Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2015 and 2014, classified using the fair value hierarchy:



	At December 31, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. treasuries	$	4,887	$	—	$	—	$	4,887
U.S. government corporations and agencies	—		102,156		—		102,156
State and political subdivisions	—		102,032		—		102,032
Residential mortgage-backed securities	—		13,354		—		13,354
Collateralized mortgage obligations	—		3,133		—		3,133
Corporate bonds	—		—		—		—
Money market mutual funds	16,726		86,675		—		103,401
Equity securities	807		—		—		807
Total available-for-sale securities	22,420		307,350		—		329,770
Interest rate locks with customers	—		1,089		—		1,089
Total assets	$	22,420	$	308,439	$	—	$	330,859
Liabilities:
Contingent consideration liability	$	—	$	—	$	5,577	$	5,577
Interest rate swap	—		438		—		438
Forward loan sale commitments	—		102		—		102
Total liabilities	$	—	$	540	$	5,577	$	6,117



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

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 years ended December 31, 2015 and 2014:



	For the Year Ended December 31, 2015
(Dollars in thousands)	Balance at December 31, 2014		Contingent Consideration from New Acquisition *		Payment of Contingent Consideration			Adjustment of Contingent Consideration			Balance at December 31, 2015
Sterner Insurance Associates	$	680	$	1,525	$	(1,751	)	$	690		$	1,144
Girard Partners	5,503		—		(620		)	(642		)	4,241
John T. Fretz Insurance Agency	358		—		(260		)	94			192
Total contingent consideration liability	$	6,541	$	1,525	$	(2,631	)	$	142		$	5,577

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



	For the Year Ended December 31, 2014
(Dollars in thousands)	Balance at December 31, 2013		Contingent Consideration from New Acquisition		Payment of Contingent Consideration			Adjustment of Contingent Consideration		Balance at December 31, 2014
Sterner Insurance Associates	$	—	$	635	$	—		$	45	$	680
Girard Partners	—		5,470		—			33		5,503
John T. Fretz Insurance Agency	501		—		(310		)	167		358
Total contingent consideration liability	$	501	$	6,105	$	(310	)	$	245	$	6,541

Assets Measured at Fair Value on Non-Recurring Basis

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



	At December 31, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	48,611	$	48,611
Total	$	—	$	—	$	48,611	$	48,611



	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 December 31, 2015 and 2014. The disclosed fair values are classified using the fair value hierarchy.



	At December 31, 2015
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	60,799	$	—		$	—	$	60,799		$	60,799
Held-to-maturity securities	—		41,061			—		41,061			40,990
Loans held for sale	—		4,708			—		4,708			4,680
Net loans and leases held for investment	—		—			2,099,082		2,099,082			2,112,774
Mortgage servicing rights	—		—			8,047		8,047			5,877
Other real estate owned	—		1,276			—		1,276			1,276
Total assets	$	60,799	$	47,045		$	2,107,129	$	2,214,973		$	2,226,396
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,939,954	$	—		$	—	$	1,939,954		$	1,939,954
Time deposits	—		455,527			—		455,527			454,406
Total deposits	1,939,954		455,527			—		2,395,481			2,394,360
Short-term borrowings	—		22,302			—		22,302			24,211
Subordinated notes	—		50,375			—		50,375			49,377
Total liabilities	$	1,939,954	$	528,204		$	—	$	2,468,158		$	2,467,948
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,788	)	$	—	$	(1,788	)	$	—



	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	)	$	—