redemption date, payable quarterly on each March 30, June 30, September 30 and December 30. Beginning with the interest payment date of March 30, 2020, the Corporation has the option, subject to approval of the Federal Reserve Board, to redeem the Notes in whole or in part at a redemption price equal to 100% of the principal amount of the redeemed Notes, plus accrued and unpaid interest to the date of the redemption.

In conjunction with the issuance, the Corporation requested that Kroll Bond Rating Agency (“KBRA”) assign a senior unsecured debt rating, a subordinated debt rating and a short-term rating to the Corporation and a deposit rating and short-term rating to the Bank. As such, KBRA assigned the Corporation a senior unsecured debt rating of BBB+, a subordinated debt rating of BBB and a short-term rating of K2. In addition, KBRA assigned a deposit rating of A- and a short-term rating of K2 to the Bank. The outlook on all ratings is stable.

Note 9. Earnings per Share

The Corporation uses the two-class method to calculate earnings per share as the unvested restricted stock issued under the Corporation's equity incentive plans are participating shares with nonforfeitable rights to dividends. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the number of weighted average shares outstanding during the period.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
(Dollars and shares in thousands, except per share data)	2015			2014			2015			2014
Numerator:
Net income	$	7,528		$	6,235		$	20,110		$	17,041
Net income allocated to unvested restricted stock	(66		)	(64		)	(177		)	(193		)
Net income allocated to common shares	$	7,462		$	6,171		$	19,933		$	16,848
Denominator:
Denominator for basic earnings per share—weighted-average shares outstanding	19,337			16,059			19,537			16,058
Effect of dilutive securities—employee stock options	31			23			28			22
Denominator for diluted earnings per share—adjusted weighted-average shares outstanding	19,368			16,082			19,565			16,080
Basic earnings per share	$	0.39		$	0.38		$	1.02		$	1.05
Diluted earnings per share	$	0.39		$	0.38		$	1.02		$	1.05
Average anti-dilutive options and awards excluded from computation of diluted earnings per share	565			554			550			563

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Note 10. Accumulated Other Comprehensive (Loss) Income

The following table shows the components of accumulated other comprehensive (loss) income, net of taxes, for the periods presented:

(Dollars in thousands)	Net Unrealized Gains (Losses) on Available-for-Sale Investment Securities			Net Change Related to Derivatives Used for Cash Flow Hedges			Net Change Related to Defined Benefit Pension Plans			Accumulated Other Comprehensive (Loss) Income
Balance, December 31, 2014	$	1,711		$	(157	)	$	(16,016	)	$	(14,462	)
Net Change	(756		)	(288		)	527			(517		)
Balance, September 30, 2015	$	955		$	(445	)	$	(15,489	)	$	(14,979	)
Balance, December 31, 2013	$	(1,472	)	$	—		$	(8,483	)	$	(9,955	)
Net Change	2,869			—			185			3,054
Balance, September 30, 2014	$	1,397		$	—		$	(8,298	)	$	(6,901	)

The following table illustrates the amounts reclassified out of each component of accumulated comprehensive (loss) income for the three and nine months ended September 30, 2015 and 2014:

Details about Accumulated Other Comprehensive (Loss) Income Components	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income												Affected Line Item in the Statement of Income
	Three Months Ended   September 30,						Nine Months Ended   September 30,
(Dollars in thousands)	2015			2014			2015			2014
Net unrealized holding gains (losses) on available-for-sale investment securities:
	$	296		$	—		$	568		$	557		Net gain on sales of investment securities
	(5		)	—			(5		)	—			Other-than-temporary impairment on equity securities
	291			—			563			557			Total before tax
	(102		)	—			(197		)	(195		)	Tax expense
	$	189		$	—		$	366		$	362		Net of tax
Defined benefit pension plans:
Amortization of net loss included in net periodic pension costs*	$	(341	)	$	(168	)	$	(1,022	)	$	(499	)
Accretion of prior service cost included in net periodic pension costs*	70			72			210			216
	(271		)	(96		)	(812		)	(283		)	Total before tax
	95			33			285			98			Tax benefit
	$	(176	)	$	(63	)	$	(527	)	$	(185	)	Net of tax

* These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. (See Note 7—Retirement Plans and Other Postretirement Benefits for additional details.)

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Note 11. Derivative Instruments and Hedging Activities

The Corporation may use interest-rate swap agreements to modify interest rate characteristics from variable to fixed or fixed to variable in order to reduce the impact of interest rate changes on future net interest income. Recorded amounts related to interest-rate swaps are included in other assets or liabilities. The Corporation’s credit exposure on interest rate swaps includes fair value and any collateral that is held by a third party. Changes in the fair value of derivative instruments designated as hedges of future cash flows are recognized in accumulated other comprehensive income until the underlying forecasted transactions occur, at which time the deferred gains and losses are recognized in earnings. For a qualifying fair value hedge, the gain or loss on the hedging instrument is recognized in earnings, and the change in fair value of the hedge item, to the extent attributable to the hedged risk, adjusts the carrying amount of the hedge item and is recognized in earnings.

Derivative loan commitments represent agreements for delayed delivery of financial instruments in which the buyer agrees to purchase and the seller agrees to deliver, at a specified future date, a specified instrument at a specified price or yield. The Corporation’s derivative loan commitments are commitments to sell loans secured by 1-to 4-family residential properties whose predominant risk characteristic is interest rate risk. The fair values of these derivative loan commitments are based upon the estimated amount the Corporation would receive or pay to terminate the contracts or agreements, taking into account current interest rates and, when appropriate, the current creditworthiness of the counterparties.

On October 24, 2014, the Corporation entered into an amortizing interest rate swap classified as a cash flow hedge with a notional amount of $20.0 million to hedge a portion of the debt financing of a pool of 10-year maturity fixed rate loans with balances totaling $29.1 million, at time of the hedge, that were originated in 2013. A brokered money market demand account with a balance exceeding the amortizing interest rate swap balance is being used for the cash flow hedge. Under the terms of the swap agreement, the Corporation pays a fixed rate of 2.10% and receives a floating rate based on the one-monthLIBOR with a maturity date of November 1, 2022. The Corporation performed an assessment of the hedge for effectiveness at the inception of the hedge and on a recurring basis to determine that the derivative has been and is expected to continue to be highly effective in offsetting changes in cash flows of the hedged item. The Corporation expects that there will be no ineffectiveness over the life of the interest rate swap, and therefore anticipates no portion of the net loss in accumulated other comprehensive loss will be reclassified into interest expense. To the extent there is ineffectiveness, the Corporation would record the ineffectiveness in interest expense.

The Corporation pledges cash or securities to cover a portion of the negative fair value of the interest rate swap, as measured by the counterparty. At September 30, 2015, the notional amount of the cash flow hedge was $19.4 million, with a negative fair value of $685 thousand. The Corporation has pledged $700 thousand to the counterparty as collateral for the negative fair value.

The following table presents the notional amounts and fair values of derivatives not designated as hedging instruments recorded on the consolidated balance sheets at September 30, 2015 and December 31, 2014:

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At September 30, 2015
Interest rate locks with customers	$	38,965	Other Assets	$	1,264		$	—
Forward loan sale commitments	44,726			—		Other Liabilities	184
Total	$	83,691		$	1,264		$	184
At December 31, 2014
Interest rate locks with customers	$	27,007	Other Assets	$	788		$	—
Forward loan sale commitments	30,537			—		Other Liabilities	112
Total	$	57,544		$	788		$	112

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The following table presents the notional amounts and fair values of derivatives designated as hedging instruments recorded on the consolidated balance sheets at September 30, 2015 and December 31, 2014:

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At September 30, 2015
Interest rate swap - cash flow hedge	$	19,440		$	—	Other Liabilities	$	685
Total	$	19,440		$	—		$	685
At December 31, 2014
Interest rate swap - cash flow hedge	$	19,945		$	—	Other Liabilities	$	241
Total	$	19,945		$	—		$	241

For the three and nine months ended September 30, 2015 and 2014, the amounts included in the consolidated statements of income for derivatives not designated as hedging instruments are shown in the table below:

	Statement of Income Classification	Three Months Ended   September 30,						Nine Months Ended   September 30,
(Dollars in thousands)		2015			2014			2015			2014
Interest rate locks with customers	Net gain on mortgage banking activities	$	339		$	(109	)	$	476		$	339
Forward loan sale commitments	Net loss on mortgage banking activities	(321		)	99			(72		)	(114		)
Total		$	18		$	(10	)	$	404		$	225

For the three and nine months ended September 30, 2015 and 2014, the amounts included in the consolidated statements of income for derivatives designated as hedging instruments are shown in the table below:

	Statement of Income Classification	Three Months Ended   September 30,					Nine Months Ended   September 30,
(Dollars in thousands)		2015			2014		2015			2014
Interest rate swap—cash flow hedge—interest payments	Interest expense	$	95		—		$	286		—
Net loss		$	(95	)	$	—	$	(286	)	$	—

At September 30, 2015 and December 31, 2014, the amounts included in accumulated other comprehensive (loss) income for derivatives designated as hedging instruments are shown in the table below:

(Dollars in thousands)	Accumulated Other Comprehensive (Loss) Income	At September 30, 2015			At December 31, 2014
Interest rate swap—cash flow hedge	Fair value, net of taxes	$	(445	)	$	(157	)
Total		$	(445	)	$	(157	)

Note 12. Fair Value Disclosures

Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The Corporation determines the fair value of financial instruments based on the fair value hierarchy. The Corporation maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Corporation. Unobservable inputs are inputs that reflect the Corporation’s assumptions that the market participants would use in pricing the asset or liability based on the best information available in the circumstances, including assumptions about risk. Three levels of inputs are used to measure fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement. Transfers between levels are recognized at the end of the reporting period.

Level 1: Valuations are based on quoted prices in active markets for identical assets or liabilities that the Corporation can access at the measurement date. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.

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Level 2: Valuations are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3: Valuations are based on inputs that are unobservable and significant to the overall fair value measurement. Assets and liabilities utilizing Level 3 inputs include: financial instruments whose value is determined using pricing models, discounted cash-flow methodologies, or similar techniques, as well as instruments for which the fair value calculation requires significant management judgment or estimation.

Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Investment Securities

Where quoted prices are available in an active market for identical instruments, investment securities are classified within Level 1 of the valuation hierarchy. Level 1 investment securities include U.S. Treasury securities, most equity securities and money market mutual funds. Mutual funds are registered investment companies which are valued at net asset value of shares on a market exchange at the end of each trading day. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Examples of instruments, which would generally be classified within Level 2 of the valuation hierarchy, include securities issued by U.S. Government sponsored enterprises, mortgage-backed securities, collateralized mortgage obligations, corporate and municipal bonds and certain equity securities. In cases where there is limited activity or less transparency around inputs to the valuation, investment securities are classified within Level 3 of the valuation hierarchy.

Fair values for securities are determined using independent pricing services and market-participating brokers. The Corporation’s independent pricing service utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information for structured securities, cash flow and, when available, loan performance data. Because many fixed income securities do not trade on a daily basis, the pricing service’s evaluated pricing applications apply information as applicable through processes, such as benchmarking of like securities, sector groupings, and matrix pricing, to prepare evaluations. If at any time, the pricing service determines that it does have not sufficient verifiable information to value a particular security, the Corporation will utilize valuations from another pricing service. Management has a sufficient understanding of the third party service’s valuation models, assumptions and inputs used in determining the fair value of securities to enable management to maintain an appropriate system of internal control.

On a quarterly basis, the Corporation reviews changes, as submitted by the pricing service, in the market value of its security portfolio. Individual changes in valuations are reviewed for consistency with general interest rate movements and any known credit concerns for specific securities. Additionally, on an annual basis, the Corporation has its security portfolio priced by a second pricing service to determine consistency with another market evaluator, except for municipal bonds which are priced by another service provider on a sample basis. If, upon the Corporation’s review or in comparing with another service, a material difference between pricing evaluations were to exist, the Corporation may submit an inquiry to the current pricing service regarding the data used to make the valuation of a particular security. If the Corporation determines there is market information that would support a different valuation than from the current pricing service’s evaluation, the Corporation can submit a challenge for a change to that security’s valuation. There were no material differences in valuations noted at September 30, 2015.

Derivative Financial Instruments

The fair values of derivative financial instruments are based upon the estimated amount the Corporation would receive or pay to terminate the contracts or agreements, taking into account current interest rates and, when appropriate, the current creditworthiness of the counterparties. Derivative financial instruments are classified within Level 2 of the valuation hierarchy.

Contingent Consideration Liability

The Corporation estimates the fair value of the contingent consideration liability by using a discounted cash flow model of future contingent payments based on projected revenue related to the acquired business. The estimated fair value of the contingent consideration liability is reviewed on a quarterly basis and any valuation adjustments resulting from a change in the discount rate or change of estimated future contingent payments based on projected revenue of the acquired business affecting the contingent consideration liability will be recorded through noninterest expense, unless due to changes in the original assumptions utilized at the time the acquisition closes and identified during the measurement period in accordance with ASC Topic 805. Due to the significant unobservable input related to the projected revenue, the contingent consideration liability is classified within Level 3 of the valuation hierarchy. An increase in the projected revenue may result in a higher fair value of the contingent consideration liability. Alternatively, a decrease in the projected revenue may result in a lower estimated fair value of the contingent consideration liability.

34

For the Sterner Insurance Associates acquisition, the potential cash payments that could result from the contingent consideration arrangement range from $0 to a maximum of $3.9 million over the two-year period ending June 30, 2017. Due to updates to the original assumptions utilized for determining the contingent consideration liability for the Sterner acquisition completed on July 1, 2014, the Corporation recorded a purchase accounting adjustment, in accordance with ASC Topic 805, in 2015 which resulted in an increase to the contingent consideration liability and an increase to goodwill of $1.5 million.

For the Girard Partners acquisition, the remaining potential cash payments that could result from the contingent consideration arrangement range from $0 to a maximum of $13.8 million cumulative over the four-year period ending December 31, 2018.

For the John T. Fretz Insurance Agency acquisition, the remaining potential future cash payments that could result from the contingent consideration arrangement range from $0 to a maximum of $360 thousand cumulative over the one-year period ending April 30, 2016.

For the Javers Group acquisition, the Corporation recorded a reduction to the contingent liability during 2013 which resulted in a reduction of other noninterest expense of $959 thousand. The adjustment reflected that revenue levels necessary for an earn-out payment in the first year post-acquisition were not met and that revenue growth levels necessary to qualify for subsequent years’ earn-out payments to be made are remote. Therefore, as of September 30, 2015, the fair value of this contingent consideration liability is $0. The Javers’ original contingent consideration arrangement ranged from $0 to a maximum of $1.7 million cumulative over the three-year period ending June 30, 2015.

The following table presents the assets and liabilities measured at fair value on a recurring basis at September 30, 2015 and December 31, 2014, classified using the fair value hierarchy:

	At September 30, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. treasuries	$	4,945	$	—	$	—	$	4,945
U.S. government corporations and agencies	—		105,371		—		105,371
State and political subdivisions	—		108,420		—		108,420
Residential mortgage-backed securities	—		13,544		—		13,544
Collateralized mortgage obligations	—		3,303		—		3,303
Corporate bonds	—		87,913		—		87,913
Money market mutual funds	9,020		—		—		9,020
Equity securities	984		—		—		984
Total available-for-sale securities	14,949		318,551		—		333,500
Interest rate locks with customers	—		1,264		—		1,264
Total assets	$	14,949	$	319,815	$	—	$	334,764
Liabilities:
Contingent consideration liability	$	—	$	—	$	5,956	$	5,956
Interest rate swap	—		685		—		685
Forward loan sale commitments	—		184		—		184
Total liabilities	$	—	$	869	$	5,956	$	6,825

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	At December 31, 2014
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. treasuries	$	4,845	$	—	$	—	$	4,845
U.S. government corporations and agencies	—		121,844		—		121,844
State and political subdivisions	—		102,774		—		102,774
Residential mortgage-backed securities	—		13,643		—		13,643
Collateralized mortgage obligations	—		3,725		—		3,725
Corporate bonds	—		54,440		—		54,440
Money market mutual funds	11,675		—		—		11,675
Equity securities	1,337		—		—		1,337
Total available-for-sale securities	17,857		296,426		—		314,283
Interest rate locks with customers	—		788		—		788
Total assets	$	17,857	$	297,214	$	—	$	315,071
Liabilities:
Contingent consideration liability	$	—	$	—	$	6,541	$	6,541
Interest rate swap	—		241		—		241
Forward loan sale commitments	—		112		—		112
Total liabilities	$	—	$	353	$	6,541	$	6,894

At September 30, 2015 and December 31, 2014, the Corporation had no assets measured at fair value on a recurring basis utilizing Level 3 inputs.

The following table presents the change in the balance of the contingent consideration liability related to acquisitions for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the nine months ended September 30, 2015 and 2014:

	Nine Months Ended September 30, 2015
(Dollars in thousands)	Balance at December 31, 2014		Contingent Consideration from New Acquisition*		Payment of Contingent Consideration		Adjustment of Contingent Consideration			Balance at September 30, 2015
Sterner Insurance Associates	$	680	$	1,525	$	1,751	$	535		$	989
Girard Partners	5,503		—		620		(102		)	4,781
John T. Fretz Insurance Agency	358		—		260		88			186
Total contingent consideration liability	$	6,541	$	1,525	$	2,631	$	521		$	5,956

	Nine Months Ended September 30, 2014
(Dollars in thousands)	Balance at December 31, 2013		Contingent Consideration from New Acquisition		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at September 30, 2014
Sterner Insurance Associates	$	—	$	635	$	—	$	22	$	657
Girard Partners	$	—	$	5,470	$	—	$	197	$	5,667
John T. Fretz Insurance Agency	501		—		310		154		345
Total contingent consideration liability	$	501	$	6,105	$	310	$	373	$	6,669

*Includes adjustments during the measurement period in accordance with ASC Topic 805.

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The Corporation may be required to periodically measure certain assets and liabilities at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or market accounting or impairment charges of individual assets. The following table represents assets measured at fair value on a non-recurring basis at September 30, 2015 and December 31, 2014:

	At September 30, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	32,388	$	32,388
Total	$	—	$	—	$	32,388	$	32,388

	At December 31, 2014
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	55,193	$	55,193
Total	$	—	$	—	$	55,193	$	55,193

The following table presents assets and liabilities and off-balance sheet items not measured at fair value on a recurring or non-recurring basis in the Corporation’s consolidated balance sheets but for which the fair value is required to be disclosed at September 30, 2015 and December 31, 2014. The disclosed fair values are classified using the fair value hierarchy.

	At September 30, 2015
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	108,544	$	—		$	—	$	108,544		$	108,544
Held-to-maturity securities	—		41,323			—		41,323			41,058
Loans held for sale	—		9,169			—		9,169			9,151
Net loans and leases held for investment	—		—			2,042,152		2,042,152			2,046,799
Mortgage servicing rights	—		—			7,592		7,592			5,772
Other real estate owned	—		955			—		955			955
Total assets	$	108,544	$	51,447		$	2,049,744	$	2,209,735		$	2,212,279
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,881,594	$	—		$	—	$	1,881,594		$	1,881,594
Time deposits	—		492,950			—		492,950			491,271
Total deposits	1,881,594		492,950			—		2,374,544			2,372,865
Short-term borrowings	—		19,555			—		19,555			21,191
Subordinated notes	—		50,125			—		50,125			49,340
Total liabilities	$	1,881,594	$	562,630		$	—	$	2,444,224		$	2,443,396
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,763	)	$	—	$	(1,763	)	$	—

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	At December 31, 2014
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	38,565	$	—		$	—	$	38,565		$	38,565
Held-to-maturity securities	—		54,765			—		54,765			54,347
Loans held for sale	—		3,374			—		3,374			3,302
Net loans and leases held for investment	—		—			1,555,033		1,555,033			1,550,770
Mortgage servicing rights	—		—			6,941		6,941			5,509
Other real estate owned	—		955			—		955			955
Total assets	$	38,565	$	59,094		$	1,561,974	$	1,659,633		$	1,653,448
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,608,748	$	—		$	—	$	1,608,748		$	1,608,748
Time deposits	—		254,224			—		254,224			252,593
Total deposits	1,608,748		254,224			—		1,862,972			1,861,341
Short-term borrowings	—		38,631			—		38,631			41,974
Total liabilities	$	1,608,748	$	292,855		$	—	$	1,901,603		$	1,903,315
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,420	)	$	—	$	(1,420	)	$	—

The following valuation methods and assumptions were used by the Corporation in estimating the fair value for financial instruments measured at fair value on a non-recurring basis and financial instruments not measured at fair value on a recurring or non-recurring basis in the Corporation’s consolidated balance sheets but for which the fair value is required to be disclosed:

Cash and short-term interest-earning assets: The carrying amounts reported in the balance sheet for cash and due from banks, interest-earning deposits with other banks, and other short-term investments approximates those assets’ fair values. Cash and short-term interest-earning assets are classified within Level 1 in the fair value hierarchy.

Held-to-maturity securities: Fair values for the held-to-maturity investment securities are estimated by using pricing models or quoted prices of securities with similar characteristics and are classified in Level 2 in the fair value hierarchy.

Loans held for sale: The fair value of the Corporation’s mortgage loans held for sale are generally determined using a pricing model based on current market information obtained from external sources, including interest rates, bids or indications provided by market participants on specific loans that are actively marketed for sale. These loans are primarily residential mortgage loans and are generally classified in Level 2 due to the observable pricing data. Loans held for sale are carried at the lower of cost or estimated fair value. At September 30, 2015, loans held for sale included two non-accrual construction loans for one borrower for $4.0 million. These loans were transferred to loans held for sale in the second quarter of 2015 (while remaining in non-accrual status), as an agreement was reached to sell the loans prior to December 31, 2015. The fair value of the non-accrual construction loans was measured based on the sale price and is classified within Level 2 in the fair value hierarchy. There were no valuation adjustments for loans held for sale at September 30, 2015 and December 31, 2014.

Loans and leases held for investment: The fair values for loans are estimated using discounted cash flow analyses, using a discount rate based on current interest rates at which similar loans with similar terms would be made to borrowers and include components for credit risk, operating expense and embedded prepayment options. An overall valuation adjustment is made for specific credit risks in addition to general portfolio risk and is significant to the valuation. As permitted, the fair value of the loans and leases are not based on the exit price concept as discussed in the first paragraph of this note. Loans and leases are classified within Level 3 in the fair value hierarchy.

Impaired loans held for investment: Impaired loans held for investment include those collateral-dependent loans for which the practical expedient was applied, resulting in a fair-value adjustment to the loan. Impaired loans are evaluated and valued at the time the loan is identified as impaired, at the lower of cost or fair value. Fair value is measured based on the value of the collateral securing these loans less costs to sell and is classified at a Level 3 in the fair value hierarchy. The fair value of collateral is based on appraisals performed by qualified licensed appraisers hired by the Corporation. At September 30, 2015, impaired loans

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held for investment had a carrying amount of $32.8 million with a valuation allowance of $380 thousand. At December 31, 2014, impaired loans held for investment had a carrying amount of $56.2 million with a valuation allowance of $998 thousand.

Mortgage servicing rights: The Corporation estimates the fair value of mortgage servicing rights using discounted cash flow models that calculate the present value of estimated future net servicing income. The model uses readily available prepayment speed assumptions for the interest rates of the portfolios serviced. Mortgage servicing rights are classified within Level 3 of the valuation hierarchy. The Corporation reviews the mortgage servicing rights portfolio on a quarterly basis for impairment and the mortgage servicing rights are carried at the lower of amortized cost or estimated fair value. At September 30, 2015 and December 31, 2014, mortgage servicing rights had a carrying amount of $5.8 million and $5.5 million, respectively, with no valuation allowance.

Goodwill and other identifiable assets: Certain non-financial assets subject to measurement at fair value on a non-recurring basis include goodwill and other identifiable intangible assets. During the nine months ended September 30, 2015, there were no triggering events that required valuation of goodwill and other identifiable intangible assets.

Other real estate owned: The fair value of other real estate owned is estimated based upon the appraised value less costs to sell. The real estate is stated at an amount equal to the loan balance prior to foreclosure, plus costs incurred for improvements to the property but no more than the fair value of the property, less estimated costs to sell. New appraisals are generally obtained on an annual basis. Other real estate owned is classified within Level 2 of the valuation hierarchy.

Deposit liabilities: The fair values for demand and savings accounts, with no stated maturities, is the amount payable on demand at the reporting date (carrying value) and are classified within Level 1 in the fair value hierarchy. The fair values for time deposits with fixed maturities are estimated by discounting the final maturity using interest rates currently offered for deposits with similar remaining maturities. Time deposits are classified within Level 2 in the fair value hierarchy.

Short-term borrowings: The fair value of customer repurchase agreements and federal funds purchased are estimated using current market rates for similar borrowings and are classified within Level 2 in the fair value hierarchy.

Subordinated Notes: The fair value of the subordinated notes are estimated by discounting the principal balance using the treasury yield curve for the term to the call date as the Corporation has the option to call the subordinated notes. The subordinated notes are classified within Level 2 in the fair value hierarchy.

Off-balance-sheet instruments: Fair values for the Corporation’s off-balance-sheet instruments are based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing and are classified within Level 2 in the fair value hierarchy.

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Note 13. Segment Reporting

At September 30, 2015, the Corporation has three reportable business segments: Banking, Wealth Management and Insurance. The Corporation determines the segments based primarily upon product and service offerings, through the types of income generated and the regulatory environment. This is strategically how the Corporation operates and has positioned itself in the marketplace. Accordingly, significant operating decisions are based upon analysis of each of these segments. At September 30, 2015, these segments meet the quantitative thresholds for separate disclosure as a business segment. Non-reportable segments include the parent holding company and intercompany eliminations, and are included in the "Other" segment. Prior to 2014, the Corporation had only one reportable segment, Community Banking. During 2014, the Corporation acquired Girard Partners and Sterner Insurance and realigned the investment and trust operations into its Wealth Management Reporting unit; this resulted in the three reportable segments of Banking, Wealth Management and Insurance.

The Corporation's Banking segment consists of commercial and consumer banking. The Wealth Management segment consists of investment advisory services, retirement plan services, trust, municipal pension services and broker/dealer services. The Insurance segment consists of commercial lines, personal lines, benefits and human resources consulting.

Each segment generates revenue from a variety of products and services it provides. Examples of products and services provided for each reportable segment are indicated below.

Ÿ	The Banking segment provides financial services to consumers, businesses and governmental units. These services include a full range of banking services such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing.
Ÿ	The Wealth Management segment offers trust and investment advisory services, guardian and custodian of employee benefits and other trust and brokerage services, as well as a registered investment advisory managing private investment accounts for both individuals and institutions.
Ÿ	The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, group life and health coverage, employee benefit solutions and personal insurance lines.

The accounting policies, used in the disclosure of the operating segments, are the same as those described in Note 1, “Summary of Significant Accounting Policies".

The following table provides total assets by reportable operating segment as of the dates indicated.

(Dollars in thousands)	At September 30, 2015		At December 31, 2014		At September 30, 2014
Banking	$	2,773,279	$	2,154,485	$	2,147,763
Wealth Management	32,793		34,195		32,908
Insurance	23,825		22,930		21,930
Other	21,671		23,711		19,595
Consolidated assets	$	2,851,568	$	2,235,321	$	2,222,196

The following tables provide reportable segment-specific information and reconciliations to consolidated financial information for the three and nine months ended September 30, 2015 and 2014.

	Three Months Ended
	September 30, 2015
(Dollars in thousands)	Banking			Wealth Management		Insurance			Other			Consolidated
Interest income	$	25,576		$	—	$	—		$	9		$	25,585
Interest expense	2,220			—		—			—			2,220
Net interest income	23,356			—		—			9			23,365
Provision for loan and lease losses	670			—		—			—			670
Noninterest income	4,932			4,628		3,345			(50		)	12,855
Noninterest expense	18,408			3,410		3,109			316			25,243
Intersegment (revenue) expense*	(554		)	259		295			—			—
Income (loss) before income taxes	9,764			959		(59		)	(357		)	10,307
Income taxes	2,495			368		(44		)	(40		)	2,779
Net income (loss)	$	7,269		$	591	$	(15	)	$	(317	)	$	7,528
Capital expenditures	$	925		$	1	$	3		$	138		$	1,067

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	Three Months Ended
	September 30, 2014
(Dollars in thousands)	Banking			Wealth Management		Insurance			Other			Consolidated
Interest income	$	19,211		$	—	$	—		$	8		$	19,219
Interest expense	978			—		—			—			978
Net interest income	18,233			—		—			8			18,241
Provision for loan and lease losses	233			—		—			—			233
Noninterest income	4,536			4,985		3,001			(12		)	12,510
Noninterest expense	16,279			3,263		2,820			(343		)	22,019
Intersegment (revenue) expense*	(660		)	214		446			—			—
Income (loss) before income taxes	6,917			1,508		(265		)	339			8,499
Income taxes	1,599			580		(105		)	190			2,264
Net income (loss)	$	5,318		$	928	$	(160	)	$	149		$	6,235
Capital expenditures	$	313		$	25	$	16		$	82		$	436

	Nine Months Ended
	September 30, 2015
(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
Interest income	$	75,811		$	—	$	—	$	25		$	75,836
Interest expense	5,787			—		—		—			5,787
Net interest income	70,024			—		—		25			70,049
Provision for loan and lease losses	2,885			—		—		—			2,885
Noninterest income	14,240			14,216		11,138		43			39,637
Noninterest expense	59,595			9,903		9,514		474			79,486
Intersegment (revenue) expense*	(1,583		)	676		907		—			—
Income (loss) before income taxes	23,367			3,637		717		(406		)	27,315
Income taxes	5,471			1,405		282		47			7,205
Net income (loss)	$	17,896		$	2,232	$	435	$	(453	)	$	20,110
Capital expenditures	$	6,020		$	9	$	53	$	216		$	6,298

	Nine Months Ended
	September 30, 2014
(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
Interest income	$	56,864		$	—	$	—	$	26		$	56,890
Interest expense	2,959			—		—		(2		)	2,957
Net interest income	53,905			—		—		28			53,933
Provision for loan and lease losses	2,959			—		—		—			2,959
Noninterest income	12,153			14,969		9,030		423			36,575
Noninterest expense	48,800			9,869		7,320		(1,297		)	64,692
Intersegment (revenue) expense*	(1,616		)	674		942		—			—
Income before income taxes	15,915			4,426		768		1,748			22,857
Income taxes	3,078			1,672		331		735			5,816
Net income	$	12,837		$	2,754	$	437	$	1,013		$	17,041
Capital expenditures	$	2,016		$	97	$	83	$	149		$	2,345

*Includes an allocation of general and administrative expenses from both the parent holding company and the Bank. Generally speaking, these expenses are allocated based upon number of employees and square footage usage.

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Note 14. Restructuring Charges

During the first quarter of 2015, the Corporation finalized a new financial center model, which is smaller in size, combines enhanced technology with personal service and provides consultive services and solutions delivered by personal bankers. These efforts have led to the development of a comprehensive financial center optimization plan approved in April 2015 which includes opening new financial centers in growth markets while closing financial centers which operate in close proximity to other centers. As the Corporation announced, six financial centers were closed in September 2015 that operated in close proximity to other centers. As a result, the Corporation recorded $1.6 million in restructuring charges during the second quarter of 2015. These charges are included in the Banking business segment and are separately classified as a component of non-interest expense, within the consolidated statement of income.

A roll-forward of the accrued restructuring expense is as follows:

(Dollars in thousands)	Severance expenses			Write-downs and retirements of fixed assets			Lease cancellations			Total
Accrued at January 1, 2015	$	—		$	—		$	—		$	—
Restructuring charges	73			607			962			1,642
Payments	(67		)	—			(46		)	(113		)
Accelerated depreciation	—			(379		)	—			(379		)
Accrued at September 30, 2015	$	6		$	228		$	916		$	1,150

Note 15. Share Repurchase Plan

On May 27, 2015, the Corporation's Board of Directors approved an increase of 1,000,000 shares in the common shares available for repurchase under the Corporation's share repurchase program, or approximately 5% of the Corporation's common stock outstanding as of May 27, 2015. During the quarter, the Corporation repurchased 86,650 shares of common stock at a cost of $1.8 million under the share repurchase program. Shares available for future repurchases under the plan totaled 1,080,246 at September 30, 2015. Total shares outstanding at September 30, 2015 were 19,502,613. The Corporation will repurchase shares of its common stock from time to time through open market purchases, tender offers, privately negotiated purchases or other means. The share repurchase program does not obligate the Corporation to acquire any particular amount of common stock. The program has no scheduled expiration date and the Board of Directors has the right to suspend or discontinue the program at any time.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

(All dollar amounts presented within tables are in thousands, except per share data. “BP” equates to “basis points”; “N/ M” equates to “not meaningful”; “—” equates to “zero” or “doesn’t round to a reportable number”; and “N/A” equates to “not applicable.” Certain amounts have been reclassified to conform to the current-year presentation.)

Forward-Looking Statements

The information contained in this report may contain forward-looking statements. When used or incorporated by reference in disclosure documents, the words “believe,” “anticipate,” “estimate,” “expect,” “project,” “target,” “goal” and similar expressions are intended to identify forward-looking statements within the meaning of section 27A of the Securities Act of 1933. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including those set forth below:

• Operating, legal and regulatory risks

• Economic, political and competitive forces impacting various lines of business

• The risk that our analysis of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful

• Volatility in interest rates

• Other risks and uncertainties, including those occurring in the U.S. and world financial systems

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, expected or projected. These forward-looking statements speak only at the date of the report. The Corporation expressly disclaims any obligation to publicly release any updates or revisions to reflect any change in the Corporation’s expectations with regard to any change in events, conditions or circumstances on which any such statement is based.

42

Critical Accounting Policies

Management, in order to prepare the Corporation’s financial statements in conformity with U.S. generally accepted accounting principles, is required to make estimates and assumptions that affect the amounts reported in the Corporation’s financial statements. There are uncertainties inherent in making these estimates and assumptions. Certain critical accounting policies, discussed below, could materially affect the results of operations and financial position of the Corporation should changes in circumstances require a change in related estimates or assumptions. The Corporation has identified the fair value measurement of investment securities available-for-sale and assessment for impairment of certain investment securities, reserve for loan and lease losses, valuation of goodwill and other intangible assets, mortgage servicing rights, deferred tax assets and liabilities, benefit plans and stock-based compensation as areas with critical accounting policies. For more information on these critical accounting policies, please refer to the Corporation’s 2014 Annual Report on Form 10-K.

General

Univest Corporation of Pennsylvania (the Corporation), is a Bank Holding Company owning all of the capital stock of Univest Bank and Trust Co. (the Bank).

The Bank is engaged in the general commercial and consumer banking business and provides a full range of banking and trust services to customers. The Bank is the parent company of Delview, Inc., which is the parent company of Univest Insurance, Inc., an independent insurance agency, Univest Investments, Inc., a full-service broker-dealer and investment advisory firm and Girard Partners (Girard), a registered investment advisory firm. The Bank is also the parent company of Univest Capital, Inc., an equipment financing business, and TCG Investment Advisory, a registered investment advisor which provides discretionary investment consulting and management services. Through its wholly-owned subsidiaries, the Bank provides a variety of financial services to individuals, municipalities and businesses throughout the Bank's markets of operation.

Executive Overview

The Corporation’s consolidated net income, earnings per share and return on average assets and average equity were as follows:

	Three Months Ended   September 30,						Change				Nine Months Ended   September 30,						Change
(Dollars in thousands, except per share data)	2015			2014			Amount		Percent		2015			2014			Amount			Percent
Net income	$	7,528		$	6,235		$	1,293	21	%	$	20,110		$	17,041		$	3,069		18	%
Net income per share:
Basic	$	0.39		$	0.38		$	0.01	3		$	1.02		$	1.05		$	(0.03	)	(3	)
Diluted	0.39			0.38			0.01		3		1.02			1.05			(0.03		)	(3	)
Return on average assets	1.06		%	1.12		%	(6 BP)		(5	)	0.98		%	1.04		%	(6 BP)			(6	)
Return on average equity	8.36		%	8.58		%	(22 BP)		(3	)	7.48		%	7.98		%	(50 BP)			(6	)

The Corporation reported net income of $7.5 million or $0.39 diluted earnings per share for the quarter ended September 30, 2015, a 21% increase from reported net income of $6.2 million or $0.38 diluted earnings per share for the quarter ended September 30, 2014. Net income for the nine months ended September 30, 2015 was $20.1 million or $1.02 diluted earnings per share, an 18% increase in net income compared to $17.0 million or $1.05 diluted earnings per share for the comparable period in the prior year. The quarter and year-to-date financial results include the Valley Green Bank acquisition which the Corporation completed on January 1, 2015. The results for the nine months ended September 30, 2015 included $2.0 million ($1.3 million net of tax) of integration and acquisition-related costs associated with Valley Green Bank, incurred during the first and second quarters, or $0.07 diluted earnings per share on a year-to-date tax affected basis. In addition, the results for the nine months ended September 30, 2015 also included $1.6 million ($1.1 million, net of tax) of restructuring charges, incurred in the second quarter, related to the consolidation of six financial centers in September 2015 under the Bank's optimization plan or $0.05 diluted earnings per share on a tax affected basis.

Net interest income on a tax-equivalent basis for the three months ended September 30, 2015 was $24.7 million, an increase of $5.2 million or 27% compared to the same period in 2014. The net interest margin on a tax-equivalent basis for the third quarter of 2015 was 3.89%, compared to 3.88% for the third quarter of 2014. Net interest income on a tax-equivalent basis for the nine months ended September 30, 2015 was $74.0 million, an increase of $16.3 million or 28% compared to the same period in 2014. The net interest margin on a tax-equivalent basis for the nine months ended September 30, 2015 was 4.01%, an increase of 11 basis points compared to 3.90% for the same period in the prior year. The increase in net interest income was mainly due to the acquisition of Valley Green Bank.

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The provision for loan and lease losses for the three months ended September 30, 2015 was $670 thousand, compared to $233 thousand for the same period in 2014. The provision for loan and lease losses for the nine months ended September 30, 2015 of $2.9 million was consistent with the same period in the prior year.

Noninterest income for the three months ended September 30, 2015 was $12.9 million, an increase of $345 thousand, or 3% from the same period in the prior year. Noninterest income for the nine months ended September 30, 2015 was $39.6 million, an increase of $3.1 million, or 8% from the same period in the prior year. The year-to date increase was primarily due to the acquisition of Sterner Insurance on July 1, 2014 and higher mortgage banking income partially offset by a decline in investment advisory commission and fee income.

Non-interest expense for the three months ended September 30, 2015 was $25.2 million, an increase of $3.2 million, or 15% from the same period in the prior year. Non-interest expense for the nine months ended September 30, 2015 was $79.5 million, an increase of $14.8 million, or 23% from the same period in the prior year. Non-interest expense was impacted by the Valley Green Bank acquisition which included integration and acquisition-related costs totaling $2.0 million for the nine months ended September 30, 2015, and additional expenses related to staffing, branch offices and operations. In addition, non-interest expense for the nine months ended September 30, 2015 included restructuring charges of $1.6 million recognized during the second quarter related to the consolidation of six financial centers in September 2015 under the Bank's optimization plan. The projected annualized savings from these consolidations is $1.9 million

Gross loans and leases held for investment increased $471.2 million, or 29% from December 31, 2014, which included $380.9 million of loans acquired from Valley Green Bank. Organic loan growth was 6% (8% annualized) from December 31, 2014. Deposits increased$511.5 million, or 27% from December 31, 2014, primarily due to $385.9 million of deposits acquired from Valley Green Bank and an increase in public funds mostly due to seasonal tax deposits. Borrowings at September 30, 2015, included $50 million in aggregate principal amount fixed-to-floating rate subordinated notes issued in a private placement transaction to institutional accredited investors completed on March 30, 2015. The subordinated notes have a five-year fixed rate of 5.10% and thereafter a rate of three-month LIBOR plus 3.544% until the maturity date of March 30, 2025, or any early redemption date.

Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and lease modifications were $20.8 million at September 30, 2015 compared to $17.3 million at December 31, 2014 and $18.8 million at September 30, 2014. Nonaccrual loans and leases as a percentage of total loans and leases (held for investment and nonaccrual loans held for sale) were 0.99% at September 30, 2015 compared to 1.07% at December 31, 2014 and 1.18% at September 30, 2014. Net loan and lease charge-offs were $1.7 million for the three months ended September 30, 2015 compared to $2.6 million for the same period in the prior year. Net loan and lease charge-offs were $4.9 million for the nine months ended September 30, 2015, compared to $5.7 million in the same period in the prior year.

Capital

The Corporation and the Bank continue to remain well-capitalized at September 30, 2015. The Corporation and the Bank adopted the new Basel III regulatory capital rules during the first quarter of 2015 under the transition rules. Total risk-based capital at September 30, 2015 under Basel III was 13.68% for the Corporation and 12.7% for the Bank, well in excess of the regulatory minimum for well-capitalized status of 10.00%.

On May 27, 2015, the Corporation's Board of Directors approved an increase of 1,000,000 shares in the common shares available for repurchase under the Corporation's share repurchase program, or approximately 5% of the Corporation's common stock outstanding as of May 27, 2015. During the quarter, the Corporation repurchased 86,650 shares of common stock at a cost of $1.8 million under the share repurchase program. Shares available for future repurchases under the plan totaled 1,080,246 at September 30, 2015. Total shares outstanding at September 30, 2015 were 19,502,613.

Valley Green Bank Acquisition

On January 1, 2015, the Corporation completed the acquisition of Valley Green Bank. The merger of Valley Green Bank with and into the Bank was effected pursuant to the terms and conditions of the Agreement and Plan of Merger (Merger Agreement) dated June 17, 2014. Headquartered in the Mt. Airy neighborhood of Philadelphia, Pennsylvania, Valley Green operated three full- service banking offices and two administrative offices for loan production in the greater Philadelphia marketplace. With the assumption of Valley Green Bank’s three branches and two administrative offices for loan production in the Philadelphia marketplace, the Corporation entered a new small business and consumer market and expanded its existing lending network within southeastern Pennsylvania.

44

The acquisition was an all-stock transaction with an aggregate value of approximately $77 million with the issuance of 3,787,866 shares of the Corporation's common stock to the former shareholders of Valley Green Bank.

The transaction is being accounted for using the acquisition method of accounting, which requires the Corporation to allocate the total consideration transferred to the assets acquired and liabilities assumed, based on their respective fair values at the merger date, with remaining excess consideration recorded as goodwill. The fair value of total assets acquired as a result of the merger totaled $425.2 million, which included $380.9 million in loans at January 1, 2015. The fair value of liabilities assumed was $389.8 million which included $385.9 million in deposits and a core deposit intangible of $1.5 million at January 1, 2015. As a result of the Valley Green Bank acquisition, the Corporation recorded goodwill of $43.5 million. The fair value estimates are subject to adjustment if additional information becomes available. Such adjustments, may change the amount of the purchase price allocation to goodwill while changes to other assets and liabilities may impact the statement of income due to adjustments in the yield and/or amortization/accretion of the adjusted assets and liabilities. The results of Valley Green Bank's operations have been included in the Corporation's consolidated financial statements prospectively from the date of the merger.

Details of the changes in the various components of net income and the balance sheet are further discussed in the sections that follow.

