10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended September 30, 2015

Commission File Number 0-16759

FIRST FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter) 

INDIANA	35-1546989
(State or other jurisdiction	(I.R.S. Employer
incorporation or organization)	Identification No.)
One First Financial Plaza, Terre Haute, IN	47807
(Address of principal executive office)	(Zip Code)
(812)238-6000
(Registrant's telephone number, including area code)

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 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 Web site, 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.

As of November 3, 2015, the registrant had outstanding 12,703,869 shares of common stock, without par value.

FIRST FINANCIAL CORPORATION

FORM 10-Q

INDEX 

	Page No.
PART I.  Financial Information
Item 1. Financial Statements:
Consolidated Balance Sheets	3
Consolidated Statements of Income and Comprehensive Income	4
Consolidated Statements of Shareholders’ Equity	5
Consolidated Statements of Cash Flows	7
Notes to Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.  Quantitative and Qualitative Disclosures about Market Risk	34
Item 4.  Controls and Procedures	37
PART II. Other Information:
Item 1. Legal Proceedings	38
Item 1A. Risk Factors	38
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds	38
Item 3.  Defaults upon Senior Securities	38
Item 4.  Mine Safety Disclosures	38
Item 5.  Other Information	38
Item 6.  Exhibits	39
Signatures	40

2

Part I – Financial Information

Item 1. Financial Statements

FIRST FINANCIAL CORPORATION

CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands, except per share data)

	September 30, 2015			December 31, 2014
	(unaudited)
ASSETS
Cash and due from banks	$	63,278		$	78,102
Federal funds sold	—			8,000
Securities available-for-sale	885,836			897,053
Loans:
Commercial	1,040,677			1,044,522
Residential	451,425			469,172
Consumer	272,235			266,656
	1,764,337			1,780,350
(Less) plus:
Net deferred loan costs	2,330			1,078
Allowance for loan losses	(19,925		)	(18,839		)
	1,746,742			1,762,589
Restricted stock	10,838			16,404
Accrued interest receivable	12,265			11,593
Premises and equipment, net	50,834			51,802
Bank-owned life insurance	81,961			80,730
Goodwill	39,489			39,489
Other intangible assets	3,375			3,901
Other real estate owned	3,382			3,965
Other assets	44,833			48,857
TOTAL ASSETS	$	2,942,833		$	3,002,485
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest-bearing	$	521,310		$	556,389
Interest-bearing:
Certificates of deposit exceeding the FDIC insurance limits	47,154			53,733
Other interest-bearing deposits	1,850,125			1,847,075
	2,418,589			2,457,197
Short-term borrowings	23,336			48,015
FHLB advances	13,251			12,886
Other liabilities	79,066			90,173
TOTAL LIABILITIES	2,534,242			2,608,271
Shareholders’ equity
Common stock, $.125 stated value per share;
Authorized shares-40,000,000
Issued shares-14,557,815 in 2015 and 14,538,132 in 2014
Outstanding shares-12,703,869 in 2015 and 12,962,607 in 2014	1,817			1,815
Additional paid-in capital	72,916			72,405
Retained earnings	394,761			377,970
Accumulated other comprehensive loss	(8,758		)	(14,529		)
Less: Treasury shares at cost-1,853,946 in 2015 and 1,575,525 in 2014	(52,145		)	(43,447		)
TOTAL SHAREHOLDERS’ EQUITY	408,591			394,214
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,942,833		$	3,002,485

See accompanying notes. 

3

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Dollar amounts in thousands, except per share data) 

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2015		2014		2015		2014
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
INTEREST INCOME:
Loans, including related fees	$	21,478	$	21,939	$	63,048	$	65,782
Securities:
Taxable	3,918		4,196		11,970		12,938
Tax-exempt	1,806		1,782		5,375		5,294
Other	401		459		1,265		1,301
TOTAL INTEREST INCOME	27,603		28,376		81,658		85,315
INTEREST EXPENSE:
Deposits	963		1,088		2,980		3,611
Short-term borrowings	22		49		54		85
Other borrowings	42		94		129		726
TOTAL INTEREST EXPENSE	1,027		1,231		3,163		4,422
NET INTEREST INCOME	26,576		27,145		78,495		80,893
Provision for loan losses	1,050		1,506		3,650		3,110
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES	25,526		25,639		74,845		77,783
NON-INTEREST INCOME:
Trust and financial services	1,382		1,386		4,127		4,289
Service charges and fees on deposit accounts	2,688		2,813		7,557		8,058
Other service charges and fees	3,080		3,112		8,918		8,940
Securities gains/(losses), net	9		—		23		(1		)
Insurance commissions	1,693		2,091		5,202		5,620
Gain on sales of mortgage loans	611		519		1,512		1,352
Other	488		573		2,451		1,676
TOTAL NON-INTEREST INCOME	9,951		10,494		29,790		29,934
NON-INTEREST EXPENSE:
Salaries and employee benefits	14,963		14,081		45,105		42,064
Occupancy expense	1,756		1,776		5,322		5,490
Equipment expense	1,736		1,905		5,210		5,467
FDIC Expense	468		537		1,348		1,496
Other	5,229		6,406		16,470		17,706
TOTAL NON-INTEREST EXPENSE	24,152		24,705		73,455		72,223
INCOME BEFORE INCOME TAXES	11,325		11,428		31,180		35,494
Provision for income taxes	2,927		3,156		8,098		10,903
NET INCOME	8,398		8,272		23,082		24,591
OTHER COMPREHENSIVE INCOME
Change in unrealized gains/losses on securities, net of reclassifications and taxes	4,471		1,879		1,669		11,298
Change in funded status of post retirement benefits, net of taxes	819		116		4,102		346
COMPREHENSIVE INCOME	$	13,688	$	10,267	$	28,853	$	36,235
PER SHARE DATA
Basic and Diluted Earnings per Share	$	0.65	$	0.62	$	1.79	$	1.85
Weighted average number of shares outstanding (in thousands)	12,773		13,269		12,874		13,325

