Disclosures About Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2017

Fair value measurements of assets and liabilities recognized in Consolidated Condensed Balance Sheets measured at fair value

The following table presents the fair value measurements of assets and liabilities recognized in the Consolidated Condensed Balance Sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at March 31, 2017, and December 31, 2016.



			Fair Value Measurements Using:
March 31, 2017	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available for sale securities:
U.S. Treasury	$	747	$	747
State and municipal	373,737				$	370,493	$	3,244
U.S. Government-sponsored mortgage-backed securities	322,699				322,699
Corporate obligations	31						31
Equity securities	33,574		31,558		2,012		4
Interest rate swap asset	6,373				6,373
Interest rate cap	6				6
Interest rate swap liability	8,289				8,289



			Fair Value Measurements Using:
December 31, 2016	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available for sale securities:
U.S. Government-sponsored agency securities	$	100			$	100
State and municipal	363,658				358,524		$	5,134
U.S. Government-sponsored mortgage-backed securities	312,292				312,292
Corporate obligations	31						31
Equity securities	20,781		$	18,765	2,012		4
Interest rate swap asset	6,295				6,295
Interest rate cap	15				15
Interest rate swap liability	8,477				8,477

Reconciliation of beginning and ending balances of recurring fair value measurements recognized in Consolidated Condensed Balance Sheets using significant unobservable Level 3 inputs

The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the Consolidated Condensed Balance Sheets using significant unobservable (Level 3) inputs for the three months ended March 31, 2017 and 2016.



	Available for Sale Securities
	Three Months Ended
	March 31, 2017			March 31, 2016
Balance at beginning of the period	$	5,169		$	5,932
Included in other comprehensive income	11			38
Principal payments	(1,901		)	(466		)
Ending balance	$	3,279		$	5,504

Description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in Consolidated Condensed Balance Sheets

Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the

accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy for

March 31, 2017, and December 31, 2016.



			Fair Value Measurements Using
March 31, 2017	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Impaired loans (collateral dependent)	$	4,813			$	4,813
Other real estate owned	207				207



			Fair Value Measurements Using
December 31, 2016	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Impaired loans (collateral dependent)	$	15,318			$	15,318
Other real estate owned	1,612				1,612

Unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at March 31, 2017 and December 31, 2016.



March 31, 2017	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted-Average)
State and municipal securities	$	3,244	Discounted cash flow	Maturity/Call date	1 month to 20 yrs
				US Muni BQ curve	A- to BBB-
				Discount rate	.69% - 5%

Corporate obligations and Equity securities	$	35	Discounted cash flow	Risk free rate	3 month LIBOR
				plus premium for illiquidity	plus 200bps

Impaired loans (collateral dependent)	$	4,813	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	0% - 10% (2%)

Other real estate owned	$	207	Appraisals	Discount to reflect current market conditions	0% - 15% (14%)



December 31, 2016	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted-Average)
State and municipal securities	$	5,134	Discounted cash flow	Maturity/Call date	1 month to 20 yrs
				US Muni BQ curve	A- to BBB-
				Discount rate	.69% - 5%

Corporate obligations and Equity securities	$	35	Discounted cash flow	Risk free rate	3 month LIBOR
				plus premium for illiquidity	plus 200bps

Impaired loans (collateral dependent)	$	15,318	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	0% - 10% (1%)

Other real estate owned	$	1,612	Appraisals	Discount to reflect current market conditions	0% - 10% (9%)

Estimated fair values of financial instruments

The following table presents estimated fair values of the Corporation’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at March 31, 2017, and December 31, 2016.



			March 31, 2017
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Carrying Amount		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash and cash equivalents	$	104,247	$	104,247
Interest-bearing time deposits	20,439		20,439
Investment securities available for sale	730,788		32,306		$	695,203	$	3,279
Investment securities held to maturity	596,429				588,185		13,906
Loans held for sale	1,262				1,262
Loans	5,206,684						5,076,999
Federal Home Loan Bank stock	17,964				17,964
Interest rate swap and cap asset	6,379				6,379
Interest receivable	25,174				25,174
Liabilities:
Deposits	$	5,635,309	$	4,426,558	$	1,191,782
Borrowings:
Federal funds purchased	102,000				102,000
Securities sold under repurchase agreements	139,007				138,965
Federal Home Loan Bank advances	338,919				337,655
Subordinated debentures and term loans	128,862				106,584
Interest rate swap liability	8,289				8,289
Interest payable	3,875				3,875



			December 31, 2016
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Carrying Amount		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash and cash equivalents	$	127,927	$	127,927
Interest-bearing time deposits	24,459		24,459
Investment securities available for sale	696,862		18,765		$	672,928	$	5,169
Investment securities held to maturity	607,643				597,246		14,687
Loans held for sale	2,929				2,929
Loans	5,073,608						4,933,552
Federal Home Loan Bank stock	17,964				17,964
Interest rate swap and cap asset	6,310				6,310
Interest receivable	26,194				26,194
Liabilities:
Deposits	$	5,556,498	$	4,427,605	$	1,111,491
Borrowings:
Federal funds purchased	120,349				120,349
Securities sold under repurchase agreements	146,480				146,449
Federal Home Loan Bank advances	298,923				297,465
Subordinated debentures and term loans	128,445				105,930
Interest rate swap liability	8,477				8,477
Interest payable	3,110				3,110