The Corporation earns revenues primarily from the margins and fees generated from lending and depository services to customers as well as fee-based income from trust, insurance, mortgage banking and investment services to customers. The Corporation seeks to achieve adequate and reliable earnings through business growth while maintaining adequate levels of capital and liquidity and limiting exposure to credit and interest rate risk to Board of Directors approved levels. As interest rates increase, fixed-rate assets that banks hold will tend to decrease in value; conversely, as interest rates decline, fixed-rate assets that banks hold will tend to increase in value. The Corporation is in a liability sensitive position from both a maturity perspective and from a repricing perspective, as interest rates remain at historically low levels. Despite being liability sensitive, the Corporation projects increased net interest income in rising rate scenarios as the magnitude of the asset pricing change exceeds the liability pricing change.

The Corporation seeks to establish itself as the financial provider of choice in the markets it serves. The Corporation plans to achieve this goal by offering a broad range of high quality financial products and services and by increasing market awareness of its brand and the benefits that can be derived from its products. The Corporation operates in an attractive market for financial services but also is in intense competition with domestic and international banking organizations and other insurance and wealth management providers for the financial services business. The Corporation has taken initiatives to achieve its business objectives by acquiring banks and other financial service providers in strategic markets, through marketing, public relations and advertising, by establishing standards of service excellence for customers, and by using technology to ensure that the needs of customers are understood and satisfied.

45

Results of Operations

Net Interest Income

Net interest income is the difference between interest earned on loans and leases, investments and other interest-earning assets and interest paid on deposits and other interest-bearing liabilities. Net interest income is the principal source of the Corporation’s revenue. Table 1 presents a summary of the Corporation’s average balances, the tax-equivalent yields earned on average assets, and the cost of average liabilities, and shareholders’ equity on a tax-equivalent basis for the three and nine months ended September 30, 2015 and 2014. The tax-equivalent net interest margin is tax-equivalent net interest income as a percentage of average interest-earning assets. The tax-equivalent net interest spread represents the difference between the weighted average tax-equivalent yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. The effect of net interest free funding sources represents the effect on the net interest margin of net funding provided by noninterest-earning assets, noninterest-bearing liabilities and shareholders’ equity. Table 2 analyzes the changes in the tax-equivalent net interest income for the periods broken down by their rate and volume components. Sensitivities associated with the mix of assets and liabilities are numerous and complex. The Investment Asset/Liability Management Committee works to maintain an adequate and stable net interest margin for the Corporation.

Three and nine months ended September 30, 2015 versus 2014

Net interest income on a tax-equivalent basis for the three months ended September 30, 2015 was $24.7 million, an increase of $5.2 million or 27% from the same period in 2014. Net interest income on a tax-equivalent basis for the nine months ended September 30, 2015 was $74.0 million, an increase of $16.3 million or 28% from the same period in 2014. The tax-equivalent net interest margin for the three months ended September 30, 2015 was 3.89% compared to 3.88% for the three months ended September 30, 2014. The tax-equivalent net interest margin for the nine months ended September 30, 2015increased11 basis points to 4.01% from 3.90% for the nine months ended September 30, 2014. The increase in net interest income during 2015 was mainly due to the impact of the Valley Green Bank acquisition, which included the average net interest-earning assets acquired and the net accretion of acquisition accounting fair value adjustments (the impact of the acquisition accounting adjustments was was 8 basis points and 10 basis points for the three and nine months ended September 30, 2015, respectively). The subordinated debt issuance increased funding costs by 14 basis points and 9 basis points for the three and nine months ended September 30, 2015, respectively.

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Table 1—Average Balances and Interest Rates—Tax-Equivalent Basis

	Three Months Ended September 30,
	2015							2014
(Dollars in thousands)	Average Balance			Income/ Expense		Average Rate		Average Balance			Income/ Expense		Average Rate
Assets:
Interest-earning deposits with other banks	$	50,514		$	21	0.16	%	$	34,701		$	18	0.21	%
U.S. government obligations	119,712			345		1.14		127,505			320		1.00
Obligations of states and political subdivisions	109,300			1,335		4.85		107,039			1,360		5.04
Other debt and equity securities	139,825			859		2.44		125,730			643		2.03
Total interest-earning deposits and investments	419,351			2,560		2.42		394,975			2,341		2.35
Commercial, financial and agricultural loans	423,912			4,219		3.95		394,297			4,054		4.08
Real estate—commercial and construction loans	857,181			9,942		4.60		622,249			6,722		4.29
Real estate—residential loans	509,599			5,786		4.50		298,530			3,067		4.08
Loans to individuals	28,957			388		5.32		30,616			492		6.38
Municipal loans and leases	205,302			2,450		4.73		181,170			2,214		4.85
Lease financings	73,056			1,555		8.44		71,103			1,586		8.85
Gross loans and leases	2,098,007			24,340		4.60		1,597,965			18,135		4.50
Total interest-earning assets	2,517,358			26,900		4.24		1,992,940			20,476		4.08
Cash and due from banks	35,419							36,600
Reserve for loan and lease losses	(20,494		)					(24,450		)
Premises and equipment, net	40,852							35,580
Other assets	231,443							176,804
Total assets	$	2,804,578						$	2,217,474
Liabilities:
Interest-bearing checking deposits	$	375,362		77		0.08		$	316,923		44		0.06
Money market savings	361,530			318		0.35		290,194			79		0.11
Regular savings	590,331			134		0.09		537,175			80		0.06
Time deposits	463,524			1,014		0.87		265,293			768		1.15
Total time and interest-bearing deposits	1,790,747			1,543		0.34		1,409,585			971		0.27
Short-term borrowings	30,520			10		0.13		38,763			7		0.07
Subordinated notes*	49,321			667		5.37		—			—		—
Total borrowings	79,841			677		3.36		38,763			7		0.07
Total interest-bearing liabilities	1,870,588			2,220		0.47		1,448,348			978		0.27
Noninterest-bearing deposits	534,302							450,553
Accrued expenses and other liabilities	42,538							30,144
Total liabilities	2,447,428							1,929,045
Shareholders’ Equity:
Common stock	110,271							91,332
Additional paid-in capital	120,770							62,268
Retained earnings and other equity	126,109							134,829
Total shareholders’ equity	357,150							288,429
Total liabilities and shareholders’ equity	$	2,804,578						$	2,217,474
Net interest income				$	24,680						$	19,498
Net interest spread						3.77							3.81
Effect of net interest-free funding sources						0.12							0.07
Net interest margin						3.89	%						3.88	%
Ratio of average interest-earning assets to average interest-bearing liabilities	134.58		%					137.60		%

* The interest rate on subordinated notes is calculated on a 30/360 day basis at a rate of 5.10%. The balance is net of debt issuance costs which are amortized to interest expense.

Notes: For rate calculation purposes, average loan and lease categories include unearned discount.

Nonaccrual loans and leases have been included in the average loan and lease balances.

Loans held for sale have been included in the average loan balances.

Tax-equivalent amounts for the three months ended September 30, 2015 and 2014 have been calculated using the

Corporation’s federal applicable rate of 35%.

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	Nine Months Ended September 30,
	2015							2014
(Dollars in thousands)	Average Balance			Income/ Expense		Average Rate		Average Balance			Income/ Expense		Average Rate
Assets:
Interest-earning deposits with other banks	$	25,957		$	37	0.19	%	$	28,457		$	49	0.23	%
U.S. government obligations	129,646			1,075		1.11		128,799			967		1.00
Obligations of states and political subdivisions	107,807			4,011		4.97		107,269			4,189		5.22
Other debt and equity securities	137,747			2,267		2.20		139,779			2,058		1.97
Federal funds sold	2,448			2		0.11		—			—		—
Total interest-earning deposits, investments and federal funds sold	403,605			7,392		2.45		404,304			7,263		2.40
Commercial, financial and agricultural loans	426,997			12,951		4.06		396,915			11,925		4.02
Real estate—commercial and construction loans	841,930			29,486		4.68		602,862			19,692		4.37
Real estate—residential loans	488,646			16,789		4.59		288,548			8,865		4.11
Loans to individuals	29,570			1,184		5.35		34,981			1,627		6.22
Municipal loans and leases	204,748			7,318		4.78		177,446			6,447		4.86
Lease financings	71,368			4,673		8.75		70,957			4,807		9.06
Gross loans and leases	2,063,259			72,401		4.69		1,571,709			53,363		4.54
Total interest-earning assets	2,466,864			79,793		4.32		1,976,013			60,626		4.10
Cash and due from banks	32,768							32,564
Reserve for loan and lease losses	(20,983		)					(24,951		)
Premises and equipment, net	40,618							34,733
Other assets	226,500							171,499
Total assets	$	2,745,767						$	2,189,858
Liabilities:
Interest-bearing checking deposits	$	364,006		190		0.07		$	314,095		129		0.05
Money market savings	360,473			857		0.32		286,667			214		0.10
Regular savings	578,478			392		0.09		539,248			238		0.06
Time deposits	456,726			2,966		0.87		267,271			2,351		1.18
Total time and interest-bearing deposits	1,759,683			4,405		0.33		1,407,281			2,932		0.28
Short-term borrowings	40,902			33		0.11		41,271			25		0.08
Subordinated notes *	33,411			1,349		5.40		—			—		—
Total borrowings	74,313			1,382		2.49		41,271			25		0.08
Total interest-bearing liabilities	1,833,996			5,787		0.42		1,448,552			2,957		0.27
Noninterest-bearing deposits	509,002							427,277
Accrued expenses and other liabilities	43,312							28,511
Total liabilities	2,386,310							1,904,340
Shareholders’ Equity:
Common stock	110,271							91,332
Additional paid-in capital	120,409							61,967
Retained earnings and other equity	128,777							132,219
Total shareholders’ equity	359,457							285,518
Total liabilities and shareholders’ equity	$	2,745,767						$	2,189,858
Net interest income				$	74,006						$	57,669
Net interest spread						3.90							3.83
Effect of net interest-free funding sources						0.11							0.07
Net interest margin						4.01	%						3.90	%
Ratio of average interest-earning assets to average interest-bearing liabilities	134.51		%					136.41		%

* The interest rate on subordinated notes is calculated on a 30/360 day basis at a rate of 5.10%. The balance is net of debt issuance costs which are amortized to interest expense.

Notes: For rate calculation purposes, average loan and lease categories include unearned discount.

Nonaccrual loans and leases have been included in the average loan and lease balances.

Loans held for sale have been included in the average loan balances.

Tax-equivalent amounts for the nine months ended September 30, 2015 and 2014 have been calculated using the

Corporation’s federal applicable rate of 35%.

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Table 2—Analysis of Changes in Net Interest Income

The rate-volume variance analysis set forth in the table below compares changes in tax-equivalent net interest income for the periods indicated by their rate and volume components. The change in interest income/expense due to both volume and rate has been allocated proportionately.

	Three Months Ended									Nine Months Ended
	September 30, 2015 Versus 2014									September 30, 2015 Versus 2014
(Dollars in thousands)	Volume Change			Rate Change			Total			Volume Change			Rate Change			Total
Interest income:
Interest-earning deposits with other banks	$	7		$	(4	)	$	3		$	(4	)	$	(8	)	$	(12	)
U.S. government obligations	(20		)	45			25			6			102			108
Obligations of states and political subdivisions	28			(53		)	(25		)	21			(199		)	(178		)
Other debt and equity securities	77			139			216			(30		)	239			209
Federal funds sold	—			—			—			2			—			2
Interest on deposits, investments and federal funds sold	92			127			219			(5		)	134			129
Commercial, financial and agricultural loans	297			(132		)	165			907			119			1,026
Real estate—commercial and construction loans	2,703			517			3,220			8,308			1,486			9,794
Real estate—residential loans	2,374			345			2,719			6,782			1,142			7,924
Loans to individuals	(26		)	(78		)	(104		)	(233		)	(210		)	(443		)
Municipal loans and leases	292			(56		)	236			978			(107		)	871
Lease financings	43			(74		)	(31		)	28			(162		)	(134		)
Interest and fees on loans and leases	5,683			522			6,205			16,770			2,268			19,038
Total interest income	5,775			649			6,424			16,765			2,402			19,167
Interest expense:
Interest-bearing checking deposits	12			21			33			18			43			61
Money market savings	24			215			239			67			576			643
Regular savings	9			45			54			20			134			154
Time deposits	468			(222		)	246			1,353			(738		)	615
Interest on time and interest-bearing deposits	513			59			572			1,458			15			1,473
Short-term borrowings	(1		)	4			3			—			8			8
Subordinated notes	667			—			667			1,349			—			1,349
Interest on borrowings	666			4			670			1,349			8			1,357
Total interest expense	1,179			63			1,242			2,807			23			2,830
Net interest income	$	4,596		$	586		$	5,182		$	13,958		$	2,379		$	16,337

Interest Income

Three and nine months ended September 30, 2015 versus 2014

Interest income on a tax-equivalent basis for the three months ended September 30, 2015 was $26.9 million, an increase of $6.4 million, or 31% from the same period in 2014. Interest income on a tax-equivalent basis for the nine months ended September 30, 2015 was $79.8 million, an increase of $19.2 million, or 32% from the same period in 2014. The increases were mainly due to the impact of the Valley Green Bank acquisition, which included the average interest-earning assets acquired and the net accretion of acquisition accounting fair value adjustments (the impact of the acquisition accounting adjustments on interest earning assets was 7 basis points and 8 basis points for the the three and nine months ended September 30, 2015, respectively). Growth in commercial real estate, residential real estate and municipal loans and leases was partially offset by decreases in loan interest rates due to re-pricing and the competitive environment.

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Interest Expense

Three and nine months ended September 30, 2015 versus 2014

Interest expense for the three months ended September 30, 2015 was $2.2 million, an increase of $1.2 million from the same period in 2014. Interest expense for the nine months ended September 30, 2015 was $5.8 million, an increase of $2.8 million from the same period in 2014. The increases were due to the impact of the Valley Green Bank acquisition which included the average interest-bearing deposits assumed and the net amortization of acquisition accounting fair value adjustments (the impact of the acquisition accounting adjustments on interest-bearing liabilities was 2 basis points and 3 basis points for the three and nine months ended September 30, 2015, respectively). The increases in interest expense were also due to the subordinated debt issuance which increased funding costs for the three and nine months ended September 30, 2015 by 14 basis points and 9 basis points, respectively.

Provision for Loan and Lease Losses

The reserve for loan and lease losses is determined through a periodic evaluation that takes into consideration the growth of the loan and lease portfolio, the status of past-due loans and leases, current economic conditions, various types of lending activity, policies, real estate and other loan commitments, and significant changes in charge-off activity. Loans are also reviewed for impairment based on the fair value of the collateral for collateral dependent loans and for certain loans based on discounted cash flows using the loans’ initial effective interest rates. Any of the above criteria may cause the reserve to fluctuate. The provision for loan and lease losses for the three months ended September 30, 2015 was $670 thousand, compared to $233 thousand for the same period in 2014. The provision for loan and lease losses of $2.9 million for the nine months ended September 30, 2015 was consistent with the same period in the prior year.

Noninterest Income

Noninterest income consists of trust department fee income, service charges on deposit accounts, commission income, net gains (losses) on sales of securities, net gains (losses) on mortgage banking activities, net gains (losses) on sales and write-downs of other real estate owned and other miscellaneous types of income. Other service fee income primarily consists of fees from credit card companies for a portion of merchant charges paid to the credit card companies for the Bank’s customer debit card usage (Mastermoney fees), non-customer debit card fees, other merchant fees, mortgage servicing income and mortgage placement income. Bank owned life insurance income represents changes in the cash surrender value of bank-owned life insurance policies, which is affected by the market value of the underlying assets, and also includes any excess proceeds from death benefit claims. The net gain on mortgage banking activities consists of gains (losses) on sales of mortgages held for sale and fair value adjustments on interest-rate locks and forward loan sale commitments. Other noninterest income includes other miscellaneous income.

The following table presents noninterest income for the periods indicated:

	Three Months Ended   September 30,				Change					Nine Months Ended   September 30,				Change
(Dollars in thousands)	2015		2014		Amount			Percent		2015		2014		Amount			Percent
Trust fee income	$	1,904	$	1,862	$	42		2	%	$	5,878	$	5,692	$	186		3	%
Service charges on deposit accounts	1,069		1,073		(4		)	—		3,171		3,134		37			1
Investment advisory commission and fee income	2,687		3,086		(399		)	(13	)	8,190		9,144		(954		)	(10	)
Insurance commission and fee income	3,232		2,881		351			12		10,812		8,647		2,165			25
Other service fee income	1,956		1,767		189			11		5,387		5,471		(84		)	(2	)
Bank owned life insurance income	306		346		(40		)	(12	)	870		1,167		(297		)	(25	)
Net gain on sales of investment securities	296		—		296			N/M		568		557		11			2
Net gain on mortgage banking activities	1,123		616		507			82		3,748		1,484		2,264			N/M
Net gain on sales of other real estate owned	14		195		(181		)	(93	)	14		195		(181		)	(93	)
Other income	268		684		(416		)	(61	)	999		1,084		(85		)	(8	)
Total noninterest income	$	12,855	$	12,510	$	345		3	%	$	39,637	$	36,575	$	3,062		8	%

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Three and nine months ended September 30, 2015 versus 2014

Noninterest income for the three months ended September 30, 2015 was $12.9 million, an increase of $345 thousand or 3% from the same period in the prior year. Noninterest income for the nine months ended September 30, 2015 was $39.6 million, an increase of $3.1 million, or 8% from the same period in the prior year. Insurance commission and fee income increased $2.2 million for the nine months ended September 30, 2015, primarily due to the acquisition of Sterner Insurance on July 1, 2014. The net gain on mortgage banking activities increased $507 thousand for the quarter and $2.3 million for the nine months ended September 30, 2015, mainly due to an increase in purchase volume. Funded first mortgage volume for the quarter increased $7.3 million or 17%, and $67.7 million or 78% for the nine months ended September 30, 2015, compared to the same periods in 2014. These favorable increases were partially offset by a decline in investment advisory commission and fee income of $399 thousand for the quarter and $954 thousand for the nine months ended September 30, 2015. The decline in investment advisory commission and fee income was related to the fourth quarter of 2014 divestiture of approximately $375 million in marginally profitable assets under the supervision of independent consultants.

Noninterest Expense

The operating costs of the Corporation are known as noninterest expense, and include, but are not limited to, salaries and benefits, commissions, occupancy, equipment, professional services expenses and integration and acquisition-related costs. Expense control is very important to the management of the Corporation, and every effort is made to contain and minimize the growth of operating expenses, and to provide technological innovation whenever practical, as operations change or expand.

The following table presents noninterest expense for the periods indicated:

	Three Months Ended   September 30,				Change					Nine Months Ended   September 30,				Change
(Dollars in thousands)	2015		2014		Amount			Percent		2015		2014		Amount			Percent
Salaries and benefits	$	11,970	$	11,035	$	935		8	%	$	37,241	$	31,948	$	5,293		17	%
Commissions	2,174		2,200		(26		)	(1	)	6,143		5,585		558			10
Net occupancy	2,093		1,689		404			24		6,486		5,130		1,356			26
Equipment	1,831		1,426		405			28		5,228		4,170		1,058			25
Professional fees	1,096		744		352			47		2,969		2,399		570			24
Marketing and advertising	583		391		192			49		1,494		1,333		161			12
Deposit insurance premiums	433		386		47			12		1,267		1,162		105			9
Intangible expenses	710		352		358			N/M		2,389		1,762		627			36
Acquisition-related costs	—		180		(180		)	N/M		507		739		(232		)	(31	)
Integration costs	—		8		(8		)	N/M		1,484		8		1,476			N/M
Restructuring charges	—		—		—			—		1,642		—		1,642			N/M
Other expense	4,353		3,608		745			21		12,636		10,456		2,180			21
Total noninterest expense	$	25,243	$	22,019	$	3,224		15	%	$	79,486	$	64,692	$	14,794		23	%

Three and nine months ended September 30, 2015 versus 2014

Noninterest expense for the three months ended September 30, 2015 was $25.2 million, an increase of $3.2 million or 15% from the same period in the prior year. Non-interest expense for the nine months ended September 30, 2015 was $79.5 million, an increase of $14.8 million, or 23% from the same period in the prior year. Non-interest expense was impacted by the Valley Green Bank acquisition which included integration and acquisition-related costs totaling $2.0 million for the nine months ended September 30, 2015. Salaries and benefit expense increased $935 thousand for the quarter and $5.3 million for the nine months ended September 30, 2015, primarily attributable to the Valley Green Bank acquisition and increased pension plan expense. The Sterner Insurance acquisition also impacted year-to-date salaries and benefits expense. This increase was partially offset by higher deferred loan origination costs. Commission expense increased $558 thousand for the nine months ended September 30, 2015, mostly due to the increase in mortgage banking volume. Premises and equipment expenses increased $809 thousand for the quarter and $2.4 million for the nine months ended September 30, 2015, mainly due to the Valley Green Bank acquisition and increased investments in computer equipment and software.

In addition, non-interest expense for the nine months ended September 30, 2015 included restructuring charges of $1.6 million recognized during the second quarter related to the consolidation of six financial centers in September 2015 under the Bank's optimization plan. The projected annualized savings from these consolidations is $1.9 million.

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Tax Provision

The provision for income taxes for the three months ended September 30, 2015 and 2014 was $2.8 million and $2.3 million, at effective rates of 27% and 27%, respectively. The provision for income taxes for the nine months ended September 30, 2015 and 2014 was $7.2 million and $5.8 million at effective rates of 26% and 25%, respectively. The effective tax rates reflect the benefits of tax-exempt income from investments in municipal securities, loans and bank-owned life insurance.

Financial Condition

Assets

The following table presents assets at the dates indicated:

	At September 30,   2015			At December 31,   2014			Change
(Dollars in thousands)							Amount		Percent
Cash and interest-earning deposits	$	108,544		$	38,565		$	69,979	N/M
Investment securities	374,558			368,630			5,928		2
Loans held for sale	9,151			3,302			5,849		N/M
Loans and leases held for investment	2,097,807			1,626,625			471,182		29
Reserve for loan and lease losses	(18,620		)	(20,662		)	2,042		10
Premises and equipment, net	41,110			37,009			4,101		11
Goodwill and other intangibles, net	125,725			79,897			45,828		57
Bank owned life insurance	71,135			62,265			8,870		14
Accrued interest receivable and other assets	42,158			39,690			2,468		6
Total assets	$	2,851,568		$	2,235,321		$	616,247	28	%

Interest-earning Deposits

Interest-earning deposits increased as of September 30, 2015 as compared to December 31, 2014 primarily due to an increase in cash maintained at the Federal Reserve Bank. This was mainly due to the seasonal inflow of public funds deposits which were primarily invested in overnight fed funds, as the Corporation’s cash position increased by $69.9 million million from December 31, 2014 to September 30, 2015.

Investment Securities

The investment portfolio is managed as part of the overall asset and liability management process to optimize income and market performance over an entire interest rate cycle while mitigating risk. Activity in this portfolio is undertaken primarily to manage liquidity and interest rate risk, to take advantage of market conditions that create more economically beneficial returns on these investments, and to collateralize public fund deposits. The securities portfolio consists primarily of U.S. Government agencies, municipals, residential mortgage-backed securities and corporate bonds.

Total investments at September 30, 2015increased$5.9 million from December 31, 2014. Securities acquired from Valley Green Bank and purchases of $140.0 million were partially offset by sales of $56.0 million, maturities and pay-downs of $41.9 million, calls of $34.6 million and decreases in the fair value of available-for-sale investment securities of $1.2 million. The decreases in fair value of available-for-sale investment securities were primarily due to the increase in long-term interest rates.

Loans and Leases

Gross loans and leases held for investment at September 30, 2015increased$471.2 million from December 31, 2014, which included $380.9 million of loans acquired from Valley Green Bank. Organic loan growth was 6% (8% annualized) from December 31, 2014. The growth in loans was primarily in commercial real estate loans and residential real estate loans.

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Bank Owned Life Insurance

The Corporation purchased bank owned life insurance policies totaling $8.0 million during the three months ended September 30, 2015. The Bank purchases bank owned life insurance to protect itself against the loss of key employees due to death and to offset or finance the Corporation’s future costs and obligations to its employees under its benefit plans.

Asset Quality

Performance of the entire loan and lease portfolio is reviewed on a regular basis by Bank management and lending officers. A number of factors regarding the borrower, such as overall financial strength, collateral values and repayment ability, are considered in deciding what actions should be taken when determining the collectability of interest for accrual purposes.

When a loan or lease, including a loan or lease that is impaired, is classified as nonaccrual, the accrual of interest on such a loan or lease is discontinued. A loan or lease is typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest, even though the loan or lease is currently performing. A loan or lease may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan or lease is placed on nonaccrual status, unpaid interest credited to income is reversed. Interest payments received on nonaccrual loans and leases are either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal.

Loans or leases are usually restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

At September 30, 2015, the recorded investment in loans held for investment and loans held for sale that were considered to be impaired was $36.8 million. The related reserve for loan losses was $380 thousand. At December 31, 2014, the recorded investment in loans that were considered to be impaired was $56.2 million. The related reserve for loan losses was $998 thousand. Impaired loans include nonaccrual loans and leases, accruing troubled debt restructured loans and lease modifications and other accruing impaired loans for which it is probable that not all principal and interest payments due will be collectible in accordance with the contractual terms. The amount of the specific reserve needed for these credits could change in future periods subject to changes in facts and judgments related to these credits. Specific reserves have been established based on current facts and management’s judgments about the ultimate outcome of these credits. Interest income recognized on impaired loans for the nine months ended September 30, 2015 and 2014 was $1.2 million and $1.4 million, respectively. For the nine months ended September 30, 2015 and 2014, additional interest income that would have been recognized under the original terms for impaired loans was $998 thousand and $891 thousand, respectively.

The impaired loan balances consisted mainly of commercial real estate, construction and business loans. Impaired loans included one large credit which went on nonaccrual during the third quarter of 2009 and was comprised of three separate facilities to a local commercial real estate developer/home builder, aggregating to a September 30, 2015 balance of $4.0 million. During the second quarter of 2014, one of the facilities was transferred to loans held for sale for $532 thousand and was sold during the third quarter of 2014 for a pre-tax loss of $7 thousand. This credit incurred charge-offs of $3.8 million during 2014 primarily attributable to updated assessments of residential building lots securing the loans. During the second quarter of 2015, the two remaining loans were transferred to loans held for sale for $4.0 million as an agreement was reached to sell the loans associated with the credit prior to December 31, 2015. In conjunction, this credit incurred $1.3 million in charge-offs during the second quarter of 2015, as the loans were written down to the sale price. Other real estate owned was $955 thousand at September 30, 2015 and December 31, 2014, for which an agreement of sale was entered into during the fourth quarter of 2014.

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Table 3—Nonaccrual and Past Due Loans and Leases; Troubled Debt Restructured Loans and Lease Modifications; Other Real Estate Owned; and Related Ratios

The following table details information pertaining to the Corporation’s non-performing assets at the dates indicated:

(Dollars in thousands)	At September 30, 2015			At December 31, 2014			At September 30, 2014
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and lease modifications*:
Loans held for sale	$	4,000		$	—		$	—
Loans held for investment:
Commercial, financial and agricultural	8,593			5,002			5,050
Real estate—commercial	4,223			4,413			4,482
Real estate—construction	363			5,931			7,570
Real estate—residential	3,237			1,611			1,425
Lease financings	422			380			287
Total nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and lease modifications*	20,838			17,337			18,814
Accruing troubled debt restructured loans and lease modifications not included in the above	4,789			5,469			5,463
Accruing loans and leases 90 days or more past due:
Real estate—residential	76			31			41
Loans to individuals	237			365			257
Lease financings	115			55			46
Total accruing loans and leases, 90 days or more past due	428			451			344
Total non-performing loans and leases	26,055			23,257			24,621
Other real estate owned	955			955			955
Total nonperforming assets	$	27,010		$	24,212		$	25,576
Nonaccrual loans and leases (including nonaccrual troubled debt restructured loans and lease modifications) / loans and leases held for investment and nonaccrual loans held for sale	0.99		%	1.07		%	1.18		%
Nonperforming loans and leases / loans and leases held for investment and nonaccrual loans held for sale	1.24			1.43			1.54
Nonperforming assets / total assets	0.95			1.09			1.15
Allowance for loan and lease losses / loans and leases held for investment	0.89			1.27			1.36
Allowance for loan and lease losses / loans and leases held for investment (excluding acquired loans at period-end)	1.06			1.27			1.36
Allowance for loan and lease losses / nonaccrual loans and leases held for investment	110.58			119.18			115.67
Allowance for loan and lease losses / nonperforming loans and leases held for investment	84.43			88.84			88.39
Allowance for loan and lease losses	$	18,620		$	20,662		$	21,762
* Nonaccrual troubled debt restructured loans and lease modifications included in nonaccrual loans and leases in the above table	$	742		$	3,104		$	3,392
Acquired credit impaired loans	$	1,379		$	—		$	—

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The following table provides additional information on the Corporation’s nonaccrual loans held for investment:

(Dollars in thousands)	At September 30, 2015			At December 31, 2014			At September 30, 2014
Total nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and lease modifications	$	16,838		$	17,337		$	18,814
Nonaccrual loans and leases with partial charge-offs	8,319			6,465			5,753
Life-to-date partial charge-offs on nonaccrual loans and leases	3,945			1,831			2,550
Charge-off rate of nonaccrual loans and leases with partial charge-offs	32.2		%	22.1		%	30.7		%
Specific reserves on impaired loans	$	380		$	998		$	1,142

Reserve for Loan and Lease Losses

Management believes the reserve for loan and lease losses is maintained at a level that is appropriate at September 30, 2015 to absorb probable losses in the loan and lease portfolio. Management’s methodology to determine the adequacy of and the provisions to the reserve considers specific credit reviews, past loan and lease loss experience, current economic conditions and trends, and the volume, growth, and composition of the portfolio.

The reserve for loan and lease loss analysis takes into consideration the growth of the loan and lease portfolio, the status of past-due loans and leases, current economic conditions, various types of lending activity, policies, real estate and other loan commitments, and significant changes in charge-off activity. Impaired loans, including nonaccrual loans and leases, troubled debt restructured loans and other accruing impaired loans are evaluated individually. All other loans and leases are evaluated as pools. Based on historical loss experience and qualitative factors, loss factors are determined giving consideration to the areas noted in the preceding paragraph and applied to the pooled loan and lease categories to develop the general or allocated portion of the reserve.

The reserve for loan and lease losses is determined at the end of each quarter, and more frequently for management review purposes. Calculating the Corporation's reserve for loan and lease losses considers the Bank's loan portfolio utilizing historical loss data as a starting point, while evaluating the impact of environmental factors in a quantitative manner as they relate to the collectability of outstanding loan obligations. The Corporation utilizes a rolling eight-quarter migration analysis and loss emergence period analysis to determine the annualized net expected loan loss experience.

Each quarter, the conditions that exist within the look-back period are compared to current conditions to support a conclusion as to which qualitative adjustments are (or are not) deemed necessary for each loan portfolio segment. These factors are evaluated subjectively based on management's experience and supported by the Corporation's defined analytical metrics/drivers relative to the historical look-back period. Factors include, but are not limited to, asset quality trends, portfolio growth trends, changes in lending policies and management, economic trends, concentrations of credit risk and the impact of collateral dependent lending.

The reserve for loan and lease losses is based on management’s evaluation of the loan and lease portfolio under current economic conditions and such other factors, which deserve recognition in estimating loan and lease losses. This evaluation is inherently subjective, as it requires estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change. Additions to the reserve arise from the provision for loan and lease losses charged to operations or from the recovery of amounts previously charged off. Loan and lease charge-offs reduce the reserve. Loans and leases are charged off when there has been permanent impairment or when in the opinion of management the full amount of the loan or lease will not be realized. Certain impaired loans are reported at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent, or for certain loans, at the present value of expected future cash flows using the loan’s initial effective interest rate.

The reserve for loan and lease losses consists of an allocated reserve and unallocated reserve categories. The allocated reserve is comprised of reserves established on specific loans and leases and class reserves based on historical loan and lease loss experience and qualitative factors, current trends, and management assessments. The unallocated reserve supports other risk considerations not readily quantifiable through the allocated reserve metrics outlined above, as well as the inherent imprecision of the reserve for loan and lease losses model complexity. These considerations include, but are not limited to, fair value instability within the non-performing category, and the improving credit risk profile of performing loans individually measured for impairment.

The specific reserve element is based on a regular analysis of impaired commercial and real estate loans. For these loans, the specific reserve established is based on an analysis of related collateral value, cash flow considerations and, if applicable, guarantor capacity.

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The class reserve element is determined by an internal loan and lease grading process in conjunction with associated allowance factors. The Corporation revises the class allowance factors whenever necessary, but no less than quarterly, in order to address improving or deteriorating credit quality trends or specific risks associated with a given loan or lease pool classification.

The Corporation maintains a reserve in other liabilities for off-balance sheet credit exposures that currently are unfunded in categories with historical loss experience. The reserve for these off-balance sheet credits was $369 thousand and $338 thousand at September 30, 2015 and December 31, 2014, respectively.

Goodwill and Other Intangible Assets

Goodwill and other intangible assets have been recorded on the books of the Corporation in connection with acquisitions. The Corporation has core deposit and customer-related intangibles and mortgage servicing rights, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The amortization of intangible assets was $844 thousand and $818 thousand for the three months ended September 30, 2015 and 2014, respectively. The amortization of intangible assets was $2.7 million and $2.2 million for the nine months ended September 30, 2015 and 2014, respectively. The Corporation also has goodwill with a net carrying value of $112.7 million at September 30, 2015 and $67.7 million at December 31, 2014, which is deemed to be an indefinite intangible asset and is not amortized. The increase in goodwill of $44.9 million was related to the Valley Green and Sterner acquisitions. The Corporation recorded $43.5 million related to the Valley Green acquisition completed on January 1, 2015. Due to updates to the original assumptions utilized for determining the contingent consideration liability for the Sterner acquisition completed on July 1, 2014, the Corporation recorded a purchase accounting adjustment, in accordance with ASC Topic 805, in 2015 which resulted in an increase to the contingent consideration liability and an increase to goodwill of $1.5 million.

The Corporation completes a goodwill impairment analysis at least on an annual basis, or more often, if events and circumstances indicate that there may be impairment. The Corporation also completes an impairment test for other identifiable intangible assets on an annual basis or more often if events and circumstances indicate there may be impairment. There was no impairment of goodwill or identifiable intangibles during the nine months ended September 30, 2015 and 2014. Since the last annual impairment analysis during 2014, there have been no circumstances to indicate impairment. There can be no assurance that future impairment assessments or tests will not result in a charge to earnings.

Other Assets

At September 30, 2015 and December 31, 2014, the Bank held $6.6 million and $3.3 million, respectively, in Federal Reserve Bank stock as required by the Federal Reserve Bank. In the first quarter of 2015, the Bank purchased an additional $2.3 million of Federal Reserve Bank stock due to the increase of capital with the acquisition of Valley Green Bank. The Bank is a member of the FHLB, and as such, is required to hold FHLB stock as a condition of membership as determined by the FHLB. The Bank is required to hold additional stock in the FHLB in relation to the level of outstanding borrowings. The Bank held FHLB stock of $2.4 million at September 30, 2015 and $1.1 million at December 31, 2014. Additionally, the FHLB might require its members to increase capital stock requirements. Changes in the credit ratings of the U.S. government and federal agencies, including the FHLB, could increase the borrowing costs of the FHLB and possibly have a negative impact on the FHLB operations and long-term performance. It is possible this could have an adverse effect on the value of the Corporation’s investment in FHLB stock. The Corporation determined there was no other-than-temporary impairment of the investment in FHLB stock. Therefore, at September 30, 2015, the FHLB stock is recorded at cost.

Liabilities

The following table presents liabilities at the dates indicated:

(Dollars in thousands)	At September 30, 2015		At December 31, 2014		Change
					Amount			Percent
Deposits	$	2,372,865	$	1,861,341	$	511,524		27	%
Short-term borrowings	21,191		41,974		(20,783		)	(50	)
Long-term borrowings	49,340		—		49,340			N/M
Accrued interest payable and other liabilities	49,063		47,452		1,611			3
Total liabilities	$	2,492,459	$	1,950,767	$	541,692		28	%

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Deposits

Total deposits increased$511.5 million or 27% from December 31, 2014, primarily due to $385.9 million of deposits acquired from Valley Green Bank and an increase in public funds mostly due to seasonal tax deposits.

Borrowings

Short-term borrowings at September 30, 2015, consisted of customer repurchase agreements on an overnight basis totaling $21.2 million. Long-term borrowings at September 30, 2015 consisted of $50.0 million in aggregate principal amount subordinated notes issued by the Corporation in a private placement transaction to institutional accredited investors with net proceeds of $49.3 million.

Shareholders’ Equity

The following table presents total shareholders’ equity at the dates indicated:

(Dollars in thousands)	At September 30, 2015			At December 31, 2014			Change
							Amount			Percent
Common stock	$	110,271		$	91,332		$	18,939		21	%
Additional paid-in capital	120,895			62,980			57,915			92
Retained earnings	190,159			181,851			8,308			5
Accumulated other comprehensive loss	(14,979		)	(14,462		)	(517		)	(4	)
Treasury stock	(47,237		)	(37,147		)	(10,090		)	(27	)
Total shareholders’ equity	$	359,109		$	284,554		$	74,555		26	%

The increase in shareholder's equity at September 30, 2015 of $74.6 million from December 31, 2014 was primarily related to the issuance of common stock of $18.9 million and additional paid-in capital of $57.7 million for the acquisition of Valley Green Bank. Retained earnings at September 30, 2015 were impacted by the nine months of net income of $20.1 million partially offset by cash dividends declared of $11.8 million. Treasury stock increased primarily due to the purchase of 608,757 treasury shares, totaling $12.0 million under the Corporation's Board approved share repurchase program partially offset by the issuance of restricted stock.

Capital Adequacy

The Corporation and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s and the Bank’s financial statements. Capital adequacy guidelines, and additionally for the Bank the prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined), or leverage ratio.

In July 2013, the federal bank regulatory agencies adopted final rules revising the agencies’ capital adequacy guidelines and prompt corrective action rules, designed to enhance such requirements and implement the revised standards of the Basel Committee on Banking Supervision, commonly referred to as Basel III. The July 2013 final rules generally implement higher minimum capital requirements, add a new common equity Tier 1 capital requirement, and establish criteria that instruments must meet to be considered common equity Tier 1 capital, additional Tier 1 capital or Tier 2 capital. The new minimum capital to risk-adjusted assets requirements include a common equity Tier 1 capital ratio of 4.5% (6.5% to be considered “well capitalized”) and a Tier 1 capital ratio of 6.0%, increased from 4.0% (and increased from 6.0% to 8.0% to be considered “well capitalized”); the total capital ratio remains at 8.0% under the new rules (10.0% to be considered “well capitalized”). Under the new rules, in order to avoid limitations on capital distributions (including dividend payments and certain discretionary bonus payments to executive officers), a banking organization must hold a capital conservation buffer comprised of common equity Tier 1 capital above its minimum risk-based capital requirements in an amount greater than 2.5% of total risk-weighted assets. The final rules permit institutions, other than certain large institutions, to elect to continue to treat most components of accumulated other comprehensive income as permitted under the current general risk-based capital rules, and not reflect these items in common equity Tier 1 calculations (such as

57

unrealized gains and losses on available-for-sale securities, amounts recorded in accumulated other comprehensive income attributed to defined benefit retirement plans resulting from the initial and subsequent application of the relevant U.S. GAAP standards and accumulated net gains and losses on cash flow hedges related to items that are reported on the balance sheet at fair value.) The new minimum capital requirements were effective on January 1, 2015. The capital contribution buffer requirements phase in over a three-year period beginning January 1, 2016.

The Corporation adopted the new Basel III regulatory capital rules during the first quarter of 2015 under the transition rules, primarily relating to regulatory deductions and adjustments impacting common equity tier 1 capital and tier 1 capital, to be phased in over a three-year period beginning January 1, 2015. Additionally under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. Total risk-based capital at September 30, 2015 under Basel III was 13.68% for the Corporation and 12.70% for the Bank, well in excess of the regulatory minimum for well-capitalized status of 10%.

Table 4—Regulatory Capital

The Corporation's and Bank's actual and required capital ratios as of September 30, 2015 and December 31, 2014 were as follows. Ratios at September 30, 2015 are under BASEL III regulatory capital rules. Ratios at December 31, 2014 are under BASEL I regulatory capital rules.

	Actual				For Capital Adequacy Purposes				To Be Well-Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
At September 30, 2015
Total Capital (to Risk-Weighted Assets):
Corporation	$	331,150	13.68	%	$	193,609	8.00	%	$	242,012	10.00	%
Bank	304,762		12.70		191,918		8.00		239,897		10.00
Tier 1 Capital (to Risk-Weighted Assets):
Corporation	262,550		10.85		145,207		6.00		193,609		8.00
Bank	285,502		11.90		143,938		6.00		191,918		8.00
Tier 1 Common Capital (to Risk-Weighted Assets):
Corporation	262,550		10.85		108,905		4.50		157,308		6.50
Bank	285,502		11.90		107,954		4.50		155,933		6.50
Tier 1 Capital (to Average Assets):
Corporation	262,550		9.75		107,722		4.00		134,652		5.00
Bank	285,502		10.67		106,985		4.00		133,731		5.00
At December 31, 2014
Total Capital (to Risk-Weighted Assets):
Corporation	$	256,329	13.90	%	$	147,568	8.00	%	$	184,460	10.00	%
Bank	238,336		13.06		145,991		8.00		182,489		10.00
Tier 1 Capital (to Risk-Weighted Assets):
Corporation	232,946		12.63		73,784		4.00		110,676		6.00
Bank	215,497		11.81		72,995		4.00		109,493		6.00
Tier 1 Capital (to Average Assets):
Corporation	232,946		10.85		85,876		4.00		107,346		5.00
Bank	215,497		10.11		85,277		4.00		106,597		5.00

At September 30, 2015 and December 31, 2014, management believes that the Corporation and the Bank continued to meet all capital adequacy requirements to which they are subject. The Corporation, like other bank holding companies, currently is required to maintain Tier 1 Capital and Total Capital equal to at least 6.0% and 8.0%, respectively, of total risk-weighted assets (including various off-balance-sheet items). The Bank, like other depository institutions, is required to maintain similar capital levels under capital adequacy guidelines. For a depository institution to be considered “well capitalized” under the regulatory framework for prompt corrective action, Tier 1 and Total Capital ratios must be at least 8.0% and 10.0% on a risk-adjusted basis, respectively. At September 30, 2015, the Bank is categorized as “well capitalized” under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s

58

category. The Corporation will continue to analyze the impact of the new rules as it grows and as the capital conservation buffer requirements are phased in.

Asset/Liability Management

The primary functions of Asset/Liability Management are to assure adequate earnings, capital and liquidity while maintaining an appropriate balance between interest-earning assets and interest-bearing liabilities. Liquidity management involves the ability to meet cash flow requirements of customers and corporate needs. Interest-rate sensitivity management seeks to avoid fluctuating net interest margins and to enhance consistent growth of net interest income through periods of changing rates.