See accompanying notes.

4

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Three Months Ended

September 30, 2015, and 2014

(Dollar amounts in thousands, except per share data)

(Unaudited)

	Common Stock		Additional Capital		Retained Earnings		Accumulated Other Comprehensive Income/(Loss)			Treasury Stock			Total
Balance, July 1, 2014	$	1,812	$	71,557	$	366,858	$	(4,320	)	$	(30,161	)	$	405,746
Net income	—		—		8,272		—			—			8,272
Other comprehensive income	—		—		—		1,995			—			1,995
Omnibus Equity Incentive Plan	2		357		—		—			—			359
Treasury shares purchased (392,665 shares)	—		—		$	—	$	—		(12,499		)	(12,499		)
Balance, September 30, 2014	$	1,814	$	71,914	$	375,130	$	(2,325	)	$	(42,660	)	$	403,873
Balance, July 1, 2015	$	1,816	$	72,746	$	386,363	$	(14,048	)	$	(47,819	)	$	399,058
Net income	—		—		8,398		—			—			8,398
Other comprehensive income	—		—		—		5,290			—			5,290
Omnibus Equity Incentive Plan	1		170		—		—			—			171
Treasury shares purchased (130,247 shares)	—		—		—		—			(4,326		)	(4,326		)
Balance, September 30, 2015	$	1,817	$	72,916	$	394,761	$	(8,758	)	$	(52,145	)	$	408,591

See accompanying notes.

5

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Nine Months Ended

September 30, 2015, and 2014

(Dollar amounts in thousands, except per share data)

(Unaudited)

	Common Stock		Additional Capital		Retained Earnings			Accumulated Other Comprehensive Income/(Loss)			Treasury Stock			Total
Balance, January 1, 2014	$	1,811	$	71,074	$	357,083		$	(13,969	)	$	(29,804	)	$	386,195
Net income	—		—		24,591			—			—			24,591
Other comprehensive income	—		—		—			11,644			—			11,644
Omnibus Equity Incentive Plan	3		840		—			—			—			843
Treasury shares purchased (402,441 shares)	—		—		—			—			(12,856		)	(12,856		)
Cash dividends, $.49 per share	—		—		(6,544		)	—			—			(6,544		)
Balance, September 30, 2014	$	1,814	$	71,914	$	375,130		$	(2,325	)	$	(42,660	)	$	403,873
Balance, January 1, 2015	$	1,815	$	72,405	$	377,970		$	(14,529	)	$	(43,447	)	$	394,214
Net income	—		—		23,082			—			—			23,082
Other comprehensive income	—		—		—			5,771			—			5,771
Omnibus Equity Incentive Plan	2		511		—			—			—			513
Treasury shares purchased (257,989 shares)	—		—		—			—			(8,698		)	(8,698		)
Cash dividends, $.49 per share	—		—		(6,291		)	—			—			(6,291		)
Balance, September 30, 2015	$	1,817	$	72,916	$	394,761		$	(8,758	)	$	(52,145	)	$	408,591

See accompanying notes.

6

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar amounts in thousands, except per share data)  

	Nine Months Ended   September 30,
	2015			2014
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	23,082		$	24,591
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization (accretion) of premiums and discounts on investments	2,209			1,988
Provision for loan losses	3,650			3,110
Securities (gains) losses	(23		)	1
(Gain) loss on sale of other real estate	76			(150		)
Restricted stock compensation	513			843
Depreciation and amortization	4,159			4,536
Other, net	(18		)	3,641
NET CASH FROM OPERATING ACTIVITIES	33,648			38,560
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of securities available-for-sale	3,465			355
Calls, maturities and principal reductions on securities available-for-sale	110,221			99,027
Purchases of securities available-for-sale	(101,766		)	(68,704		)
Loans made to customers, net of repayment	11,378			(26,518		)
Redemption of restricted stock	5,576			—
Purchase of restricted stock	(10		)	(18		)
Purchase of customer list	(103		)	—
Proceeds from sales of other real estate owned	1,412			2,468
Net change in federal funds sold	8,000			(10,704		)
Additions to premises and equipment	(2,562		)	(4,870		)
NET CASH FROM INVESTING ACTIVITIES	35,611			(8,964		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	(38,662		)	(7,265		)
Net change in short-term borrowings	(24,679		)	(561		)
Maturities of other borrowings	(30,212		)	(397,000		)
Proceeds from other borrowings	30,800			427,000
Purchase of treasury stock	(8,698		)	(12,856		)
Dividends paid	(12,632		)	(12,949		)
NET CASH FROM FINANCING ACTIVITIES	(84,083		)	(3,631		)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(14,824		)	25,965
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD	78,102			71,033
CASH AND DUE FROM BANKS, END OF PERIOD	$	63,278		$	96,998

See accompanying notes.

