Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2015

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	)	$	—