The Corporation uses both interest-sensitivity gap analysis and simulation modeling to quantify exposure to interest rate risk. The Corporation uses the gap analysis to identify and monitor long-term rate exposure and uses a simulation model to measure the short-term rate exposures. The Corporation runs various earnings simulation scenarios to quantify the effect of declining or rising interest rates on the net interest margin over a one-year and two-year horizon. The simulation uses existing portfolio rate and re-pricing information, combined with assumptions regarding future loan and deposit growth, future spreads, prepayment speeds on loans, and the discretionary pricing of non-maturity assets and liabilities. The Corporation is in a liability sensitive position from both a maturity perspective and from a repricing perspective, as interest rates remain at historically low levels. Despite being liability sensitive, the Corporation projects increased net interest income in rising rate scenarios as the magnitude of the asset pricing change exceeds the liability pricing change.

Liquidity

The Corporation, in its role as a financial intermediary, is exposed to certain liquidity risks. Liquidity refers to the Corporation’s ability to ensure that sufficient cash flow and liquid assets are available to satisfy demand for loans and deposit withdrawals. The Corporation manages liquidity risk by measuring and monitoring liquidity sources and estimated funding needs. The Corporation has a contingency funding plan in place to address liquidity needs in the event of an institution-specific or a systemic financial crisis.

Sources of Funds

Core deposits and customer repurchase agreements have historically been the most significant funding sources for the Corporation. These deposits and repurchase agreements are generated from a base of consumer, business and public customers primarily located in Bucks and Montgomery counties, Pennsylvania. The Corporation faces increased competition for these deposits from a large array of financial market participants, including banks, credit unions, savings institutions, mutual funds, security dealers and others.

The Corporation supplements its core funding with money market funds it holds for the benefit of various trust accounts. These funds are fully collateralized by the Bank’s investment portfolio and bear interest at current money market mutual fund rates. This funding source is subject to changes in the asset allocations of the trust accounts.

The Corporation, through the Bank, has short-term and long-term credit facilities with the FHLB with a maximum borrowing capacity of approximately $768.1 million. At September 30, 2015 and December 31, 2014, there were no outstanding borrowings with the FHLB. At September 30, 2015 and December 31, 2014, the Bank had outstanding short-term letters of credit with the FHLB totaling $194.3 million and $55.0 million, respectively, which were utilized to collateralize seasonal public funds deposits. The maximum borrowing capacity with the FHLB changes as a function of qualifying collateral assets as well as the FHLB’s internal credit rating of the Bank, and the amount of funds received may be reduced by additional required purchases of FHLB stock.

The Corporation has a $10.0 million line of credit with a correspondent bank. At September 30, 2015, the Corporation had no outstanding borrowings under this line.

The Bank maintains federal fund lines with several correspondent banks totaling $122.0 million and $82.0 million at September 30, 2015 and December 31, 2014, respectively. At September 30, 2015 and December 31, 2014, the Corporation had no outstanding federal funds purchased with these correspondent banks. Future availability under these lines is subject to the prerogatives of the granting banks and may be withdrawn at will.

The Corporation, through the Bank, has an available line of credit at the Federal Reserve Bank of Philadelphia, the amount of which is dependent upon the balance of loans and securities pledged as collateral. At September 30, 2015 and December 31, 2014, the Corporation had no outstanding borrowings under this line.

59

Cash Requirements

The Corporation has cash requirements for various financial obligations, including contractual obligations and commitments that require cash payments. The most significant contractual obligation, in both the under and over one year time period, is for the Bank to repay certificates of deposit. The Bank anticipates meeting these obligations by continuing to provide convenient depository and cash management services through its branch network, thereby replacing these contractual obligations with similar fund sources at rates that are competitive in our market.

Commitments to extend credit are the Bank’s most significant commitment in both the under and over one year time periods. These commitments do not necessarily represent future cash requirements in that these commitments often expire without being drawn upon.

Recent Accounting Pronouncements

For information regarding recent accounting pronouncements, refer to Footnote 1, “Summary of Significant Accounting Policies” of this Form 10-Q.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

No material changes in the Corporation’s market risk or market strategy occurred during the current period. A detailed discussion of market risk is provided in the Corporation's Annual Report on Form 10-K for the period ended December 31, 2014.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Management is responsible for the disclosure controls and procedures of the Corporation. Disclosure controls and procedures are controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods required by the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be so disclosed by an issuer is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of the Corporation’s management, including the Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial and Accounting Officer), of the effectiveness of the design and operation of the Corporation’s disclosure controls and procedures. Based on that evaluation, the Corporation’s Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of September 30, 2015.

Changes in Internal Control over Financial Reporting

There were no changes in the Corporation’s internal control over financial reporting (as defined in Rule 13a-15(f)) during the quarter ended September 30, 2015 that materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Management is not aware of any litigation that would have a material adverse effect on the consolidated balance sheet or statement of income of the Corporation. There are no proceedings pending other than the ordinary routine litigation incident to the business of the Corporation. In addition, there are no material proceedings pending or known to be threatened or contemplated against the Corporation or the Bank by government authorities.

Item 1A. Risk Factors

There have been no material changes in risk factors from those disclosed under Item 1A, “Risk Factors.” in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2014.

60

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information on repurchases by the Corporation of its common stock during the three months ended September 30, 2015 under the Corporation's Board approved program.

ISSUER PURCHASES OF EQUITY SECURITIES
Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
July 1 – 31, 2015	86,650	$	20.31	86,650	1,080,246
August 1 – 31, 2015	—	—		—	1,080,246
September 1 – 30, 2015	—	—		—	1,080,246
Total	86,650	$	20.31	86,650

1. Transactions are reported as of trade dates.

2. On October 23, 2013, the Corporation’s Board of Directors approved a new stock repurchase plan for the repurchase of up to 800,000 shares, or approximately 5% of the shares outstanding. On May 27, 2015, the Corporation's Board of Directors approved an increase of 1,000,000 shares available for repurchase under the Corporation's share repurchase program, or approximately 5% of the Corporation's common stock outstanding as of May 27, 2015. The repurchased shares limit is net of normal treasury activity such as purchases to fund the dividend reinvestment, employee stock purchase and equity compensation plans. The program has no scheduled expiration date and the Board of Directors has the right to suspend or discontinue the program at any time.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

None.

61

Item 6. Exhibits

a.	Exhibits
	Exhibit 31.1	Certification of Jeffrey M. Schweitzer, President and Chief Executive Officer of the Corporation, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.
	Exhibit 31.2	Certification of Michael S. Keim, Senior Executive Vice President and Chief Financial Officer of the Corporation, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.
	Exhibit 32.1	Certification of Jeffrey M. Schweitzer, President and Chief Executive Officer of the Corporation, pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002.
	Exhibit 32.2	Certification of Michael S. Keim, Senior Executive Vice President and Chief Financial Officer of the Corporation, pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002.
	Exhibit 101.INS	XBRL Instance Document
	Exhibit 101.SCH	XBRL Taxonomy Extension Schema Document
	Exhibit 101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
	Exhibit 101.LAB	XBRL Taxonomy Extension Label Linkbase Document
	Exhibit 101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
	Exhibit 101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

62

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Univest Corporation of Pennsylvania
	(Registrant)
Date: November 6, 2015	/s/ Jeffrey M. Schweitzer
	Jeffrey M. Schweitzer President and Chief Executive Officer (Principal Executive Officer)
Date: November 6, 2015	/s/ Michael S. Keim
	Michael S. Keim Senior Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

63

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Jeffrey M. Schweitzer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Univest Corporation of Pennsylvania;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: November 6, 2015

/s/ Jeffrey M. Schweitzer

Jeffrey M. Schweitzer

President and Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Michael S. Keim, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Univest Corporation of Pennsylvania;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: November 6, 2015

/s/ Michael S. Keim

Michael S. Keim

Senior Executive Vice President and Chief Financial Officer

(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Univest Corporation of Pennsylvania on Form 10-Q for the period ended September 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Corporation.

A signed original of this written statement required by Section 906 has been provided to Univest Corporation of Pennsylvania and will be retained by Univest Corporation of Pennsylvania and furnished to the Securities and Exchange Commission or its staff upon request.

/s/ Jeffrey M. Schweitzer

Jeffrey M. Schweitzer

President and Chief Executive Officer

(Principal Executive Officer)

November 6, 2015

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Univest Corporation of Pennsylvania on Form 10-Q for the period ended September 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Corporation.

A signed original of this written statement required by Section 906 has been provided to Univest Corporation of Pennsylvania and will be retained by Univest Corporation of Pennsylvania and furnished to the Securities and Exchange Commission or its staff upon request.

/s/ Michael S. Keim

Michael S. Keim

Senior Executive Vice President and Chief Financial Officer

(Principal Financial and Accounting Officer)

November 6, 2015

XML

Acquisition - Supplemental Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings per share
Restructuring charges	$ 0	$ 0	$ 1,642	$ 0
Branch optimization plan, restructuring charges, net of tax			$ 1,100
Branch optimization plan, restructuring charges, earnings per share, diluted			$ 0.05
Valley Green Bank [Member]
Business Acquisition [Line Items]
Net interest income	23,365	23,360	$ 70,049	69,005
Noninterest income	12,855	12,671	39,637	37,036
Noninterest expense	25,243	25,002	79,486	72,563
Net income	$ 7,528	$ 7,605	$ 20,110	$ 21,508
Earnings per share
Basic (in dollars per share)	$ 0.39	$ 0.38	$ 1.02	$ 1.07
Diluted (in dollars per share)	$ 0.39	$ 0.38	$ 1.02	$ 1.07
Integration and acquisition-related costs, gross			$ 2,000
Integration and acquisition-related costs, net of tax			$ 1,300
Integration and acquisition-related costs, earnings per share, diluted			$ 0.07

XML

Loans and Leases - Troubled Debt Restructured Loans (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) loan	Sep. 30, 2014 USD ($) loan	Sep. 30, 2015 USD ($) loan	Sep. 30, 2014 USD ($) loan
Accrual Troubled Debt Restructuring Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	1	4	6	4
Pre- Restructuring Outstanding Recorded Investment	$ 50	$ 2,424	$ 1,898	$ 2,424
Post- Restructuring Outstanding Recorded Investment	50	2,424	1,898	2,424
Related Allowance	$ 0	$ 132	$ 71	$ 132
Nonaccrual Troubled Debt Restructuring Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	0	0	1	3
Pre- Restructuring Outstanding Recorded Investment	$ 0	$ 0	$ 122	$ 738
Post- Restructuring Outstanding Recorded Investment	0	0	122	738
Related Allowance	$ 0	$ 0	$ 22	$ 0
Commercial, Financial and Agricultural [Member] | Accrual Troubled Debt Restructuring Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	1	3	4	3
Pre- Restructuring Outstanding Recorded Investment	$ 50	$ 1,424	$ 1,140	$ 1,424
Post- Restructuring Outstanding Recorded Investment	50	1,424	1,140	1,424
Related Allowance	$ 0	$ 132	$ 71	$ 132
Commercial, Financial and Agricultural [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | loan			1	0
Pre- Restructuring Outstanding Recorded Investment			$ 122	$ 0
Post- Restructuring Outstanding Recorded Investment			122	0
Related Allowance			$ 22	$ 0
Real Estate-Commercial [Member] | Accrual Troubled Debt Restructuring Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	0	1	1	1
Pre- Restructuring Outstanding Recorded Investment	$ 0	$ 1,000	$ 405	$ 1,000
Post- Restructuring Outstanding Recorded Investment	0	1,000	405	1,000
Related Allowance	$ 0	$ 0	$ 0	$ 0
Real Estate-Commercial [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | loan			0	1
Pre- Restructuring Outstanding Recorded Investment			$ 0	$ 50
Post- Restructuring Outstanding Recorded Investment			0	50
Related Allowance			$ 0	$ 0
Real Estate-Residential Secured for Business Purpose [Member] | Accrual Troubled Debt Restructuring Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | loan			1	0
Pre- Restructuring Outstanding Recorded Investment			$ 353	$ 0
Post- Restructuring Outstanding Recorded Investment			353	0
Related Allowance			$ 0	$ 0
Real Estate-Residential Secured for Business Purpose [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | loan			0	2
Pre- Restructuring Outstanding Recorded Investment			$ 0	$ 688
Post- Restructuring Outstanding Recorded Investment			0	688
Related Allowance			$ 0	$ 0

XML

Loans and Leases - Non-Performing Loans and Leases (Details) $ in Thousands	Sep. 30, 2015 USD ($) loan borrowers	Dec. 31, 2014 USD ($)
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	$ 20,838	$ 17,337
Accruing Troubled Debt Restructured Loans And Lease Modifications	4,789	5,469
Recorded Investment 90 Days or more Past Due and Accruing Interest	428	451
Total Non-Performing Loans and Leases	26,055	23,257
Nonaccrual Troubled Debt Restructured Loans And Lease Modifications	742	3,100
Loans Held For Sale [Member]
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	4,000	0
Accruing Troubled Debt Restructured Loans And Lease Modifications	0	0
Recorded Investment 90 Days or more Past Due and Accruing Interest	0	0
Total Non-Performing Loans and Leases	4,000	0
Commercial, Financial and Agricultural [Member]
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	8,593	5,002
Accruing Troubled Debt Restructured Loans And Lease Modifications	1,959	2,851
Recorded Investment 90 Days or more Past Due and Accruing Interest	0	0
Total Non-Performing Loans and Leases	10,552	7,853
Real Estate-Commercial [Member]
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	4,223	4,413
Accruing Troubled Debt Restructured Loans And Lease Modifications	2,474	2,618
Recorded Investment 90 Days or more Past Due and Accruing Interest	0	0
Total Non-Performing Loans and Leases	6,697	7,031
Real Estate-Construction [Member]
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	363	5,931
Accruing Troubled Debt Restructured Loans And Lease Modifications	0	0
Recorded Investment 90 Days or more Past Due and Accruing Interest	0	0
Total Non-Performing Loans and Leases	$ 363	5,931
Nonaccrual Loans Held for Sale, Number of Loans | loan	2
Nonaccrual Loans Held for Sale, Number of Borrowers | borrowers	1
Nonaccrual Loans Held For Sale	$ 4,000
Real Estate-Residential Secured for Business Purpose [Member]
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	2,301	915
Accruing Troubled Debt Restructured Loans And Lease Modifications	343	0
Recorded Investment 90 Days or more Past Due and Accruing Interest	0	0
Total Non-Performing Loans and Leases	2,644	915
Real Estate-Residential Secured for Personal Purpose [Member]
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	776	512
Accruing Troubled Debt Restructured Loans And Lease Modifications	0	0
Recorded Investment 90 Days or more Past Due and Accruing Interest	41	0
Total Non-Performing Loans and Leases	817	512
Real Estate-Home Equity Secured for Personal Purpose [Member]
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	160	184
Accruing Troubled Debt Restructured Loans And Lease Modifications	0	0
Recorded Investment 90 Days or more Past Due and Accruing Interest	35	31
Total Non-Performing Loans and Leases	195	215
Loans to Individuals [Member]
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	0	0
Accruing Troubled Debt Restructured Loans And Lease Modifications	0	0
Recorded Investment 90 Days or more Past Due and Accruing Interest	237	365
Total Non-Performing Loans and Leases	237	365
Lease Financings [Member]
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	422	380
Accruing Troubled Debt Restructured Loans And Lease Modifications	13	0
Recorded Investment 90 Days or more Past Due and Accruing Interest	115	55
Total Non-Performing Loans and Leases	$ 550	$ 435

XML

Accumulated Other Comprehensive (Loss) Income - Components of Accumulated Other Comprehensive (Loss) Income, Net of Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning balance			$ (14,462)	$ (9,955)
Net Change	$ 191	$ (253)	(517)	3,054
Ending balance	(14,979)	(6,901)	(14,979)	(6,901)
Net Unrealized Holding (Losses) Gains on Available-for-Sale Investment Securities [Member]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning balance			1,711	(1,472)
Net Change			(756)	2,869
Ending balance	955	1,397	955	1,397
Net Change Related to Derivative Used for Cash Flow Hedge [Member]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning balance			(157)	0
Net Change			(288)	0
Ending balance	(445)	0	(445)	0
Net Change Related to Defined Benefit Pension Plan [Member]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning balance			(16,016)	(8,483)
Net Change			527	185
Ending balance	$ (15,489)	$ (8,298)	$ (15,489)	$ (8,298)

XML

Loans and Leases - Concessions Granted on Accruing and Nonaccrual Loans Restructured (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) loan	Sep. 30, 2014 USD ($) loan	Sep. 30, 2015 USD ($) loan	Sep. 30, 2014 USD ($) loan
Accrual Troubled Debt Restructuring Loans [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	1	4	6	4
Amount | $	$ 50	$ 2,424	$ 1,898	$ 2,424
Accrual Troubled Debt Restructuring Loans [Member] | Temporary Payment Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	0	0	2	0
Amount | $	$ 0	$ 0	$ 496	$ 0
Accrual Troubled Debt Restructuring Loans [Member] | Interest Rate Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	0	0	0	0
Amount | $	$ 0	$ 0	$ 0	$ 0
Accrual Troubled Debt Restructuring Loans [Member] | Maturity Date Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	0	3	1	3
Amount | $	$ 0	$ 2,299	$ 500	$ 2,299
Accrual Troubled Debt Restructuring Loans [Member] | Payments Suspended [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	0	1	0	1
Amount | $	$ 0	$ 125	$ 0	$ 125
Accrual Troubled Debt Restructuring Loans [Member] | Amortization Period Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	1	0	3	0
Amount | $	$ 50	$ 0	$ 902	$ 0
Nonaccrual Troubled Debt Restructuring Loans [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	0	0	1	3
Amount | $	$ 0	$ 0	$ 122	$ 738
Nonaccrual Troubled Debt Restructuring Loans [Member] | Temporary Payment Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	0	0	1	0
Amount | $	$ 0	$ 0	$ 122	$ 0
Nonaccrual Troubled Debt Restructuring Loans [Member] | Interest Rate Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	0	0	0	2
Amount | $	$ 0	$ 0	$ 0	$ 105
Nonaccrual Troubled Debt Restructuring Loans [Member] | Maturity Date Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	0	0	0	1
Amount | $	$ 0	$ 0	$ 0	$ 633
Nonaccrual Troubled Debt Restructuring Loans [Member] | Payments Suspended [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	0	0	0	0
Amount | $	$ 0	$ 0	$ 0	$ 0
Nonaccrual Troubled Debt Restructuring Loans [Member] | Amortization Period Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	0	0	0	0
Amount | $	$ 0	$ 0	$ 0	$ 0
Commercial, Financial and Agricultural [Member] | Accrual Troubled Debt Restructuring Loans [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	1	3	4	3
Amount | $	$ 50	$ 1,424	$ 1,140	$ 1,424
Commercial, Financial and Agricultural [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Temporary Payment Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	0	0	1	0
Amount | $	$ 0	$ 0	$ 143	$ 0
Commercial, Financial and Agricultural [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Interest Rate Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	0	0	0	0
Amount | $	$ 0	$ 0	$ 0	$ 0
Commercial, Financial and Agricultural [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Maturity Date Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	0	2	1	2
Amount | $	$ 0	$ 1,299	$ 500	$ 1,299
Commercial, Financial and Agricultural [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Payments Suspended [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	0	1	0	1
Amount | $	$ 0	$ 125	$ 0	$ 125
Commercial, Financial and Agricultural [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Amortization Period Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	1		2	0
Amount | $	$ 50		$ 497	$ 0
Commercial, Financial and Agricultural [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans			1	0
Amount | $			$ 122
Commercial, Financial and Agricultural [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member] | Temporary Payment Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans			1
Amount | $			$ 122
Commercial, Financial and Agricultural [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member] | Interest Rate Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans			0
Amount | $			$ 0
Commercial, Financial and Agricultural [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member] | Maturity Date Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans			0
Amount | $			$ 0
Commercial, Financial and Agricultural [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member] | Amortization Period Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans			0
Amount | $			$ 0
Real Estate-Residential Secured for Business Purpose [Member] | Accrual Troubled Debt Restructuring Loans [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans			1	0
Amount | $			$ 353
Real Estate-Residential Secured for Business Purpose [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Temporary Payment Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans			1
Amount | $			$ 353
Real Estate-Residential Secured for Business Purpose [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Interest Rate Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans			0
Amount | $			$ 0
Real Estate-Residential Secured for Business Purpose [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Maturity Date Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans			0
Amount | $			$ 0
Real Estate-Residential Secured for Business Purpose [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Amortization Period Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans			0
Amount | $			$ 0
Real Estate-Residential Secured for Business Purpose [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans			0	2
Amount | $				$ 688
Real Estate-Residential Secured for Business Purpose [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member] | Interest Rate Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans				1
Amount | $				$ 55
Real Estate-Residential Secured for Business Purpose [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member] | Maturity Date Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans				1
Amount | $				$ 633
Real Estate-Commercial [Member] | Accrual Troubled Debt Restructuring Loans [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans	0	1	1	1
Amount | $		$ 1,000	$ 405	$ 1,000
Real Estate-Commercial [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Temporary Payment Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans		0	0	0
Amount | $		$ 0	$ 0	$ 0
Real Estate-Commercial [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Interest Rate Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans		0	0	0
Amount | $		$ 0	$ 0	$ 0
Real Estate-Commercial [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Maturity Date Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans		1	0	1
Amount | $		$ 1,000	$ 0	$ 1,000
Real Estate-Commercial [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Payments Suspended [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans		0	0	0
Amount | $		$ 0	$ 0	$ 0
Real Estate-Commercial [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Amortization Period Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans			1
Amount | $			$ 405
Real Estate-Commercial [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans			0	1
Amount | $				$ 50
Real Estate-Commercial [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member] | Temporary Payment Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans				0
Amount | $				$ 0
Real Estate-Commercial [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member] | Interest Rate Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans				1
Amount | $				$ 50

XML

Fair Value Disclosures - Assets Measured at Fair Value on Non-recurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans held for investment	$ 32,388	$ 55,193
Total assets	32,388	55,193
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans held for investment	0	0
Total assets	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans held for investment	0	0
Total assets	0	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans held for investment	32,388	55,193
Total assets	$ 32,388	$ 55,193

XML

Loans and Leases - Acquired Credit Impaired Loans (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Receivables [Abstract]
Outstanding principal balance	$ 3,949
Carrying amount	1,379	$ 0
Allowance for loan losses	21
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Beginning of period	0
Acquisition of credit impaired loans	305
Reclassification from nonaccretable difference	476
Accretable yield amortized to interest income	(595)
Disposals	(1)
End of period	$ 185

XML

Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the assets and liabilities measured at fair value on a recurring basis at September 30, 2015 and December 31, 2014, classified using the fair value hierarchy:

	At September 30, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. treasuries	$	4,945	$	—	$	—	$	4,945
U.S. government corporations and agencies	—		105,371		—		105,371
State and political subdivisions	—		108,420		—		108,420
Residential mortgage-backed securities	—		13,544		—		13,544
Collateralized mortgage obligations	—		3,303		—		3,303
Corporate bonds	—		87,913		—		87,913
Money market mutual funds	9,020		—		—		9,020
Equity securities	984		—		—		984
Total available-for-sale securities	14,949		318,551		—		333,500
Interest rate locks with customers	—		1,264		—		1,264
Total assets	$	14,949	$	319,815	$	—	$	334,764
Liabilities:
Contingent consideration liability	$	—	$	—	$	5,956	$	5,956
Interest rate swap	—		685		—		685
Forward loan sale commitments	—		184		—		184
Total liabilities	$	—	$	869	$	5,956	$	6,825

	At December 31, 2014
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. treasuries	$	4,845	$	—	$	—	$	4,845
U.S. government corporations and agencies	—		121,844		—		121,844
State and political subdivisions	—		102,774		—		102,774
Residential mortgage-backed securities	—		13,643		—		13,643
Collateralized mortgage obligations	—		3,725		—		3,725
Corporate bonds	—		54,440		—		54,440
Money market mutual funds	11,675		—		—		11,675
Equity securities	1,337		—		—		1,337
Total available-for-sale securities	17,857		296,426		—		314,283
Interest rate locks with customers	—		788		—		788
Total assets	$	17,857	$	297,214	$	—	$	315,071
Liabilities:
Contingent consideration liability	$	—	$	—	$	6,541	$	6,541
Interest rate swap	—		241		—		241
Forward loan sale commitments	—		112		—		112
Total liabilities	$	—	$	353	$	6,541	$	6,894

Contingent Consideration Liability Change in Amount

The following table presents the change in the balance of the contingent consideration liability related to acquisitions for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the nine months ended September 30, 2015 and 2014:

	Nine Months Ended September 30, 2015
(Dollars in thousands)	Balance at December 31, 2014		Contingent Consideration from New Acquisition*		Payment of Contingent Consideration		Adjustment of Contingent Consideration			Balance at September 30, 2015
Sterner Insurance Associates	$	680	$	1,525	$	1,751	$	535		$	989
Girard Partners	5,503		—		620		(102		)	4,781
John T. Fretz Insurance Agency	358		—		260		88			186
Total contingent consideration liability	$	6,541	$	1,525	$	2,631	$	521		$	5,956

	Nine Months Ended September 30, 2014
(Dollars in thousands)	Balance at December 31, 2013		Contingent Consideration from New Acquisition		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at September 30, 2014
Sterner Insurance Associates	$	—	$	635	$	—	$	22	$	657
Girard Partners	$	—	$	5,470	$	—	$	197	$	5,667
John T. Fretz Insurance Agency	501		—		310		154		345
Total contingent consideration liability	$	501	$	6,105	$	310	$	373	$	6,669

Assets Measured at Fair Value on Non-Recurring Basis

The following table represents assets measured at fair value on a non-recurring basis at September 30, 2015 and December 31, 2014:

	At September 30, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	32,388	$	32,388
Total	$	—	$	—	$	32,388	$	32,388

	At December 31, 2014
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	55,193	$	55,193
Total	$	—	$	—	$	55,193	$	55,193

Assets, Liabilities and Off-Balance Sheet Items Not Measured at Fair Value

The following table presents assets and liabilities and off-balance sheet items not measured at fair value on a recurring or non-recurring basis in the Corporation’s consolidated balance sheets but for which the fair value is required to be disclosed at September 30, 2015 and December 31, 2014. The disclosed fair values are classified using the fair value hierarchy.

	At September 30, 2015
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	108,544	$	—		$	—	$	108,544		$	108,544
Held-to-maturity securities	—		41,323			—		41,323			41,058
Loans held for sale	—		9,169			—		9,169			9,151
Net loans and leases held for investment	—		—			2,042,152		2,042,152			2,046,799
Mortgage servicing rights	—		—			7,592		7,592			5,772
Other real estate owned	—		955			—		955			955
Total assets	$	108,544	$	51,447		$	2,049,744	$	2,209,735		$	2,212,279
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,881,594	$	—		$	—	$	1,881,594		$	1,881,594
Time deposits	—		492,950			—		492,950			491,271
Total deposits	1,881,594		492,950			—		2,374,544			2,372,865
Short-term borrowings	—		19,555			—		19,555			21,191
Subordinated notes	—		50,125			—		50,125			49,340
Total liabilities	$	1,881,594	$	562,630		$	—	$	2,444,224		$	2,443,396
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,763	)	$	—	$	(1,763	)	$	—

	At December 31, 2014
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	38,565	$	—		$	—	$	38,565		$	38,565
Held-to-maturity securities	—		54,765			—		54,765			54,347
Loans held for sale	—		3,374			—		3,374			3,302
Net loans and leases held for investment	—		—			1,555,033		1,555,033			1,550,770
Mortgage servicing rights	—		—			6,941		6,941			5,509
Other real estate owned	—		955			—		955			955
Total assets	$	38,565	$	59,094		$	1,561,974	$	1,659,633		$	1,653,448
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,608,748	$	—		$	—	$	1,608,748		$	1,608,748
Time deposits	—		254,224			—		254,224			252,593
Total deposits	1,608,748		254,224			—		1,862,972			1,861,341
Short-term borrowings	—		38,631			—		38,631			41,974
Total liabilities	$	1,608,748	$	292,855		$	—	$	1,901,603		$	1,903,315
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,420	)	$	—	$	(1,420	)	$	—

XML

Fair Value Disclosures - Assets, Liabilities and Off-balance Sheet Items Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets:
Held-to-maturity securities	$ 41,323	$ 54,765
Deposits:
Time deposits	491,271	252,593
Fair Value [Member]
Assets:
Cash and short-term interest-earning assets	108,544	38,565
Held-to-maturity securities	41,323	54,765
Loans held for sale	9,169	3,374
Net loans and leases held for investment	2,042,152	1,555,033
Mortgage servicing rights	7,592	6,941
Other real estate owned	955	955
Total assets	2,209,735	1,659,633
Deposits:
Demand and savings deposits, non-maturity	1,881,594	1,608,748
Time deposits	492,950	254,224
Total deposits	2,374,544	1,862,972
Short-term borrowings	19,555	38,631
Subordinated notes	50,125
Total liabilities	2,444,224	1,901,603
Off-Balance-Sheet:
Commitments to extend credit	(1,763)	(1,420)
Fair Value [Member] | Level 1 [Member]
Assets:
Cash and short-term interest-earning assets	108,544	38,565
Held-to-maturity securities	0	0
Loans held for sale	0	0
Net loans and leases held for investment	0	0
Mortgage servicing rights	0	0
Other real estate owned	0	0
Total assets	108,544	38,565
Deposits:
Demand and savings deposits, non-maturity	1,881,594	1,608,748
Time deposits	0	0
Total deposits	1,881,594	1,608,748
Short-term borrowings	0	0
Subordinated notes	0
Total liabilities	1,881,594	1,608,748
Off-Balance-Sheet:
Commitments to extend credit	0	0
Fair Value [Member] | Level 2 [Member]
Assets:
Cash and short-term interest-earning assets	0	0
Held-to-maturity securities	41,323	54,765
Loans held for sale	9,169	3,374
Net loans and leases held for investment	0	0
Mortgage servicing rights	0	0
Other real estate owned	955	955
Total assets	51,447	59,094
Deposits:
Demand and savings deposits, non-maturity	0	0
Time deposits	492,950	254,224
Total deposits	492,950	254,224
Short-term borrowings	19,555	38,631
Subordinated notes	50,125
Total liabilities	562,630	292,855
Off-Balance-Sheet:
Commitments to extend credit	(1,763)	(1,420)
Fair Value [Member] | Level 3 [Member]
Assets:
Cash and short-term interest-earning assets	0	0
Held-to-maturity securities	0	0
Loans held for sale	0	0
Net loans and leases held for investment	2,042,152	1,555,033
Mortgage servicing rights	7,592	6,941
Other real estate owned	0	0
Total assets	2,049,744	1,561,974
Deposits:
Demand and savings deposits, non-maturity	0	0
Time deposits	0	0
Total deposits	0	0
Short-term borrowings	0	0
Subordinated notes	0
Total liabilities	0	0
Off-Balance-Sheet:
Commitments to extend credit	0	0
Carrying Amount [Member]
Assets:
Cash and short-term interest-earning assets	108,544	38,565
Held-to-maturity securities	41,058	54,347
Loans held for sale	9,151	3,302
Net loans and leases held for investment	2,046,799	1,550,770
Mortgage servicing rights	5,772	5,509
Other real estate owned	955	955
Total assets	2,212,279	1,653,448
Deposits:
Demand and savings deposits, non-maturity	1,881,594	1,608,748
Time deposits	491,271	252,593
Total deposits	2,372,865	1,861,341
Short-term borrowings	21,191	41,974
Subordinated notes	49,340
Total liabilities	2,443,396	1,903,315
Off-Balance-Sheet:
Commitments to extend credit	$ 0	$ 0

XML

Derivative Instruments and Hedging Activities - Derivatives Not Designated as Hedging Instruments (Detail) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative, Notional Amount	$ 83,691		$ 83,691		$ 57,544
Derivative Assets, Fair Value	1,264		1,264		788
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	184		184		112
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	18	$ (10)	404	$ 225
Interest Rate Locks with Customers [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative, Notional Amount	38,965		38,965		27,007
Interest Rate Locks with Customers [Member] | Mortgage Banking Activities [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	339	(109)	476	339
Interest Rate Locks with Customers [Member] | Other Assets [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative Assets, Fair Value	1,264		1,264		788
Interest Rate Locks with Customers [Member] | Other Liabilities [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	0		0		0
Forward Loan Sale Commitments [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative, Notional Amount	44,726		44,726		30,537
Forward Loan Sale Commitments [Member] | Mortgage Banking Activities [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	(321)	$ 99	(72)	$ (114)
Forward Loan Sale Commitments [Member] | Other Assets [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative Assets, Fair Value	0		0		0
Forward Loan Sale Commitments [Member] | Other Liabilities [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	$ 184		$ 184		$ 112

XML

Loans and Leases - Mortgages in Process of Foreclosure (Details) - Residential Real Estate [Member] - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Modifications [Line Items]
Mortgage Loans in Process of Foreclosure, Amount	$ 373	$ 62
Real Estate-Residential Secured for Personal Purpose [Member]
Financing Receivable, Modifications [Line Items]
Mortgage Loans in Process of Foreclosure, Amount	313	62
Real Estate-Home Equity Secured for Personal Purpose [Member]
Financing Receivable, Modifications [Line Items]
Mortgage Loans in Process of Foreclosure, Amount	$ 60	$ 0

XML

Fair Value Disclosures - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets:
Total available-for-sale securities	$ 333,500	$ 314,283
Fair Value Measured on Recurring Basis [Member]
Assets:
Total available-for-sale securities	333,500	314,283
Total assets	334,764	315,071
Liabilities:
Total liabilities	6,825	6,894
Fair Value Measured on Recurring Basis [Member] | U.S. Treasuries [Member]
Assets:
Total available-for-sale securities	4,945	4,845
Fair Value Measured on Recurring Basis [Member] | U.S. Government Corporations and Agencies [Member]
Assets:
Total available-for-sale securities	105,371	121,844
Fair Value Measured on Recurring Basis [Member] | State and Political Subdivisions [Member]
Assets:
Total available-for-sale securities	108,420	102,774
Fair Value Measured on Recurring Basis [Member] | Residential Mortgage-Backed Securities [Member]
Assets:
Total available-for-sale securities	13,544	13,643
Fair Value Measured on Recurring Basis [Member] | Collateralized Mortgage Obligations [Member]
Assets:
Total available-for-sale securities	3,303	3,725
Fair Value Measured on Recurring Basis [Member] | Corporate Bonds [Member]
Assets:
Total available-for-sale securities	87,913	54,440
Fair Value Measured on Recurring Basis [Member] | Money Market Mutual Funds [Member]
Assets:
Total available-for-sale securities	9,020	11,675
Fair Value Measured on Recurring Basis [Member] | Equity Securities [Member]
Assets:
Total available-for-sale securities	984	1,337
Fair Value Measured on Recurring Basis [Member] | Interest Rate Locks with Customers [Member]
Assets:
Derivative assets	1,264	788
Fair Value Measured on Recurring Basis [Member] | Contingent Consideration Liability [Member]
Liabilities:
Derivative liabilities	5,956	6,541
Fair Value Measured on Recurring Basis [Member] | Interest Rate Swap [Member]
Liabilities:
Derivative liabilities	685	241
Fair Value Measured on Recurring Basis [Member] | Forward Loan Sale Commitments [Member]
Liabilities:
Derivative liabilities	184	112
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member]
Assets:
Total available-for-sale securities	14,949	17,857
Total assets	14,949	17,857
Liabilities:
Total liabilities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | U.S. Treasuries [Member]
Assets:
Total available-for-sale securities	4,945	4,845
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | U.S. Government Corporations and Agencies [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | State and Political Subdivisions [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Residential Mortgage-Backed Securities [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Collateralized Mortgage Obligations [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Corporate Bonds [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Money Market Mutual Funds [Member]
Assets:
Total available-for-sale securities	9,020	11,675
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Equity Securities [Member]
Assets:
Total available-for-sale securities	984	1,337
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Interest Rate Locks with Customers [Member]
Assets:
Derivative assets	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Contingent Consideration Liability [Member]
Liabilities:
Derivative liabilities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Interest Rate Swap [Member]
Liabilities:
Derivative liabilities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Forward Loan Sale Commitments [Member]
Liabilities:
Derivative liabilities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member]
Assets:
Total available-for-sale securities	318,551	296,426
Total assets	319,815	297,214
Liabilities:
Total liabilities	869	353
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | U.S. Treasuries [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | U.S. Government Corporations and Agencies [Member]
Assets:
Total available-for-sale securities	105,371	121,844
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | State and Political Subdivisions [Member]
Assets:
Total available-for-sale securities	108,420	102,774
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Residential Mortgage-Backed Securities [Member]
Assets:
Total available-for-sale securities	13,544	13,643
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Collateralized Mortgage Obligations [Member]
Assets:
Total available-for-sale securities	3,303	3,725
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Corporate Bonds [Member]
Assets:
Total available-for-sale securities	87,913	54,440
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Money Market Mutual Funds [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Equity Securities [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Interest Rate Locks with Customers [Member]
Assets:
Derivative assets	1,264	788
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Contingent Consideration Liability [Member]
Liabilities:
Derivative liabilities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Interest Rate Swap [Member]
Liabilities:
Derivative liabilities	685	241
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Forward Loan Sale Commitments [Member]
Liabilities:
Derivative liabilities	184	112
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member]
Assets:
Total available-for-sale securities	0	0
Total assets	0	0
Liabilities:
Total liabilities	5,956	6,541
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | U.S. Treasuries [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | U.S. Government Corporations and Agencies [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | State and Political Subdivisions [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Residential Mortgage-Backed Securities [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Collateralized Mortgage Obligations [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Corporate Bonds [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Money Market Mutual Funds [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Equity Securities [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Interest Rate Locks with Customers [Member]
Assets:
Derivative assets	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Contingent Consideration Liability [Member]
Liabilities:
Derivative liabilities	5,956	6,541
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Interest Rate Swap [Member]
Liabilities:
Derivative liabilities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Forward Loan Sale Commitments [Member]
Liabilities:
Derivative liabilities	$ 0	$ 0

XML

Restructuring Charges - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	$ 0	$ 1,642	$ 0
Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 1,600

XML

Fair Value Disclosures - Change in Contingent Consideration Liability (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Change in Contingent Consideration Liability [Roll Forward]
Beginning Balance	$ 6,541	$ 501
Contingent Consideration from New Acquisition	1,525	6,105
Payment of Contingent Consideration	2,631	310
Adjustment of Contingent Consideration	521	373
Ending Balance	5,956	6,669
Sterner Insurance Associates Inc [Member]
Change in Contingent Consideration Liability [Roll Forward]
Beginning Balance	680	0
Contingent Consideration from New Acquisition	1,525	635
Payment of Contingent Consideration	1,751	0
Adjustment of Contingent Consideration	535	22
Ending Balance	989	657
Girard Partners [Member]
Change in Contingent Consideration Liability [Roll Forward]
Beginning Balance	5,503	0
Contingent Consideration from New Acquisition	0	5,470
Payment of Contingent Consideration	620	0
Adjustment of Contingent Consideration	(102)	197
Ending Balance	4,781	5,667
John T. Fretz Insurance Agency [Member]
Change in Contingent Consideration Liability [Roll Forward]
Beginning Balance	358	501
Contingent Consideration from New Acquisition	0	0
Payment of Contingent Consideration	260	310
Adjustment of Contingent Consideration	88	154
Ending Balance	$ 186	$ 345

XML

Accumulated Other Comprehensive (Loss) Income - Amounts Reclassified Out of Each Component of Accumulated Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gain on sales of investment securities	$ 296	$ 0	$ 568	$ 557
Amortization of net loss included in net periodic pension costs	341	168	1,022	499
Accretion of prior service cost included in net periodic pension costs	(70)	(72)	(210)	(216)
Income before income taxes	10,307	8,499	27,315	22,857
Tax (expense) benefit	(2,779)	(2,264)	(7,205)	(5,816)
Net income	7,528	6,235	20,110	17,041
Amount Reclassified from Accumulated Other Comprehensive (Loss) Income [Member] | Net Unrealized Holding (Losses) Gains on Available-for-Sale Investment Securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gain on sales of investment securities	296	0	568	557
Other-than-temporary impairment on equity securities	(5)	0	(5)	0
Income before income taxes	291	0	563	557
Tax (expense) benefit	(102)	0	(197)	(195)
Net income	189	0	366	362
Amount Reclassified from Accumulated Other Comprehensive (Loss) Income [Member] | Net Change Related to Defined Benefit Pension Plan [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of net loss included in net periodic pension costs	(341)	(168)	(1,022)	(499)
Accretion of prior service cost included in net periodic pension costs	70	72	210	216
Income before income taxes	(271)	(96)	(812)	(283)
Tax (expense) benefit	95	33	285	98
Net income	$ (176)	$ (63)	$ (527)	$ (185)

XML

Acquisition (Tables)

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Schedule of Acquisition

The following table summarized the consideration paid for Valley Green Bank and the fair value of assets acquired and liabilities assumed at the acquisition date:

(Dollars in thousands, except share data)
Purchase price consideration in common stock:
Valley Green common shares outstanding	2,797,454
Exchange ratio	1.3541
Univest shares issued	3,787,866
Univest closing stock price at December 31, 2014	$	20.24
Purchase price assigned to Valley Green common shares exchanged for Univest stock			$	76,667
Purchase price assigned to cash in lieu of fractional shares			3
Purchase price assigned to Valley Green options settled for cash			2,236
Total purchase price			$	78,906
Fair value of assets acquired:
Cash and due from banks	$	4,919
Federal funds sold	17,442
Investment securities available-for-sale	12,766
Loans held for investment	380,924
Premises and equipment, net	2,973
Core deposit intangible *	1,520
Accrued interest receivable and other assets	4,641
Total identifiable assets			425,185
Fair value of liabilities assumed:
Deposits - noninterest bearing	$	49,102
Deposits - interest bearing	336,810
Change in control accrued payments	2,070
Accrued interest payable and other liabilities	1,813
Total liabilities			389,795
Identifiable net assets			35,390
Goodwill resulting from merger *			$	43,516

* - Goodwill is not expected to be deductible for federal income tax purposes. The goodwill and core deposit intangible are allocated to

the Banking business segment.

Schedule of Impaired Loans

The following is a summary of the acquired impaired loans at January 1, 2015 resulting from the acquisition with Valley Green:

(Dollars in thousands)
Contractually required principal and interest payments	$	7,377
Contractual cash flows not expected to be collected (nonaccretable difference)	(5,344		)
Cash flows expected to be collected	2,033
Interest component of expected cash flows (accretable difference)	(305		)
Fair value of loans acquired with a deterioration of credit quality	$	1,728

The following presents, by class of loans, the recorded investment and unpaid principal balance of impaired loans , the amounts of the impaired loans for which there is not an allowance for credit losses and the amounts for which there is an allowance for credit losses at September 30, 2015 and December 31, 2014. The impaired loans exclude loans acquired with deteriorated credit quality.