7

FIRST FINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The accompanying September 30, 2015 and 2014 consolidated financial statements are unaudited. The December 31, 2014 consolidated financial statements are as reported in the First Financial Corporation (the “Corporation”) 2014 annual report. The information presented does not include all information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. The following notes should be read together with notes to the consolidated financial statements included in the 10-K filed with the Securities and Exchange Commission for the fiscal year ended December 31, 2014. 

1. Significant Accounting Policies

The significant accounting policies followed by the Corporation and its subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments which are, in the opinion of management, necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated financial statements and are of a normal recurring nature. The Corporation reports financial information for only one segment, banking. Some items in the prior year financials were reclassified to conform to the current presentation.

The Omnibus Equity Incentive Plan is a long-term incentive plan that was designed to align the interests of participants with the interests of shareholders. Under the plan, awards may be made based on certain performance measures. The grants are made in restricted stock units that are subject to a vesting schedule. These shares vest over 3 years in increments of 33%, 33%, and 34% respectively. In 2015 and 2014, 19,683 and 22,019 shares were awarded, respectively. These shares had a grant date value of $667 thousand and $708 thousand for 2015 and 2014, vest over three years and their grant is not subject to future performance measures. Outstanding shares are increased at the award date for the total shares awarded. 

2. Allowance for Loan Losses

The following table presents the activity of the allowance for loan losses by portfolio segment for the three months

ended September 30. 

Allowance for Loan Losses:	September 30, 2015
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated			Total
Beginning balance	$	10,931		$	1,760		$	4,678		$	2,492		$	19,861
Provision for loan losses	1,338			158			1,052			(1,498		)	1,050
Loans charged -off	(1,874		)	(220		)	(1,201		)	—			(3,295		)
Recoveries	1,694			196			419			—			2,309
Ending Balance	$	12,089		$	1,894		$	4,948		$	994		$	19,925

Allowance for Loan Losses:	September 30, 2014
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated			Total
Beginning balance	$	10,850		$	1,374		$	3,769		$	2,262		$	18,255
Provision for loan losses*	589			72			1,047			(178		)	1,530
Loans charged -off	(1,310		)	(153		)	(1,193		)	—			(2,656		)
Recoveries	51			34			293			—			378
Ending Balance	$	10,180		$	1,327		$	3,916		$	2,084		$	17,507

* Provision before decrease of $24 thousand in 2014 for increase in FDIC indemnification asset

8

The following table presents the activity of the allowance for loan losses by portfolio segment for the nine months

ended September 30

Allowance for Loan Losses:	September 30, 2015
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated			Total
Beginning balance	$	10,915		$	1,374		$	4,370		$	2,180		$	18,839
Provision for loan losses	1,505			811			2,520			(1,186		)	3,650
Loans charged -off	(2,482		)	(626		)	(3,489		)	—			(6,597		)
Recoveries	2,151			335			1,547			—			4,033
Ending Balance	$	12,089		$	1,894		$	4,948		$	994		$	19,925

Allowance for Loan Losses:	September 30, 2014
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated			Total
Beginning balance	$	12,450		$	1,585		$	3,650		$	2,383		$	20,068
Provision for loan losses*	270			84			2,380			(299		)	2,435
Loans charged -off	(2,956		)	(958		)	(3,228		)	—			(7,142		)
Recoveries	416			616			1,114			—			2,146
Ending Balance	$	10,180		$	1,327		$	3,916		$	2,084		$	17,507

* Provision before increase of $675 thousand in 2014 for decrease in FDIC indemnification asset

The following table presents the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method at September 30, 2015 and December 31, 2014. 

Allowance for Loan Losses	September 30, 2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	$	996	$	232	$	—	$	—	$	1,228
Collectively evaluated for impairment	10,902		1,662		4,948		994		18,506
Acquired with deteriorated credit quality	191		—		—		—		191
Ending Balance	$	12,089	$	1,894	$	4,948	$	994	$	19,925

Loans:	September 30, 2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	$	9,648	$	934	$	—	$	10,582
Collectively evaluated for impairment	1,032,992		450,198		273,436		1,756,626
Acquired with deteriorated credit quality	4,194		1,586		—		5,780
Ending Balance	$	1,046,834	$	452,718	$	273,436	$	1,772,988

Allowance for Loan Losses:	December 31, 2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	1,911		—		—		—		1,911
Collectively evaluated for impairment	8,733		1,365		4,370		2,180		16,648
Acquired with deteriorated credit quality	271		9		—		—		280
Ending Balance	$	10,915	$	1,374	$	4,370	$	2,180	$	18,839

9

Loans	December 31, 2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	14,573		33		—		14,606
Collectively evaluated for impairment	1,030,949		468,872		267,880		1,767,701
Acquired with deteriorated credit quality	4,887		1,631		—		6,518
Ending Balance	$	1,050,409	$	470,536	$	267,880	$	1,788,825

The following tables present loans individually evaluated for impairment by class of loans. 