	At September 30, 2015						At December 31, 2014
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans with no related allowance recorded:
Loans held for sale	$	4,000	$	5,229			$	—	$	—
Loans held for investment:
Commercial, financial and agricultural	10,966		12,676				12,628		13,050
Real estate—commercial real estate	13,259		14,167				29,779		30,810
Real estate—construction	363		638				5,931		6,474
Real estate—residential secured for business purpose	4,278		4,394				3,008		3,044
Real estate—residential secured for personal purpose	524		578				512		547
Real estate—home equity secured for personal purpose	101		101				184		184
Total impaired loans with no allowance recorded	$	33,491	$	37,783			$	52,042	$	54,109
Impaired loans with an allowance recorded:
Commercial, financial and agricultural	$	2,966	$	3,037	$	344	$	3,933	$	3,935	$	920
Real estate—commercial real estate	—		—		—		216		216		78
Real estate—residential secured for personal purpose	252		252		23		—		—		—
Real estate—home equity secured for personal purpose	59		60		13		—		—		—
Total impaired loans with an allowance recorded	$	3,277	$	3,349	$	380	$	4,149	$	4,151	$	998

	At September 30, 2015						At December 31, 2014
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Total impaired loans:
Loans held for sale	$	4,000	$	5,229	$	—	$	—	$	—	$	—
Loans held for investment:
Commercial, financial and agricultural	13,932		15,713		344		16,561		16,985		920
Real estate—commercial real estate	13,259		14,167		—		29,995		31,026		78
Real estate—construction	363		638		—		5,931		6,474		—
Real estate—residential secured for business purpose	4,278		4,394		—		3,008		3,044		—
Real estate—residential secured for personal purpose	776		830		23		512		547		—
Real estate—home equity secured for personal purpose	160		161		13		184		184		—
Total impaired loans	$	36,768	$	41,132	$	380	$	56,191	$	58,260	$	998

The outstanding principal balance and carrying amount for acquired credit impaired loans at September 30, 2015 were as follows:

(Dollars in thousands)	At September 30, 2015
Outstanding principal balance	$	3,949
Carrying amount	1,379
Allowance for loan losses	21

The following table presents the changes in accretable yield on acquired credit impaired loans:

(Dollars in thousands)	Nine Months Ended September 30, 2015
Beginning of period	$	—
Acquisition of credit impaired loans	305
Reclassification from nonaccretable difference	476
Accretable yield amortized to interest income	(595		)
Disposals	(1		)
End of period	$	185

Schedule of Pro Forma Information

The unaudited pro forma data presented below is based on, and should be read together with, the historical financial information of the Corporation included in this Form 10-Q for the indicated periods and the historical information of Valley Green Bank included in the Corporation's Current Report on Form 8-K filed with the SEC on January 7, 2015.

	Pro Forma				Pro Forma
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Dollars in thousands, except share data)	2015		2014		2015		2014
Net interest income	$	23,365	$	23,360	$	70,049	$	69,005
Noninterest income	12,855		12,671		39,637		37,036
Noninterest expense	25,243		25,002		79,486		72,563
Net income	7,528		7,605		20,110		21,508
Earnings per share
Basic	0.39		0.38		1.02		1.07
Diluted	0.39		0.38		1.02		1.07

XML

Loans and Leases - Reserve for Loan and Lease Losses Roll Forward (Details) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($) loan borrowers	Mar. 31, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 19,602		$ 20,662	$ 24,094	$ 20,662	$ 24,494
Charge-offs	(2,471)			(2,857)	(6,334)	(6,838)
Recoveries	819			292	1,407	1,147
Provision (recovery of provision)	648			233	2,863	2,959
Provision for acquired credit impaired loans	22				22
Ending balance	18,620	$ 19,602		21,762	18,620	21,762
Commercial, Financial and Agricultural [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	6,847		6,920	9,714	6,920	9,789
Charge-offs	(1,917)			(968)	(3,255)	(2,657)
Recoveries	682			88	907	197
Provision (recovery of provision)	1,382			(1,219)	2,422	286
Provision for acquired credit impaired loans	0				0
Ending balance	6,994	6,847		7,615	6,994	7,615
Real Estate-Commercial and Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Amount of Loans Charged Off Prior to Being Transferred to Loans Held For Sale		$ 1,300			1,300
Number of Loans Charged Off Prior to Being Transferred to Loans Held for Sale | loan		2
Number of Borrowers, Loans Charged Off Prior to Being Transferred to Loans Held for Sale | borrowers		1
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	7,801		8,943	9,263	8,943	8,780
Charge-offs	(138)			(1,570)	(1,834)	(2,878)
Recoveries	34			58	190	428
Provision (recovery of provision)	(795)			1,337	(397)	2,758
Provision for acquired credit impaired loans	9				9
Ending balance	6,911	$ 7,801		9,088	6,911	9,088
Real Estate-Residential Secured for Business Purpose [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	616		763	1,025	763	1,062
Charge-offs	(90)			(26)	(114)	(140)
Recoveries	8			9	21	57
Provision (recovery of provision)	(41)			(48)	(177)	(19)
Provision for acquired credit impaired loans	13				13
Ending balance	506	616		960	506	960
Real Estate-Residential and Home Equity Secured for Personal Purpose [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	1,188		1,124	1,248	1,124	1,284
Charge-offs	(10)			(18)	(148)	(108)
Recoveries	8			2	9	29
Provision (recovery of provision)	(3)			(54)	198	(27)
Provision for acquired credit impaired loans	0				0
Ending balance	1,183	1,188		1,178	1,183	1,178
Loans to Individuals [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	389		360	405	360	694
Charge-offs	(144)			(169)	(392)	(659)
Recoveries	40			53	129	212
Provision (recovery of provision)	130			43	318	85
Provision for acquired credit impaired loans	0				0
Ending balance	415	389		332	415	332
Lease Financings [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	1,125		985	1,101	985	1,285
Charge-offs	(172)			(106)	(591)	(396)
Recoveries	47			82	151	224
Provision (recovery of provision)	(1)			38	454	2
Provision for acquired credit impaired loans	0				0
Ending balance	999	1,125		1,115	999	1,115
Unallocated Financing Receivables [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	1,636		1,567	1,338	1,567	1,600
Provision (recovery of provision)	(24)			136	45	(126)
Provision for acquired credit impaired loans	0				0
Ending balance	1,612	$ 1,636		$ 1,474	$ 1,612	$ 1,474
Nonaccrual Troubled Debt Restructuring Loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down	$ 98		$ 200

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Investment Securities - Amount of Securities in Unrealized Loss Position (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 0	$ 15,036
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	(27)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	4,987	4,987
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(22)	(25)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	4,987	20,023
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss	(22)	(52)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than Twelve Months, Fair Value	64,889	76,626
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(2,326)	(471)
Twelve Months or Longer, Fair Value	25,383	95,818
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(294)	(1,057)
Total, Fair Value	90,272	172,444
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(2,620)	(1,528)
U.S. Treasuries [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than Twelve Months, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	0
Twelve Months or Longer, Fair Value	4,945	4,845
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(32)	(127)
Total, Fair Value	4,945	4,845
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(32)	(127)
U.S. Government Corporations and Agencies [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than Twelve Months, Fair Value	3,004	39,607
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(8)	(80)
Twelve Months or Longer, Fair Value	4,995	62,140
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(5)	(452)
Total, Fair Value	7,999	101,747
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(13)	(532)
State and Political Subdivisions [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than Twelve Months, Fair Value	11,924	10,246
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(90)	(31)
Twelve Months or Longer, Fair Value	1,340	9,303
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(9)	(106)
Total, Fair Value	13,264	19,549
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(99)	(137)
Residential Mortgage-Backed Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than Twelve Months, Fair Value		4,824
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss		(32)
Twelve Months or Longer, Fair Value		0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		0
Total, Fair Value		4,824
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss		(32)
Collateralized Mortgage Obligations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than Twelve Months, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	0
Twelve Months or Longer, Fair Value	3,304	3,725
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(49)	(85)
Total, Fair Value	3,304	3,725
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(49)	(85)
Corporate Bonds [Member]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	0	15,036
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	(27)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	4,987	4,987
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(22)	(25)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	4,987	20,023
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss	(22)	(52)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than Twelve Months, Fair Value	49,961	21,949
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(2,228)	(328)
Twelve Months or Longer, Fair Value	10,799	15,805
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(199)	(287)
Total, Fair Value	60,760	37,754
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ (2,427)	$ (615)

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Fair Value Disclosures - Narrative (Details)					3 Months Ended	9 Months Ended		12 Months Ended
	Jul. 01, 2014 USD ($)	Jan. 27, 2014 USD ($)	May. 01, 2013 USD ($)	May. 31, 2012 USD ($)	Jun. 30, 2013 USD ($)	Sep. 30, 2015 USD ($) loan borrowers	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Goodwill, period increase						$ 1,525,000	$ 6,105,000
Valuation adjustments for loans held for sale						0		$ 0
Carrying value of impaired loans held for investment						36,768,000		56,191,000
Valuation allowance of impaired loans held for investment						380,000		998,000
Mortgage Servicing Rights Carrying Amount Before Valuation Allowance						5,800,000		5,500,000
Mortgage Servicing Rights Valuation Allowance						0		0
Fair Value Measured on Recurring Basis [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value on a recurring basis						334,764,000		315,071,000
Level 3 [Member] | Fair Value Measured on Recurring Basis [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value on a recurring basis						0		0
Sterner Insurance Associates Inc [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Potential cash payments from contingent consideration, minimum	$ 0
Potential cash payments from contingent consideration, maximum	$ 3,900,000.0
Potential cash payments from contingent consideration, period of measurement (in years)	2 years
Potential cash payments from contingent consideration, end date	Jun. 30, 2017
Goodwill, period increase						1,525,000	635,000
Girard Partners [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Potential cash payments from contingent consideration, minimum		$ 0
Potential cash payments from contingent consideration, maximum		$ 13,800,000.0
Potential cash payments from contingent consideration, end date		Dec. 31, 2018
Goodwill, period increase						0	5,470,000
Remaining potential cash payments from contingent consideration, period of measurement (in years)		4 years
John T. Fretz Insurance Agency [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Potential cash payments from contingent consideration, minimum			$ 0
Potential cash payments from contingent consideration, maximum			$ 360,000
Potential cash payments from contingent consideration, end date			Apr. 30, 2016
Goodwill, period increase						0	$ 0
Remaining potential cash payments from contingent consideration, period of measurement (in years)			1 year
Javers Group [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Potential cash payments from contingent consideration, period of measurement (in years)				3 years
Potential cash payments from contingent consideration, end date				Jun. 30, 2015
Reduction of other noninterest expense					$ 959,000
Fair value of contingent consideration liability						0
Original potential cash payments from contingent consideration, minimum				$ 0
Original potential cash payments from contingent consideration, maximum				$ 1,700,000
Held for Investment [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying value of impaired loans held for investment						$ 32,800,000
Real Estate-Construction [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Nonaccrual Loans Held for Sale, Number of Loans | loan						2
Nonaccrual Loans Held for Sale, Number of Borrowers | borrowers						1
Amount of Nonaccrual Loans Transferred to Loans Held for Sale						$ 4,000,000
Carrying value of impaired loans held for investment						363,000		5,931,000
Valuation allowance of impaired loans held for investment						$ 0		$ 0

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Acquisition - Summary of Consideration Paid (Details) - Valley Green Bank [Member] - USD ($) $ / shares in Units, $ in Thousands	Jan. 01, 2015	Dec. 31, 2014
Purchase price consideration in common stock:
Valley Green common shares outstanding	2,797,454
Exchange ratio	135.41%
Univest shares issued	3,787,866
Univest closing stock price at December 31, 2014		$ 20.24
Purchase price assigned to Valley Green common shares exchanged for Univest stock	$ 76,667
Purchase price assigned to cash in lieu of fractional shares	3
Purchase price assigned to Valley Green options settled for cash	2,236
Total purchase price	78,906
Fair value of assets acquired:
Cash and due from banks	4,919
Federal funds sold	17,442
Investment securities available-for-sale	12,766
Loans held for investment	380,924
Premises and equipment, net	2,973
Core deposit intangible	1,520
Accrued interest receivable and other assets	4,641
Total identifiable assets	425,185
Fair value of liabilities assumed:
Deposits - noninterest bearing	49,102
Deposits - interest bearing	336,810
Change in control accrued payments	2,070
Accrued interest payable and other liabilities	1,813
Total liabilities	389,795
Identifiable net assets	35,390
Goodwill resulting from merger	$ 43,516

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Loans and Leases - Impaired Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, Recorded Investment	$ 33,491	$ 52,042
Impaired loans with an allowance recorded, Recorded Investment	3,277	4,149
Impaired loans with no related allowance, Unpaid Principal Balance	37,783	54,109
Impaired loans with an allowance recorded, Unpaid Principal Balance	3,349	4,151
Total impaired loans, Recorded Investment	36,768	56,191
Total impaired loans, Unpaid Principal Balance	41,132	58,260
Total impaired loans, Related Allowance	380	998
Loans Held For Sale [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, Recorded Investment	4,000	0
Impaired loans with no related allowance, Unpaid Principal Balance	5,229	0
Total impaired loans, Recorded Investment	4,000	0
Total impaired loans, Unpaid Principal Balance	5,229	0
Total impaired loans, Related Allowance	0	0
Commercial, Financial and Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, Recorded Investment	10,966	12,628
Impaired loans with an allowance recorded, Recorded Investment	2,966	3,933
Impaired loans with no related allowance, Unpaid Principal Balance	12,676	13,050
Impaired loans with an allowance recorded, Unpaid Principal Balance	3,037	3,935
Total impaired loans, Recorded Investment	13,932	16,561
Total impaired loans, Unpaid Principal Balance	15,713	16,985
Total impaired loans, Related Allowance	344	920
Real Estate-Commercial [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, Recorded Investment	13,259	29,779
Impaired loans with an allowance recorded, Recorded Investment	0	216
Impaired loans with no related allowance, Unpaid Principal Balance	14,167	30,810
Impaired loans with an allowance recorded, Unpaid Principal Balance	0	216
Total impaired loans, Recorded Investment	13,259	29,995
Total impaired loans, Unpaid Principal Balance	14,167	31,026
Total impaired loans, Related Allowance	0	78
Real Estate-Construction [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, Recorded Investment	363	5,931
Impaired loans with no related allowance, Unpaid Principal Balance	638	6,474
Total impaired loans, Recorded Investment	363	5,931
Total impaired loans, Unpaid Principal Balance	638	6,474
Total impaired loans, Related Allowance	0	0
Real Estate-Residential Secured for Business Purpose [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, Recorded Investment	4,278	3,008
Impaired loans with no related allowance, Unpaid Principal Balance	4,394	3,044
Total impaired loans, Recorded Investment	4,278	3,008
Total impaired loans, Unpaid Principal Balance	4,394	3,044
Total impaired loans, Related Allowance	0	0
Real Estate-Residential Secured for Personal Purpose [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, Recorded Investment	524	512
Impaired loans with an allowance recorded, Recorded Investment	252	0
Impaired loans with no related allowance, Unpaid Principal Balance	578	547
Impaired loans with an allowance recorded, Unpaid Principal Balance	252	0
Total impaired loans, Recorded Investment	776	512
Total impaired loans, Unpaid Principal Balance	830	547
Total impaired loans, Related Allowance	23	0
Real Estate-Home Equity Secured for Personal Purpose [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, Recorded Investment	101	184
Impaired loans with an allowance recorded, Recorded Investment	59	0
Impaired loans with no related allowance, Unpaid Principal Balance	101	184
Impaired loans with an allowance recorded, Unpaid Principal Balance	60	0
Total impaired loans, Recorded Investment	160	184
Total impaired loans, Unpaid Principal Balance	161	184
Total impaired loans, Related Allowance	$ 13	$ 0

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Retirement Plans and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Retirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 193	$ 137	$ 579	$ 410
Interest cost	488	476	1,463	1,426
Expected return on plan assets	(756)	(746)	(2,268)	(2,236)
Amortization of net actuarial loss	328	164	982	490
Accretion of prior service cost	(70)	(71)	(210)	(212)
Net periodic benefit cost (income)	183	(40)	546	(122)
Other Post Retirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	15	19	44	56
Interest cost	28	32	83	99
Expected return on plan assets	0	0	0	0
Amortization of net actuarial loss	13	4	40	9
Accretion of prior service cost	0	(1)	0	(4)
Net periodic benefit cost (income)	$ 56	$ 54	$ 167	$ 160

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Goodwill and Other Intangible Assets - Estimated Amortization Expense for Core Deposit and Customer Related Intangibles (Details) $ in Thousands	Sep. 30, 2015 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2015	$ 553
2016	1,871
2017	1,544
2018	1,170
2019	847
Thereafter	$ 1,311

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Loans and Leases - Age Analysis of Past Due Loans and Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	$ 21,608	$ 17,644
Current	2,074,820	1,608,981
Acquired Credit Impaired	1,379	0
Loans and leases held for investment	2,097,807	1,626,625	$ 1,597,736
Recorded Investment 90 Days or more Past Due and Accruing Interest	428	451
Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	1,379
Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	7,517	3,405
Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	3,099	3,196
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	10,992	11,043
Commercial, Financial and Agricultural [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	7,996	3,459
Current	475,035	454,368
Acquired Credit Impaired		0
Loans and leases held for investment	483,342	457,827	438,556
Recorded Investment 90 Days or more Past Due and Accruing Interest	0	0
Commercial, Financial and Agricultural [Member] | Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	311
Commercial, Financial and Agricultural [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	914	145
Commercial, Financial and Agricultural [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	351	747
Commercial, Financial and Agricultural [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	6,731	2,567
Real Estate-Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	2,883	2,437
Current	819,908	626,041
Acquired Credit Impaired		0
Loans and leases held for investment	823,303	628,478
Recorded Investment 90 Days or more Past Due and Accruing Interest	0	0
Real Estate-Commercial [Member] | Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	512
Real Estate-Commercial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	1,798	361
Real Estate-Commercial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	228	913
Real Estate-Commercial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	857	1,163
Real Estate-Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	383	5,930
Current	116,832	73,957
Acquired Credit Impaired		0
Loans and leases held for investment	117,215	79,887
Recorded Investment 90 Days or more Past Due and Accruing Interest	0	0
Real Estate-Construction [Member] | Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	0
Real Estate-Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	20	0
Real Estate-Construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	0	405
Real Estate-Construction [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	363	5,525
Real Estate-Residential Secured for Business Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	3,611	936
Current	199,860	35,996
Acquired Credit Impaired		0
Loans and leases held for investment	203,964	36,932	35,367
Recorded Investment 90 Days or more Past Due and Accruing Interest	0	0
Real Estate-Residential Secured for Business Purpose [Member] | Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	493
Real Estate-Residential Secured for Business Purpose [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	1,740	167
Real Estate-Residential Secured for Business Purpose [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	84	56
Real Estate-Residential Secured for Business Purpose [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	1,787	713
Real Estate-Residential Secured for Personal Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	1,377	1,073
Current	181,209	165,777
Acquired Credit Impaired		0
Loans and leases held for investment	182,586	166,850
Recorded Investment 90 Days or more Past Due and Accruing Interest	41	0
Real Estate-Residential Secured for Personal Purpose [Member] | Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	0
Real Estate-Residential Secured for Personal Purpose [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	991	409
Real Estate-Residential Secured for Personal Purpose [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	0	604
Real Estate-Residential Secured for Personal Purpose [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	386	60
Real Estate-Home Equity Secured for Personal Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	741	563
Current	131,792	107,687
Acquired Credit Impaired		0
Loans and leases held for investment	132,596	108,250
Recorded Investment 90 Days or more Past Due and Accruing Interest	35	31
Real Estate-Home Equity Secured for Personal Purpose [Member] | Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	63
Real Estate-Home Equity Secured for Personal Purpose [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	445	348
Real Estate-Home Equity Secured for Personal Purpose [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	201	0
Real Estate-Home Equity Secured for Personal Purpose [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	95	215
Loans to Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	643	795
Current	29,274	29,146
Acquired Credit Impaired		0
Loans and leases held for investment	29,917	29,941	30,144
Recorded Investment 90 Days or more Past Due and Accruing Interest	237	365
Loans to Individuals [Member] | Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	0
Loans to Individuals [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	203	365
Loans to Individuals [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	203	65
Loans to Individuals [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	237	365
Lease Financings [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	3,974	2,451
Current	120,910	116,009
Acquired Credit Impaired		0
Loans and leases held for investment	124,884	118,460	$ 111,952
Recorded Investment 90 Days or more Past Due and Accruing Interest	115	55
Lease Financings [Member] | Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	0
Lease Financings [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	1,406	1,610
Lease Financings [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	2,032	406
Lease Financings [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	$ 536	$ 435

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of Univest Corporation of Pennsylvania (the Corporation or Univest) and its wholly owned subsidiaries; the Corporation’s primary subsidiary is Univest Bank and Trust Co. (the Bank). All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited interim consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations for interim financial information. The accompanying unaudited consolidated financial statements reflect all adjustments which are of a normal recurring nature and are, in the opinion of management, necessary for a fair presentation of the financial statements for the interim periods presented. Certain prior period amounts have been reclassified to conform to the current-year presentation. Operating results for the nine-month period ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. It is suggested that these unaudited consolidated financial statements be read in conjunction with the audited financial statements and the notes thereto included in the registrant’s Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on March 9, 2015.

Use of Estimates

The preparation of the unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes include fair value measurement of investment securities available-for-sale and assessment for impairment of certain investment securities, reserve for loan and lease losses, valuation of goodwill and other intangible assets, mortgage servicing rights, deferred tax assets and liabilities, benefit plans and stock-based compensation expense.

Recent Accounting Pronouncements

In September 2015, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) simplifying the accounting for measurement-period adjustments related to business combinations. The ASU eliminates the requirement to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. Under this ASU, measurement-period adjustments are calculated as if they were known at the acquisition date, but are recognized in the reporting period in which they are determined. The ASU requires additional disclosures about the impact on current period income statement line items of adjustments that would have been recognized in prior periods if prior period information had been revised. The amendments in this ASU are effective for financial statements of public businesses issued for fiscal years and interim periods within those years beginning after December 15, 2015, or January 1, 2016 for the Corporation. The adoption of this guidance is not anticipated to have a material impact on the Corporation's financial statements.

In April 2015, the FASB issued an ASU simplifying the presentation of debt issuance costs. The ASU requires that debt issuance costs related to a recognized debt liability shall be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts.The costs will continue to be amortized to interest expense using the effective interest method. The ASU is effective for financial statements of public business issued for fiscal years beginning after December 15, 2015, or January 1, 2016 for the Corporation. The adoption of ASU will not impact the Corporation's balance sheet presentation as the Corporation currently follows this presentation consistent with the guidance in FASB Concepts Statement No. 6.

In May 2014, the FASB issued an ASU regarding revenue from contracts with customers which clarifies the principles for recognizing revenue and develops a common standard for U.S. GAAP and International Financial Reporting Standards. The ASU establishes a core principle that would require an entity to identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. The ASU provides for improved disclosure requirements that require entities to disclose sufficient information that enables users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued an ASU deferring the original effective date of this guidance by one year. This guidance is now effective for fiscal years and interim periods within those years beginning after December 15, 2017, or January 1, 2018 for the Corporation. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements; however, it is anticipated the impact will be only related to timing.

In January 2014, the FASB issued an ASU regarding reclassification of residential real estate collateralized consumer mortgage loans upon foreclosure. The ASU clarifies that when an in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The ASU was issued to eliminate diversity in practice on this topic. The amendment is effective for fiscal years and interim periods within those years beginning after December 15, 2014, or January 1, 2015 for the Corporation. The adoption of this guidance did not have a material impact on the Corporation's financial statements but resulted in expanded disclosures effective March 31, 2015, which are included in Note 4, “Loans and Leases.”

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Goodwill and Other Intangible Assets - Changes in Mortgage Servicing Rights (Details) - Mortgage Servicing Rights [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Beginning of period	$ 5,696	$ 5,378	$ 5,509	$ 5,519
Servicing rights capitalized	365	365	1,246	724
Amortization of servicing rights	(289)	(561)	(983)	(1,068)
Changes in valuation allowance	0	243	0	250
End of period	5,772	5,425	5,772	5,425
Mortgage loans serviced for others	$ 848,160	$ 779,701	$ 848,160	$ 779,701

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Investment Securities - Narrative (Detail) $ in Millions	Sep. 30, 2015 USD ($) Investment	Dec. 31, 2014 USD ($) Investment
Investments, Debt and Equity Securities [Abstract]
Carrying value of securities pledged to secure public deposits and for other purposes as required by law	$ 204.5	$ 230.9
Number of investments in non-federal issuer representing more than 10% of shareholders' equity | Investment	0	0
Maximum investment in any single non-federal issuer representing shareholders' equity	10.00%	10.00%

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Retirement Plans and Other Postretirement Benefits (Tables)

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Components of Net Periodic Benefit Cost (Income)

Components of net periodic benefit cost (income) were as follows:

	Three Months Ended September 30,
	2015			2014			2015		2014
(Dollars in thousands)	Retirement Plans						Other Post Retirement Benefits
Service cost	$	193		$	137		$	15	$	19
Interest cost	488			476			28		32
Expected return on plan assets	(756		)	(746		)	—		—
Amortization of net actuarial loss	328			164			13		4
Accretion of prior service cost	(70		)	(71		)	—		(1		)
Net periodic benefit cost (income)	$	183		$	(40	)	$	56	$	54

	Nine Months Ended September 30,
	2015			2014			2015		2014
(Dollars in thousands)	Retirement Plans						Other Post Retirement Benefits
Service cost	$	579		$	410		$	44	$	56
Interest cost	1,463			1,426			83		99
Expected return on plan assets	(2,268		)	(2,236		)	—		—
Amortization of net actuarial loss	982			490			40		9
Accretion of prior service cost	(210		)	(212		)	—		(4		)
Net periodic benefit cost (income)	$	546		$	(122	)	$	167	$	160

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Changes in Carrying Amount of Goodwill

Changes in the carrying amount of the Corporation's goodwill by business segment for the nine months ended September 30, 2015 were as follows:

(Dollars in thousands)	Banking		Wealth Management		Insurance		Consolidated
Balance at December 31, 2014	$	35,058	$	15,434	$	17,225	$	67,717
Addition to goodwill from acquisitions	43,516		—		1,424		44,940
Balance at September 30, 2015	$	78,574	$	15,434	$	18,649	$	112,657

Components of Intangible Assets

The following table reflects the components of intangible assets at the dates indicated:

	At September 30, 2015						At December 31, 2014
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization and Fair Value Adjustments		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization and Fair Value Adjustments		Net Carrying Amount
Amortized intangible assets:
Core deposit intangibles	$	1,520	$	207	$	1,313	$	—	$	—	$	—
Customer related intangibles	14,227		8,244		5,983		13,397		6,726		6,671
Mortgage servicing rights	11,805		6,033		5,772		10,559		5,050		5,509
Total amortized intangible assets	$	27,552	$	14,484	$	13,068	$	23,956	$	11,776	$	12,180

Estimated Aggregate Amortization Expense

The estimated amortization expense of mortgage servicing rights for the remainder of 2015 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2015		$	229
2016		885
2017		761
2018		649
2019		550
Thereafter		2,698

The estimated aggregate amortization expense for core deposit and customer related intangibles for the remainder of 2015 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2015		$	553
2016		1,871
2017		1,544
2018		1,170
2019		847
Thereafter		1,311

Changes in Mortgage Servicing Rights

Changes in the mortgage servicing rights balance are summarized as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Beginning of period	$	5,696		$	5,378		$	5,509		$	5,519
Servicing rights capitalized	365			365			1,246			724
Amortization of servicing rights	(289		)	(561		)	(983		)	(1,068		)
Changes in valuation allowance	—			243			—			250
End of period	$	5,772		$	5,425		$	5,772		$	5,425
Mortgage loans serviced for others	$	848,160		$	779,701		$	848,160		$	779,701

Activity in Valuation Allowance for Mortgage Servicing Rights

Activity in the valuation allowance for mortgage servicing rights was as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands)	2015		2014			2015		2014
Valuation allowance, beginning of period	$	—	$	(243	)	$	—	$	(250	)
Additions	—		—			—		—
Reductions	—		243			—		250
Direct write-downs	—		—			—		—
Valuation allowance, end of period	$	—	$	—		$	—	$	—

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Loans and Leases - Accruing and Nonaccruing Troubled Debt Restructured Loans with Payment Defaults (Details) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2015 USD ($) loan	Mar. 31, 2015 USD ($)	Sep. 30, 2014 USD ($) loan	Sep. 30, 2015 USD ($) loan	Sep. 30, 2014 USD ($) loan
Nonaccrual Troubled Debt Restructuring Loans [Member]
Accruing and nonaccrual troubled debt restructured loans with payment default
Number of Loans	2		0	4	0
Recorded Investment | $	$ 219	$ 200	$ 0	$ 419	$ 0
Nonaccrual Troubled Debt Restructuring Loans [Member] | Commercial, Financial and Agricultural [Member]
Accruing and nonaccrual troubled debt restructured loans with payment default
Number of Loans	2		0	4	0
Recorded Investment | $	$ 219		$ 0	$ 419	$ 0
Accrual Troubled Debt Restructuring Loans [Member]
Accruing and nonaccrual troubled debt restructured loans with payment default
Number of Loans	0		0	0	0
Recorded Investment | $	$ 0		$ 0	$ 0	$ 0

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Loans and Leases - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable Net of Deferred Income, Acquired	$ 341,304
Measure taken to reduce the risk of difference in actual value and residual value of the leased assets at maturity	The Corporation greatly reduces this risk primarily by using $1.00 buyout leases, in which the entire cost of the leased equipment is included in the contractual payments, leaving no residual payment at the end of the lease term.
Other accruing impaired loans	$ 11,600	$ 33,800
Specific reserves for other accruing impaired loans	$ 215	$ 476
Maximum modification period on short-term basis	up to one year
Restructured loan past due period	less than ninety days past due
Minimum [Member]
Financing Receivable, Recorded Investment [Line Items]
Amount of loan relationship with risk ratings of grade 1-5 reviewed quarterly	$ 2,500
Amount of loan relationship with risk ratings of grade 1-5 reviewed annually	500
Amount of loan relationship due for review after 60 or more past due days	$ 500
Aging period due of reviewing loans rated 1 through 6	60 days
Amount of loan relationship with risk ratings of grade six reviewed quarterly	$ 2,000
Amount of loan relationship with risk ratings of grade six reviewed annually	$ 500
Loan-to-value ratio for residential mortgage loans with private mortgage insurance	80.00%
Maximum [Member]
Financing Receivable, Recorded Investment [Line Items]
Amount of loan relationship with risk ratings of grade 1-5 reviewed annually	$ 2,500
Amount of loan relationship due for review after 60 or more past due days	500
Amount of loan relationship with risk ratings of grade six reviewed annually	$ 2,000
Loan-to-value ratio for residential mortgage loans without private mortgage insurance	80.00%
Combined loan-to-value ratio for home equity loans without private mortgage insurance	80.00%
Combined loan-to-value ratio for home equity loans without private mortgage insurance for corporations strongest profile borrower	85.00%
Valley Green Bank [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable Net of Deferred Income, Acquired	$ 1,400

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Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share, Basic and Diluted [Abstract]

Summary of Computation for Basic and Diluted Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
(Dollars and shares in thousands, except per share data)	2015			2014			2015			2014
Numerator:
Net income	$	7,528		$	6,235		$	20,110		$	17,041
Net income allocated to unvested restricted stock	(66		)	(64		)	(177		)	(193		)
Net income allocated to common shares	$	7,462		$	6,171		$	19,933		$	16,848
Denominator:
Denominator for basic earnings per share—weighted-average shares outstanding	19,337			16,059			19,537			16,058
Effect of dilutive securities—employee stock options	31			23			28			22
Denominator for diluted earnings per share—adjusted weighted-average shares outstanding	19,368			16,082			19,565			16,080
Basic earnings per share	$	0.39		$	0.38		$	1.02		$	1.05
Diluted earnings per share	$	0.39		$	0.38		$	1.02		$	1.05
Average anti-dilutive options and awards excluded from computation of diluted earnings per share	565			554			550			563

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Accumulated Other Comprehensive (Loss) Income (Tables)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Components of Accumulated Other Comprehensive (Loss) Income, Net of Taxes

The following table shows the components of accumulated other comprehensive (loss) income, net of taxes, for the periods presented:

(Dollars in thousands)	Net Unrealized Gains (Losses) on Available-for-Sale Investment Securities			Net Change Related to Derivatives Used for Cash Flow Hedges			Net Change Related to Defined Benefit Pension Plans			Accumulated Other Comprehensive (Loss) Income
Balance, December 31, 2014	$	1,711		$	(157	)	$	(16,016	)	$	(14,462	)
Net Change	(756		)	(288		)	527			(517		)
Balance, September 30, 2015	$	955		$	(445	)	$	(15,489	)	$	(14,979	)
Balance, December 31, 2013	$	(1,472	)	$	—		$	(8,483	)	$	(9,955	)
Net Change	2,869			—			185			3,054
Balance, September 30, 2014	$	1,397		$	—		$	(8,298	)	$	(6,901	)

Amounts Reclassified Out of Each Component of Accumulated Comprehensive (Loss) Income

The following table illustrates the amounts reclassified out of each component of accumulated comprehensive (loss) income for the three and nine months ended September 30, 2015 and 2014:

Details about Accumulated Other Comprehensive (Loss) Income Components	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income												Affected Line Item in the Statement of Income
	Three Months Ended   September 30,						Nine Months Ended   September 30,
(Dollars in thousands)	2015			2014			2015			2014
Net unrealized holding gains (losses) on available-for-sale investment securities:
	$	296		$	—		$	568		$	557		Net gain on sales of investment securities
	(5		)	—			(5		)	—			Other-than-temporary impairment on equity securities
	291			—			563			557			Total before tax
	(102		)	—			(197		)	(195		)	Tax expense
	$	189		$	—		$	366		$	362		Net of tax
Defined benefit pension plans:
Amortization of net loss included in net periodic pension costs*	$	(341	)	$	(168	)	$	(1,022	)	$	(499	)
Accretion of prior service cost included in net periodic pension costs*	70			72			210			216
	(271		)	(96		)	(812		)	(283		)	Total before tax
	95			33			285			98			Tax benefit
	$	(176	)	$	(63	)	$	(527	)	$	(185	)	Net of tax

* These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. (See Note 7—Retirement Plans and Other Postretirement Benefits for additional details.)

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 20,110	$ 17,041
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan and lease losses	2,885	2,959
Depreciation of premises and equipment	2,841	2,288
Net gain on sales of investment securities	(568)	(557)
Net gain on mortgage banking activities	(3,748)	(1,484)
Net gain on dispositions of fixed assets	(134)	(40)
Net gain on sales of other real estate owned	(14)	(195)
Bank owned life insurance income	(870)	(1,167)
Stock-based compensation	1,034	792
Intangible expenses	2,389	1,762
Other adjustments to reconcile net income to cash provided by operating activities	2,474	859
Originations of loans held for sale	(154,149)	(86,457)
Proceeds from the sale of loans held for sale	155,644	87,827
Contributions to pension and other postretirement benefit plans	(2,208)	(159)
(Increase) decrease in accrued interest receivable and other assets	(790)	1,359
Increase (decrease) in accrued interest payable and other liabilities	273	(1,911)
Net cash provided by operating activities	25,169	22,917
Cash flows from investing activities:
Net cash paid due to acquisitions	(2,967)	(9,260)
Net capital expenditures	(3,848)	(3,158)
Proceeds from maturities and calls of securities held-to-maturity	13,000	9,000
Proceeds from maturities and calls of securities available-for-sale	63,513	47,175
Proceeds from sales of securities available-for-sale	56,005	30,286
Purchases of investment securities available-for-sale	(127,271)	(41,320)
Proceeds from sale of credit card portfolio	0	8,943
Net increase in loans and leases	(97,768)	(70,344)
Net increase in interest-earning deposits	(64,997)	(2,101)
Proceeds from sales of other real estate owned	14	891
Net decrease in federal funds sold	17,442	0
Purchases of bank owned life insurance	(8,000)	0
Net cash used in by investing activities	(154,877)	(29,888)
Cash flows from financing activities:
Net increase in deposits	126,000	15,645
Net (decrease) increase in short-term borrowings	(20,783)	248
Proceeds from issuance of subordinated notes	49,267	0
Payment of contingent consideration on acquisitions	(2,631)	(310)
Purchases of treasury stock	(13,151)	(3,943)
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs	1,836	1,922
Proceeds from exercise of stock options, including excess tax benefits	378	184
Cash dividends paid	(11,145)	(9,754)
Net cash provided by financing activities	129,771	3,992
Net increase (decrease) in cash and due from banks	63	(2,979)
Cash and due from banks at beginning of year	31,995	32,646
Cash and due from banks at end of period	32,058	29,667
Supplemental disclosures of cash flow information:
Cash paid for interest	6,103	3,122
Cash paid for income taxes, net of refunds	702	5,188
Non cash transactions:
Transfer of loans to loans held for sale	4,000	8,926
Assets acquired through acquisitions	425,185	0
Liabilities assumed through acquisitions	389,795	0
Contingent consideration recorded as goodwill	$ 1,525	$ 6,105

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Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amounts and Fair Values of Derivatives Not Designated as Hedging Instruments

The following table presents the notional amounts and fair values of derivatives not designated as hedging instruments recorded on the consolidated balance sheets at September 30, 2015 and December 31, 2014:

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At September 30, 2015
Interest rate locks with customers	$	38,965	Other Assets	$	1,264		$	—
Forward loan sale commitments	44,726			—		Other Liabilities	184
Total	$	83,691		$	1,264		$	184
At December 31, 2014
Interest rate locks with customers	$	27,007	Other Assets	$	788		$	—
Forward loan sale commitments	30,537			—		Other Liabilities	112
Total	$	57,544		$	788		$	112

Notional Amounts and Fair Value of Derivatives Designated as Hedging Instruments

The following table presents the notional amounts and fair values of derivatives designated as hedging instruments recorded on the consolidated balance sheets at September 30, 2015 and December 31, 2014:

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At September 30, 2015
Interest rate swap - cash flow hedge	$	19,440		$	—	Other Liabilities	$	685
Total	$	19,440		$	—		$	685
At December 31, 2014
Interest rate swap - cash flow hedge	$	19,945		$	—	Other Liabilities	$	241
Total	$	19,945		$	—		$	241

Income for Derivatives Not Designated as Hedging Instruments

For the three and nine months ended September 30, 2015 and 2014, the amounts included in the consolidated statements of income for derivatives not designated as hedging instruments are shown in the table below:

	Statement of Income Classification	Three Months Ended   September 30,						Nine Months Ended   September 30,
(Dollars in thousands)		2015			2014			2015			2014
Interest rate locks with customers	Net gain on mortgage banking activities	$	339		$	(109	)	$	476		$	339
Forward loan sale commitments	Net loss on mortgage banking activities	(321		)	99			(72		)	(114		)
Total		$	18		$	(10	)	$	404		$	225

Income for Derivatives Designated as Hedging Instruments

For the three and nine months ended September 30, 2015 and 2014, the amounts included in the consolidated statements of income for derivatives designated as hedging instruments are shown in the table below:

	Statement of Income Classification	Three Months Ended   September 30,					Nine Months Ended   September 30,
(Dollars in thousands)		2015			2014		2015			2014
Interest rate swap—cash flow hedge—interest payments	Interest expense	$	95		—		$	286		—
Net loss		$	(95	)	$	—	$	(286	)	$	—

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

At September 30, 2015 and December 31, 2014, the amounts included in accumulated other comprehensive (loss) income for derivatives designated as hedging instruments are shown in the table below:

(Dollars in thousands)	Accumulated Other Comprehensive (Loss) Income	At September 30, 2015			At December 31, 2014
Interest rate swap—cash flow hedge	Fair value, net of taxes	$	(445	)	$	(157	)
Total		$	(445	)	$	(157	)

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Share Repurchase Plan - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2015	May. 27, 2015
Equity [Abstract]
Share Repurchase Plan, Number of Shares Authorized to be Repurchased		1,000,000
Share Repurchase Plan, Percentage Of Shares Authorized To Be Repurchased		5.00%
Shares Repurchased During Period, Shares	86,650
Shares Repurchased During Period, Cost	$ 1.8
Share Repurchase Plan, Remaining Number of Shares Authorized to be Repurchased	1,080,246
Shares, Outstanding	19,502,613

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Investment Securities - Held-to-Maturity and Available-for-Sale, Scheduled Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Held-to-maturity Securities [Abstract]
Securities Held-to-Maturity, Amortized Cost	$ 41,058	$ 54,347
Securities Held-to-Maturity, Gross Unrealized Gains	287	470
Securities Held-to-Maturity, Gross Unrealized Losses	(22)	(52)
Securities Held-to-Maturity, Fair Value	41,323	54,765
Available-for-sale Securities [Abstract]
Securities Available-for-Sale, Amortized Cost	332,031	311,651
Securities Available-for-Sale, Gross Unrealized Gain	4,089	4,160
Securities Available-for-Sale, Gross Unrealized Loss	(2,620)	(1,528)
Securities Available-for-Sale, Fair Value	333,500	314,283
U.S. Treasuries [Member]
Available-for-sale Securities [Abstract]
Securities Available-for-Sale, Amortized Cost, After 1 year to 5 years	4,977	4,972
Securities Available-for-Sale, Gross Unrealized Gains, After 1 year to 5 years	0	0
Securities Available-for-Sale, Gross Unrealized Losses, After 1 year to 5 years	(32)	(127)
Securities Available-for-Sale, Fair Value, After 1 year to 5 years	4,945	4,845
Securities Available-for-Sale, Amortized Cost	4,977	4,972
Securities Available-for-Sale, Debt Securities, Gross Unrealized Gain	0	0
Securities Available-for-Sale, Debt Securities, Gross Unrealized Losses	(32)	(127)
Securities Available-for-Sale, Debt Securities, Fair Value	4,945	4,845
U.S. Government Corporations and Agencies [Member]
Available-for-sale Securities [Abstract]
Securities Available-for-Sale, Amortized Cost, After 1 year to 5 years	104,893	122,328
Securities Available-for-Sale, Gross Unrealized Gains, After 1 year to 5 years	491	48
Securities Available-for-Sale, Gross Unrealized Losses, After 1 year to 5 years	(13)	(532)
Securities Available-for-Sale, Fair Value, After 1 year to 5 years	105,371	121,844
Securities Available-for-Sale, Amortized Cost	104,893	122,328
Securities Available-for-Sale, Debt Securities, Gross Unrealized Gain	491	48
Securities Available-for-Sale, Debt Securities, Gross Unrealized Losses	(13)	(532)
Securities Available-for-Sale, Debt Securities, Fair Value	105,371	121,844
State and Political Subdivisions [Member]
Available-for-sale Securities [Abstract]
Securities Available-for-Sale, Amortized Cost, Within 1 year	0	600
Securities Available-for-Sale, Gross Unrealized Gains, Within 1 year	0	2
Securities Available-for-Sale, Gross Unrealized Losses, Within 1 year	0	0
Securities Available-for-Sale, Fair Value, Within 1 year	0	602
Securities Available-for-Sale, Amortized Cost, After 1 year to 5 years	15,664	12,326
Securities Available-for-Sale, Gross Unrealized Gains, After 1 year to 5 years	91	17
Securities Available-for-Sale, Gross Unrealized Losses, After 1 year to 5 years	(15)	(59)
Securities Available-for-Sale, Fair Value, After 1 year to 5 years	15,740	12,284
Securities Available-for-Sale, Amortized Cost, After 5 years to 10 years	51,605	49,554
Securities Available-for-Sale, Gross Unrealized Gains, After 5 years to 10 years	1,446	1,616
Securities Available-for-Sale, Gross Unrealized Losses, After 5 years to 10 years	(34)	(77)
Securities Available-for-Sale, Fair Value, After 5 years to 10 years	53,017	51,093
Securities Available-for-Sale, Amortized Cost, Over 10 years	38,428	37,004
Securities Available-for-Sale, Gross Unrealized Gains, Over 10 years	1,285	1,792
Securities Available-for-Sale, Gross Unrealized Losses, Over 10 years	(50)	(1)
Securities Available-for-Sale, Fair Value, Over 10 years	39,663	38,795
Securities Available-for-Sale, Amortized Cost	105,697	99,484
Securities Available-for-Sale, Debt Securities, Gross Unrealized Gain	2,822	3,427
Securities Available-for-Sale, Debt Securities, Gross Unrealized Losses	(99)	(137)
Securities Available-for-Sale, Debt Securities, Fair Value	108,420	102,774
Residential Mortgage Backed Securities [Member]
Available-for-sale Securities [Abstract]
Securities Available-for-Sale, Amortized Cost, After 1 year to 5 years	9,767	5,066
Securities Available-for-Sale, Gross Unrealized Gains, After 1 year to 5 years	110	17
Securities Available-for-Sale, Gross Unrealized Losses, After 1 year to 5 years	0	0
Securities Available-for-Sale, Fair Value, After 1 year to 5 years	9,877	5,083
Securities Available-for-Sale, Amortized Cost, After 5 years to 10 years	0	4,856
Securities Available-for-Sale, Gross Unrealized Gains, After 5 years to 10 years	0	0
Securities Available-for-Sale, Gross Unrealized Losses, After 5 years to 10 years	0	(32)
Securities Available-for-Sale, Fair Value, After 5 years to 10 years	0	4,824
Securities Available-for-Sale, Amortized Cost, Over 10 years	3,598	3,661
Securities Available-for-Sale, Gross Unrealized Gains, Over 10 years	69	75
Securities Available-for-Sale, Gross Unrealized Losses, Over 10 years	0	0
Securities Available-for-Sale, Fair Value, Over 10 years	3,667	3,736
Securities Available-for-Sale, Amortized Cost	13,365	13,583
Securities Available-for-Sale, Debt Securities, Gross Unrealized Gain	179	92
Securities Available-for-Sale, Debt Securities, Gross Unrealized Losses	0	(32)
Securities Available-for-Sale, Debt Securities, Fair Value	13,544	13,643
Collateralized Mortgage Obligations [Member]
Available-for-sale Securities [Abstract]
Securities Available-for-Sale, Amortized Cost, Over 10 years	3,352	3,810
Securities Available-for-Sale, Gross Unrealized Gains, Over 10 years	0	0
Securities Available-for-Sale, Gross Unrealized Losses, Over 10 years	(49)	(85)
Securities Available-for-Sale, Fair Value, Over 10 years	3,303	3,725
Securities Available-for-Sale, Amortized Cost	3,352	3,810
Securities Available-for-Sale, Debt Securities, Gross Unrealized Gain	0	0
Securities Available-for-Sale, Debt Securities, Gross Unrealized Losses	(49)	(85)
Securities Available-for-Sale, Debt Securities, Fair Value	3,303	3,725
Corporate Bonds [Member]
Available-for-sale Securities [Abstract]
Securities Available-for-Sale, Amortized Cost, Within 1 year	0	4,998
Securities Available-for-Sale, Gross Unrealized Gains, Within 1 year	0	22
Securities Available-for-Sale, Gross Unrealized Losses, Within 1 year	0	0
Securities Available-for-Sale, Fair Value, Within 1 year	0	5,020
Securities Available-for-Sale, Amortized Cost, After 1 year to 5 years	19,768	29,505
Securities Available-for-Sale, Gross Unrealized Gains, After 1 year to 5 years	80	88
Securities Available-for-Sale, Gross Unrealized Losses, After 1 year to 5 years	(165)	(244)
Securities Available-for-Sale, Fair Value, After 1 year to 5 years	19,683	29,349
Securities Available-for-Sale, Amortized Cost, After 5 years to 10 years	10,403	20,442
Securities Available-for-Sale, Gross Unrealized Gains, After 5 years to 10 years	1	0
Securities Available-for-Sale, Gross Unrealized Losses, After 5 years to 10 years	(157)	(371)
Securities Available-for-Sale, Fair Value, After 5 years to 10 years	10,247	20,071
Securities Available-for-Sale, Amortized Cost, Over 10 years	60,000	0
Securities Available-for-Sale, Gross Unrealized Gains, Over 10 years	88	0
Securities Available-for-Sale, Gross Unrealized Losses, Over 10 years	(2,105)	0
Securities Available-for-Sale, Fair Value, Over 10 years	57,983	0
Securities Available-for-Sale, Amortized Cost	90,171	54,945
Securities Available-for-Sale, Debt Securities, Gross Unrealized Gain	169	110
Securities Available-for-Sale, Debt Securities, Gross Unrealized Losses	(2,427)	(615)
Securities Available-for-Sale, Debt Securities, Fair Value	87,913	54,440
Money Market Mutual Funds [Member]
Available-for-sale Securities [Abstract]
Securities Available-for-Sale, Amortized Cost	9,020	11,675
Securities Available-for-Sale, Debt Securities, Gross Unrealized Gain	0	0
Securities Available-for-Sale, Debt Securities, Gross Unrealized Losses	0	0
Securities Available-for-Sale, Debt Securities, Fair Value	9,020	11,675
Equity Securities [Member]
Available-for-sale Securities [Abstract]
Equity Securities Available-for-Sale, Amortized Cost	556	854
Equity Securities Available-for-Sale, Gross Unrealized Gains	428	483
Equity Securities Available-for-Sale, Gross Unrealized Loss	0	0
Equity Securities Available-for-Sale, Fair Value	984	1,337
Corporate Bonds [Member]
Held-to-maturity Securities [Abstract]
Securities Held-to-Maturity, Amortized Cost, Within 1 year	17,066	13,088
Securities Held-to-Maturity, Gross Unrealized Gains, Within 1 year	176	82
Securities Held-to-Maturity, Gross Unrealized Losses, Within 1 year	0	0
Securities Held-to-Maturity, Fair Value, Within 1 year	17,242	13,170
Securities Held-to-Maturity, Amortized Cost, After 1 year to 5 years	23,992	41,259
Securities Held-to-Maturity, Gross Unrealized Gains, After 1 year to 5 years	111	388
Securities Held-to-Maturity, Gross Unrealized Losses, After 1 year to 5 years	(22)	(52)
Securities Held-to-Maturity, Fair Value, After 1 year to 5 years	24,081	41,595
Securities Held-to-Maturity, Amortized Cost	41,058	54,347
Securities Held-to-Maturity, Gross Unrealized Gains	287	470
Securities Held-to-Maturity, Gross Unrealized Losses	(22)	(52)
Securities Held-to-Maturity, Fair Value	$ 41,323	$ 54,765

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Loans and Leases - Average Recorded Investment in Impaired Loans and Leases and Analysis of Interest on Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	$ 40,472	$ 56,408	$ 49,120	$ 55,305
Interest Income Recognized	287	470	1,239	1,372
Additional Interest Income That Would Have Been Recognized Under Original Terms	409	293	998	891
Interest income, cash basis for nonaccrual loans	15	0	37	23
Interest income, accrual method	272	470	1,200	1,300
Loans Held For Sale [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	4,000	0	1,233	0
Interest Income Recognized	0	0	0	0
Additional Interest Income That Would Have Been Recognized Under Original Terms	56	0	57	0
Commercial, Financial and Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	15,099	16,577	15,691	14,806
Interest Income Recognized	88	150	346	401
Additional Interest Income That Would Have Been Recognized Under Original Terms	185	72	371	188
Real Estate-Commercial [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	15,430	26,531	23,577	25,734
Interest Income Recognized	152	281	778	816
Additional Interest Income That Would Have Been Recognized Under Original Terms	92	82	257	248
Real Estate-Construction [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	607	9,982	4,041	11,499
Interest Income Recognized	0	20	0	103
Additional Interest Income That Would Have Been Recognized Under Original Terms	6	116	159	363
Real Estate-Residential Secured for Business Purpose [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	4,394	2,643	3,698	2,400
Interest Income Recognized	47	19	115	52
Additional Interest Income That Would Have Been Recognized Under Original Terms	58	13	112	48
Real Estate-Residential Secured for Personal Purpose [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	782	590	706	779
Interest Income Recognized	0	0	0	0
Additional Interest Income That Would Have Been Recognized Under Original Terms	10	9	34	41
Real Estate-Home Equity Secured for Personal Purpose [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	160	84	174	82
Interest Income Recognized	0	0	0	0
Additional Interest Income That Would Have Been Recognized Under Original Terms	2	1	8	3
Loans to Individuals [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	0	1	0	5
Interest Income Recognized	0	0	0	0
Additional Interest Income That Would Have Been Recognized Under Original Terms	$ 0	$ 0	$ 0	$ 0

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Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($) $ in Thousands	Oct. 24, 2014	Sep. 30, 2015	Dec. 31, 2014
Derivative [Line Items]
Loans Receivable with Fixed Rates of Interest, Pool, Maturity Period	10 years
Loans Receivable with Fixed Rates of Interest	$ 29,100
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount		$ 19,440	$ 19,945
Derivative Liability, Fair Value, Amount Not Offset Against Collateral		685	241
Cash Flow Hedging [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Derivative Asset, Notional Amount	$ 20,000
Derivative, Fixed Interest Rate	2.10%
Derivative, Collateral, Right to Reclaim Cash		700
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount		19,440	19,945
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Derivative [Line Items]
Derivative Liability, Fair Value, Amount Not Offset Against Collateral		$ 685	$ 241

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Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Cash and due from banks	$ 32,058	$ 31,995
Interest-earning deposits with other banks	76,486	6,570
Investment securities held-to-maturity (fair value $41,323 and $54,765 at September 30, 2015 and December 31, 2014, respectively)	41,058	54,347
Investment securities available-for-sale	333,500	314,283
Loans held for sale	9,151	3,302
Loans and leases held for investment	2,097,807	1,626,625
Less: Reserve for loan and lease losses	(18,620)	(20,662)
Net loans and leases held for investment	2,079,187	1,605,963
Premises and equipment, net	41,110	37,009
Goodwill	112,657	67,717
Other intangibles, net of accumulated amortization and fair value adjustments of $14,484 and $11,776 at September 30, 2015 and December 31, 2014, respectively	13,068	12,180
Bank owned life insurance	71,135	62,265
Accrued interest receivable and other assets	42,158	39,690
Total assets	2,851,568	2,235,321
LIABILITIES
Noninterest-bearing deposits	519,767	449,339
Interest-bearing deposits:
Demand deposits	773,508	640,095
Savings deposits	588,319	519,314
Time deposits	491,271	252,593
Total deposits	2,372,865	1,861,341
Customer repurchase agreements	21,191	41,974
Subordinated notes	49,340	0
Accrued interest payable and other liabilities	49,063	47,452
Total liabilities	2,492,459	1,950,767
SHAREHOLDERS’ EQUITY
Common stock, $5 par value: 48,000,000 shares authorized at September 30, 2015 and December 31, 2014; 22,054,270 and 18,266,404 shares issued at September 30, 2015 and December 31, 2014, respectively; 19,502,613 and 16,221,607 shares outstanding at September 30, 2015 and December 31, 2014, respectively	110,271	91,332
Additional paid-in capital	120,895	62,980
Retained earnings	190,159	181,851
Accumulated other comprehensive loss, net of tax benefit	(14,979)	(14,462)
Treasury stock, at cost; 2,551,657 and 2,044,797 shares at September 30, 2015 and December 31, 2014, respectively	(47,237)	(37,147)
Total shareholders’ equity	359,109	284,554
Total liabilities and shareholders’ equity	$ 2,851,568	$ 2,235,321

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Loans and Leases - Summary of Major Loan and Lease Categories (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	$ 1,756,503	$ 1,626,625
Total Loans and Leases Held for Investment, Acquired	341,304
Total Loans and Leases Held for Investment	2,097,807	1,626,625	$ 1,597,736
Unearned Lease Income, Originated	(13,822)	(14,131)
Unearned Lease Income, Acquired	0
Unearned lease income, included in the above table	(13,822)
Net deferred costs, Originated	3,700	3,218
Net deferred costs, Acquired	0
Net deferred costs, included in the above table	3,700
Overdraft Deposits, Originated	76	50
Overdraft Deposits, Acquired	0
Overdraft deposits included in the above table	76
Commercial, Financial and Agricultural [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	455,469	457,827
Total Loans and Leases Held for Investment, Acquired	27,873
Total Loans and Leases Held for Investment	483,342	457,827	438,556
Real Estate-Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	692,284	628,478
Total Loans and Leases Held for Investment, Acquired	131,019
Total Loans and Leases Held for Investment	823,303	628,478
Real Estate-Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	89,856	79,887
Total Loans and Leases Held for Investment, Acquired	27,359
Total Loans and Leases Held for Investment	117,215	79,887
Real Estate-Residential Secured for Business Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	65,371	36,932
Total Loans and Leases Held for Investment, Acquired	138,593
Total Loans and Leases Held for Investment	203,964	36,932	35,367
Real Estate-Residential Secured for Personal Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	178,387	166,850
Total Loans and Leases Held for Investment, Acquired	4,199
Total Loans and Leases Held for Investment	182,586	166,850
Real Estate-Home Equity Secured for Personal Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	120,677	108,250
Total Loans and Leases Held for Investment, Acquired	11,919
Total Loans and Leases Held for Investment	132,596	108,250
Loans to Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	29,575	29,941
Total Loans and Leases Held for Investment, Acquired	342
Total Loans and Leases Held for Investment	29,917	29,941	30,144
Lease Financings [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	124,884	118,460
Total Loans and Leases Held for Investment, Acquired	0
Total Loans and Leases Held for Investment	$ 124,884	$ 118,460	$ 111,952

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Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive (Loss) Income [Member]	Treasury Stock [Member]
Beginning balance at Dec. 31, 2013	$ 280,506	$ 91,332	$ 62,417	$ 172,602	$ (9,955)	$ (35,890)
Beginning balance, shares at Dec. 31, 2013		16,287,812
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	17,041	$ 0	0	17,041	0	0
Other comprehensive income, net of income tax	3,054	0	0	0	3,054	0
Cash dividends declared ($0.60 per share)	(9,740)	0	0	(9,740)	0	0
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs	1,922	$ 0	30	0	0	1,892
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs, shares		96,129
Exercise of stock options	184	$ 0	11	0	0	173
Exercise of stock options, shares		9,500
Repurchase of cancelled restricted stock awards	0	$ 0	735	0	0	(735)
Repurchase of cancelled restricted stock awards, shares		(43,452)
Stock-based compensation	792	$ 0	792	0	0	0
Net tax benefit/deficiency on stock-based compensation	(2)	0	(2)	0	0	0
Purchases of treasury stock	(3,943)	$ 0	0	0	0	(3,943)
Purchases of treasury stock, shares		(204,044)
Restricted stock awards granted	0	$ 0	(1,349)	0	0	1,349
Restricted stock awards granted, shares		74,304
Ending balance at Sep. 30, 2014	289,814	$ 91,332	62,634	179,903	(6,901)	(37,154)
Ending balance, shares at Sep. 30, 2014		16,220,249
Beginning balance at Dec. 31, 2014	284,554	$ 91,332	62,980	181,851	(14,462)	(37,147)
Beginning balance, shares at Dec. 31, 2014		16,221,607
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	20,110	$ 0	0	20,110	0	0
Other comprehensive income, net of income tax	(517)	0	0	0	(517)	0
Cash dividends declared ($0.60 per share)	(11,801)	0	0	(11,801)	0	0
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs	1,836	$ 0	36	(1)	0	1,801
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs, shares		92,824
Issuance of common stock, acquisition	76,666	$ 18,939	57,727	0	0	0
Issuance of common stock, acquisition (shares)		3,787,866
Exercise of stock options	306	$ 0	(36)	0	0	342
Exercise of stock options, shares		18,666
Repurchase of cancelled restricted stock awards	0	$ 0	277	0	0	(277)
Repurchase of cancelled restricted stock awards, shares		(17,684)
Stock-based compensation	1,034	$ 0	1,034	0	0	0
Net tax benefit/deficiency on stock-based compensation	72	0	72	0	0	0
Purchases of treasury stock	(13,151)	$ 0	0	0	0	(13,151)
Purchases of treasury stock, shares		(666,421)
Restricted stock awards granted	0	$ 0	(1,195)	0	0	1,195
Restricted stock awards granted, shares		65,755
Ending balance at Sep. 30, 2015	$ 359,109	$ 110,271	$ 120,895	$ 190,159	$ (14,979)	$ (47,237)
Ending balance, shares at Sep. 30, 2015	19,502,613	19,502,613

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Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($)
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 67,717
Goodwill, Acquired During Period	44,940
Goodwill, Ending Balance	112,657
Banking [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	35,058
Goodwill, Acquired During Period	43,516
Goodwill, Ending Balance	78,574
Wealth Management [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	15,434
Goodwill, Acquired During Period	0
Goodwill, Ending Balance	15,434
Insurance [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	17,225
Goodwill, Acquired During Period	1,424
Goodwill, Ending Balance	$ 18,649

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Restructuring Charges Restructuring Charges (Tables)

9 Months Ended

Sep. 30, 2015

Restructuring and Related Activities [Abstract]

Roll-Forward of Accrued Restructuring Expense

A roll-forward of the accrued restructuring expense is as follows:

(Dollars in thousands)	Severance expenses			Write-downs and retirements of fixed assets			Lease cancellations			Total
Accrued at January 1, 2015	$	—		$	—		$	—		$	—
Restructuring charges	73			607			962			1,642
Payments	(67		)	—			(46		)	(113		)
Accelerated depreciation	—			(379		)	—			(379		)
Accrued at September 30, 2015	$	6		$	228		$	916		$	1,150

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Income Taxes - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Income Tax Contingency [Line Items]
Unrecognized tax benefits	$ 0	$ 0
Accrued interest or penalties	$ 0	$ 0
Minimum [Member]
Income Tax Contingency [Line Items]
Open tax years	2012
Maximum [Member]
Income Tax Contingency [Line Items]
Open tax years	2014

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Restructuring Charges Restructuring Charges

9 Months Ended

Sep. 30, 2015

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

During the first quarter of 2015, the Corporation finalized a new financial center model, which is smaller in size, combines enhanced technology with personal service and provides consultive services and solutions delivered by personal bankers. These efforts have led to the development of a comprehensive financial center optimization plan approved in April 2015 which includes opening new financial centers in growth markets while closing financial centers which operate in close proximity to other centers. As the Corporation announced, six financial centers were closed in September 2015 that operated in close proximity to other centers. As a result, the Corporation recorded $1.6 million in restructuring charges during the second quarter of 2015. These charges are included in the Banking business segment and are separately classified as a component of non-interest expense, within the consolidated statement of income.

A roll-forward of the accrued restructuring expense is as follows:

(Dollars in thousands)	Severance expenses			Write-downs and retirements of fixed assets			Lease cancellations			Total
Accrued at January 1, 2015	$	—		$	—		$	—		$	—
Restructuring charges	73			607			962			1,642
Payments	(67		)	—			(46		)	(113		)
Accelerated depreciation	—			(379		)	—			(379		)
Accrued at September 30, 2015	$	6		$	228		$	916		$	1,150

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Acquisition - Narrative (Details) $ / shares in Units, $ in Thousands		9 Months Ended
	Jan. 01, 2015 USD ($) community Office $ / shares shares	Sep. 30, 2015 USD ($) $ / shares	Dec. 31, 2014 USD ($) $ / shares
Business Acquisition [Line Items]
Common stock, par value | $ / shares	$ 5	$ 5	$ 5
Deposits		$ 2,372,865	$ 1,861,341
Interest component of expected cash flows (accretable difference)		185	$ 0
Valley Green Bank [Member]
Business Acquisition [Line Items]
Number of banking office operates in greater Philadelphia marketplace | community	3
Number of loan production offices in Philadelphia marketplace | Office	2
Merger agreement aggregate value	$ 77,000
Outstanding stock options prior to exchange | shares	122,377
Cash and related payroll taxes exchanged for employee stock options	$ 2,200
Purchase price assigned to cash in lieu of fractional shares	3
Deposits	385,900
Fair value of loans	379,200
Fair value premium	4,400
Fair value discount	$ 5,500
Fair value adjustment, period of amortization	10 years
Acquired impaired loans	$ 1,700
Contractual cash flows not expected to be collected (nonaccretable difference)	5,344
Interest component of expected cash flows (accretable difference)	305
Customer related intangibles	$ 1,520
Useful life of intangible asset	10 years
Fair value premium	$ 686
Integration and acquisition-related costs, gross		$ 2,000

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of Univest Corporation of Pennsylvania (the Corporation or Univest) and its wholly owned subsidiaries; the Corporation’s primary subsidiary is Univest Bank and Trust Co. (the Bank). All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited interim consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations for interim financial information. The accompanying unaudited consolidated financial statements reflect all adjustments which are of a normal recurring nature and are, in the opinion of management, necessary for a fair presentation of the financial statements for the interim periods presented. Certain prior period amounts have been reclassified to conform to the current-year presentation. Operating results for the nine-month period ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. It is suggested that these unaudited consolidated financial statements be read in conjunction with the audited financial statements and the notes thereto included in the registrant’s Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on March 9, 2015.

Use of Estimates

Use of Estimates

The preparation of the unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes include fair value measurement of investment securities available-for-sale and assessment for impairment of certain investment securities, reserve for loan and lease losses, valuation of goodwill and other intangible assets, mortgage servicing rights, deferred tax assets and liabilities, benefit plans and stock-based compensation expense.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In September 2015, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) simplifying the accounting for measurement-period adjustments related to business combinations. The ASU eliminates the requirement to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. Under this ASU, measurement-period adjustments are calculated as if they were known at the acquisition date, but are recognized in the reporting period in which they are determined. The ASU requires additional disclosures about the impact on current period income statement line items of adjustments that would have been recognized in prior periods if prior period information had been revised. The amendments in this ASU are effective for financial statements of public businesses issued for fiscal years and interim periods within those years beginning after December 15, 2015, or January 1, 2016 for the Corporation. The adoption of this guidance is not anticipated to have a material impact on the Corporation's financial statements.

In April 2015, the FASB issued an ASU simplifying the presentation of debt issuance costs. The ASU requires that debt issuance costs related to a recognized debt liability shall be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts.The costs will continue to be amortized to interest expense using the effective interest method. The ASU is effective for financial statements of public business issued for fiscal years beginning after December 15, 2015, or January 1, 2016 for the Corporation. The adoption of ASU will not impact the Corporation's balance sheet presentation as the Corporation currently follows this presentation consistent with the guidance in FASB Concepts Statement No. 6.

In May 2014, the FASB issued an ASU regarding revenue from contracts with customers which clarifies the principles for recognizing revenue and develops a common standard for U.S. GAAP and International Financial Reporting Standards. The ASU establishes a core principle that would require an entity to identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. The ASU provides for improved disclosure requirements that require entities to disclose sufficient information that enables users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued an ASU deferring the original effective date of this guidance by one year. This guidance is now effective for fiscal years and interim periods within those years beginning after December 15, 2017, or January 1, 2018 for the Corporation. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements; however, it is anticipated the impact will be only related to timing.

In January 2014, the FASB issued an ASU regarding reclassification of residential real estate collateralized consumer mortgage loans upon foreclosure. The ASU clarifies that when an in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The ASU was issued to eliminate diversity in practice on this topic. The amendment is effective for fiscal years and interim periods within those years beginning after December 15, 2014, or January 1, 2015 for the Corporation. The adoption of this guidance did not have a material impact on the Corporation's financial statements but resulted in expanded disclosures effective March 31, 2015, which are included in Note 4, “Loans and Leases.”

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Subordinated Debt (Details) - Fixed-to-Floating Rate, Subordinated Debt, Due in 2025 [Member] - Subordinated Debt [Member] - USD ($) $ in Millions		60 Months Ended
	Mar. 30, 2015	Mar. 30, 2025
Debt Instrument [Line Items]
Aggregate principal amount of debt	$ 50
Net proceeds of debt	$ 49
Annual fixed rate of interest	5.10%
Redemption price percentage of principal amount of redeemed debt	100.00%
London Interbank Offered Rate (LIBOR) [Member] | Scenario, Forecast [Member]
Debt Instrument [Line Items]
Basis spread of interest rate (LIBOR)		3.544%

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Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Stockholders' Equity [Abstract]
Cash dividends declared, per share	$ 0.20	$ 0.20	$ 0.60	$ 0.60

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Securities Held-to-Maturity, Fair Value	$ 41,323	$ 54,765
Accumulated amortization and fair value adjustments on other intangibles	$ 14,484	$ 11,776
Common stock, par value	$ 5	$ 5
Common stock, shares authorized	48,000,000	48,000,000
Common stock, shares issued	22,054,270	18,266,404
Common stock, shares outstanding	19,502,613	16,221,607
Treasury stock, shares	2,551,657	2,044,797

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Earnings per Share

9 Months Ended

Sep. 30, 2015

Earnings Per Share, Basic and Diluted [Abstract]

Earnings per Share

Earnings per Share

The Corporation uses the two-class method to calculate earnings per share as the unvested restricted stock issued under the Corporation's equity incentive plans are participating shares with nonforfeitable rights to dividends. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the number of weighted average shares outstanding during the period.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
(Dollars and shares in thousands, except per share data)	2015			2014			2015			2014
Numerator:
Net income	$	7,528		$	6,235		$	20,110		$	17,041
Net income allocated to unvested restricted stock	(66		)	(64		)	(177		)	(193		)
Net income allocated to common shares	$	7,462		$	6,171		$	19,933		$	16,848
Denominator:
Denominator for basic earnings per share—weighted-average shares outstanding	19,337			16,059			19,537			16,058
Effect of dilutive securities—employee stock options	31			23			28			22
Denominator for diluted earnings per share—adjusted weighted-average shares outstanding	19,368			16,082			19,565			16,080
Basic earnings per share	$	0.39		$	0.38		$	1.02		$	1.05
Diluted earnings per share	$	0.39		$	0.38		$	1.02		$	1.05
Average anti-dilutive options and awards excluded from computation of diluted earnings per share	565			554			550			563

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 30, 2015
Document And Entity Information [Abstract]
Entity Registrant Name	UNIVEST CORP OF PENNSYLVANIA
Entity Central Index Key	0000102212
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Trading Symbol	UVSP
Amendment Flag	false
Entity Common Stock, Shares Outstanding		19,525,644

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Accumulated Other Comprehensive (Loss) Income

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Accumulated Other Comprehensive (Loss) Income

Accumulated Other Comprehensive (Loss) Income

The following table shows the components of accumulated other comprehensive (loss) income, net of taxes, for the periods presented:

(Dollars in thousands)	Net Unrealized Gains (Losses) on Available-for-Sale Investment Securities			Net Change Related to Derivatives Used for Cash Flow Hedges			Net Change Related to Defined Benefit Pension Plans			Accumulated Other Comprehensive (Loss) Income
Balance, December 31, 2014	$	1,711		$	(157	)	$	(16,016	)	$	(14,462	)
Net Change	(756		)	(288		)	527			(517		)
Balance, September 30, 2015	$	955		$	(445	)	$	(15,489	)	$	(14,979	)
Balance, December 31, 2013	$	(1,472	)	$	—		$	(8,483	)	$	(9,955	)
Net Change	2,869			—			185			3,054
Balance, September 30, 2014	$	1,397		$	—		$	(8,298	)	$	(6,901	)

The following table illustrates the amounts reclassified out of each component of accumulated comprehensive (loss) income for the three and nine months ended September 30, 2015 and 2014:

Details about Accumulated Other Comprehensive (Loss) Income Components	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income												Affected Line Item in the Statement of Income
	Three Months Ended   September 30,						Nine Months Ended   September 30,
(Dollars in thousands)	2015			2014			2015			2014
Net unrealized holding gains (losses) on available-for-sale investment securities:
	$	296		$	—		$	568		$	557		Net gain on sales of investment securities
	(5		)	—			(5		)	—			Other-than-temporary impairment on equity securities
	291			—			563			557			Total before tax
	(102		)	—			(197		)	(195		)	Tax expense
	$	189		$	—		$	366		$	362		Net of tax
Defined benefit pension plans:
Amortization of net loss included in net periodic pension costs*	$	(341	)	$	(168	)	$	(1,022	)	$	(499	)
Accretion of prior service cost included in net periodic pension costs*	70			72			210			216
	(271		)	(96		)	(812		)	(283		)	Total before tax
	95			33			285			98			Tax benefit
	$	(176	)	$	(63	)	$	(527	)	$	(185	)	Net of tax

* These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. (See Note 7—Retirement Plans and Other Postretirement Benefits for additional details.)

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Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Segment Reporting Information [Line Items]
Total assets	$ 2,851,568	$ 2,222,196	$ 2,851,568	$ 2,222,196	$ 2,235,321
Interest income	25,585	19,219	75,836	56,890
Interest expense	2,220	978	5,787	2,957
Net interest income	23,365	18,241	70,049	53,933
Provision for loan and lease losses	670	233	2,885	2,959
Noninterest income	12,855	12,510	39,637	36,575
Noninterest expense	25,243	22,019	79,486	64,692
Intersegment (revenue) expense	0	0	0	0
Income before income taxes	10,307	8,499	27,315	22,857
Income taxes	2,779	2,264	7,205	5,816
Net income	7,528	6,235	20,110	17,041
Capital expenditures	1,067	436	6,298	2,345
Banking [Member]
Segment Reporting Information [Line Items]
Total assets	2,773,279	2,147,763	2,773,279	2,147,763	2,154,485
Interest income	25,576	19,211	75,811	56,864
Interest expense	2,220	978	5,787	2,959
Net interest income	23,356	18,233	70,024	53,905
Provision for loan and lease losses	670	233	2,885	2,959
Noninterest income	4,932	4,536	14,240	12,153
Noninterest expense	18,408	16,279	59,595	48,800
Intersegment (revenue) expense	(554)	(660)	(1,583)	(1,616)
Income before income taxes	9,764	6,917	23,367	15,915
Income taxes	2,495	1,599	5,471	3,078
Net income	7,269	5,318	17,896	12,837
Capital expenditures	925	313	6,020	2,016
Wealth Management [Member]
Segment Reporting Information [Line Items]
Total assets	32,793	32,908	32,793	32,908	34,195
Interest income	0	0	0	0
Interest expense	0	0	0	0
Net interest income	0	0	0	0
Provision for loan and lease losses	0	0	0	0
Noninterest income	4,628	4,985	14,216	14,969
Noninterest expense	3,410	3,263	9,903	9,869
Intersegment (revenue) expense	259	214	676	674
Income before income taxes	959	1,508	3,637	4,426
Income taxes	368	580	1,405	1,672
Net income	591	928	2,232	2,754
Capital expenditures	1	25	9	97
Insurance [Member]
Segment Reporting Information [Line Items]
Total assets	23,825	21,930	23,825	21,930	22,930
Interest income	0	0	0	0
Interest expense	0	0	0	0
Net interest income	0	0	0	0
Provision for loan and lease losses	0	0	0	0
Noninterest income	3,345	3,001	11,138	9,030
Noninterest expense	3,109	2,820	9,514	7,320
Intersegment (revenue) expense	295	446	907	942
Income before income taxes	(59)	(265)	717	768
Income taxes	(44)	(105)	282	331
Net income	(15)	(160)	435	437
Capital expenditures	3	16	53	83
Other Segments [Member]
Segment Reporting Information [Line Items]
Total assets	21,671	19,595	21,671	19,595	$ 23,711
Interest income	9	8	25	26
Interest expense	0	0	0	(2)
Net interest income	9	8	25	28
Provision for loan and lease losses	0	0	0	0
Noninterest income	(50)	(12)	43	423
Noninterest expense	316	(343)	474	(1,297)
Intersegment (revenue) expense	0	0	0	0
Income before income taxes	(357)	339	(406)	1,748
Income taxes	(40)	190	47	735
Net income	(317)	149	(453)	1,013
Capital expenditures	$ 138	$ 82	$ 216	$ 149

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Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest and fees on loans and leases:
Taxable	$ 21,890	$ 15,921	$ 65,083	$ 46,916
Exempt from federal income taxes	1,602	1,433	4,765	4,177
Total interest and fees on loans and leases	23,492	17,354	69,848	51,093
Interest and dividends on investment securities:
Taxable	1,204	963	3,342	3,025
Exempt from federal income taxes	868	884	2,607	2,723
Interest on federal funds sold	0	0	2	0
Other interest income	21	18	37	49
Total interest income	25,585	19,219	75,836	56,890
Interest expense
Interest on deposits	1,543	971	4,405	2,932
Interest on short-term borrowings	10	7	33	25
Interest on long-term borrowings	667	0	1,349	0
Total interest expense	2,220	978	5,787	2,957
Net interest income	23,365	18,241	70,049	53,933
Provision for loan and lease losses	670	233	2,885	2,959
Net interest income after provision for loan and lease losses	22,695	18,008	67,164	50,974
Noninterest income
Trust fee income	1,904	1,862	5,878	5,692
Service charges on deposit accounts	1,069	1,073	3,171	3,134
Investment advisory commission and fee income	2,687	3,086	8,190	9,144
Insurance commission and fee income	3,232	2,881	10,812	8,647
Other service fee income	1,956	1,767	5,387	5,471
Bank owned life insurance income	306	346	870	1,167
Net gain on sales of investment securities	296	0	568	557
Net gain on mortgage banking activities	1,123	616	3,748	1,484
Net gain on sales of other real estate owned	14	195	14	195
Other income	268	684	999	1,084
Total noninterest income	12,855	12,510	39,637	36,575
Noninterest expense
Salaries and benefits	11,970	11,035	37,241	31,948
Commissions	2,174	2,200	6,143	5,585
Net occupancy	2,093	1,689	6,486	5,130
Equipment	1,831	1,426	5,228	4,170
Professional fees	1,096	744	2,969	2,399
Marketing and advertising	583	391	1,494	1,333
Deposit insurance premiums	433	386	1,267	1,162
Intangible expenses	710	352	2,389	1,762
Acquisition-related costs	0	180	507	739
Integration costs	0	8	1,484	8
Restructuring charges	0	0	1,642	0
Other expense	4,353	3,608	12,636	10,456
Total noninterest expense	25,243	22,019	79,486	64,692
Income before income taxes	10,307	8,499	27,315	22,857
Income taxes	2,779	2,264	7,205	5,816
Net income	$ 7,528	$ 6,235	$ 20,110	$ 17,041
Net income per share:
Basic (in dollars per share)	$ 0.39	$ 0.38	$ 1.02	$ 1.05
Diluted (in dollars per share)	0.39	0.38	1.02	1.05
Dividends declared	$ 0.20	$ 0.20	$ 0.60	$ 0.60

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Loans and Leases

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Loans and Leases

Loans and Leases

Summary of Major Loan and Lease Categories

	At September 30, 2015								At December 31, 2014
(Dollars in thousands)	Originated			Acquired		Total			Total
Commercial, financial and agricultural	$	455,469		$	27,873	$	483,342		$	457,827
Real estate-commercial	692,284			131,019		823,303			628,478
Real estate-construction	89,856			27,359		117,215			79,887
Real estate-residential secured for business purpose	65,371			138,593		203,964			36,932
Real estate-residential secured for personal purpose	178,387			4,199		182,586			166,850
Real estate-home equity secured for personal purpose	120,677			11,919		132,596			108,250
Loans to individuals	29,575			342		29,917			29,941
Lease financings	124,884			—		124,884			118,460
Total loans and leases held for investment, net of deferred income	$	1,756,503		$	341,304	$	2,097,807		$	1,626,625
Unearned lease income, included in the above table	$	(13,822	)	$	—	$	(13,822	)	$	(14,131	)
Net deferred costs, included in the above table	3,700			—		3,700			3,218
Overdraft deposits included in the above table	76			—		76			50

Overdraft deposits are re-classified as loans and are included in the total loans and leases on the balance sheet.

The carrying amount of acquired loans at September 30, 2015 totaled $341.3 million, including $1.4 million of loans acquired with deteriorated credit quality, or acquired credit impaired loans from the Valley Green Bank acquisition. Acquired credit impaired loans are accounted for in accordance with ASC Topic 310-30. See Note 2, "Acquisition" for additional information.

The outstanding principal balance and carrying amount for acquired credit impaired loans at September 30, 2015 were as follows:

(Dollars in thousands)	At September 30, 2015
Outstanding principal balance	$	3,949
Carrying amount	1,379
Allowance for loan losses	21

The following table presents the changes in accretable yield on acquired credit impaired loans:

(Dollars in thousands)	Nine Months Ended September 30, 2015
Beginning of period	$	—
Acquisition of credit impaired loans	305
Reclassification from nonaccretable difference	476
Accretable yield amortized to interest income	(595		)
Disposals	(1		)
End of period	$	185

Age Analysis of Past Due Loans and Leases

The following presents, by class of loans and leases, an aging of past due loans and leases, loans and leases which are current and the recorded investment in loans and leases 90 days or more past due which are accruing interest at September 30, 2015 and December 31, 2014:

(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current		Acquired Credit Impaired		Total Loans and Leases Held for Investment		Recorded Investment 90 Days or more Past Due and Accruing Interest
At September 30, 2015
Commercial, financial and agricultural	$	914	$	351	$	6,731	$	7,996	$	475,035	$	311	$	483,342	$	—
Real estate—commercial real estate and construction:
Commercial real estate	1,798		228		857		2,883		819,908		512		823,303		—
Construction	20		—		363		383		116,832		—		117,215		—
Real estate—residential and home equity:
Residential secured for business purpose	1,740		84		1,787		3,611		199,860		493		203,964		—
Residential secured for personal purpose	991		—		386		1,377		181,209		—		182,586		41
Home equity secured for personal purpose	445		201		95		741		131,792		63		132,596		35
Loans to individuals	203		203		237		643		29,274		—		29,917		237
Lease financings	1,406		2,032		536		3,974		120,910		—		124,884		115
Total	$	7,517	$	3,099	$	10,992	$	21,608	$	2,074,820	$	1,379	$	2,097,807	$	428
At December 31, 2014
Commercial, financial and agricultural	$	145	$	747	$	2,567	$	3,459	$	454,368	$	—	$	457,827	$	—
Real estate—commercial real estate and construction:
Commercial real estate	361		913		1,163		2,437		626,041		—		628,478		—
Construction	—		405		5,525		5,930		73,957		—		79,887		—
Real estate—residential and home equity:
Residential secured for business purpose	167		56		713		936		35,996		—		36,932		—
Residential secured for personal purpose	409		604		60		1,073		165,777		—		166,850		—
Home equity secured for personal purpose	348		—		215		563		107,687		—		108,250		31
Loans to individuals	365		65		365		795		29,146		—		29,941		365
Lease financings	1,610		406		435		2,451		116,009		—		118,460		55
Total	$	3,405	$	3,196	$	11,043	$	17,644	$	1,608,981	$	—	$	1,626,625	$	451

Non-Performing Loans and Leases

The following presents, by class of loans and leases, non-performing loans and leases at September 30, 2015 and December 31, 2014:

	At September 30, 2015								At December 31, 2014
(Dollars in thousands)	Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Non- Performing Loans and Leases		Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Non- Performing Loans and Leases
Loans held for sale **	$	4,000	$	—	$	—	$	4,000	$	—	$	—	$	—	$	—
Loans and leases held for investment:
Commercial, financial and agricultural	8,593		1,959		—		10,552		5,002		2,851		—		7,853
Real estate—commercial real estate and construction:
Commercial real estate	4,223		2,474		—		6,697		4,413		2,618		—		7,031
Construction	363		—		—		363		5,931		—		—		5,931
Real estate—residential and home equity:
Residential secured for business purpose	2,301		343		—		2,644		915		—		—		915
Residential secured for personal purpose	776		—		41		817		512		—		—		512
Home equity secured for personal purpose	160		—		35		195		184		—		31		215
Loans to individuals	—		—		237		237		—		—		365		365
Lease financings	422		13		115		550		380		—		55		435
Total	$	20,838	$	4,789	$	428	$	26,055	$	17,337	$	5,469	$	451	$	23,257

* Includes nonaccrual troubled debt restructured loans and lease modifications of $742 thousand and $3.1 million at September 30, 2015 and December 31, 2014, respectively.

** Includes two real estate construction loans for one borrower of $4.0 million at September 30, 2015.

Credit Quality Indicators

The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at September 30, 2015 and December 31, 2014.

The Corporation employs a ten (10) grade risk rating system related to the credit quality of commercial loans and residential real estate loans secured for a business purpose of which the first six categories are pass categories (credits not adversely rated). The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. Loans with risk ratings of one through five are reviewed based on the relationship dollar amount with the borrower: loans with a relationship total of $2.5 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.5 million but greater than $500 thousand are reviewed annually based on the borrower’s fiscal year; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with risk ratings of six are also reviewed based on the relationship dollar amount with the borrower: loans with a relationship balance of $2.0 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.0 million but greater than $500 thousand are reviewed annually; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with risk ratings of seven are reviewed at least quarterly, and as often as monthly, at management’s discretion. Loans with risk ratings of eight through ten are reviewed monthly.

1. Cash Secured—No credit risk

2. Fully Secured—Negligible credit risk

3. Strong—Minimal credit risk

4. Satisfactory—Nominal credit risk

5. Acceptable—Moderate credit risk

6. Pre-Watch—Marginal, but stable credit risk

7. Special Mention—Potential weakness

8. Substandard—Well-defined weakness

9. Doubtful—Collection in-full improbable

10. Loss—Considered uncollectible

Commercial Credit Exposure Credit Risk by Internally Assigned Grades

The following table presents classifications for originated loans:

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial		Real Estate— Construction		Real Estate— Residential Secured for Business Purpose		Total
At September 30, 2015
Grade:
1. Cash secured/ 2. Fully secured	$	664	$	—	$	3,103	$	—	$	3,767
3. Strong	16,985		11,217		—		—		28,202
4. Satisfactory	25,761		20,487		8,980		11		55,239
5. Acceptable	299,950		467,266		66,203		54,479		887,898
6. Pre-watch	65,733		159,961		11,207		3,777		240,678
7. Special Mention	11,724		6,674		—		2,676		21,074
8. Substandard	34,652		26,679		363		4,428		66,122
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	455,469	$	692,284	$	89,856	$	65,371	$	1,302,980
At December 31, 2014
Grade:
1. Cash secured/ 2. Fully secured	$	4,248	$	—	$	1,262	$	—	$	5,510
3. Strong	14,013		8,504		3,897		—		26,414
4. Satisfactory	23,931		30,587		8,731		339		63,588
5. Acceptable	301,425		402,719		55,111		24,535		783,790
6. Pre-watch	65,993		123,129		4,956		5,384		199,462
7. Special Mention	7,166		17,505		—		1,304		25,975
8. Substandard	41,051		46,034		5,930		5,370		98,385
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	457,827	$	628,478	$	79,887	$	36,932	$	1,203,124

The following table presents classifications for acquired loans:

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial		Real Estate— Construction		Real Estate— Residential Secured for Business Purpose		Total
At September 30, 2015
Grade:
1. Cash secured/ 2. Fully secured	$	1,013	$	—	$	—	$	—	$	1,013
3. Strong	—		—		—		—		—
4. Satisfactory	1,199		4,094		—		2,603		7,896
5. Acceptable	23,902		120,364		27,024		131,237		302,527
6. Pre-watch	212		4,252		—		2,218		6,682
7. Special Mention	442		1,466		—		257		2,165
8. Substandard	1,105		843		335		2,278		4,561
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	27,873	$	131,019	$	27,359	$	138,593	$	324,844

The Corporation did not have any acquired loans at December 31, 2014.