					September 30, 2015
	Unpaid Principal		Recorded		Allowance for Loan Losses		Average Recorded		Interest Income		Cash Basis Interest
(Dollar amounts in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,565	$	1,272	$	—	$	1,939	$	—	$	—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	3,243		3,243		—		1,800		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	1,776		1,776		—		1,029		—		—
Residential
First Liens	30		30		—		15		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	1,618		1,618		278		4,080		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	1,506		1,506		718		4,248		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	233		233		—		548		—		—
Residential
First Liens	904		904		232		357		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	10,875	$	10,582	$	1,228	$	14,016	$	—	$	—

10

					December 31, 2014
	Unpaid Principal		Recorded		Allowance for Loan Losses		Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,200	$	926	$	—	$	2,589	$	—	$	—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	—		—		—		58		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	292		292		—		58		—		—
Residential
First Liens	—		—		—		5		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	7,388		5,874		1,056		6,177		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	6,654		6,654		753		6,698		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	827		827		102		1,112		—		—
Residential
First Liens	33		33		—		35		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	16,394	$	14,606	$	1,911	$	16,732	$	—	$	—

11

	Three Months Ended   September 30, 2015						Nine Months Ended   September 30, 2015
	Average Recorded		Interest Income		Cash Basis Interest Income		Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Investment		Recognized		Recognized		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	3,290	$	—	$	—	$	1,939	$	—	$	—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	3,599		—		—		1,800		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	1,785		—		—		1,029		—		—
Residential
First Liens	31		—		—		15		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	1,714		—		—		4,080		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	1,929		—		—		4,248		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	393		—		—		548		—		—
Residential
First Liens	565		—		—		357		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	13,306	$	—	$	—	$	14,016	$	—	$	—

12

	Three Months Ended   September 30, 2014						Nine Months Ended   September 30, 2014
	Average Recorded		Interest Income		Cash Basis Interest Income		Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Investment		Recognized		Recognized		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	4,103	$	—	$	—	$	3,005	$	—	$	—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	42		—		—		73		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	—		—		—		—		—		—
Residential
First Liens	12		—		—		6		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	4,420		—		—		6,253		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	6,677		—		—		6,709		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	1,322		—		—		1,184		—		—
Residential
First Liens	35		—		—		36		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	16,611	$	—	$	—	$	17,266	$	—	$	—

13

The tables below presents the recorded investment in non-performing loans.

	September 30, 2015
	Loans Past Due Over 90 Day Still		Troubled Debt
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		Nonaccrual
Commercial
Commercial & Industrial	$	—	$	5	$	430	$	3,943
Farmland	—		—		—		385
Non Farm, Non Residential	—		7		3,190		2,666
Agriculture	588		—		—		289
All Other Commercial	—		—		—		1,993
Residential
First Liens	798		4,558		995		5,062
Home Equity	62		—		—		295
Junior Liens	13		—		—		230
Multifamily	—		—		—		—
All Other Residential	—		—		—		115
Consumer
Motor Vehicle	234		181		11		150
All Other Consumer	6		40		423		984
TOTAL	$	1,701	$	4,791	$	5,049	$	16,112

	December 31, 2014
	Loans Past Due Over 90 Day Still		Troubled Debt
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		Nonaccrual
Commercial
Commercial & Industrial	$	—	$	7	$	4,961	$	3,720
Farmland	—		—		—		79
Non Farm, Non Residential	—		10		3,987		3,388
Agriculture	—		—		—		767
All Other Commercial	—		—		—		1,258
Residential
First Liens	603		4,357		842		3,861
Home Equity	88		—		—		404
Junior Liens	12		—		—		275
Multifamily	—		—		—		—
All Other Residential	5		—		—		111
Consumer
Motor Vehicle	162		257		83		210
All Other Consumer	3		1		269		961
TOTAL	$	873	$	4,632	$	10,142	$	15,034

There are $184 thousand loans covered by loss share agreements with the FDIC included in loans past due over 90 days still on accrual at September 30, 2015 and there were $37 thousand at December 31, 2014. There were $242 thousand of covered loans included in non-accrual loans at September 30, 2015 and there were $274 thousand at December 31, 2014. There were no covered loans at September 30, 2015 or December 31, 2014 that were deemed impaired.

14

Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The following tables presents the aging of the recorded investment in loans by past due category and class of loans.  