Credit Exposure—Real Estate—Residential Secured for Personal Purpose, Real Estate—Home Equity Secured for Personal Purpose, Loans to individuals, Lease Financing Credit Risk Profile by Payment Activity

The Corporation monitors the credit risk profile by payment activity for the following classifications of loans and leases: residential real estate loans secured for a personal purpose, home equity loans secured for a personal purpose, loans to individuals and lease financings. Nonperforming loans and leases are loans past due 90 days or more, loans and leases on nonaccrual of interest and troubled debt restructured loans and lease modifications. Performing loans and leases are reviewed only if the loan becomes 60 days or more past due. Nonperforming loans and leases are reviewed monthly. Performing loans and leases have a nominal to moderate risk of loss. Nonperforming loans and leases are loans or leases with a well-defined weakness and where collection in-full is unlikely.

The following table presents classifications for originated loans:

(Dollars in thousands)	Real Estate— Residential Secured for Personal Purpose		Real Estate— Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financing		Total
At September 30, 2015
Performing	$	177,570	$	120,482	$	29,338	$	124,334	$	451,724
Nonperforming	817		195		237		550		1,799
Total	$	178,387	$	120,677	$	29,575	$	124,884	$	453,523
At December 31, 2014
Performing	$	166,338	$	108,035	$	29,576	$	118,025	$	421,974
Nonperforming	512		215		365		435		1,527
Total	$	166,850	$	108,250	$	29,941	$	118,460	$	423,501

The following table presents classifications for acquired loans:

(Dollars in thousands)	Real Estate— Residential Secured for Personal Purpose		Real Estate— Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financing		Total
At September 30, 2015
Performing	$	4,199	$	11,919	$	342	$	—	$	16,460
Nonperforming	—		—		—		—		—
Total	$	4,199	$	11,919	$	342	$	—	$	16,460

The Corporation did not have any acquired loans at December 31, 2014.

Risks associated with lending activities include, among other things, the impact of changes in interest rates and economic conditions, which may adversely impact the ability of borrowers to repay outstanding loans, and impact the value of the associated collateral.

Commercial, financial and agricultural loans, commercial real estate loans, construction loans and residential real estate loans with a business purpose are generally perceived as having more risk of default than residential real estate loans with a personal purpose and consumer loans. These types of loans involve larger loan balances to a single borrower or groups of related borrowers. Commercial real estate loans may be affected to a greater extent than residential loans by adverse conditions in real estate markets or the economy because commercial real estate borrowers’ ability to repay their loans depends on successful development of their properties and factors affecting residential real estate borrowers.

Commercial, financial and agricultural business loans are typically based on the borrowers’ ability to repay the loans from the cash flow of their businesses. These loans may involve greater risk because the availability of funds to repay each loan depends substantially on the success of the business. In addition, the collateral securing the loans often depreciates over time, is difficult to appraise and liquidate and fluctuates in value based on the success of the business.

Risk of loss on a construction loan depends largely upon whether our initial estimate of the property’s value at completion of construction equals or exceeds the cost of the property construction (including interest). During the construction phase, a number of factors can result in delays and cost overruns. If estimates of value are inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan or by seizure of collateral. Included in real estate-construction is track development financing. Risk factors related to track development financing include the demand for residential housing and the real estate valuation market. When projects move slower than anticipated, the properties may have significantly lower values than when the original underwriting was completed, resulting in lower collateral values to support the loan. Extended time frames also cause the interest carrying cost for a project to be higher than the builder projected, negatively impacting the builder’s profit and cash flow and, therefore, their ability to make principal and interest payments.

Commercial real estate loans and residential real estate loans with a business purpose secured by owner-occupied properties are dependent upon the successful operation of the borrower’s business. If the operating company suffers difficulties in terms of sales volume and/or profitability, the borrower’s ability to repay the loan may be impaired. Loans secured by properties where repayment is dependent upon payment of rent by third party tenants or the sale of the property may be impacted by loss of tenants, lower lease rates needed to attract new tenants or the inability to sell a completed project in a timely fashion and at a profit.

Commercial, financial and agricultural loans, commercial real estate loans, construction loans and residential real estate loans secured for a business purpose are more susceptible to a risk of loss during a downturn in the business cycle. The Corporation has strict underwriting, review, and monitoring procedures in place, however, these procedures cannot eliminate all of the risks related to these loans.

The Corporation focuses on both assessing the borrower’s capacity and willingness to repay and on obtaining sufficient collateral. Commercial, financial and agricultural loans are generally secured by the borrower’s assets and by personal guarantees. Commercial real estate and residential real estate loans secured for a business purpose are originated primarily within the Southeastern Pennsylvania market area at conservative loan-to-value ratios and often with a guarantee of the borrowers. Management closely monitors the composition and quality of the total commercial loan portfolio to ensure that any credit concentrations by borrower or industry are closely monitored.

The Corporation originates fixed-rate and adjustable-rate real estate-residential mortgage loans that are secured by the underlying 1- to 4-family residential properties for personal purposes. Credit risk exposure in this area of lending is minimized by the evaluation of the credit worthiness of the borrower, including debt-to-equity ratios, credit scores and adherence to underwriting policies that emphasize conservative loan-to-value ratios of generally no more than 80%. Residential mortgage loans granted in excess of the 80% loan-to-value ratio criterion are generally insured by private mortgage insurance.

In the real estate-home equity loan portfolio secured for a personal purpose, credit exposure is minimized by the evaluation of the creditworthiness of the borrower, including debt-to-equity ratios, credit scores and adherence to the Corporation’s underwriting policies. Combined loan-to-value ratios are generally limited to 80%, but increased to 85% for the Corporation’s strongest profile borrower. Other credit considerations and compensating factors may support higher combined loan-to-value ratios.

Credit risk for direct consumer loans is controlled by strict adherence to underwriting standards that consider debt-to-income levels and the creditworthiness of the borrower and, if secured, collateral values. These loans are included within the portfolio of loans to individuals.

The primary risks that are involved with lease financing receivables are credit underwriting and borrower industry concentrations. The Corporation has strict underwriting, review, and monitoring procedures in place to mitigate this risk. Risk also lies in the residual value of the underlying equipment. Residual values are subject to judgments as to the value of the underlying equipment that can be affected by changes in economic and market conditions and the financial viability of the residual guarantors and insurers. To the extent not guaranteed or assumed by a third party, or otherwise insured against, the Corporation bears the risk of ownership of the leased assets. This includes the risk that the actual value of the leased assets at the end of the lease term will be less than the residual value. The Corporation greatly reduces this risk primarily by using $1.00 buyout leases, in which the entire cost of the leased equipment is included in the contractual payments, leaving no residual payment at the end of the lease term.

Reserve for Loan and Lease Losses and Recorded Investment in Loans and Leases

The following presents, by portfolio segment, a summary of the activity in the reserve for loan and lease losses, the balance in the reserve for loan and lease losses disaggregated on the basis of impairment method and the recorded investment in loans and leases disaggregated on the basis of impairment method for the three and nine months ended September 30, 2015 and 2014:

(Dollars in thousands)	Commercial, Financial and Agricultural			Real Estate— Commercial and Construction			Real Estate— Residential Secured for Business Purpose			Real Estate— Residential and Home Equity Secured for Personal Purpose			Loans to Individuals			Lease Financings			Unallocated			Total
Three Months Ended September 30, 2015
Reserve for loan and lease losses:
Beginning balance	$	6,847		$	7,801		$	616		$	1,188		$	389		$	1,125		$	1,636		$	19,602
Charge-offs	(1,917		)	(138		)	(90		)	(10		)	(144		)	(172		)	N/A			(2,471		)
Recoveries	682			34			8			8			40			47			N/A			819
Provision (recovery of provision)	1,382			(795		)	(41		)	(3		)	130			(1		)	(24		)	648
Provision for acquired credit impaired loans	—			9			13			—			—			—			—			22
Ending balance	$	6,994		$	6,911		$	506		$	1,183		$	415		$	999		$	1,612		$	18,620
Three Months Ended September 30, 2014
Reserve for loan and lease losses:
Beginning balance	$	9,714		$	9,263		$	1,025		$	1,248		$	405		$	1,101		$	1,338		$	24,094
Charge-offs	(968		)	(1,570		)	(26		)	(18		)	(169		)	(106		)	N/A			(2,857		)
Recoveries	88			58			9			2			53			82			N/A			292
(Recovery of provision) provision	(1,219		)	1,337			(48		)	(54		)	43			38			136			233
Ending balance	$	7,615		$	9,088		$	960		$	1,178		$	332		$	1,115		$	1,474		$	21,762
Nine Months Ended September 30, 2015
Reserve for loan and lease losses:
Beginning balance	$	6,920		$	8,943		$	763		$	1,124		$	360		$	985		$	1,567		$	20,662
Charge-offs*	(3,255		)	(1,834		)	(114		)	(148		)	(392		)	(591		)	N/A			(6,334		)
Recoveries	907			190			21			9			129			151			N/A			1,407
Provision (recovery of provision)	2,422			(397		)	(177		)	198			318			454			45			2,863
Provision for acquired credit impaired loans	—			9			13			—			—			—			—			22
Ending balance	$	6,994		$	6,911		$	506		$	1,183		$	415		$	999		$	1,612		$	18,620
Nine Months Ended September 30, 2014
Reserve for loan and lease losses:
Beginning balance	$	9,789		$	8,780		$	1,062		$	1,284		$	694		$	1,285		$	1,600		$	24,494
Charge-offs	(2,657		)	(2,878		)	(140		)	(108		)	(659		)	(396		)	N/A			(6,838		)
Recoveries	197			428			57			29			212			224			N/A			1,147
Provision (recovery of provision)	286			2,758			(19		)	(27		)	85			2			(126		)	2,959
Ending balance	$	7,615		$	9,088		$	960		$	1,178		$	332		$	1,115		$	1,474		$	21,762

N/A – Not applicable

* Includes charge-offs of $1.3 million on two real estate construction loans for one borrower which were subsequently transferred to loans held for sale in the second quarter of 2015.

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial and Construction		Real Estate— Residential Secured for Business Purpose		Real Estate— Residential and Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financings		Unallocated		Total
At September 30, 2015
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	344	$	—	$	—	$	36	$	—	$	—	N/A		$	380
Ending balance: collectively evaluated for impairment	6,650		6,903		493		1,147		415		999		1,612		18,219
Ending balance: acquired credit impaired loans evaluated for impairment	—		8		13		—		—		—		—		21
Total ending balance	$	6,994	$	6,911	$	506	$	1,183	$	415	$	999	$	1,612	$	18,620
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	13,932	$	13,622	$	4,278	$	936	$	—	$	—			$	32,768
Ending balance: collectively evaluated for impairment	441,537		768,518		61,093		298,128		29,575		124,884				1,723,735
Acquired non-credit impaired loans	27,562		157,866		138,100		16,055		342		—				339,925
Acquired credit impaired loans	311		512		493		63		—		—				1,379
Total ending balance	$	483,342	$	940,518	$	203,964	$	315,182	$	29,917	$	124,884			$	2,097,807
At September 30, 2014
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	685	$	27	$	430	$	—	$	—	$	—	N/A		$	1,142
Ending balance: collectively evaluated for impairment	6,930		9,061		530		1,178		332		1,115		1,474		20,620
Total ending balance	$	7,615	$	9,088	$	960	$	1,178	$	332	$	1,115	$	1,474	$	21,762
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	18,214	$	37,341	$	2,921	$	603	$	—	$	—			$	59,079
Ending balance: collectively evaluated for impairment	420,342		675,817		32,446		267,956		30,144		111,952				1,538,657
Total ending balance	$	438,556	$	713,158	$	35,367	$	268,559	$	30,144	$	111,952			$	1,597,736

N/A – Not applicable

Subsequent to the acquisition date, the methods utilized to estimate the required allowance for loan losses for acquired non-impaired loans is similar to originated loans, however, the Corporation records a provision for loan loss only when the required allowance exceeds the remaining unamortized credit mark. The present value of any decreases in expected cash flows after the acquisition date of purchased impaired loans will generally result in an impairment charge recorded as a provision for loan loss, resulting in an increase to the allowance.

Impaired Loans

The following presents, by class of loans, the recorded investment and unpaid principal balance of impaired loans , the amounts of the impaired loans for which there is not an allowance for credit losses and the amounts for which there is an allowance for credit losses at September 30, 2015 and December 31, 2014. The impaired loans exclude loans acquired with deteriorated credit quality.

	At September 30, 2015						At December 31, 2014
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans with no related allowance recorded:
Loans held for sale	$	4,000	$	5,229			$	—	$	—
Loans held for investment:
Commercial, financial and agricultural	10,966		12,676				12,628		13,050
Real estate—commercial real estate	13,259		14,167				29,779		30,810
Real estate—construction	363		638				5,931		6,474
Real estate—residential secured for business purpose	4,278		4,394				3,008		3,044
Real estate—residential secured for personal purpose	524		578				512		547
Real estate—home equity secured for personal purpose	101		101				184		184
Total impaired loans with no allowance recorded	$	33,491	$	37,783			$	52,042	$	54,109
Impaired loans with an allowance recorded:
Commercial, financial and agricultural	$	2,966	$	3,037	$	344	$	3,933	$	3,935	$	920
Real estate—commercial real estate	—		—		—		216		216		78
Real estate—residential secured for personal purpose	252		252		23		—		—		—
Real estate—home equity secured for personal purpose	59		60		13		—		—		—
Total impaired loans with an allowance recorded	$	3,277	$	3,349	$	380	$	4,149	$	4,151	$	998

	At September 30, 2015						At December 31, 2014
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Total impaired loans:
Loans held for sale	$	4,000	$	5,229	$	—	$	—	$	—	$	—
Loans held for investment:
Commercial, financial and agricultural	13,932		15,713		344		16,561		16,985		920
Real estate—commercial real estate	13,259		14,167		—		29,995		31,026		78
Real estate—construction	363		638		—		5,931		6,474		—
Real estate—residential secured for business purpose	4,278		4,394		—		3,008		3,044		—
Real estate—residential secured for personal purpose	776		830		23		512		547		—
Real estate—home equity secured for personal purpose	160		161		13		184		184		—
Total impaired loans	$	36,768	$	41,132	$	380	$	56,191	$	58,260	$	998

Impaired loans includes nonaccrual loans and leases, accruing troubled debt restructured loans and lease modifications and other accruing impaired loans for which it is probable that not all principal and interest payments due will be collectible in accordance with the contractual terms. These loans are individually measured to determine the amount of potential impairment. The loans are reviewed for impairment based on the fair value of the collateral for collateral dependent loans and for certain loans based on discounted cash flows using the loans’ initial effective interest rates. Impaired loans included other accruing impaired loans of $11.6 million and $33.8 million at September 30, 2015 and December 31, 2014, respectively. Specific reserves on other accruing impaired loans were $215 thousand and $476 thousand at September 30, 2015 and December 31, 2014, respectively.

The following presents by class of loans, the average recorded investment in impaired loans and an analysis of interest on impaired loans. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Therefore, interest income on accruing impaired loans is recognized using the accrual method. 

	Three Months Ended September 30, 2015						Three Months Ended September 30, 2014
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms		Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms
Loans held for sale	$	4,000	$	—	$	56	$	—	$	—	$	—
Loans held for investment:
Commercial, financial and agricultural	15,099		88		185		16,577		150		72
Real estate—commercial real estate	15,430		152		92		26,531		281		82
Real estate—construction	607		—		6		9,982		20		116
Real estate—residential secured for business purpose	4,394		47		58		2,643		19		13
Real estate—residential secured for personal purpose	782		—		10		590		—		9
Real estate—home equity secured for personal purpose	160		—		2		84		—		1
Loans to individuals	—		—		—		1		—		—
Total	$	40,472	$	287	$	409	$	56,408	$	470	$	293

* Includes interest income recognized on a cash basis for nonaccrual loans of $15 thousand and $0 thousand for the three months ended September 30, 2015 and 2014, respectively and interest income recognized on the accrual method for accruing impaired loans of $272 thousand and $470 thousand for the three months ended September 30, 2015 and 2014, respectively.

	Nine Months Ended September 30, 2015						Nine Months Ended September 30, 2014
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms		Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms
Loans held for sale	$	1,233	$	—	$	57	$	—	$	—	$	—
Loans held for investment:
Commercial, financial and agricultural	15,691		346		371		14,806		401		188
Real estate—commercial real estate	23,577		778		257		25,734		816		248
Real estate—construction	4,041		—		159		11,499		103		363
Real estate—residential secured for business purpose	3,698		115		112		2,400		52		48
Real estate—residential secured for personal purpose	706		—		34		779		—		41
Real estate—home equity secured for personal purpose	174		—		8		82		—		3
Loans to individuals	—		—		—		5		—		—
Total	$	49,120	$	1,239	$	998	$	55,305	$	1,372	$	891

* Includes interest income recognized on a cash basis for nonaccrual loans of $37 thousand and $23 thousand for the nine months ended September 30, 2015 and 2014, respectively and interest income recognized on the accrual method for accruing impaired loans of $1.2 million and $1.3 million for the nine months ended September 30, 2015 and 2014, respectively.

Troubled Debt Restructured Loans

The following presents, by class of loans, information regarding accruing and nonaccrual loans that were restructured:

	Three Months Ended September 30, 2015							Three Months Ended September 30, 2014
(Dollars in thousands)	Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance		Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	50	$	50	$	—	3	$	1,424	$	1,424	$	132
Real estate—commercial real estate	—	—		—		—		1	1,000		1,000		—
Total	1	$	50	$	50	$	—	4	$	2,424	$	2,424	$	132
Nonaccrual Troubled Debt Restructured Loans:
Total	—	$	—	$	—	$	—	—	$	—	$	—	$	—

	Nine Months Ended September 30, 2015							Nine Months Ended September 30, 2014
(Dollars in thousands)	Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance		Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	4	$	1,140	$	1,140	$	71	3	$	1,424	$	1,424	$	132
Real estate—commercial real estate	1	405		405		—		1	1,000		1,000		—
Real estate—residential secured for business purpose	1	353		353		—		—	—		—		—
Total	6	$	1,898	$	1,898	$	71	4	$	2,424	$	2,424	$	132
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	122	$	122	$	22	—	$	—	$	—	$	—
Real estate—commercial real estate	—	—		—		—		1	50		50		—
Real estate—residential secured for business purpose	—	—		—		—		2	688		688		—
Total	1	$	122	$	122	$	22	3	$	738	$	738	$	—

The Corporation grants concessions primarily related to extensions of interest-only payment periods and an occasional payment modification. These modifications typically are for a short-term basis up to one year. The goal when restructuring a credit is to establish a reasonable period of time to provide cash flow relief to customers experiencing cash flow difficulties. Accruing troubled debt restructured loans are primarily comprised of loans on which interest is being accrued under the restructured terms, and the loans are current or less than ninety days past due.

The following presents, by class of loans, information regarding the types of concessions granted on accruing and nonaccrual loans that were restructured during the three and nine months ended September 30, 2015 and 2014.

	Temporary Payment Reduction			Interest Rate Reduction			Maturity Date Extension			Payments Suspended			Amortization Period Extension			Total Concessions Granted
(Dollars in thousands)	No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount
Three Months Ended September 30, 2015
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	—	$	—	—	$	—	—	$	—	1	$	50	1	$	50
Total	—	$	—	—	$	—	—	$	—	—	$	—	1	$	50	1	$	50
Nonaccrual Troubled Debt Restructured Loans:
Total	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Three Months Ended September 30, 2014
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	—	$	—	2	$	1,299	1	$	125	—	$	—	3	$	1,424
Real estate—commercial real estate	—	—		—	—		1	1,000		—	—		—	—		1	1,000
Total	—	$	—	—	$	—	3	$	2,299	1	$	125	—	$	—	4	$	2,424
Nonaccrual Troubled Debt Restructured Loans:
Total	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Nine Months Ended September 30, 2015
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	143	—	$	—	1	$	500	—	$	—	2	$	497	4	$	1,140
Real estate—commercial real estate	—	—		—	—		—	—		—	—		1	405		1	405
Real estate—residential secured for business purpose	1	353		—	—		—	—		—	—		—	—		1	353
Total	2	$	496	—	$	—	1	$	500	—	$	—	3	$	902	6	$	1,898
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	122	—	$	—	—	$	—	—	$	—	—	$	—	1	$	122
Total	1	$	122	—	$	—	—	$	—	—	$	—	—	$	—	1	$	122
Nine Months Ended September 30, 2014
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	—	$	—	2	$	1,299	1	$	125	—	$	—	3	$	1,424
Real estate—commercial real estate	—	—		—	—		1	1,000		—	—		—	—		1	1,000
Total	—	$	—	—	$	—	3	$	2,299	1	$	125	—	$	—	4	$	2,424
Nonaccrual Troubled Debt Restructured Loans:
Real estate—commercial real estate	—	$	—	1	$	50	—	$	—	—	$	—	—	$	—	1	$	50
Real estate—residential secured for business purpose	—	—		1	55		1	633		—	—		—	—		2	688
Total	—	$	—	2	$	105	1	$	633	—	$	—	—	$	—	3	$	738

The following presents, by class of loans, information regarding accruing and nonaccrual troubled debt restructured loans, for which there were payment defaults within twelve months of the restructuring date:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
(Dollars in thousands)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Accruing Troubled Debt Restructured Loans:
Total	—	$	—	—	$	—	—	$	—	—	$	—
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	2	$	219	—	$	—	4	$	419	—	$	—
Total	2	$	219	—	$	—	4	$	419	—	$	—

As a result of payment defaults during the first quarter of 2015, commercial accruing troubled debt restructured loans totaling $200 thousand were placed on nonaccrual of interest status and subsequently charged-off. As a result of payment defaults during the third quarter of 2015, commercial nonaccruing troubled debt restructured loans totaling $219 thousand incurred $98 thousand in charge-offs.

The following presents, by class of loans, information regarding consumer mortgages collateralized by residential real estate property that are in the process of foreclosure at September 30, 2015 and December 31, 2014:

(Dollars in thousands)	At September 30, 2015		At December 31, 2014
Real estate-residential secured for personal purpose	$	313	$	62
Real estate-home equity secured for personal purpose	60		—
Total	$	373	$	62

The Corporation held no foreclosed consumer residential real estate property at September 30, 2015 and December 31, 2014.

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Investment Securities

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

The following table shows the amortized cost and the estimated fair value of the held-to-maturity securities and available-for-sale securities at September 30, 2015 and December 31, 2014, by contractual maturity within each type:

	At September 30, 2015									At December 31, 2014
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Held-to-Maturity
Corporate bonds:
Within 1 year	$	17,066	$	176	$	—		$	17,242	$	13,088	$	82	$	—		$	13,170
After 1 year to 5 years	23,992		111		(22		)	24,081		41,259		388		(52		)	41,595
	41,058		287		(22		)	41,323		54,347		470		(52		)	54,765
Total	$	41,058	$	287	$	(22	)	$	41,323	$	54,347	$	470	$	(52	)	$	54,765
Securities Available-for-Sale
U.S. treasuries:
After 1 year to 5 years	$	4,977	$	—	$	(32	)	$	4,945	$	4,972	$	—	$	(127	)	$	4,845
	4,977		—		(32		)	4,945		4,972		—		(127		)	4,845
U.S. government corporations and agencies:
After 1 year to 5 years	104,893		491		(13		)	105,371		122,328		48		(532		)	121,844
	104,893		491		(13		)	105,371		122,328		48		(532		)	121,844
State and political subdivisions:
Within 1 year	—		—		—			—		600		2		—			602
After 1 year to 5 years	15,664		91		(15		)	15,740		12,326		17		(59		)	12,284
After 5 years to 10 years	51,605		1,446		(34		)	53,017		49,554		1,616		(77		)	51,093
Over 10 years	38,428		1,285		(50		)	39,663		37,004		1,792		(1		)	38,795
	105,697		2,822		(99		)	108,420		99,484		3,427		(137		)	102,774
Residential mortgage-backed securities:
After 1 year to 5 years	9,767		110		—			9,877		5,066		17		—			5,083
After 5 years to 10 years	—		—		—			—		4,856		—		(32		)	4,824
Over 10 years	3,598		69		—			3,667		3,661		75		—			3,736
	13,365		179		—			13,544		13,583		92		(32		)	13,643
Collateralized mortgage obligations:
Over 10 years	3,352		—		(49		)	3,303		3,810		—		(85		)	3,725
	3,352		—		(49		)	3,303		3,810		—		(85		)	3,725
Corporate bonds:
Within 1 year	—		—		—			—		4,998		22		—			5,020
After 1 year to 5 years	19,768		80		(165		)	19,683		29,505		88		(244		)	29,349
After 5 years to 10 years	10,403		1		(157		)	10,247		20,442		—		(371		)	20,071
Over 10 years	60,000		88		(2,105		)	57,983		—		—		—			—
	90,171		169		(2,427		)	87,913		54,945		110		(615		)	54,440
Money market mutual funds:
No stated maturity	9,020		—		—			9,020		11,675		—		—			11,675
	9,020		—		—			9,020		11,675		—		—			11,675
Equity securities:
No stated maturity	556		428		—			984		854		483		—			1,337
	556		428		—			984		854		483		—			1,337
Total	$	332,031	$	4,089	$	(2,620	)	$	333,500	$	311,651	$	4,160	$	(1,528	)	$	314,283

Expected maturities may differ from contractual maturities because debt issuers may have the right to call or prepay obligations without call or prepayment penalties. Unrealized losses in investment securities at September 30, 2015 and December 31, 2014 do not represent other-than-temporary impairments.

Securities with a carrying value of $204.5 million and $230.9 million at September 30, 2015 and December 31, 2014, respectively, were pledged to secure public deposits and for other purposes as required by law.

The following table presents information related to sales of securities available-for-sale during the nine months ended September 30, 2015 and 2014:

	Nine Months Ended September 30,
(Dollars in thousands)	2015		2014
Securities available-for-sale:
Proceeds from sales	$	56,005	$	30,286
Gross realized gains on sales	591		557
Gross realized losses on sales	23		—
Tax expense related to net realized gains on sales	199		195

Management evaluates debt securities, which are comprised of U.S. government, government sponsored agencies, municipalities, corporate bonds and other issuers, for other-than-temporary impairment by considering the current economic conditions, the length of time and the extent to which the fair value has been less than cost, market interest rates and the bond rating of each security. All of the debt securities are rated as investment grade and management believes that it will not incur any losses. The unrealized losses on the Corporation’s investments in debt securities are temporary in nature since they are primarily related to market interest rates and are not related to the underlying credit quality of the issuers. The Corporation does not have the intent to sell the debt securities and believes it is more likely than not, that it will not have to sell the securities before recovery of their cost basis. The Corporation did not recognize any other-than-temporary impairment charges on debt securities for the nine months ended September 30, 2015 and 2014.

The Corporation evaluates its equity securities for other-than-temporary impairment and recognizes other-than-temporary impairment charges when it has determined that it is probable that the fair value of certain equity securities will not recover to the Corporation’s cost basis in the individual securities within a reasonable period of time due to a decline in the financial stability of the underlying companies. Management evaluates the near-term prospects of the issuers in relation to the severity and duration of the impairment. The Corporation has the intent and ability to hold these securities until recovery of the Corporation’s cost basis occurs. The Corporation realized other-than-temporary impairment charges to noninterest income of $5 thousand on its equity portfolio during the three and nine months ended September 30, 2015.

At September 30, 2015 and December 31, 2014, there were no investments in any single non-federal issuer representing more than 10% of shareholders’ equity.

The following table shows the fair value of securities that were in an unrealized loss position at September 30, 2015 and December 31, 2014 by the length of time those securities were in a continuous loss position:

	Less than Twelve Months					Twelve Months or Longer					Total
(Dollars in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
At September 30, 2015
Securities Held-to-Maturity
Corporate bonds	$	—	$	—		$	4,987	$	(22	)	$	4,987	$	(22	)
Total	$	—	$	—		$	4,987	$	(22	)	$	4,987	$	(22	)
Securities Available-for-Sale
U.S. treasuries	$	—	$	—		$	4,945	$	(32	)	$	4,945	$	(32	)
U.S. government corporations and agencies	3,004		(8		)	4,995		(5		)	7,999		(13		)
State and political subdivisions	11,924		(90		)	1,340		(9		)	13,264		(99		)
Collateralized mortgage obligations	—		—			3,304		(49		)	3,304		(49		)
Corporate bonds	49,961		(2,228		)	10,799		(199		)	60,760		(2,427		)
Total	$	64,889	$	(2,326	)	$	25,383	$	(294	)	$	90,272	$	(2,620	)
At December 31, 2014
Securities Held-to-Maturity
Corporate bonds	$	15,036	$	(27	)	$	4,987	$	(25	)	$	20,023	$	(52	)
Total	$	15,036	$	(27	)	$	4,987	$	(25	)	$	20,023	$	(52	)
Securities Available-for-Sale
U.S. treasuries	$	—	$	—		$	4,845	$	(127	)	$	4,845	$	(127	)
U.S. government corporations and agencies	39,607		(80		)	62,140		(452		)	101,747		(532		)
State and political subdivisions	10,246		(31		)	9,303		(106		)	19,549		(137		)
Residential mortgage-backed securities	4,824		(32		)	—		—			4,824		(32		)
Collateralized mortgage obligations	—		—			3,725		(85		)	3,725		(85		)
Corporate bonds	21,949		(328		)	15,805		(287		)	37,754		(615		)
Total	$	76,626	$	(471	)	$	95,818	$	(1,057	)	$	172,444	$	(1,528	)

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Share Repurchase Plan Share Repurchase Plan

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Share Repurchase Plan

Share Repurchase Plan

On May 27, 2015, the Corporation's Board of Directors approved an increase of 1,000,000 shares in the common shares available for repurchase under the Corporation's share repurchase program, or approximately 5% of the Corporation's common stock outstanding as of May 27, 2015. During the quarter, the Corporation repurchased 86,650 shares of common stock at a cost of $1.8 million under the share repurchase program. Shares available for future repurchases under the plan totaled 1,080,246 at September 30, 2015. Total shares outstanding at September 30, 2015 were 19,502,613. The Corporation will repurchase shares of its common stock from time to time through open market purchases, tender offers, privately negotiated purchases or other means. The share repurchase program does not obligate the Corporation to acquire any particular amount of common stock. The program has no scheduled expiration date and the Board of Directors has the right to suspend or discontinue the program at any time.

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Derivative Instruments and Hedging Activities

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

The Corporation may use interest-rate swap agreements to modify interest rate characteristics from variable to fixed or fixed to variable in order to reduce the impact of interest rate changes on future net interest income. Recorded amounts related to interest-rate swaps are included in other assets or liabilities. The Corporation’s credit exposure on interest rate swaps includes fair value and any collateral that is held by a third party. Changes in the fair value of derivative instruments designated as hedges of future cash flows are recognized in accumulated other comprehensive income until the underlying forecasted transactions occur, at which time the deferred gains and losses are recognized in earnings. For a qualifying fair value hedge, the gain or loss on the hedging instrument is recognized in earnings, and the change in fair value of the hedge item, to the extent attributable to the hedged risk, adjusts the carrying amount of the hedge item and is recognized in earnings.

Derivative loan commitments represent agreements for delayed delivery of financial instruments in which the buyer agrees to purchase and the seller agrees to deliver, at a specified future date, a specified instrument at a specified price or yield. The Corporation’s derivative loan commitments are commitments to sell loans secured by 1-to 4-family residential properties whose predominant risk characteristic is interest rate risk. The fair values of these derivative loan commitments are based upon the estimated amount the Corporation would receive or pay to terminate the contracts or agreements, taking into account current interest rates and, when appropriate, the current creditworthiness of the counterparties.

On October 24, 2014, the Corporation entered into an amortizing interest rate swap classified as a cash flow hedge with a notional amount of $20.0 million to hedge a portion of the debt financing of a pool of 10-year maturity fixed rate loans with balances totaling $29.1 million, at time of the hedge, that were originated in 2013. A brokered money market demand account with a balance exceeding the amortizing interest rate swap balance is being used for the cash flow hedge. Under the terms of the swap agreement, the Corporation pays a fixed rate of 2.10% and receives a floating rate based on the one-monthLIBOR with a maturity date of November 1, 2022. The Corporation performed an assessment of the hedge for effectiveness at the inception of the hedge and on a recurring basis to determine that the derivative has been and is expected to continue to be highly effective in offsetting changes in cash flows of the hedged item. The Corporation expects that there will be no ineffectiveness over the life of the interest rate swap, and therefore anticipates no portion of the net loss in accumulated other comprehensive loss will be reclassified into interest expense. To the extent there is ineffectiveness, the Corporation would record the ineffectiveness in interest expense.

The Corporation pledges cash or securities to cover a portion of the negative fair value of the interest rate swap, as measured by the counterparty. At September 30, 2015, the notional amount of the cash flow hedge was $19.4 million, with a negative fair value of $685 thousand. The Corporation has pledged $700 thousand to the counterparty as collateral for the negative fair value.

The following table presents the notional amounts and fair values of derivatives not designated as hedging instruments recorded on the consolidated balance sheets at September 30, 2015 and December 31, 2014:

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At September 30, 2015
Interest rate locks with customers	$	38,965	Other Assets	$	1,264		$	—
Forward loan sale commitments	44,726			—		Other Liabilities	184
Total	$	83,691		$	1,264		$	184
At December 31, 2014
Interest rate locks with customers	$	27,007	Other Assets	$	788		$	—
Forward loan sale commitments	30,537			—		Other Liabilities	112
Total	$	57,544		$	788		$	112

The following table presents the notional amounts and fair values of derivatives designated as hedging instruments recorded on the consolidated balance sheets at September 30, 2015 and December 31, 2014:

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At September 30, 2015
Interest rate swap - cash flow hedge	$	19,440		$	—	Other Liabilities	$	685
Total	$	19,440		$	—		$	685
At December 31, 2014
Interest rate swap - cash flow hedge	$	19,945		$	—	Other Liabilities	$	241
Total	$	19,945		$	—		$	241

For the three and nine months ended September 30, 2015 and 2014, the amounts included in the consolidated statements of income for derivatives not designated as hedging instruments are shown in the table below:

	Statement of Income Classification	Three Months Ended   September 30,						Nine Months Ended   September 30,
(Dollars in thousands)		2015			2014			2015			2014
Interest rate locks with customers	Net gain on mortgage banking activities	$	339		$	(109	)	$	476		$	339
Forward loan sale commitments	Net loss on mortgage banking activities	(321		)	99			(72		)	(114		)
Total		$	18		$	(10	)	$	404		$	225

For the three and nine months ended September 30, 2015 and 2014, the amounts included in the consolidated statements of income for derivatives designated as hedging instruments are shown in the table below:

	Statement of Income Classification	Three Months Ended   September 30,					Nine Months Ended   September 30,
(Dollars in thousands)		2015			2014		2015			2014
Interest rate swap—cash flow hedge—interest payments	Interest expense	$	95		—		$	286		—
Net loss		$	(95	)	$	—	$	(286	)	$	—

At September 30, 2015 and December 31, 2014, the amounts included in accumulated other comprehensive (loss) income for derivatives designated as hedging instruments are shown in the table below:

(Dollars in thousands)	Accumulated Other Comprehensive (Loss) Income	At September 30, 2015			At December 31, 2014
Interest rate swap—cash flow hedge	Fair value, net of taxes	$	(445	)	$	(157	)
Total		$	(445	)	$	(157	)

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Retirement Plans and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Retirement Plans and Other Postretirement Benefits

Retirement Plans and Other Postretirement Benefits

Substantially all employees who were hired before December 8, 2009 are covered by a noncontributory retirement plan. Employees hired on or after December 8, 2009 are not eligible to participate in the noncontributory retirement plan. The Corporation also provides supplemental executive retirement benefits, a portion of which is in excess of limits imposed on qualified plans by federal tax law; these plans are non-qualified benefit plans. These non-qualified benefit plans are not offered to new participants; all current participants are now retired. Information on these plans are aggregated and reported under “Retirement Plans” within this footnote.

The Corporation also provides certain postretirement healthcare and life insurance benefits for retired employees. Information on these benefits is reported under “Other Postretirement Benefits” within this footnote.

The Corporation sponsors a Supplemental Non-Qualified Pension Plan which was established in 1981 prior to the existence of a 401(k) deferred salary savings plan, employee stock purchase plan and long-term incentive plans and therefore is not offered to new participants; all current participants are now retired.

Components of net periodic benefit cost (income) were as follows:

	Three Months Ended September 30,
	2015			2014			2015		2014
(Dollars in thousands)	Retirement Plans						Other Post Retirement Benefits
Service cost	$	193		$	137		$	15	$	19
Interest cost	488			476			28		32
Expected return on plan assets	(756		)	(746		)	—		—
Amortization of net actuarial loss	328			164			13		4
Accretion of prior service cost	(70		)	(71		)	—		(1		)
Net periodic benefit cost (income)	$	183		$	(40	)	$	56	$	54

	Nine Months Ended September 30,
	2015			2014			2015		2014
(Dollars in thousands)	Retirement Plans						Other Post Retirement Benefits
Service cost	$	579		$	410		$	44	$	56
Interest cost	1,463			1,426			83		99
Expected return on plan assets	(2,268		)	(2,236		)	—		—
Amortization of net actuarial loss	982			490			40		9
Accretion of prior service cost	(210		)	(212		)	—		(4		)
Net periodic benefit cost (income)	$	546		$	(122	)	$	167	$	160

The Corporation contributed $2.0 million to its qualified retirement plan during the nine months ended September 30, 2015. The Corporation previously disclosed in its financial statements for the year ended December 31, 2014, that it expected to make contributions of $166 thousand to its non-qualified retirement plans and $113 thousand to its other postretirement benefit plans in 2015. During the nine months ended September 30, 2015, the Corporation contributed $138 thousand to its non-qualified retirement plans and $70 thousand to its other postretirement plans. During the nine months ended September 30, 2015, $1.8 million was paid to participants from the retirement plans and $70 thousand was paid to participants from the other postretirement plans.

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Goodwill and Other Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 27,552	$ 23,956
Accumulated Amortization and Fair Value Adjustments	14,484	11,776
Net Carrying Amount	13,068	12,180
Core Deposit Intangibles [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,520	0
Accumulated Amortization and Fair Value Adjustments	207	0
Net Carrying Amount	1,313	0
Customer Related Intangibles [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	14,227	13,397
Accumulated Amortization and Fair Value Adjustments	8,244	6,726
Net Carrying Amount	5,983	6,671
Mortgage Servicing Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	11,805	10,559
Accumulated Amortization and Fair Value Adjustments	6,033	5,050
Net Carrying Amount	$ 5,772	$ 5,509

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

The Corporation has core deposit and customer-related intangibles and mortgage servicing rights, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The Corporation also has goodwill which is deemed to be an indefinite intangible asset and is not amortized.

Changes in the carrying amount of the Corporation's goodwill by business segment for the nine months ended September 30, 2015 were as follows:

(Dollars in thousands)	Banking		Wealth Management		Insurance		Consolidated
Balance at December 31, 2014	$	35,058	$	15,434	$	17,225	$	67,717
Addition to goodwill from acquisitions	43,516		—		1,424		44,940
Balance at September 30, 2015	$	78,574	$	15,434	$	18,649	$	112,657

The following table reflects the components of intangible assets at the dates indicated:

	At September 30, 2015						At December 31, 2014
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization and Fair Value Adjustments		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization and Fair Value Adjustments		Net Carrying Amount
Amortized intangible assets:
Core deposit intangibles	$	1,520	$	207	$	1,313	$	—	$	—	$	—
Customer related intangibles	14,227		8,244		5,983		13,397		6,726		6,671
Mortgage servicing rights	11,805		6,033		5,772		10,559		5,050		5,509
Total amortized intangible assets	$	27,552	$	14,484	$	13,068	$	23,956	$	11,776	$	12,180

The estimated aggregate amortization expense for core deposit and customer related intangibles for the remainder of 2015 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2015		$	553
2016		1,871
2017		1,544
2018		1,170
2019		847
Thereafter		1,311

The Corporation has originated mortgage servicing rights which are included in other intangible assets on the consolidated balance sheets. Mortgage servicing rights are amortized in proportion to, and over the period of, estimated net servicing income on a basis similar to the interest method and an accelerated amortization method for loan payoffs. Mortgage servicing rights are subject to impairment testing on a quarterly basis. The aggregate fair value of these rights was $7.6 million and $6.9 million at September 30, 2015 and December 31, 2014, respectively. The fair value of mortgage servicing rights was determined using a discount rate of 10.0% at September 30, 2015, and December 31, 2014.

Changes in the mortgage servicing rights balance are summarized as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Beginning of period	$	5,696		$	5,378		$	5,509		$	5,519
Servicing rights capitalized	365			365			1,246			724
Amortization of servicing rights	(289		)	(561		)	(983		)	(1,068		)
Changes in valuation allowance	—			243			—			250
End of period	$	5,772		$	5,425		$	5,772		$	5,425
Mortgage loans serviced for others	$	848,160		$	779,701		$	848,160		$	779,701

Activity in the valuation allowance for mortgage servicing rights was as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands)	2015		2014			2015		2014
Valuation allowance, beginning of period	$	—	$	(243	)	$	—	$	(250	)
Additions	—		—			—		—
Reductions	—		243			—		250
Direct write-downs	—		—			—		—
Valuation allowance, end of period	$	—	$	—		$	—	$	—

The estimated amortization expense of mortgage servicing rights for the remainder of 2015 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2015		$	229
2016		885
2017		761
2018		649
2019		550
Thereafter		2,698

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Income Taxes

9 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

At September 30, 2015 and December 31, 2014, the Corporation had no material unrecognized tax benefits, accrued interest or penalties. Penalties are recorded in noninterest expense in the year they are assessed and are treated as a non-deductible expense for tax purposes. Interest is recorded in noninterest expense in the year it is assessed and is treated as a deductible expense for tax purposes. At September 30, 2015, the Corporation’s tax years 2012 through 2014 remain subject to federal examination as well as examination by state taxing jurisdictions.

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Subordinated Debt

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Subordinated Debt

Subordinated Debt

On March 30, 2015, the Corporation completed the issuance of $50 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the "Notes") due 2025 in a private placement transaction to institutional accredited investors.

The net proceeds of the offering, which approximated $49 million, increased regulatory capital and will be used for general corporate purposes and to support both organic growth as well as acquisitions, should such opportunities arise. The debt issuance costs are included as a direct deduction from the debt liability and the costs are amortized to interest expense using the effective interest method.

The Notes bear interest at an annual fixed rate of 5.10% from the date of issuance until March 30, 2020, or any early redemption date, with the first interest payment on the Notes occurring on September 30, 2015 and semi-annually thereafter each March 30 and September 30 until March 30, 2020. Thereafter, the Notes will bear interest at an annual rate equal to the three-month LIBOR rate plus 3.544% until March 30, 2025, or any early redemption date, payable quarterly on each March 30, June 30, September 30 and December 30. Beginning with the interest payment date of March 30, 2020, the Corporation has the option, subject to approval of the Federal Reserve Board, to redeem the Notes in whole or in part at a redemption price equal to 100% of the principal amount of the redeemed Notes, plus accrued and unpaid interest to the date of the redemption.

In conjunction with the issuance, the Corporation requested that Kroll Bond Rating Agency (“KBRA”) assign a senior unsecured debt rating, a subordinated debt rating and a short-term rating to the Corporation and a deposit rating and short-term rating to the Bank. As such, KBRA assigned the Corporation a senior unsecured debt rating of BBB+, a subordinated debt rating of BBB and a short-term rating of K2. In addition, KBRA assigned a deposit rating of A- and a short-term rating of K2 to the Bank. The outlook on all ratings is stable.

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Goodwill and Other Intangible Assets - Estimated Amortization Expense of Mortgage Servicing Rights (Details) $ in Thousands	Sep. 30, 2015 USD ($)
Finite-Lived Intangible Assets [Line Items]
Remainder of 2015	$ 553
2016	1,871
2017	1,544
2018	1,170
2019	847
Thereafter	1,311
Mortgage Servicing Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Remainder of 2015	229
2016	885
2017	761
2018	649
2019	550
Thereafter	$ 2,698

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Retirement Plans and Other Postretirement Benefits - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Employee hire date no longer eligible for noncontributory retirement plan	Dec. 08, 2009
Defined benefit plan qualified retirement plan employer contributions current fiscal year	$ 2,000
Retirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, non-qualified plans, estimated employer contributions for next fiscal year		$ 166
Defined benefit plan, contributions by employer	138
Defined benefit plan, benefits paid	1,800
Other Post Retirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected employer contributions for next fiscal year		$ 113
Defined benefit plan, contributions by employer	70
Defined benefit plan, benefits paid	$ 70

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Goodwill and Other Intangible Assets - Activity in Valuation Allowance for Mortgage Servicing Rights (Details) - Mortgage Servicing Rights [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Movement in Valuation Allowances and Reserves [Roll Forward]
Valuation allowance, beginning of period	$ 0	$ (243)	$ 0	$ (250)
Additions	0	0	0	0
Reductions	0	243	0	250
Direct write-downs	0	0	0	0
Valuation allowance, end of period	$ 0	$ 0	$ 0	$ 0

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Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Schedule of Segment Reporting

The following table provides total assets by reportable operating segment as of the dates indicated.

(Dollars in thousands)	At September 30, 2015		At December 31, 2014		At September 30, 2014
Banking	$	2,773,279	$	2,154,485	$	2,147,763
Wealth Management	32,793		34,195		32,908
Insurance	23,825		22,930		21,930
Other	21,671		23,711		19,595
Consolidated assets	$	2,851,568	$	2,235,321	$	2,222,196

The following tables provide reportable segment-specific information and reconciliations to consolidated financial information for the three and nine months ended September 30, 2015 and 2014.

	Three Months Ended
	September 30, 2015
(Dollars in thousands)	Banking			Wealth Management		Insurance			Other			Consolidated
Interest income	$	25,576		$	—	$	—		$	9		$	25,585
Interest expense	2,220			—		—			—			2,220
Net interest income	23,356			—		—			9			23,365
Provision for loan and lease losses	670			—		—			—			670
Noninterest income	4,932			4,628		3,345			(50		)	12,855
Noninterest expense	18,408			3,410		3,109			316			25,243
Intersegment (revenue) expense*	(554		)	259		295			—			—
Income (loss) before income taxes	9,764			959		(59		)	(357		)	10,307
Income taxes	2,495			368		(44		)	(40		)	2,779
Net income (loss)	$	7,269		$	591	$	(15	)	$	(317	)	$	7,528
Capital expenditures	$	925		$	1	$	3		$	138		$	1,067

	Three Months Ended
	September 30, 2014
(Dollars in thousands)	Banking			Wealth Management		Insurance			Other			Consolidated
Interest income	$	19,211		$	—	$	—		$	8		$	19,219
Interest expense	978			—		—			—			978
Net interest income	18,233			—		—			8			18,241
Provision for loan and lease losses	233			—		—			—			233
Noninterest income	4,536			4,985		3,001			(12		)	12,510
Noninterest expense	16,279			3,263		2,820			(343		)	22,019
Intersegment (revenue) expense*	(660		)	214		446			—			—
Income (loss) before income taxes	6,917			1,508		(265		)	339			8,499
Income taxes	1,599			580		(105		)	190			2,264
Net income (loss)	$	5,318		$	928	$	(160	)	$	149		$	6,235
Capital expenditures	$	313		$	25	$	16		$	82		$	436

	Nine Months Ended
	September 30, 2015
(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
Interest income	$	75,811		$	—	$	—	$	25		$	75,836
Interest expense	5,787			—		—		—			5,787
Net interest income	70,024			—		—		25			70,049
Provision for loan and lease losses	2,885			—		—		—			2,885
Noninterest income	14,240			14,216		11,138		43			39,637
Noninterest expense	59,595			9,903		9,514		474			79,486
Intersegment (revenue) expense*	(1,583		)	676		907		—			—
Income (loss) before income taxes	23,367			3,637		717		(406		)	27,315
Income taxes	5,471			1,405		282		47			7,205
Net income (loss)	$	17,896		$	2,232	$	435	$	(453	)	$	20,110
Capital expenditures	$	6,020		$	9	$	53	$	216		$	6,298

	Nine Months Ended
	September 30, 2014
(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
Interest income	$	56,864		$	—	$	—	$	26		$	56,890
Interest expense	2,959			—		—		(2		)	2,957
Net interest income	53,905			—		—		28			53,933
Provision for loan and lease losses	2,959			—		—		—			2,959
Noninterest income	12,153			14,969		9,030		423			36,575
Noninterest expense	48,800			9,869		7,320		(1,297		)	64,692
Intersegment (revenue) expense*	(1,616		)	674		942		—			—
Income before income taxes	15,915			4,426		768		1,748			22,857
Income taxes	3,078			1,672		331		735			5,816
Net income	$	12,837		$	2,754	$	437	$	1,013		$	17,041
Capital expenditures	$	2,016		$	97	$	83	$	149		$	2,345

*Includes an allocation of general and administrative expenses from both the parent holding company and the Bank. Generally speaking, these expenses are allocated based upon number of employees and square footage usage.

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Loans and Leases - Reserve for Loan and Lease Losses and Recorded Investment in Loans and Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$ 380			$ 1,142
Ending balance: collectively evaluated for impairment	18,219			20,620
Ending balance: acquired credit impaired loans evaluated for impairment	21
Total ending balance	18,620	$ 19,602	$ 20,662	21,762	$ 24,094	$ 24,494
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	32,768			59,079
Ending balance: collectively evaluated for impairment	1,723,735			1,538,657
Acquired non-credit impaired loans	339,925
Acquired credit impaired loans	1,379
Total Loans and Leases Held for Investment	2,097,807		1,626,625	1,597,736
Commercial, Financial and Agricultural [Member]
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	344			685
Ending balance: collectively evaluated for impairment	6,650			6,930
Ending balance: acquired credit impaired loans evaluated for impairment	0
Total ending balance	6,994	6,847	6,920	7,615	9,714	9,789
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	13,932			18,214
Ending balance: collectively evaluated for impairment	441,537			420,342
Acquired non-credit impaired loans	27,562
Acquired credit impaired loans	311
Total Loans and Leases Held for Investment	483,342		457,827	438,556
Real Estate-Commercial and Construction [Member]
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	0			27
Ending balance: collectively evaluated for impairment	6,903			9,061
Ending balance: acquired credit impaired loans evaluated for impairment	8
Total ending balance	6,911	7,801	8,943	9,088	9,263	8,780
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	13,622			37,341
Ending balance: collectively evaluated for impairment	768,518			675,817
Acquired non-credit impaired loans	157,866
Acquired credit impaired loans	512
Total Loans and Leases Held for Investment	940,518			713,158
Real Estate-Residential Secured for Business Purpose [Member]
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	0			430
Ending balance: collectively evaluated for impairment	493			530
Ending balance: acquired credit impaired loans evaluated for impairment	13
Total ending balance	506	616	763	960	1,025	1,062
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	4,278			2,921
Ending balance: collectively evaluated for impairment	61,093			32,446
Acquired non-credit impaired loans	138,100
Acquired credit impaired loans	493
Total Loans and Leases Held for Investment	203,964		36,932	35,367
Real Estate-Residential and Home Equity Secured for Personal Purpose [Member]
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	36			0
Ending balance: collectively evaluated for impairment	1,147			1,178
Ending balance: acquired credit impaired loans evaluated for impairment	0
Total ending balance	1,183	1,188	1,124	1,178	1,248	1,284
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	936			603
Ending balance: collectively evaluated for impairment	298,128			267,956
Acquired non-credit impaired loans	16,055
Acquired credit impaired loans	63
Total Loans and Leases Held for Investment	315,182			268,559
Loans to Individuals [Member]
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	0			0
Ending balance: collectively evaluated for impairment	415			332
Ending balance: acquired credit impaired loans evaluated for impairment	0
Total ending balance	415	389	360	332	405	694
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	0			0
Ending balance: collectively evaluated for impairment	29,575			30,144
Acquired non-credit impaired loans	342
Acquired credit impaired loans	0
Total Loans and Leases Held for Investment	29,917		29,941	30,144
Lease Financings [Member]
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	0			0
Ending balance: collectively evaluated for impairment	999			1,115
Ending balance: acquired credit impaired loans evaluated for impairment	0
Total ending balance	999	1,125	985	1,115	1,101	1,285
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	0			0
Ending balance: collectively evaluated for impairment	124,884			111,952
Acquired non-credit impaired loans	0
Acquired credit impaired loans	0
Total Loans and Leases Held for Investment	124,884		118,460	111,952
Unallocated Financing Receivables [Member]
Reserve for loan and lease losses:
Ending balance: collectively evaluated for impairment	1,612			1,474
Ending balance: acquired credit impaired loans evaluated for impairment	0
Total ending balance	$ 1,612	$ 1,636	$ 1,567	$ 1,474	$ 1,338	$ 1,600

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Segment Reporting

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

At September 30, 2015, the Corporation has three reportable business segments: Banking, Wealth Management and Insurance. The Corporation determines the segments based primarily upon product and service offerings, through the types of income generated and the regulatory environment. This is strategically how the Corporation operates and has positioned itself in the marketplace. Accordingly, significant operating decisions are based upon analysis of each of these segments. At September 30, 2015, these segments meet the quantitative thresholds for separate disclosure as a business segment. Non-reportable segments include the parent holding company and intercompany eliminations, and are included in the "Other" segment. Prior to 2014, the Corporation had only one reportable segment, Community Banking. During 2014, the Corporation acquired Girard Partners and Sterner Insurance and realigned the investment and trust operations into its Wealth Management Reporting unit; this resulted in the three reportable segments of Banking, Wealth Management and Insurance.

The Corporation's Banking segment consists of commercial and consumer banking. The Wealth Management segment consists of investment advisory services, retirement plan services, trust, municipal pension services and broker/dealer services. The Insurance segment consists of commercial lines, personal lines, benefits and human resources consulting.

Each segment generates revenue from a variety of products and services it provides. Examples of products and services provided for each reportable segment are indicated below.

Ÿ	The Banking segment provides financial services to consumers, businesses and governmental units. These services include a full range of banking services such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing.
Ÿ	The Wealth Management segment offers trust and investment advisory services, guardian and custodian of employee benefits and other trust and brokerage services, as well as a registered investment advisory managing private investment accounts for both individuals and institutions.
Ÿ	The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, group life and health coverage, employee benefit solutions and personal insurance lines.

The accounting policies, used in the disclosure of the operating segments, are the same as those described in Note 1, “Summary of Significant Accounting Policies".

The following table provides total assets by reportable operating segment as of the dates indicated.

(Dollars in thousands)	At September 30, 2015		At December 31, 2014		At September 30, 2014
Banking	$	2,773,279	$	2,154,485	$	2,147,763
Wealth Management	32,793		34,195		32,908
Insurance	23,825		22,930		21,930
Other	21,671		23,711		19,595
Consolidated assets	$	2,851,568	$	2,235,321	$	2,222,196

The following tables provide reportable segment-specific information and reconciliations to consolidated financial information for the three and nine months ended September 30, 2015 and 2014.

	Three Months Ended
	September 30, 2015
(Dollars in thousands)	Banking			Wealth Management		Insurance			Other			Consolidated
Interest income	$	25,576		$	—	$	—		$	9		$	25,585
Interest expense	2,220			—		—			—			2,220
Net interest income	23,356			—		—			9			23,365
Provision for loan and lease losses	670			—		—			—			670
Noninterest income	4,932			4,628		3,345			(50		)	12,855
Noninterest expense	18,408			3,410		3,109			316			25,243
Intersegment (revenue) expense*	(554		)	259		295			—			—
Income (loss) before income taxes	9,764			959		(59		)	(357		)	10,307
Income taxes	2,495			368		(44		)	(40		)	2,779
Net income (loss)	$	7,269		$	591	$	(15	)	$	(317	)	$	7,528
Capital expenditures	$	925		$	1	$	3		$	138		$	1,067

	Three Months Ended
	September 30, 2014
(Dollars in thousands)	Banking			Wealth Management		Insurance			Other			Consolidated
Interest income	$	19,211		$	—	$	—		$	8		$	19,219
Interest expense	978			—		—			—			978
Net interest income	18,233			—		—			8			18,241
Provision for loan and lease losses	233			—		—			—			233
Noninterest income	4,536			4,985		3,001			(12		)	12,510
Noninterest expense	16,279			3,263		2,820			(343		)	22,019
Intersegment (revenue) expense*	(660		)	214		446			—			—
Income (loss) before income taxes	6,917			1,508		(265		)	339			8,499
Income taxes	1,599			580		(105		)	190			2,264
Net income (loss)	$	5,318		$	928	$	(160	)	$	149		$	6,235
Capital expenditures	$	313		$	25	$	16		$	82		$	436

	Nine Months Ended
	September 30, 2015
(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
Interest income	$	75,811		$	—	$	—	$	25		$	75,836
Interest expense	5,787			—		—		—			5,787
Net interest income	70,024			—		—		25			70,049
Provision for loan and lease losses	2,885			—		—		—			2,885
Noninterest income	14,240			14,216		11,138		43			39,637
Noninterest expense	59,595			9,903		9,514		474			79,486
Intersegment (revenue) expense*	(1,583		)	676		907		—			—
Income (loss) before income taxes	23,367			3,637		717		(406		)	27,315
Income taxes	5,471			1,405		282		47			7,205
Net income (loss)	$	17,896		$	2,232	$	435	$	(453	)	$	20,110
Capital expenditures	$	6,020		$	9	$	53	$	216		$	6,298

	Nine Months Ended
	September 30, 2014
(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
Interest income	$	56,864		$	—	$	—	$	26		$	56,890
Interest expense	2,959			—		—		(2		)	2,957
Net interest income	53,905			—		—		28			53,933
Provision for loan and lease losses	2,959			—		—		—			2,959
Noninterest income	12,153			14,969		9,030		423			36,575
Noninterest expense	48,800			9,869		7,320		(1,297		)	64,692
Intersegment (revenue) expense*	(1,616		)	674		942		—			—
Income before income taxes	15,915			4,426		768		1,748			22,857
Income taxes	3,078			1,672		331		735			5,816
Net income	$	12,837		$	2,754	$	437	$	1,013		$	17,041
Capital expenditures	$	2,016		$	97	$	83	$	149		$	2,345

*Includes an allocation of general and administrative expenses from both the parent holding company and the Bank. Generally speaking, these expenses are allocated based upon number of employees and square footage usage.

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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Amortized cost and estimated fair value of held to maturity securities and available for sale securities by contractual maturity

The following table shows the amortized cost and the estimated fair value of the held-to-maturity securities and available-for-sale securities at September 30, 2015 and December 31, 2014, by contractual maturity within each type:

	At September 30, 2015									At December 31, 2014
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Held-to-Maturity
Corporate bonds:
Within 1 year	$	17,066	$	176	$	—		$	17,242	$	13,088	$	82	$	—		$	13,170
After 1 year to 5 years	23,992		111		(22		)	24,081		41,259		388		(52		)	41,595
	41,058		287		(22		)	41,323		54,347		470		(52		)	54,765
Total	$	41,058	$	287	$	(22	)	$	41,323	$	54,347	$	470	$	(52	)	$	54,765
Securities Available-for-Sale
U.S. treasuries:
After 1 year to 5 years	$	4,977	$	—	$	(32	)	$	4,945	$	4,972	$	—	$	(127	)	$	4,845
	4,977		—		(32		)	4,945		4,972		—		(127		)	4,845
U.S. government corporations and agencies:
After 1 year to 5 years	104,893		491		(13		)	105,371		122,328		48		(532		)	121,844
	104,893		491		(13		)	105,371		122,328		48		(532		)	121,844
State and political subdivisions:
Within 1 year	—		—		—			—		600		2		—			602
After 1 year to 5 years	15,664		91		(15		)	15,740		12,326		17		(59		)	12,284
After 5 years to 10 years	51,605		1,446		(34		)	53,017		49,554		1,616		(77		)	51,093
Over 10 years	38,428		1,285		(50		)	39,663		37,004		1,792		(1		)	38,795
	105,697		2,822		(99		)	108,420		99,484		3,427		(137		)	102,774
Residential mortgage-backed securities:
After 1 year to 5 years	9,767		110		—			9,877		5,066		17		—			5,083
After 5 years to 10 years	—		—		—			—		4,856		—		(32		)	4,824
Over 10 years	3,598		69		—			3,667		3,661		75		—			3,736
	13,365		179		—			13,544		13,583		92		(32		)	13,643
Collateralized mortgage obligations:
Over 10 years	3,352		—		(49		)	3,303		3,810		—		(85		)	3,725
	3,352		—		(49		)	3,303		3,810		—		(85		)	3,725
Corporate bonds:
Within 1 year	—		—		—			—		4,998		22		—			5,020
After 1 year to 5 years	19,768		80		(165		)	19,683		29,505		88		(244		)	29,349
After 5 years to 10 years	10,403		1		(157		)	10,247		20,442		—		(371		)	20,071
Over 10 years	60,000		88		(2,105		)	57,983		—		—		—			—
	90,171		169		(2,427		)	87,913		54,945		110		(615		)	54,440
Money market mutual funds:
No stated maturity	9,020		—		—			9,020		11,675		—		—			11,675
	9,020		—		—			9,020		11,675		—		—			11,675
Equity securities:
No stated maturity	556		428		—			984		854		483		—			1,337
	556		428		—			984		854		483		—			1,337
Total	$	332,031	$	4,089	$	(2,620	)	$	333,500	$	311,651	$	4,160	$	(1,528	)	$	314,283

Information Related to Sales of Securities Available-for-Sale

The following table presents information related to sales of securities available-for-sale during the nine months ended September 30, 2015 and 2014:

	Nine Months Ended September 30,
(Dollars in thousands)	2015		2014
Securities available-for-sale:
Proceeds from sales	$	56,005	$	30,286
Gross realized gains on sales	591		557
Gross realized losses on sales	23		—
Tax expense related to net realized gains on sales	199		195

Amount of Securities in Unrealized Loss Position

The following table shows the fair value of securities that were in an unrealized loss position at September 30, 2015 and December 31, 2014 by the length of time those securities were in a continuous loss position:

	Less than Twelve Months					Twelve Months or Longer					Total
(Dollars in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
At September 30, 2015
Securities Held-to-Maturity
Corporate bonds	$	—	$	—		$	4,987	$	(22	)	$	4,987	$	(22	)
Total	$	—	$	—		$	4,987	$	(22	)	$	4,987	$	(22	)
Securities Available-for-Sale
U.S. treasuries	$	—	$	—		$	4,945	$	(32	)	$	4,945	$	(32	)
U.S. government corporations and agencies	3,004		(8		)	4,995		(5		)	7,999		(13		)
State and political subdivisions	11,924		(90		)	1,340		(9		)	13,264		(99		)
Collateralized mortgage obligations	—		—			3,304		(49		)	3,304		(49		)
Corporate bonds	49,961		(2,228		)	10,799		(199		)	60,760		(2,427		)
Total	$	64,889	$	(2,326	)	$	25,383	$	(294	)	$	90,272	$	(2,620	)
At December 31, 2014
Securities Held-to-Maturity
Corporate bonds	$	15,036	$	(27	)	$	4,987	$	(25	)	$	20,023	$	(52	)
Total	$	15,036	$	(27	)	$	4,987	$	(25	)	$	20,023	$	(52	)
Securities Available-for-Sale
U.S. treasuries	$	—	$	—		$	4,845	$	(127	)	$	4,845	$	(127	)
U.S. government corporations and agencies	39,607		(80		)	62,140		(452		)	101,747		(532		)
State and political subdivisions	10,246		(31		)	9,303		(106		)	19,549		(137		)
Residential mortgage-backed securities	4,824		(32		)	—		—			4,824		(32		)
Collateralized mortgage obligations	—		—			3,725		(85		)	3,725		(85		)
Corporate bonds	21,949		(328		)	15,805		(287		)	37,754		(615		)
Total	$	76,626	$	(471	)	$	95,818	$	(1,057	)	$	172,444	$	(1,528	)

XML

Loans and Leases - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	$ 1,756,503	$ 1,626,625
Total Loans and Leases Held for Investment, Acquired	341,304
Grade: 1. Cash secured/ 2. Fully secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	3,767	5,510
Total Loans and Leases Held for Investment, Acquired	1,013
Grade: 3. Strong [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	28,202	26,414
Total Loans and Leases Held for Investment, Acquired	0
Grade: 4. Satisfactory [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	55,239	63,588
Total Loans and Leases Held for Investment, Acquired	7,896
Grade: 5. Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	887,898	783,790
Total Loans and Leases Held for Investment, Acquired	302,527
Grade: 6. Pre-watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	240,678	199,462
Total Loans and Leases Held for Investment, Acquired	6,682
Grade: 7. Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	21,074	25,975
Total Loans and Leases Held for Investment, Acquired	2,165
Grade: 8. Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	66,122	98,385
Total Loans and Leases Held for Investment, Acquired	4,561
Grade: 9. Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0
Grade: 10. Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0
Internally Assigned Grades [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	1,302,980	1,203,124
Total Loans and Leases Held for Investment, Acquired	324,844
Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	451,724	421,974
Total Loans and Leases Held for Investment, Acquired	16,460
Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	1,799	1,527
Total Loans and Leases Held for Investment, Acquired	0
Performing and Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	453,523	423,501
Total Loans and Leases Held for Investment, Acquired	16,460
Commercial, Financial and Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	455,469	457,827
Total Loans and Leases Held for Investment, Acquired	27,873
Commercial, Financial and Agricultural [Member] | Grade: 1. Cash secured/ 2. Fully secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	664	4,248
Total Loans and Leases Held for Investment, Acquired	1,013
Commercial, Financial and Agricultural [Member] | Grade: 3. Strong [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	16,985	14,013
Total Loans and Leases Held for Investment, Acquired	0
Commercial, Financial and Agricultural [Member] | Grade: 4. Satisfactory [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	25,761	23,931
Total Loans and Leases Held for Investment, Acquired	1,199
Commercial, Financial and Agricultural [Member] | Grade: 5. Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	299,950	301,425
Total Loans and Leases Held for Investment, Acquired	23,902
Commercial, Financial and Agricultural [Member] | Grade: 6. Pre-watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	65,733	65,993
Total Loans and Leases Held for Investment, Acquired	212
Commercial, Financial and Agricultural [Member] | Grade: 7. Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	11,724	7,166
Total Loans and Leases Held for Investment, Acquired	442
Commercial, Financial and Agricultural [Member] | Grade: 8. Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	34,652	41,051
Total Loans and Leases Held for Investment, Acquired	1,105
Commercial, Financial and Agricultural [Member] | Grade: 9. Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0
Commercial, Financial and Agricultural [Member] | Grade: 10. Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0
Commercial, Financial and Agricultural [Member] | Internally Assigned Grades [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	455,469	457,827
Total Loans and Leases Held for Investment, Acquired	27,873
Real Estate-Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	692,284	628,478
Total Loans and Leases Held for Investment, Acquired	131,019
Real Estate-Commercial [Member] | Grade: 1. Cash secured/ 2. Fully secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Commercial [Member] | Grade: 3. Strong [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	11,217	8,504
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Commercial [Member] | Grade: 4. Satisfactory [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	20,487	30,587
Total Loans and Leases Held for Investment, Acquired	4,094
Real Estate-Commercial [Member] | Grade: 5. Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	467,266	402,719
Total Loans and Leases Held for Investment, Acquired	120,364
Real Estate-Commercial [Member] | Grade: 6. Pre-watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	159,961	123,129
Total Loans and Leases Held for Investment, Acquired	4,252
Real Estate-Commercial [Member] | Grade: 7. Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	6,674	17,505
Total Loans and Leases Held for Investment, Acquired	1,466
Real Estate-Commercial [Member] | Grade: 8. Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	26,679	46,034
Total Loans and Leases Held for Investment, Acquired	843
Real Estate-Commercial [Member] | Grade: 9. Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Commercial [Member] | Grade: 10. Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Commercial [Member] | Internally Assigned Grades [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	692,284	628,478
Total Loans and Leases Held for Investment, Acquired	131,019
Real Estate-Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	89,856	79,887
Total Loans and Leases Held for Investment, Acquired	27,359
Real Estate-Construction [Member] | Grade: 1. Cash secured/ 2. Fully secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	3,103	1,262
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Construction [Member] | Grade: 3. Strong [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	3,897
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Construction [Member] | Grade: 4. Satisfactory [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	8,980	8,731
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Construction [Member] | Grade: 5. Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	66,203	55,111
Total Loans and Leases Held for Investment, Acquired	27,024
Real Estate-Construction [Member] | Grade: 6. Pre-watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	11,207	4,956
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Construction [Member] | Grade: 7. Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Construction [Member] | Grade: 8. Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	363	5,930
Total Loans and Leases Held for Investment, Acquired	335
Real Estate-Construction [Member] | Grade: 9. Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Construction [Member] | Grade: 10. Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Construction [Member] | Internally Assigned Grades [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	89,856	79,887
Total Loans and Leases Held for Investment, Acquired	27,359
Real Estate-Residential Secured for Business Purpose [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	65,371	36,932
Total Loans and Leases Held for Investment, Acquired	138,593
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 1. Cash secured/ 2. Fully secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 3. Strong [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 4. Satisfactory [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	11	339
Total Loans and Leases Held for Investment, Acquired	2,603
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 5. Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	54,479	24,535
Total Loans and Leases Held for Investment, Acquired	131,237
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 6. Pre-watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	3,777	5,384
Total Loans and Leases Held for Investment, Acquired	2,218
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 7. Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	2,676	1,304
Total Loans and Leases Held for Investment, Acquired	257
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 8. Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	4,428	5,370
Total Loans and Leases Held for Investment, Acquired	2,278
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 9. Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 10. Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Residential Secured for Business Purpose [Member] | Internally Assigned Grades [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	65,371	36,932
Total Loans and Leases Held for Investment, Acquired	138,593
Real Estate-Residential Secured for Personal Purpose [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	178,387	166,850
Total Loans and Leases Held for Investment, Acquired	4,199
Real Estate-Residential Secured for Personal Purpose [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	177,570	166,338
Total Loans and Leases Held for Investment, Acquired	4,199
Real Estate-Residential Secured for Personal Purpose [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	817	512
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Residential Secured for Personal Purpose [Member] | Performing and Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	178,387	166,850
Total Loans and Leases Held for Investment, Acquired	4,199
Real Estate-Home Equity Secured for Personal Purpose [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	120,677	108,250
Total Loans and Leases Held for Investment, Acquired	11,919
Real Estate-Home Equity Secured for Personal Purpose [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	120,482	108,035
Total Loans and Leases Held for Investment, Acquired	11,919
Real Estate-Home Equity Secured for Personal Purpose [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	195	215
Total Loans and Leases Held for Investment, Acquired	0
Real Estate-Home Equity Secured for Personal Purpose [Member] | Performing and Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	120,677	108,250
Total Loans and Leases Held for Investment, Acquired	11,919
Loans to Individuals [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	29,575	29,941
Total Loans and Leases Held for Investment, Acquired	342
Loans to Individuals [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	29,338	29,576
Total Loans and Leases Held for Investment, Acquired	342
Loans to Individuals [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	237	365
Total Loans and Leases Held for Investment, Acquired	0
Loans to Individuals [Member] | Performing and Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	29,575	29,941
Total Loans and Leases Held for Investment, Acquired	342
Lease Financings [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	124,884	118,460
Total Loans and Leases Held for Investment, Acquired	0
Lease Financings [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	124,334	118,025
Total Loans and Leases Held for Investment, Acquired	0
Lease Financings [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	550	435
Total Loans and Leases Held for Investment, Acquired	0
Lease Financings [Member] | Performing and Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	124,884	$ 118,460
Total Loans and Leases Held for Investment, Acquired	$ 0

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Investment Securities - Information Related to Sales of Securities Available-for-Sale (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Securities available-for-sale:
Proceeds from sales	$ 56,005	$ 30,286
Gross realized gains on sales	591	557
Gross realized losses on sales	23	0
Tax expense related to net realized gains on sales	$ 199	$ 195

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Income, Before Tax Amount	$ 10,307	$ 8,499	$ 27,315	$ 22,857
Net unrealized gains (losses) on available-for-sale investment securities, Before Tax Amount
Net unrealized holding gains (losses) arising during the period, Before Tax Amount	797	(486)	(600)	4,972
Less: reclassification adjustment for net gains on sales realized in net income, Before Tax Amount	(296)	0	(568)	(557)
Less: reclassification adjustment for other-than-temporary impairment on equity securities realized in net income, Before Tax Amount	5	0	5	0
Total net unrealized gains on available-for-sale investment securities, Before Tax Amount	506	(486)	(1,163)	4,415
Cash flow hedge derivative, Before Tax Amount
Net change in fair value of interest rate swap, Before Tax Amount	(483)	0	(443)	0
Defined benefit pension plans, Before Tax Amount
Amortization of net actuarial loss included in net periodic pension costs, Before Tax Amount	341	168	1,022	499
Accretion of prior service cost included in net periodic pension costs, Before Tax Amount	(70)	(72)	(210)	(216)
Total defined benefit pension plans, Before Tax Amount	271	96	812	283
Other comprehensive income (loss), Before Tax Amount	294	(390)	(794)	4,698
Total comprehensive income (loss), Before Tax Amount	10,601	8,109	26,521	27,555
Tax (expense) benefit	2,779	2,264	7,205	5,816
Net unrealized gains (losses) on available-for-sale investment securities, Tax Expense (Benefit)
Net unrealized holding gains (losses) arising during the period, Tax Expense (Benefit)	279	(170)	(210)	1,741
Less: reclassification adjustment for net gains on sales realized in net income, Tax Expense (Benefit)	(104)	0	(199)	(195)
Less: reclassification adjustment for other-than-temporary impairment on equity securities realized in net income, Tax Expense (Benefit)	2	0	2	0
Total net unrealized gains on available-for-sale investment securities, Tax Expense (Benefit)	177	(170)	(407)	1,546
Cash flow hedge derivative, Tax Expense (Benefit)
Net change in fair value of interest rate swap, Tax Expense (Benefit)	(169)	0	(155)	0
Defined benefit pension plans, Tax Expense (Benefit)
Amortization of net actuarial loss included in net periodic pension costs, Tax Expense (Benefit)	119	59	358	175
Accretion of prior service cost included in net periodic pension costs, Tax Expense (Benefit)	(24)	(26)	(73)	(77)
Total defined benefit pension plans, Tax Expense (Benefit)	95	33	285	98
Other comprehensive income (loss), Tax Expense (Benefit)	103	(137)	(277)	1,644
Total comprehensive income (loss), Tax Expense (Benefit)	2,882	2,127	6,928	7,460
Net income	7,528	6,235	20,110	17,041
Net unrealized gains (losses) on available-for-sale investment securities, Net of Tax Amount
Net unrealized holding gains (losses) arising during the period, Net of Tax Amount	518	(316)	(390)	3,231
Less: reclassification adjustment for net gains on sales realized in net income, Net of Tax Amount	(192)	0	(369)	(362)
Less: reclassification adjustment for other-than-temporary impairment on equity securities realized in net income, Net of Tax Amount	3	0	3	0
Total net unrealized gains on available-for-sale investment securities, Net of Tax Amount	329	(316)	(756)	2,869
Cash flow hedge derivative, Net of Tax Amount
Net change in fair value of interest rate swap, Net of Tax Amount	(314)	0	(288)	0
Defined benefit pension plans, Net of Tax Amount
Amortization of net actuarial loss included in net periodic pension costs, Net of Tax Amount	222	109	664	324
Accretion of prior service cost included in net periodic pension costs, Net of Tax Amount	(46)	(46)	(137)	(139)
Total defined benefit pension plans, Net of Tax Amount	176	63	527	185
Other comprehensive income (loss), Net of Tax Amount	191	(253)	(517)	3,054
Total comprehensive income (loss), Net of Tax Amount	$ 7,719	$ 5,982	$ 19,593	$ 20,095

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Acquisition

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Acquisition

Acquisition

Valley Green Bank

On January 1, 2015, the Corporation completed the acquisition of Valley Green Bank. The merger of Valley Green Bank with and into the Bank was effected pursuant to the terms and conditions of the Agreement and Plan of Merger (Merger Agreement) dated June 17, 2014. Headquartered in the Mt. Airy neighborhood of Philadelphia, Pennsylvania, Valley Green operated three full-service banking offices and two administrative offices for loan production in the greater Philadelphia marketplace. With the assumption of Valley Green Bank’s three branches and two administrative offices for loan production in the Philadelphia marketplace, the Corporation entered a new small business and consumer market and expanded its existing lending network within southeastern Pennsylvania.

The acquisition was an all-stock transaction with an aggregate value of approximately $77 million. Pursuant to the Merger Agreement, each share of Valley Green Bank common stock was cancelled and converted into the right to receive 1.3541 shares of Univest common stock, $5 par value, with any fractional share entitled to payment in cash. As a result, the Corporation delivered 3,787,866 shares of the Corporation's common stock to the former shareholders of Valley Green Bank. Valley Green Bank outstanding stock options of 122,377 were exchanged for cash and related payroll taxes of $2.2 million. Approximately $3 thousand in cash was paid for fractional shares.

The transaction is being accounted for using the acquisition method of accounting, which requires the Corporation to allocate the total consideration transferred to the assets acquired and liabilities assumed, based on their respective fair values at the merger date, with remaining excess consideration recorded as goodwill. The fair value of total assets acquired as a result of the merger totaled $425.2 million, which included $380.9 million in loans and $385.9 million in deposits at January 1, 2015. The fair value estimates are subject to adjustment if additional information becomes available during the measurement period in accordance with Accounting Standards Codification (ASC) Topic 805. Such adjustments, may change the amount of the purchase price allocation to goodwill while changes to other assets and liabilities may impact the statement of income due to adjustments in the yield and/or amortization/accretion of the adjusted assets and liabilities. The results of Valley Green Bank's operations have been included in the Corporation consolidated financial statements prospectively from the date of the merger.

The following table summarized the consideration paid for Valley Green Bank and the fair value of assets acquired and liabilities assumed at the acquisition date:

(Dollars in thousands, except share data)
Purchase price consideration in common stock:
Valley Green common shares outstanding	2,797,454
Exchange ratio	1.3541
Univest shares issued	3,787,866
Univest closing stock price at December 31, 2014	$	20.24
Purchase price assigned to Valley Green common shares exchanged for Univest stock			$	76,667
Purchase price assigned to cash in lieu of fractional shares			3
Purchase price assigned to Valley Green options settled for cash			2,236
Total purchase price			$	78,906
Fair value of assets acquired:
Cash and due from banks	$	4,919
Federal funds sold	17,442
Investment securities available-for-sale	12,766
Loans held for investment	380,924
Premises and equipment, net	2,973
Core deposit intangible *	1,520
Accrued interest receivable and other assets	4,641
Total identifiable assets			425,185
Fair value of liabilities assumed:
Deposits - noninterest bearing	$	49,102
Deposits - interest bearing	336,810
Change in control accrued payments	2,070
Accrued interest payable and other liabilities	1,813
Total liabilities			389,795
Identifiable net assets			35,390
Goodwill resulting from merger *			$	43,516

* - Goodwill is not expected to be deductible for federal income tax purposes. The goodwill and core deposit intangible are allocated to

the Banking business segment.

The following is a description of the valuation methodologies used to estimate the fair values of major categories of assets acquired and liabilities assumed. In many cases, determining the fair value of the acquired assets and assumed liabilities required the Corporation to estimate cash flows expected to result from those assets and liabilities and to discount those cash flows at appropriate rates of interest, which required the utilization of significant estimates and judgment in accounting for the acquisition.

Cash and due from banks and federal funds sold: The estimated fair values of cash and due from banks and federal fund sold approximated their stated value.

Investment securities available-for-sale: The estimated fair values of the investment securities available for sale, comprised of U.S. government corporations and agencies, were determined using Level 2 inputs in the fair value hierarchy. The fair values were determined using independent pricing services and market-participating brokers. The Corporation’s independent pricing service utilized evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information for structured securities, cash flow and, when available, loan performance data. Because many fixed income securities do not trade on a daily basis, the pricing service’s evaluated pricing applications apply information as applicable through processes, such as benchmarking of like securities, sector groupings, and matrix pricing, to prepare evaluations. Management reviewed the data and assumptions used in pricing the securities.

Loans held for investment: The most significant fair value determination related to the valuation of acquired loans. The acquisition resulted in loans acquired with and without evidence of credit quality deterioration. There was no carryover related allowance for loan and lease losses.

The acquired loan portfolio was valued based on current guidance which defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Level 3 inputs were utilized to value the portfolio and included the use of present value techniques employing cash flow estimates and incorporated assumptions that marketplace participants would use in estimating fair values. In instances where reliable market information was not available, the Corporation used assumptions in an effort to determine reasonable fair value. Specifically, management utilized three separate fair value analyses which a market participant would employ in estimating the total fair value adjustment. The three separate fair valuation methodologies used were: 1) interest rate loan fair value analysis; 2) general credit fair value analysis; and 3) specific credit fair value analysis.

For loans acquired without evidence of credit quality deterioration, the Corporation prepared the interest rate loan fair value analysis. Loans were grouped by characteristics such as loan type, term, collateral and rate. Market rates for similar loans were obtained from various external data sources and reviewed by management for reasonableness. The average of these rates was used as the fair value interest rate a market participant would utilize. A present value approach was utilized to calculate the interest rate fair value adjustment. Additionally a general credit fair value adjustment was calculated using a two part general credit fair value analysis: 1) expected lifetime losses; and 2) estimated fair value adjustment for qualitative factors. The expected lifetime losses were calculated using an average of historical losses of the Bank, Valley Green Bank and peer banks. The adjustment related to qualitative factors was impacted by general economic conditions and the risk related to a lack of specific familiarity with Valley Green Bank's underwriting process. Valley Green's loan portfolio without evidence of credit quality deterioration was recorded at a current fair value of $379.2 million. A fair value premium of $4.4 million was recognized to reflect the fair values of loans. A fair value discount of $5.5 million was recognized to reflect the general credit risk of the loan portfolio. The adjustment will be substantially recognized as interest income over approximately 10 years on a level yield amortization method based upon the expected life of the loans.

For loans acquired with evidence of credit quality deterioration the Corporation prepared a specific credit fair value adjustment. Management reviewed the acquired loan portfolio for loans meeting the definition of an impaired loan with deteriorated credit quality. Loans meeting this definition were reviewed by comparing the contractual cash flows to expected collectible cash flows. The aggregate expected cash flows less the acquisition date fair value results in an accretable yield amount. The accretable yield amount will be recognized over the life of the loans on a level yield basis as an adjustment to yield. Any disposals of loans, including sales of loans, payments in full or foreclosures result in the derecognition of the loan at its carrying value with differences in actual results reflected in interest income.

At the acquisition date, the Corporation recorded $1.7 million of acquired impaired loans subject to a nonaccretable discount difference of $5.3 million. The aggregate expected cash flows less the acquisition date fair value results in an accretable yield amount of $305 thousand, which will be recognized over the life of the loans on a level yield basis as an adjustment to yield.

The following is a summary of the acquired impaired loans at January 1, 2015 resulting from the acquisition with Valley Green:

(Dollars in thousands)
Contractually required principal and interest payments	$	7,377
Contractual cash flows not expected to be collected (nonaccretable difference)	(5,344		)
Cash flows expected to be collected	2,033
Interest component of expected cash flows (accretable difference)	(305		)
Fair value of loans acquired with a deterioration of credit quality	$	1,728

Bank premises - leased: The Corporation assumed five facility lease contracts and no owned properties. The fair value of the lease contracts represents the present value of the pre-tax differential between the expected contractual payments and current market rate lease payments to the first lease termination date discounted by an assumed required rate of return.

Core deposit intangible: Core deposit intangible represents the value assigned to demand, interest checking, money market and savings accounts acquired as part of the acquisition. The core deposit intangible fair value represents the future economic benefit, including the present value of future tax benefits, of the potential cost savings from acquiring core deposits as part of an acquisition compared to the cost of alternative funding sources and was valued utilizing Level 3 inputs. The core deposit intangible of $1.5 million will be amortized using the sum of the years digits method over an estimated life of 10 years.

Deposits: The fair values of demand and saving deposits, with no stated maturities, approximated the carrying value as these accounts are payable on demand. The fair values of time deposits with fixed maturities were estimated by discounting the final maturity using current market interest rate for similar instruments. A fair value premium of $686 thousand was recognized and will be recognized as a reduction to interest expense using a level yield amortization method over the life of the time deposit. The fair value of time deposits were determined using Level 2 inputs in the fair value hierarchy.

Deferred tax assets and liabilities: Deferred tax assets and liabilities were established for purchase accounting fair value adjustments as the future amortization/accretion of these adjustments represent temporary differences between book income and taxable income.

Direct costs related to the acquisition were expensed as incurred. For the nine months ended September 30, 2015, the Corporation incurred $2.0 million of Valley Green Bank integration and acquisition-related costs, which have been separately stated in the Corporation's consolidated statements of income.

Supplemental Pro Forma Financial Information (unaudited)

The following unaudited pro forma combined consolidated financial information for the three and nine months ended September 30, 2015 and 2014 combine the historical consolidated results of the Corporation and Valley Green Bank and give effect to the merger as if the merger occurred on January 1, 2015 and January 1, 2014, respectively. The pro forma information has been prepared to include the estimated adjustments necessary to record the assets and liabilities of Valley Green Bank at their respective fair values and are subject to adjustment if additional information becomes available. Such adjustments, may change the amount of the purchase price allocation to goodwill while changes to other assets and liabilities may impact the statement of income due to adjustments in the yield and/or amortization/accretion of the adjusted assets and liabilities. Furthermore, the unaudited proforma information does not reflect management’s estimate of any revenue-enhancing opportunities or anticipated cost savings

The pro forma data is not necessarily indicative of the operating results that the Corporation would have achieved had it completed the merger as of the beginning of the period presented and should not be considered as representative of future operations.

The unaudited pro forma data presented below is based on, and should be read together with, the historical financial information of the Corporation included in this Form 10-Q for the indicated periods and the historical information of Valley Green Bank included in the Corporation's Current Report on Form 8-K filed with the SEC on January 7, 2015.