	September 30, 2015
	30-59 Days		60-89 Days		Greater than 90 days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	190	$	321	$	1,825	$	2,336	$	474,550	$	476,886
Farmland	25		567		—		592		103,759		104,351
Non Farm, Non Residential	157		—		321		478		211,797		212,275
Agriculture	306		368		615		1,289		130,491		131,780
All Other Commercial	54		—		148		202		121,340		121,542
Residential
First Liens	1,083		813		1,723		3,619		298,948		302,567
Home Equity	154		61		161		376		37,837		38,213
Junior Liens	306		87		187		580		30,602		31,182
Multifamily	—		—		—		—		71,916		71,916
All Other Residential	—		—		—		—		8,840		8,840
Consumer
Motor Vehicle	2,619		495		251		3,365		247,719		251,084
All Other Consumer	94		49		6		149		22,203		22,352
TOTAL	$	4,988	$	2,761	$	5,237	$	12,986	$	1,760,002	$	1,772,988

	December 31, 2014
	30-59 Days		60-89 Days		Greater than 90 days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	574	$	416	$	3,046	$	4,036	$	451,549	$	455,585
Farmland	—		—		—		—		95,452		95,452
Non Farm, Non Residential	1,528		68		202		1,798		232,440		234,238
Agriculture	246		18		502		766		149,099		149,865
All Other Commercial	255		—		—		255		115,014		115,269
Residential
First Liens	6,011		963		1,522		8,496		308,068		316,564
Home Equity	141		33		310		484		40,043		40,527
Junior Liens	270		83		217		570		31,487		32,057
Multifamily	—		—		—		—		72,310		72,310
All Other Residential	112		—		5		117		8,961		9,078
Consumer
Motor Vehicle	3,026		557		180		3,763		242,406		246,169
All Other Consumer	114		7		3		124		21,587		21,711
TOTAL	$	12,277	$	2,145	$	5,987	$	20,409	$	1,768,416	$	1,788,825

15

During the three and nine months ended September 30, 2015 and 2014, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR's.

			2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
July 1,	8,705		5,589		657		14,951
Added	—		16		50		66
Charged Off	—		—		(4	)	(4	)
Payments	(5,081	)	(63	)	(41	)	(5,185	)
September 30,	3,624		5,542		662		9,828

			2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
January 1,	8,955		5,189		614		14,758
Added	—		668		239		907
Charged Off	—		(62	)	(44	)	(106	)
Payments	(5,331	)	(253	)	(147	)	(5,731	)
September 30,	3,624		5,542		662		9,828

			2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
July 1,	9,206		4,956		559		14,721
Added	—		340		115		455
Charged Off	—		(67	)	(24	)	(91	)
Payments	(122	)	(124	)	(81	)	(327	)
September 30,	9,084		5,105		569		14,758

			2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
January 1,	12,327		4,330		644		17,301
Added	441		1,141		213		1,795
Charged Off	(1,069	)	(67	)	(63	)	(1,199	)
Payments	(2,615	)	(299	)	(225	)	(3,139	)
September 30,	9,084		5,105		569		14,758

Modification of the terms of such loans typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. No modification in 2015 or 2014 resulted in the permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from twelve months to five years. Modifications involving an extension of the maturity date were for periods ranging from twelve months to ten years. Troubled debt restructurings during the three and nine months ended September 30, 2015 and 2014 did not result in any material charge-offs or additional provision expense.

The Corporation has allocated $36 thousand and $81 thousand of specific reserves to customers whose loan terms have been modified in troubled debt restructurings at both September 30, 2015 and 2014, respectively. The Corporation has not committed to lend additional amounts as of September 30, 2015 and 2014 to customers with outstanding loans that are classified as troubled debt restructurings. The charge-offs during the three and nine months ended September 30, 2015 and 2014 were not of any restructurings that had taken place in the previous 12 months.

16

Credit Quality Indicators:

The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial loans, with an outstanding balance greater than $100 thousand. Any consumer loans outstanding to a borrower who had commercial loans analyzed will be similarly risk rated. This analysis is performed on a quarterly basis. The Corporation uses the following definitions for risk ratings:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and debt service capacity of the borrower or of any pledged collateral. These loans have a well-defined weakness or weaknesses which have clearly jeopardized repayment of principal and interest as originally intended. They are characterized by the distinct possibility that the institution will sustain some future loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those graded substandard, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable or improbable based upon currently existing facts, conditions, and values.

Furthermore, non-homogeneous loans which were not individually analyzed, but are 90+ days past due or on non-accrual are classified as substandard. Loans included in homogeneous pools, such as residential or consumer may be classified as substandard due to 90+ days delinquency, non-accrual status, bankruptcy, or loan restructuring.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either less than $100 thousand or are included in groups of homogeneous loans. As of September 30, 2015 and December 31, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans are as follows:

	September 30, 2015
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	408,039	$	28,331	$	31,171	$	1,295	$	6,607	$	475,443
Farmland	90,255		7,354		4,825		—		16		102,450
Non Farm, Non Residential	184,252		8,191		19,380		36		—		211,859
Agriculture	111,296		9,804		8,790		27		166		130,083
All Other Commercial	105,584		2,691		11,193		101		1,273		120,842
Residential
First Liens	98,630		4,591		8,633		718		189,034		301,606
Home Equity	11,097		453		1,348		11		25,247		38,156
Junior Liens	7,578		119		482		59		22,862		31,100
Multifamily	69,077		1,616		1,026		—		25		71,744
All Other Residential	902		—		25		—		7,892		8,819
Consumer
Motor Vehicle	10,555		498		508		—		238,435		249,996
All Other Consumer	3,181		89		121		15		18,833		22,239
TOTAL	$	1,100,446	$	63,737	$	87,502	$	2,262	$	510,390	$	1,764,337