	Pro Forma				Pro Forma
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Dollars in thousands, except share data)	2015		2014		2015		2014
Net interest income	$	23,365	$	23,360	$	70,049	$	69,005
Noninterest income	12,855		12,671		39,637		37,036
Noninterest expense	25,243		25,002		79,486		72,563
Net income	7,528		7,605		20,110		21,508
Earnings per share
Basic	0.39		0.38		1.02		1.07
Diluted	0.39		0.38		1.02		1.07

* Theninemonths endedSeptember 30, 2015included integration and acquisition-related costs associated with Valley Green Bank incurred during the first and second quarters of$2.0 million($1.3 million, net of tax),or$0.07diluted earnings per share on a tax affected basis. The nine months endedSeptember 30, 2015also included restructuring charges of$1.6 million($1.1 million, net of tax), incurred in the second quarter, related to the consolidation of six financial centers in September of 2015 under the Bank's optimization plan or$0.05diluted earnings per share on a tax affected basis.

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Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Aggregate fair value of mortgage servicing rights	$ 7.6	$ 6.9
Range of discount rates used for valuation of mortgage servicing rights	10.00%	10.00%

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Restructuring Charges - Roll-Forward of Accrued Restructuring Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Restructuring Reserve [Roll Forward]
Accrued at January 1, 2015			$ 0
Restructuring charges	$ 0	$ 0	1,642	$ 0
Payments			(113)
Accelerated depreciation			(379)
Accrued at September 30, 2015	1,150		1,150
Severance expenses
Restructuring Reserve [Roll Forward]
Accrued at January 1, 2015			0
Restructuring charges			73
Payments			(67)
Accelerated depreciation			0
Accrued at September 30, 2015	6		6
Write-downs and retirements of fixed assets
Restructuring Reserve [Roll Forward]
Accrued at January 1, 2015			0
Restructuring charges			607
Payments			0
Accelerated depreciation			(379)
Accrued at September 30, 2015	228		228
Lease cancellations
Restructuring Reserve [Roll Forward]
Accrued at January 1, 2015			0
Restructuring charges			962
Payments			(46)
Accelerated depreciation			0
Accrued at September 30, 2015	$ 916		$ 916

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Earnings per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share, Basic and Diluted [Abstract]
Net income	$ 7,528	$ 6,235	$ 20,110	$ 17,041
Net income allocated to unvested restricted stock	(66)	(64)	(177)	(193)
Net income allocated to common shares	$ 7,462	$ 6,171	$ 19,933	$ 16,848
Denominator for basic earnings per share—weighted-average shares outstanding	19,337	16,059	19,537	16,058
Effect of dilutive securities—employee stock options	31	23	28	22
Denominator for diluted earnings per share—adjusted weighted-average shares outstanding	19,368	16,082	19,565	16,080
Basic earnings per share	$ 0.39	$ 0.38	$ 1.02	$ 1.05
Diluted earnings per share	$ 0.39	$ 0.38	$ 1.02	$ 1.05
Average anti-dilutive options and awards excluded from computation of diluted earnings per share	565	554	550	563

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Loans and Leases (Tables)

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Summary of Major Loan and Lease Categories

	At September 30, 2015								At December 31, 2014
(Dollars in thousands)	Originated			Acquired		Total			Total
Commercial, financial and agricultural	$	455,469		$	27,873	$	483,342		$	457,827
Real estate-commercial	692,284			131,019		823,303			628,478
Real estate-construction	89,856			27,359		117,215			79,887
Real estate-residential secured for business purpose	65,371			138,593		203,964			36,932
Real estate-residential secured for personal purpose	178,387			4,199		182,586			166,850
Real estate-home equity secured for personal purpose	120,677			11,919		132,596			108,250
Loans to individuals	29,575			342		29,917			29,941
Lease financings	124,884			—		124,884			118,460
Total loans and leases held for investment, net of deferred income	$	1,756,503		$	341,304	$	2,097,807		$	1,626,625
Unearned lease income, included in the above table	$	(13,822	)	$	—	$	(13,822	)	$	(14,131	)
Net deferred costs, included in the above table	3,700			—		3,700			3,218
Overdraft deposits included in the above table	76			—		76			50

Schedule of Impaired Loans

The following is a summary of the acquired impaired loans at January 1, 2015 resulting from the acquisition with Valley Green:

(Dollars in thousands)
Contractually required principal and interest payments	$	7,377
Contractual cash flows not expected to be collected (nonaccretable difference)	(5,344		)
Cash flows expected to be collected	2,033
Interest component of expected cash flows (accretable difference)	(305		)
Fair value of loans acquired with a deterioration of credit quality	$	1,728

The following presents, by class of loans, the recorded investment and unpaid principal balance of impaired loans , the amounts of the impaired loans for which there is not an allowance for credit losses and the amounts for which there is an allowance for credit losses at September 30, 2015 and December 31, 2014. The impaired loans exclude loans acquired with deteriorated credit quality.

	At September 30, 2015						At December 31, 2014
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans with no related allowance recorded:
Loans held for sale	$	4,000	$	5,229			$	—	$	—
Loans held for investment:
Commercial, financial and agricultural	10,966		12,676				12,628		13,050
Real estate—commercial real estate	13,259		14,167				29,779		30,810
Real estate—construction	363		638				5,931		6,474
Real estate—residential secured for business purpose	4,278		4,394				3,008		3,044
Real estate—residential secured for personal purpose	524		578				512		547
Real estate—home equity secured for personal purpose	101		101				184		184
Total impaired loans with no allowance recorded	$	33,491	$	37,783			$	52,042	$	54,109
Impaired loans with an allowance recorded:
Commercial, financial and agricultural	$	2,966	$	3,037	$	344	$	3,933	$	3,935	$	920
Real estate—commercial real estate	—		—		—		216		216		78
Real estate—residential secured for personal purpose	252		252		23		—		—		—
Real estate—home equity secured for personal purpose	59		60		13		—		—		—
Total impaired loans with an allowance recorded	$	3,277	$	3,349	$	380	$	4,149	$	4,151	$	998

	At September 30, 2015						At December 31, 2014
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Total impaired loans:
Loans held for sale	$	4,000	$	5,229	$	—	$	—	$	—	$	—
Loans held for investment:
Commercial, financial and agricultural	13,932		15,713		344		16,561		16,985		920
Real estate—commercial real estate	13,259		14,167		—		29,995		31,026		78
Real estate—construction	363		638		—		5,931		6,474		—
Real estate—residential secured for business purpose	4,278		4,394		—		3,008		3,044		—
Real estate—residential secured for personal purpose	776		830		23		512		547		—
Real estate—home equity secured for personal purpose	160		161		13		184		184		—
Total impaired loans	$	36,768	$	41,132	$	380	$	56,191	$	58,260	$	998

The outstanding principal balance and carrying amount for acquired credit impaired loans at September 30, 2015 were as follows:

(Dollars in thousands)	At September 30, 2015
Outstanding principal balance	$	3,949
Carrying amount	1,379
Allowance for loan losses	21

The following table presents the changes in accretable yield on acquired credit impaired loans:

(Dollars in thousands)	Nine Months Ended September 30, 2015
Beginning of period	$	—
Acquisition of credit impaired loans	305
Reclassification from nonaccretable difference	476
Accretable yield amortized to interest income	(595		)
Disposals	(1		)
End of period	$	185

Schedule of Age Analysis of Past Due Loans and Leases

The following presents, by class of loans and leases, an aging of past due loans and leases, loans and leases which are current and the recorded investment in loans and leases 90 days or more past due which are accruing interest at September 30, 2015 and December 31, 2014:

(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current		Acquired Credit Impaired		Total Loans and Leases Held for Investment		Recorded Investment 90 Days or more Past Due and Accruing Interest
At September 30, 2015
Commercial, financial and agricultural	$	914	$	351	$	6,731	$	7,996	$	475,035	$	311	$	483,342	$	—
Real estate—commercial real estate and construction:
Commercial real estate	1,798		228		857		2,883		819,908		512		823,303		—
Construction	20		—		363		383		116,832		—		117,215		—
Real estate—residential and home equity:
Residential secured for business purpose	1,740		84		1,787		3,611		199,860		493		203,964		—
Residential secured for personal purpose	991		—		386		1,377		181,209		—		182,586		41
Home equity secured for personal purpose	445		201		95		741		131,792		63		132,596		35
Loans to individuals	203		203		237		643		29,274		—		29,917		237
Lease financings	1,406		2,032		536		3,974		120,910		—		124,884		115
Total	$	7,517	$	3,099	$	10,992	$	21,608	$	2,074,820	$	1,379	$	2,097,807	$	428
At December 31, 2014
Commercial, financial and agricultural	$	145	$	747	$	2,567	$	3,459	$	454,368	$	—	$	457,827	$	—
Real estate—commercial real estate and construction:
Commercial real estate	361		913		1,163		2,437		626,041		—		628,478		—
Construction	—		405		5,525		5,930		73,957		—		79,887		—
Real estate—residential and home equity:
Residential secured for business purpose	167		56		713		936		35,996		—		36,932		—
Residential secured for personal purpose	409		604		60		1,073		165,777		—		166,850		—
Home equity secured for personal purpose	348		—		215		563		107,687		—		108,250		31
Loans to individuals	365		65		365		795		29,146		—		29,941		365
Lease financings	1,610		406		435		2,451		116,009		—		118,460		55
Total	$	3,405	$	3,196	$	11,043	$	17,644	$	1,608,981	$	—	$	1,626,625	$	451

Schedule of Nonperforming Loans and Leases

The following presents, by class of loans and leases, non-performing loans and leases at September 30, 2015 and December 31, 2014:

	At September 30, 2015								At December 31, 2014
(Dollars in thousands)	Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Non- Performing Loans and Leases		Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Non- Performing Loans and Leases
Loans held for sale **	$	4,000	$	—	$	—	$	4,000	$	—	$	—	$	—	$	—
Loans and leases held for investment:
Commercial, financial and agricultural	8,593		1,959		—		10,552		5,002		2,851		—		7,853
Real estate—commercial real estate and construction:
Commercial real estate	4,223		2,474		—		6,697		4,413		2,618		—		7,031
Construction	363		—		—		363		5,931		—		—		5,931
Real estate—residential and home equity:
Residential secured for business purpose	2,301		343		—		2,644		915		—		—		915
Residential secured for personal purpose	776		—		41		817		512		—		—		512
Home equity secured for personal purpose	160		—		35		195		184		—		31		215
Loans to individuals	—		—		237		237		—		—		365		365
Lease financings	422		13		115		550		380		—		55		435
Total	$	20,838	$	4,789	$	428	$	26,055	$	17,337	$	5,469	$	451	$	23,257

* Includes nonaccrual troubled debt restructured loans and lease modifications of $742 thousand and $3.1 million at September 30, 2015 and December 31, 2014, respectively.

** Includes two real estate construction loans for one borrower of $4.0 million at September 30, 2015.

Summary of Credit Quality Indicators

The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at September 30, 2015 and December 31, 2014.

The Corporation employs a ten (10) grade risk rating system related to the credit quality of commercial loans and residential real estate loans secured for a business purpose of which the first six categories are pass categories (credits not adversely rated). The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. Loans with risk ratings of one through five are reviewed based on the relationship dollar amount with the borrower: loans with a relationship total of $2.5 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.5 million but greater than $500 thousand are reviewed annually based on the borrower’s fiscal year; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with risk ratings of six are also reviewed based on the relationship dollar amount with the borrower: loans with a relationship balance of $2.0 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.0 million but greater than $500 thousand are reviewed annually; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with risk ratings of seven are reviewed at least quarterly, and as often as monthly, at management’s discretion. Loans with risk ratings of eight through ten are reviewed monthly.

1. Cash Secured—No credit risk

2. Fully Secured—Negligible credit risk

3. Strong—Minimal credit risk

4. Satisfactory—Nominal credit risk

5. Acceptable—Moderate credit risk

6. Pre-Watch—Marginal, but stable credit risk

7. Special Mention—Potential weakness

8. Substandard—Well-defined weakness

9. Doubtful—Collection in-full improbable

10. Loss—Considered uncollectible

Commercial Credit Exposure Credit Risk by Internally Assigned Grades

The following table presents classifications for originated loans:

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial		Real Estate— Construction		Real Estate— Residential Secured for Business Purpose		Total
At September 30, 2015
Grade:
1. Cash secured/ 2. Fully secured	$	664	$	—	$	3,103	$	—	$	3,767
3. Strong	16,985		11,217		—		—		28,202
4. Satisfactory	25,761		20,487		8,980		11		55,239
5. Acceptable	299,950		467,266		66,203		54,479		887,898
6. Pre-watch	65,733		159,961		11,207		3,777		240,678
7. Special Mention	11,724		6,674		—		2,676		21,074
8. Substandard	34,652		26,679		363		4,428		66,122
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	455,469	$	692,284	$	89,856	$	65,371	$	1,302,980
At December 31, 2014
Grade:
1. Cash secured/ 2. Fully secured	$	4,248	$	—	$	1,262	$	—	$	5,510
3. Strong	14,013		8,504		3,897		—		26,414
4. Satisfactory	23,931		30,587		8,731		339		63,588
5. Acceptable	301,425		402,719		55,111		24,535		783,790
6. Pre-watch	65,993		123,129		4,956		5,384		199,462
7. Special Mention	7,166		17,505		—		1,304		25,975
8. Substandard	41,051		46,034		5,930		5,370		98,385
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	457,827	$	628,478	$	79,887	$	36,932	$	1,203,124

The following table presents classifications for acquired loans:

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial		Real Estate— Construction		Real Estate— Residential Secured for Business Purpose		Total
At September 30, 2015
Grade:
1. Cash secured/ 2. Fully secured	$	1,013	$	—	$	—	$	—	$	1,013
3. Strong	—		—		—		—		—
4. Satisfactory	1,199		4,094		—		2,603		7,896
5. Acceptable	23,902		120,364		27,024		131,237		302,527
6. Pre-watch	212		4,252		—		2,218		6,682
7. Special Mention	442		1,466		—		257		2,165
8. Substandard	1,105		843		335		2,278		4,561
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	27,873	$	131,019	$	27,359	$	138,593	$	324,844

The following table presents classifications for originated loans:

(Dollars in thousands)	Real Estate— Residential Secured for Personal Purpose		Real Estate— Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financing		Total
At September 30, 2015
Performing	$	177,570	$	120,482	$	29,338	$	124,334	$	451,724
Nonperforming	817		195		237		550		1,799
Total	$	178,387	$	120,677	$	29,575	$	124,884	$	453,523
At December 31, 2014
Performing	$	166,338	$	108,035	$	29,576	$	118,025	$	421,974
Nonperforming	512		215		365		435		1,527
Total	$	166,850	$	108,250	$	29,941	$	118,460	$	423,501

The following table presents classifications for acquired loans:

(Dollars in thousands)	Real Estate— Residential Secured for Personal Purpose		Real Estate— Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financing		Total
At September 30, 2015
Performing	$	4,199	$	11,919	$	342	$	—	$	16,460
Nonperforming	—		—		—		—		—
Total	$	4,199	$	11,919	$	342	$	—	$	16,460

Summary of Activity in the Reserve for Loan and Lease Losses

The following presents, by portfolio segment, a summary of the activity in the reserve for loan and lease losses, the balance in the reserve for loan and lease losses disaggregated on the basis of impairment method and the recorded investment in loans and leases disaggregated on the basis of impairment method for the three and nine months ended September 30, 2015 and 2014:

(Dollars in thousands)	Commercial, Financial and Agricultural			Real Estate— Commercial and Construction			Real Estate— Residential Secured for Business Purpose			Real Estate— Residential and Home Equity Secured for Personal Purpose			Loans to Individuals			Lease Financings			Unallocated			Total
Three Months Ended September 30, 2015
Reserve for loan and lease losses:
Beginning balance	$	6,847		$	7,801		$	616		$	1,188		$	389		$	1,125		$	1,636		$	19,602
Charge-offs	(1,917		)	(138		)	(90		)	(10		)	(144		)	(172		)	N/A			(2,471		)
Recoveries	682			34			8			8			40			47			N/A			819
Provision (recovery of provision)	1,382			(795		)	(41		)	(3		)	130			(1		)	(24		)	648
Provision for acquired credit impaired loans	—			9			13			—			—			—			—			22
Ending balance	$	6,994		$	6,911		$	506		$	1,183		$	415		$	999		$	1,612		$	18,620
Three Months Ended September 30, 2014
Reserve for loan and lease losses:
Beginning balance	$	9,714		$	9,263		$	1,025		$	1,248		$	405		$	1,101		$	1,338		$	24,094
Charge-offs	(968		)	(1,570		)	(26		)	(18		)	(169		)	(106		)	N/A			(2,857		)
Recoveries	88			58			9			2			53			82			N/A			292
(Recovery of provision) provision	(1,219		)	1,337			(48		)	(54		)	43			38			136			233
Ending balance	$	7,615		$	9,088		$	960		$	1,178		$	332		$	1,115		$	1,474		$	21,762
Nine Months Ended September 30, 2015
Reserve for loan and lease losses:
Beginning balance	$	6,920		$	8,943		$	763		$	1,124		$	360		$	985		$	1,567		$	20,662
Charge-offs*	(3,255		)	(1,834		)	(114		)	(148		)	(392		)	(591		)	N/A			(6,334		)
Recoveries	907			190			21			9			129			151			N/A			1,407
Provision (recovery of provision)	2,422			(397		)	(177		)	198			318			454			45			2,863
Provision for acquired credit impaired loans	—			9			13			—			—			—			—			22
Ending balance	$	6,994		$	6,911		$	506		$	1,183		$	415		$	999		$	1,612		$	18,620
Nine Months Ended September 30, 2014
Reserve for loan and lease losses:
Beginning balance	$	9,789		$	8,780		$	1,062		$	1,284		$	694		$	1,285		$	1,600		$	24,494
Charge-offs	(2,657		)	(2,878		)	(140		)	(108		)	(659		)	(396		)	N/A			(6,838		)
Recoveries	197			428			57			29			212			224			N/A			1,147
Provision (recovery of provision)	286			2,758			(19		)	(27		)	85			2			(126		)	2,959
Ending balance	$	7,615		$	9,088		$	960		$	1,178		$	332		$	1,115		$	1,474		$	21,762

N/A – Not applicable

* Includes charge-offs of $1.3 million on two real estate construction loans for one borrower which were subsequently transferred to loans held for sale in the second quarter of 2015.

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial and Construction		Real Estate— Residential Secured for Business Purpose		Real Estate— Residential and Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financings		Unallocated		Total
At September 30, 2015
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	344	$	—	$	—	$	36	$	—	$	—	N/A		$	380
Ending balance: collectively evaluated for impairment	6,650		6,903		493		1,147		415		999		1,612		18,219
Ending balance: acquired credit impaired loans evaluated for impairment	—		8		13		—		—		—		—		21
Total ending balance	$	6,994	$	6,911	$	506	$	1,183	$	415	$	999	$	1,612	$	18,620
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	13,932	$	13,622	$	4,278	$	936	$	—	$	—			$	32,768
Ending balance: collectively evaluated for impairment	441,537		768,518		61,093		298,128		29,575		124,884				1,723,735
Acquired non-credit impaired loans	27,562		157,866		138,100		16,055		342		—				339,925
Acquired credit impaired loans	311		512		493		63		—		—				1,379
Total ending balance	$	483,342	$	940,518	$	203,964	$	315,182	$	29,917	$	124,884			$	2,097,807
At September 30, 2014
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	685	$	27	$	430	$	—	$	—	$	—	N/A		$	1,142
Ending balance: collectively evaluated for impairment	6,930		9,061		530		1,178		332		1,115		1,474		20,620
Total ending balance	$	7,615	$	9,088	$	960	$	1,178	$	332	$	1,115	$	1,474	$	21,762
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	18,214	$	37,341	$	2,921	$	603	$	—	$	—			$	59,079
Ending balance: collectively evaluated for impairment	420,342		675,817		32,446		267,956		30,144		111,952				1,538,657
Total ending balance	$	438,556	$	713,158	$	35,367	$	268,559	$	30,144	$	111,952			$	1,597,736

N/A – Not applicable

Summary of Average Recorded Investment in Impaired Loans and Leases and Analysis of Interest on Impaired Loans

The following presents by class of loans, the average recorded investment in impaired loans and an analysis of interest on impaired loans. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Therefore, interest income on accruing impaired loans is recognized using the accrual method. 

	Three Months Ended September 30, 2015						Three Months Ended September 30, 2014
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms		Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms
Loans held for sale	$	4,000	$	—	$	56	$	—	$	—	$	—
Loans held for investment:
Commercial, financial and agricultural	15,099		88		185		16,577		150		72
Real estate—commercial real estate	15,430		152		92		26,531		281		82
Real estate—construction	607		—		6		9,982		20		116
Real estate—residential secured for business purpose	4,394		47		58		2,643		19		13
Real estate—residential secured for personal purpose	782		—		10		590		—		9
Real estate—home equity secured for personal purpose	160		—		2		84		—		1
Loans to individuals	—		—		—		1		—		—
Total	$	40,472	$	287	$	409	$	56,408	$	470	$	293

* Includes interest income recognized on a cash basis for nonaccrual loans of $15 thousand and $0 thousand for the three months ended September 30, 2015 and 2014, respectively and interest income recognized on the accrual method for accruing impaired loans of $272 thousand and $470 thousand for the three months ended September 30, 2015 and 2014, respectively.

	Nine Months Ended September 30, 2015						Nine Months Ended September 30, 2014
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms		Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms
Loans held for sale	$	1,233	$	—	$	57	$	—	$	—	$	—
Loans held for investment:
Commercial, financial and agricultural	15,691		346		371		14,806		401		188
Real estate—commercial real estate	23,577		778		257		25,734		816		248
Real estate—construction	4,041		—		159		11,499		103		363
Real estate—residential secured for business purpose	3,698		115		112		2,400		52		48
Real estate—residential secured for personal purpose	706		—		34		779		—		41
Real estate—home equity secured for personal purpose	174		—		8		82		—		3
Loans to individuals	—		—		—		5		—		—
Total	$	49,120	$	1,239	$	998	$	55,305	$	1,372	$	891

Schedule of Troubled Debt Restructured Loans

The following presents, by class of loans, information regarding accruing and nonaccrual loans that were restructured:

	Three Months Ended September 30, 2015							Three Months Ended September 30, 2014
(Dollars in thousands)	Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance		Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	50	$	50	$	—	3	$	1,424	$	1,424	$	132
Real estate—commercial real estate	—	—		—		—		1	1,000		1,000		—
Total	1	$	50	$	50	$	—	4	$	2,424	$	2,424	$	132
Nonaccrual Troubled Debt Restructured Loans:
Total	—	$	—	$	—	$	—	—	$	—	$	—	$	—

	Nine Months Ended September 30, 2015							Nine Months Ended September 30, 2014
(Dollars in thousands)	Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance		Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	4	$	1,140	$	1,140	$	71	3	$	1,424	$	1,424	$	132
Real estate—commercial real estate	1	405		405		—		1	1,000		1,000		—
Real estate—residential secured for business purpose	1	353		353		—		—	—		—		—
Total	6	$	1,898	$	1,898	$	71	4	$	2,424	$	2,424	$	132
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	122	$	122	$	22	—	$	—	$	—	$	—
Real estate—commercial real estate	—	—		—		—		1	50		50		—
Real estate—residential secured for business purpose	—	—		—		—		2	688		688		—
Total	1	$	122	$	122	$	22	3	$	738	$	738	$	—

The following presents, by class of loans, information regarding consumer mortgages collateralized by residential real estate property that are in the process of foreclosure at September 30, 2015 and December 31, 2014:

(Dollars in thousands)	At September 30, 2015		At December 31, 2014
Real estate-residential secured for personal purpose	$	313	$	62
Real estate-home equity secured for personal purpose	60		—
Total	$	373	$	62

Summary of Concessions Granted on Restructured Loans

The following presents, by class of loans, information regarding the types of concessions granted on accruing and nonaccrual loans that were restructured during the three and nine months ended September 30, 2015 and 2014.

	Temporary Payment Reduction			Interest Rate Reduction			Maturity Date Extension			Payments Suspended			Amortization Period Extension			Total Concessions Granted
(Dollars in thousands)	No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount
Three Months Ended September 30, 2015
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	—	$	—	—	$	—	—	$	—	1	$	50	1	$	50
Total	—	$	—	—	$	—	—	$	—	—	$	—	1	$	50	1	$	50
Nonaccrual Troubled Debt Restructured Loans:
Total	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Three Months Ended September 30, 2014
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	—	$	—	2	$	1,299	1	$	125	—	$	—	3	$	1,424
Real estate—commercial real estate	—	—		—	—		1	1,000		—	—		—	—		1	1,000
Total	—	$	—	—	$	—	3	$	2,299	1	$	125	—	$	—	4	$	2,424
Nonaccrual Troubled Debt Restructured Loans:
Total	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Nine Months Ended September 30, 2015
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	143	—	$	—	1	$	500	—	$	—	2	$	497	4	$	1,140
Real estate—commercial real estate	—	—		—	—		—	—		—	—		1	405		1	405
Real estate—residential secured for business purpose	1	353		—	—		—	—		—	—		—	—		1	353
Total	2	$	496	—	$	—	1	$	500	—	$	—	3	$	902	6	$	1,898
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	122	—	$	—	—	$	—	—	$	—	—	$	—	1	$	122
Total	1	$	122	—	$	—	—	$	—	—	$	—	—	$	—	1	$	122
Nine Months Ended September 30, 2014
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	—	$	—	2	$	1,299	1	$	125	—	$	—	3	$	1,424
Real estate—commercial real estate	—	—		—	—		1	1,000		—	—		—	—		1	1,000
Total	—	$	—	—	$	—	3	$	2,299	1	$	125	—	$	—	4	$	2,424
Nonaccrual Troubled Debt Restructured Loans:
Real estate—commercial real estate	—	$	—	1	$	50	—	$	—	—	$	—	—	$	—	1	$	50
Real estate—residential secured for business purpose	—	—		1	55		1	633		—	—		—	—		2	688
Total	—	$	—	2	$	105	1	$	633	—	$	—	—	$	—	3	$	738

Schedule of Accruing and Nonaccruing Troubled Debt Restructured Loans

The following presents, by class of loans, information regarding accruing and nonaccrual troubled debt restructured loans, for which there were payment defaults within twelve months of the restructuring date:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
(Dollars in thousands)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Accruing Troubled Debt Restructured Loans:
Total	—	$	—	—	$	—	—	$	—	—	$	—
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	2	$	219	—	$	—	4	$	419	—	$	—
Total	2	$	219	—	$	—	4	$	419	—	$	—

XML

Derivative Instruments and Hedging Activities - Derivatives Designated as Hedging Instruments (Detail) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Notional Amount	$ 19,440		$ 19,440		$ 19,945
Derivative Assets, Fair Value	0		0		0
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	685		685		241
Net loss	(95)	$ 0	(286)	$ 0
Amounts included in accumulated other comprehensive income (loss)	(445)	(157)
Interest Rate Swap [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Notional Amount	19,440		19,440		19,945
Derivative Assets, Fair Value	0		0		0
Amounts included in accumulated other comprehensive income (loss)	(445)	(157)
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Interest rate swap—cash flow hedge—interest payments	95	$ 0	286	$ 0
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	$ 685		$ 685		$ 241

XML

Acquisition - Summary of Acquired Impaired Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Jan. 01, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Interest component of expected cash flows (accretable difference)	$ (185)		$ 0
Valley Green Bank [Member]
Business Acquisition [Line Items]
Contractually required principal and interest payments		$ 7,377
Contractual cash flows not expected to be collected (nonaccretable difference)		(5,344)
Cash flows expected to be collected		2,033
Interest component of expected cash flows (accretable difference)		(305)
Fair value of loans acquired with a deterioration of credit quality		$ 1,728

XML

Fair Value Disclosures

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Fair Value Disclosures

Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The Corporation determines the fair value of financial instruments based on the fair value hierarchy. The Corporation maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Corporation. Unobservable inputs are inputs that reflect the Corporation’s assumptions that the market participants would use in pricing the asset or liability based on the best information available in the circumstances, including assumptions about risk. Three levels of inputs are used to measure fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement. Transfers between levels are recognized at the end of the reporting period.

Level 1: Valuations are based on quoted prices in active markets for identical assets or liabilities that the Corporation can access at the measurement date. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.

Level 2: Valuations are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3: Valuations are based on inputs that are unobservable and significant to the overall fair value measurement. Assets and liabilities utilizing Level 3 inputs include: financial instruments whose value is determined using pricing models, discounted cash-flow methodologies, or similar techniques, as well as instruments for which the fair value calculation requires significant management judgment or estimation.

Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Investment Securities

Where quoted prices are available in an active market for identical instruments, investment securities are classified within Level 1 of the valuation hierarchy. Level 1 investment securities include U.S. Treasury securities, most equity securities and money market mutual funds. Mutual funds are registered investment companies which are valued at net asset value of shares on a market exchange at the end of each trading day. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Examples of instruments, which would generally be classified within Level 2 of the valuation hierarchy, include securities issued by U.S. Government sponsored enterprises, mortgage-backed securities, collateralized mortgage obligations, corporate and municipal bonds and certain equity securities. In cases where there is limited activity or less transparency around inputs to the valuation, investment securities are classified within Level 3 of the valuation hierarchy.

Fair values for securities are determined using independent pricing services and market-participating brokers. The Corporation’s independent pricing service utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information for structured securities, cash flow and, when available, loan performance data. Because many fixed income securities do not trade on a daily basis, the pricing service’s evaluated pricing applications apply information as applicable through processes, such as benchmarking of like securities, sector groupings, and matrix pricing, to prepare evaluations. If at any time, the pricing service determines that it does have not sufficient verifiable information to value a particular security, the Corporation will utilize valuations from another pricing service. Management has a sufficient understanding of the third party service’s valuation models, assumptions and inputs used in determining the fair value of securities to enable management to maintain an appropriate system of internal control.

On a quarterly basis, the Corporation reviews changes, as submitted by the pricing service, in the market value of its security portfolio. Individual changes in valuations are reviewed for consistency with general interest rate movements and any known credit concerns for specific securities. Additionally, on an annual basis, the Corporation has its security portfolio priced by a second pricing service to determine consistency with another market evaluator, except for municipal bonds which are priced by another service provider on a sample basis. If, upon the Corporation’s review or in comparing with another service, a material difference between pricing evaluations were to exist, the Corporation may submit an inquiry to the current pricing service regarding the data used to make the valuation of a particular security. If the Corporation determines there is market information that would support a different valuation than from the current pricing service’s evaluation, the Corporation can submit a challenge for a change to that security’s valuation. There were no material differences in valuations noted at September 30, 2015.

Derivative Financial Instruments

The fair values of derivative financial instruments are based upon the estimated amount the Corporation would receive or pay to terminate the contracts or agreements, taking into account current interest rates and, when appropriate, the current creditworthiness of the counterparties. Derivative financial instruments are classified within Level 2 of the valuation hierarchy.

Contingent Consideration Liability

The Corporation estimates the fair value of the contingent consideration liability by using a discounted cash flow model of future contingent payments based on projected revenue related to the acquired business. The estimated fair value of the contingent consideration liability is reviewed on a quarterly basis and any valuation adjustments resulting from a change in the discount rate or change of estimated future contingent payments based on projected revenue of the acquired business affecting the contingent consideration liability will be recorded through noninterest expense, unless due to changes in the original assumptions utilized at the time the acquisition closes and identified during the measurement period in accordance with ASC Topic 805. Due to the significant unobservable input related to the projected revenue, the contingent consideration liability is classified within Level 3 of the valuation hierarchy. An increase in the projected revenue may result in a higher fair value of the contingent consideration liability. Alternatively, a decrease in the projected revenue may result in a lower estimated fair value of the contingent consideration liability.

For the Sterner Insurance Associates acquisition, the potential cash payments that could result from the contingent consideration arrangement range from $0 to a maximum of $3.9 million over the two-year period ending June 30, 2017. Due to updates to the original assumptions utilized for determining the contingent consideration liability for the Sterner acquisition completed on July 1, 2014, the Corporation recorded a purchase accounting adjustment, in accordance with ASC Topic 805, in 2015 which resulted in an increase to the contingent consideration liability and an increase to goodwill of $1.5 million.

For the Girard Partners acquisition, the remaining potential cash payments that could result from the contingent consideration arrangement range from $0 to a maximum of $13.8 million cumulative over the four-year period ending December 31, 2018.

For the John T. Fretz Insurance Agency acquisition, the remaining potential future cash payments that could result from the contingent consideration arrangement range from $0 to a maximum of $360 thousand cumulative over the one-year period ending April 30, 2016.

For the Javers Group acquisition, the Corporation recorded a reduction to the contingent liability during 2013 which resulted in a reduction of other noninterest expense of $959 thousand. The adjustment reflected that revenue levels necessary for an earn-out payment in the first year post-acquisition were not met and that revenue growth levels necessary to qualify for subsequent years’ earn-out payments to be made are remote. Therefore, as of September 30, 2015, the fair value of this contingent consideration liability is $0. The Javers’ original contingent consideration arrangement ranged from $0 to a maximum of $1.7 million cumulative over the three-year period ending June 30, 2015.

The following table presents the assets and liabilities measured at fair value on a recurring basis at September 30, 2015 and December 31, 2014, classified using the fair value hierarchy:

	At September 30, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. treasuries	$	4,945	$	—	$	—	$	4,945
U.S. government corporations and agencies	—		105,371		—		105,371
State and political subdivisions	—		108,420		—		108,420
Residential mortgage-backed securities	—		13,544		—		13,544
Collateralized mortgage obligations	—		3,303		—		3,303
Corporate bonds	—		87,913		—		87,913
Money market mutual funds	9,020		—		—		9,020
Equity securities	984		—		—		984
Total available-for-sale securities	14,949		318,551		—		333,500
Interest rate locks with customers	—		1,264		—		1,264
Total assets	$	14,949	$	319,815	$	—	$	334,764
Liabilities:
Contingent consideration liability	$	—	$	—	$	5,956	$	5,956
Interest rate swap	—		685		—		685
Forward loan sale commitments	—		184		—		184
Total liabilities	$	—	$	869	$	5,956	$	6,825

	At December 31, 2014
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. treasuries	$	4,845	$	—	$	—	$	4,845
U.S. government corporations and agencies	—		121,844		—		121,844
State and political subdivisions	—		102,774		—		102,774
Residential mortgage-backed securities	—		13,643		—		13,643
Collateralized mortgage obligations	—		3,725		—		3,725
Corporate bonds	—		54,440		—		54,440
Money market mutual funds	11,675		—		—		11,675
Equity securities	1,337		—		—		1,337
Total available-for-sale securities	17,857		296,426		—		314,283
Interest rate locks with customers	—		788		—		788
Total assets	$	17,857	$	297,214	$	—	$	315,071
Liabilities:
Contingent consideration liability	$	—	$	—	$	6,541	$	6,541
Interest rate swap	—		241		—		241
Forward loan sale commitments	—		112		—		112
Total liabilities	$	—	$	353	$	6,541	$	6,894

At September 30, 2015 and December 31, 2014, the Corporation had no assets measured at fair value on a recurring basis utilizing Level 3 inputs.

The following table presents the change in the balance of the contingent consideration liability related to acquisitions for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the nine months ended September 30, 2015 and 2014:

	Nine Months Ended September 30, 2015
(Dollars in thousands)	Balance at December 31, 2014		Contingent Consideration from New Acquisition*		Payment of Contingent Consideration		Adjustment of Contingent Consideration			Balance at September 30, 2015
Sterner Insurance Associates	$	680	$	1,525	$	1,751	$	535		$	989
Girard Partners	5,503		—		620		(102		)	4,781
John T. Fretz Insurance Agency	358		—		260		88			186
Total contingent consideration liability	$	6,541	$	1,525	$	2,631	$	521		$	5,956

	Nine Months Ended September 30, 2014
(Dollars in thousands)	Balance at December 31, 2013		Contingent Consideration from New Acquisition		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at September 30, 2014
Sterner Insurance Associates	$	—	$	635	$	—	$	22	$	657
Girard Partners	$	—	$	5,470	$	—	$	197	$	5,667
John T. Fretz Insurance Agency	501		—		310		154		345
Total contingent consideration liability	$	501	$	6,105	$	310	$	373	$	6,669

*Includes adjustments during the measurement period in accordance with ASC Topic 805.

The Corporation may be required to periodically measure certain assets and liabilities at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or market accounting or impairment charges of individual assets. The following table represents assets measured at fair value on a non-recurring basis at September 30, 2015 and December 31, 2014:

	At September 30, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	32,388	$	32,388
Total	$	—	$	—	$	32,388	$	32,388

	At December 31, 2014
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	55,193	$	55,193
Total	$	—	$	—	$	55,193	$	55,193

The following table presents assets and liabilities and off-balance sheet items not measured at fair value on a recurring or non-recurring basis in the Corporation’s consolidated balance sheets but for which the fair value is required to be disclosed at September 30, 2015 and December 31, 2014. The disclosed fair values are classified using the fair value hierarchy.

	At September 30, 2015
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	108,544	$	—		$	—	$	108,544		$	108,544
Held-to-maturity securities	—		41,323			—		41,323			41,058
Loans held for sale	—		9,169			—		9,169			9,151
Net loans and leases held for investment	—		—			2,042,152		2,042,152			2,046,799
Mortgage servicing rights	—		—			7,592		7,592			5,772
Other real estate owned	—		955			—		955			955
Total assets	$	108,544	$	51,447		$	2,049,744	$	2,209,735		$	2,212,279
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,881,594	$	—		$	—	$	1,881,594		$	1,881,594
Time deposits	—		492,950			—		492,950			491,271
Total deposits	1,881,594		492,950			—		2,374,544			2,372,865
Short-term borrowings	—		19,555			—		19,555			21,191
Subordinated notes	—		50,125			—		50,125			49,340
Total liabilities	$	1,881,594	$	562,630		$	—	$	2,444,224		$	2,443,396
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,763	)	$	—	$	(1,763	)	$	—

	At December 31, 2014
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	38,565	$	—		$	—	$	38,565		$	38,565
Held-to-maturity securities	—		54,765			—		54,765			54,347
Loans held for sale	—		3,374			—		3,374			3,302
Net loans and leases held for investment	—		—			1,555,033		1,555,033			1,550,770
Mortgage servicing rights	—		—			6,941		6,941			5,509
Other real estate owned	—		955			—		955			955
Total assets	$	38,565	$	59,094		$	1,561,974	$	1,659,633		$	1,653,448
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,608,748	$	—		$	—	$	1,608,748		$	1,608,748
Time deposits	—		254,224			—		254,224			252,593
Total deposits	1,608,748		254,224			—		1,862,972			1,861,341
Short-term borrowings	—		38,631			—		38,631			41,974
Total liabilities	$	1,608,748	$	292,855		$	—	$	1,901,603		$	1,903,315
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,420	)	$	—	$	(1,420	)	$	—

The following valuation methods and assumptions were used by the Corporation in estimating the fair value for financial instruments measured at fair value on a non-recurring basis and financial instruments not measured at fair value on a recurring or non-recurring basis in the Corporation’s consolidated balance sheets but for which the fair value is required to be disclosed:

Cash and short-term interest-earning assets: The carrying amounts reported in the balance sheet for cash and due from banks, interest-earning deposits with other banks, and other short-term investments approximates those assets’ fair values. Cash and short-term interest-earning assets are classified within Level 1 in the fair value hierarchy.

Held-to-maturity securities: Fair values for the held-to-maturity investment securities are estimated by using pricing models or quoted prices of securities with similar characteristics and are classified in Level 2 in the fair value hierarchy.

Loans held for sale: The fair value of the Corporation’s mortgage loans held for sale are generally determined using a pricing model based on current market information obtained from external sources, including interest rates, bids or indications provided by market participants on specific loans that are actively marketed for sale. These loans are primarily residential mortgage loans and are generally classified in Level 2 due to the observable pricing data. Loans held for sale are carried at the lower of cost or estimated fair value. At September 30, 2015, loans held for sale included two non-accrual construction loans for one borrower for $4.0 million. These loans were transferred to loans held for sale in the second quarter of 2015 (while remaining in non-accrual status), as an agreement was reached to sell the loans prior to December 31, 2015. The fair value of the non-accrual construction loans was measured based on the sale price and is classified within Level 2 in the fair value hierarchy. There were no valuation adjustments for loans held for sale at September 30, 2015 and December 31, 2014.

Loans and leases held for investment: The fair values for loans are estimated using discounted cash flow analyses, using a discount rate based on current interest rates at which similar loans with similar terms would be made to borrowers and include components for credit risk, operating expense and embedded prepayment options. An overall valuation adjustment is made for specific credit risks in addition to general portfolio risk and is significant to the valuation. As permitted, the fair value of the loans and leases are not based on the exit price concept as discussed in the first paragraph of this note. Loans and leases are classified within Level 3 in the fair value hierarchy.

Impaired loans held for investment: Impaired loans held for investment include those collateral-dependent loans for which the practical expedient was applied, resulting in a fair-value adjustment to the loan. Impaired loans are evaluated and valued at the time the loan is identified as impaired, at the lower of cost or fair value. Fair value is measured based on the value of the collateral securing these loans less costs to sell and is classified at a Level 3 in the fair value hierarchy. The fair value of collateral is based on appraisals performed by qualified licensed appraisers hired by the Corporation. At September 30, 2015, impaired loans held for investment had a carrying amount of $32.8 million with a valuation allowance of $380 thousand. At December 31, 2014, impaired loans held for investment had a carrying amount of $56.2 million with a valuation allowance of $998 thousand.

Mortgage servicing rights: The Corporation estimates the fair value of mortgage servicing rights using discounted cash flow models that calculate the present value of estimated future net servicing income. The model uses readily available prepayment speed assumptions for the interest rates of the portfolios serviced. Mortgage servicing rights are classified within Level 3 of the valuation hierarchy. The Corporation reviews the mortgage servicing rights portfolio on a quarterly basis for impairment and the mortgage servicing rights are carried at the lower of amortized cost or estimated fair value. At September 30, 2015 and December 31, 2014, mortgage servicing rights had a carrying amount of $5.8 million and $5.5 million, respectively, with no valuation allowance.

Goodwill and other identifiable assets: Certain non-financial assets subject to measurement at fair value on a non-recurring basis include goodwill and other identifiable intangible assets. During the nine months ended September 30, 2015, there were no triggering events that required valuation of goodwill and other identifiable intangible assets.

Other real estate owned: The fair value of other real estate owned is estimated based upon the appraised value less costs to sell. The real estate is stated at an amount equal to the loan balance prior to foreclosure, plus costs incurred for improvements to the property but no more than the fair value of the property, less estimated costs to sell. New appraisals are generally obtained on an annual basis. Other real estate owned is classified within Level 2 of the valuation hierarchy.

Deposit liabilities: The fair values for demand and savings accounts, with no stated maturities, is the amount payable on demand at the reporting date (carrying value) and are classified within Level 1 in the fair value hierarchy. The fair values for time deposits with fixed maturities are estimated by discounting the final maturity using interest rates currently offered for deposits with similar remaining maturities. Time deposits are classified within Level 2 in the fair value hierarchy.

Short-term borrowings: The fair value of customer repurchase agreements and federal funds purchased are estimated using current market rates for similar borrowings and are classified within Level 2 in the fair value hierarchy.

Subordinated Notes: The fair value of the subordinated notes are estimated by discounting the principal balance using the treasury yield curve for the term to the call date as the Corporation has the option to call the subordinated notes. The subordinated notes are classified within Level 2 in the fair value hierarchy.

Off-balance-sheet instruments: Fair values for the Corporation’s off-balance-sheet instruments are based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing and are classified within Level 2 in the fair value hierarchy.