17

	December 31, 2014
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	393,449	$	29,081	$	24,013	$	2,900	$	4,717	$	454,160
Farmland	85,772		7,618		436		—		13		93,839
Non Farm, Non Residential	186,346		21,765		25,613		36		—		233,760
Agriculture	138,713		7,399		1,746		177		67		148,102
All Other Commercial	101,942		4,356		7,055		33		1,275		114,661
Residential
First Liens	104,854		5,929		7,733		1,035		196,008		315,559
Home Equity	12,592		375		1,374		6		26,116		40,463
Junior Liens	8,112		173		561		63		23,053		31,962
Multifamily	69,080		1,801		1,249		—		3		72,133
All Other Residential	1,799		—		28		—		7,228		9,055
Consumer
Motor Vehicle	11,135		402		224		—		233,302		245,063
All Other Consumer	3,169		141		87		21		18,175		21,593
TOTAL	$	1,116,963	$	79,040	$	70,119	$	4,271	$	509,957	$	1,780,350

3. Securities

The amortized cost and fair value of the Corporation’s investments are shown below. All securities are classified as available-for-sale.

	September 30, 2015
(Dollar amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Government agencies	$	11,059	$	61	$	—		$	11,120
Mortgage Backed Securities - Residential	188,184		6,391		(235		)	194,340
Mortgage Backed Securities - Commercial	10		—		—			10
Collateralized Mortgage Obligations	453,593		4,019		(3,703		)	453,909
State and Municipal Obligations	204,279		7,438		(377		)	211,340
Collateralized Debt Obligations	9,715		5,402		—			15,117
TOTAL	$	866,840	$	23,311	$	(4,315	)	$	885,836

	December 31, 2014
(Dollar amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Government agencies	$	1,411	$	56	$	—		$	1,467
Mortgage Backed Securities-residential	180,673		7,593		(330		)	187,936
Mortgage Backed Securities-commercial	17		—		—			17
Collateralized mortgage obligations	489,765		2,513		(7,623		)	484,655
State and municipal	198,875		9,019		(219		)	207,675
Collateralized debt obligations	10,205		5,115		(17		)	15,303
TOTAL	$	880,946	$	24,296	$	(8,189	)	$	897,053

18

Contractual maturities of debt securities at September 30, 2015 were as follows. Securities not due at a single maturity or with no maturity date, primarily mortgage-backed and equity securities are shown separately.

	Available-for-Sale
	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	3,399	$	3,426
Due after one but within five years	40,291		41,512
Due after five but within ten years	88,042		91,552
Due after ten years	93,321		101,087
	225,053		237,577
Mortgage-backed securities and collateralized mortgage obligations	641,787		648,259
TOTAL	$	866,840	$	885,836

There were $9 thousand in gross gains and no losses from investment sales realized by the Corporation for the three months ended September 30, 2015. For the nine months ended September 30, 2015 there were $23 thousand in gross gains and no losses. For the nine months ended September 30, 2014 there were $1 thousand in gross losses on sales of investment securities. There were no gains or losses on investment securities in the third quarter of 2014.

The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at September 30, 2015 and December 31, 2014. 

	September 30, 2015
	Less Than 12 Months					More Than 12 Months							Total
			Unrealized					Unrealized					Unrealized
(Dollar amounts in thousands)	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
Mortgage Backed Securities - Residential	$	18,372	$	(180	)	$	19,957	$	(55	)	$	38,329	$	(235	)
Collateralized mortgage obligations	147,188		(3,318		)	55,710		(385		)	202,898		(3,703		)
State and municipal obligations	4,372		(101		)	23,387		(276		)	27,759		(377		)
Total temporarily impaired securities	$	169,932	$	(3,599	)	$	99,054	$	(716	)	$	268,986	$	(4,315	)

	December 31, 2014
	Less Than 12 Months					More Than 12 Months							Total
			Unrealized					Unrealized					Unrealized
(Dollar amounts in thousands)	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
Mortgage Backed Securities - Residential	$	—	$	—		$	23,849	$	(330	)	$	23,849	$	(330	)
Collateralized mortgage obligations	50,832		(128		)	264,940		(7,495		)	315,772		(7,623		)
State and municipal obligations	6,500		(35		)	10,547		(184		)	17,047		(219		)
Collateralized Debt Obligations	—		—			200		(17		)	200		(17		)
Total temporarily impaired securities	$	57,332	$	(163	)	$	299,536	$	(8,026	)	$	356,868	$	(8,189	)

Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities are generally evaluated for OTTI under FASB ASC 320, Investments - Debt and Equity Securities. However, certain purchased beneficial interests, including non-agency mortgage-backed securities, asset-backed securities, and collateralized debt obligations, that had credit ratings at the time of purchase of below AA are evaluated using the model outlined in FASB ASC 325-40, Beneficial Interests in Securitized Financial Assets.

When OTTI occurs under either model, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss. If an entity intends to sell or it is more likely than not it will be required to sell the security

19

before recovery of its amortized cost basis, less any current-period credit loss, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the OTTI shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment.

Gross unrealized losses on investment securities were $4.3 million as of September 30, 2015 and $8.2 million as of December 31, 2014. A majority of these losses represent negative adjustments to market value relative to the interest rate environment reflecting the increase in market rates and not losses related to the creditworthiness of the issuer. Based upon our review of the issuers, we do not believe these investments to be other than temporarily impaired. Management does not intend to sell these securities and it is not more likely than not that we will be required to sell them before their anticipated recovery.

There are three collateralized debt obligations securities with previously recorded OTTI but there is no OTTI in 2015 or 2014.

Management has consistently used Standard & Poors pricing to value these investments. There are a number of other pricing sources available to determine fair value for these investments. These sources utilize a variety of methods to determine fair value. The result is a wide range of estimates of fair value for these securities. The Standard & Poors pricing ranges from 44.9 to 63.8 while Moody Investor Service pricing ranges from 7.2 to 16.3, with others falling somewhere in between. We recognize that the Standard & Poors pricing utilized is an estimate, but have been consistent in using this source and its estimate of fair value.

The table below presents a rollforward of the credit losses recognized in earnings for the three and nine month periods ended September 30, 2015 and 2014:

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollar amounts in thousands)	2015		2014			2015			2014
Beginning balance	$	13,995	$	14,079		$	14,050		$	14,079
Increases to the amount related to the credit
Loss for which other-than-temporary was previously recognized	—		—			—			—
Reductions for increases in cash flows collected	—		(29		)	(55		)	(29		)
Amounts realized for securities sold during the period	—		—			—			—
Ending balance	$	13,995	$	14,050		$	13,995		$	14,050

4. Fair Value

FASB ASC No. 820-10 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level I prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The fair value of most securities available for sale is determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

For those securities that cannot be priced using quoted market prices or observable inputs a Level 3 valuation is determined. These securities are primarily trust preferred securities, which are priced using Level 3 due to current market illiquidity and certain investments in state and municipal securities. The fair value of the trust preferred securities is obtained from a third party provider without adjustment. As described previously, management obtains values from other pricing sources to validate the Standard &

20

Poors pricing that they currently utilize. The fair value of state and municipal obligations are derived by comparing the securities to current market rates plus an appropriate credit spread to determine an estimated value. Illiquidity spreads are then considered. Credit reviews are performed on each of the issuers. The significant unobservable inputs used in the fair value measurement of the Corporation’s state and municipal obligations are credit spreads related to specific issuers. Significantly higher credit spread assumptions would result in significantly lower fair value measurement. Conversely, significantly lower credit spreads would result in a significantly higher fair value measurements.

The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).

	September 30, 2015
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2			Level 3		Total
U.S. Government agencies	$	—	$	11,120		$	—	$	11,120
Mortgage Backed Securities-residential	—		194,340			—		194,340
Mortgage Backed Securities-commercial	—		10			—		10
Collateralized mortgage obligations	—		453,909			—		453,909
State and municipal	—		206,615			4,725		211,340
Collateralized debt obligations	—		—			15,117		15,117
TOTAL	$	—	$	865,994		$	19,842	$	885,836
Derivative Assets			1,568
Derivative Liabilities			(1,568		)

	December 31, 2014
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2			Level 3		Total
U.S. Government agencies	$	—	$	1,467		$	—	$	1,467
Mortgage Backed Securities-residential	—		187,936			—		187,936
Mortgage Backed Securities-commercial	—		17			—		17
Collateralized mortgage obligations	—		484,655			—		484,655
State and municipal	—		201,775			5,900		207,675
Collateralized debt obligations	—		—			15,303		15,303
TOTAL	$	—	$	875,850		$	21,203	$	897,053
Derivative Assets			1,062
Derivative Liabilities			(1,062		)

There were no transfers between Level 1 and Level 2 during 2015 and 2014.

The tables below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2015 and the year ended December 31, 2014. 

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	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended September 30, 2015
	State and municipal obligations		Collateralized debt obligations			Total
Beginning balance, July 1	$	4,725	$	14,866		$	19,591
Total realized/unrealized gains or losses
Included in earnings	—		—			—
Included in other comprehensive income	—		307			307
Transfers	—		—			—
Settlements	—		(56		)	(56		)
Ending balance, September 30	$	4,725	$	15,117		$	19,842

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended September 30, 2015
	State and municipal obligations			Collateralized debt obligations			Total
Beginning balance, January 1	$	5,900		$	15,303		$	21,203
Total realized/unrealized gains or losses
Included in earnings	—			—			—
Included in other comprehensive income	—			122			122
Transfers	—			—			—
Settlements	(1,175		)	(308		)	(1,483		)
Ending balance, September 30	$	4,725		$	15,117		$	19,842

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Year Ended December 31, 2014
	State and municipal obligations			Collateralized debt obligations			Total
Beginning balance, January 1	$	4,525		$	9,044		$	13,569
Total realized/unrealized gains or losses
Included in earnings	—			—			—
Included in other comprehensive income	—			7,100			7,100
Purchases	4,000			—			4,000
Settlements	(2,625		)	(841		)	(3,466		)
Ending balance, December 31	$	5,900		$	15,303		$	21,203

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The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at September 30, 2015.

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	4,725	Discounted cash flow	Discount rate Probability of default	3.05%-5.50% 0%
Other real estate	$	3,382	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	5.00%-20.00%
Impaired Loans	$	3,033	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	0.00%-50.00%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2014.

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	5,900	Discounted cash flow	Discount rate Probability of default	3.05%-5.50% 0%
Other real estate	$	3,965	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	5.00%-20.00%
Impaired Loans	11,477		Sales comparison/income approach	Discount rate for age of appraisal and market conditions	0.00%-50.00%

Impaired loans disclosed in footnote 2, which are measured for impairment using the fair value of collateral, are valued at Level 3. They are carried at a fair value of $3.0 million, after a valuation allowance of $1.2 million at September 30, 2015 and at a fair value of $11.5 million, net of a valuation allowance of $1.9 million at December 31, 2014. The impact to the provision for loan losses for the three months ended September 30, 2015 and for the 12 months ended December 31, 2014 was a $221 thousand decrease and a $1.2 million decrease, respectively. Other real estate owned is valued at Level 3. Other real estate owned at September 30, 2015 with a value of $3.4 million was reduced $0.7 million for fair value adjustment. At September 30, 2015 other real estate owned was comprised of $2.8 million from commercial loans and $0.6 million from residential loans. Other real estate owned at December 31, 2014 with a value of $4.0 million was reduced $1.1 million for fair value adjustment. At December 31, 2014 other real estate owned was comprised of $3.0 million from commercial loans and $1.0 million from residential loans.

Fair value is measured based on the value of the collateral securing those loans, and is determined using several methods. Generally the fair value of real estate is determined based on appraisals by qualified licensed appraisers. Appraisals for real estate generally use three methods to derive value: cost, sales or market comparison and income approach. The cost method bases value on the cost to replace current property. The market comparison evaluates the sales price of similar properties in the same market area. The income approach considers net operating income generated by the property and the investor’s required return. The final fair value is based on a reconciliation of these three approaches. If an appraisal is not available, the fair value may be determined by using a cash flow analysis, a broker’s opinion of value, the net present value of future cash flows, or an observable market price from an active market. Fair value of other real estate is based upon the current appraised values of the properties as determined by qualified licensed appraisers and the Company’s judgment of other relevant market conditions. Appraisals are obtained annually and reductions in value are recorded as a valuation through a charge to expense. The primary unobservable input used by management in estimating fair value are additional discounts to the appraised value to consider market conditions and the age of the appraisal, which are based on management’s past experience in resolving these types of properties. These discounts range from 0% to 50%. Values for non-real estate collateral, such as business equipment, are based on appraisals performed by qualified licensed appraisers or the customers financial statements. Values for non real estate collateral use much higher discounts that real estate collateral. Other real estate and impaired loans carried at fair value are primarily comprised of smaller balance properties.

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The following tables presents loans identified as impaired by class of loans as of September 30, 2015 and December 31, 2014, which are all considered Level 3.

	September 30, 2015
(Dollar amounts in thousands)	Carrying Value		Allowance for Loan Losses Allocated		Fair Value
Commercial
Commercial & Industrial	$	1,618	$	278	$	1,340
Farmland	—		—		—
Non Farm, Non Residential	1,506		718		788
Agriculture	—		—		—
All Other Commercial	233		—		233
Residential
First Liens	904		232		672
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	4,261	$	1,228	$	3,033

	December 31, 2014
(Dollar amounts in thousands)	Carrying Value		Allowance for Loan Losses Allocated		Fair Value
Commercial
Commercial & Industrial	$	5,874	$	1,056	$	4,818
Farmland	—		—		—
Non Farm, Non Residential	6,654		753		5,901
Agriculture	—		—		—
All Other Commercial	827		102		725
Residential
First Liens	33		—		33
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	13,388	$	1,911	$	11,477

The carrying amounts and estimated fair value of financial instruments at September 30, 2015 and December 31, 2014, are shown below. Carrying amount is the estimated fair value for cash and due from banks, federal funds sold, short-term borrowings, accrued interest receivable and payable, demand deposits, short-term debt and variable-rate loans or deposits that reprice frequently and fully. Security fair values were described previously. For fixed-rate, non-impaired loans or deposits, variable rate loans or deposits with infrequent repricing or repricing limits, and for longer-term borrowings, fair value is based on discounted cash flows using current market rates applied to the estimated life and considering credit risk. The valuation of impaired loans was described previously. Loan fair value estimates do not necessarily represent an exit price. Fair values of loans held for sale are based on

24

market bids on the loans or similar loans. It was not practicable to determine the fair value of Federal Home Loan Bank stock due to restrictions placed on its transferability. Fair value of debt is based on current rates for similar financing. The fair value of off-balance sheet items is not considered material.

	September 30, 2015
	Carrying			Fair Value
(Dollar amounts in thousands)	Value			Level 1		Level 2			Level 3		Total
Cash and due from banks	$	63,278		$	21,962	$	41,316		$	—	$	63,278
Federal funds sold	—			—		—			—		—
Securities available-for-sale	885,836			—		865,994			19,842		885,836
Restricted stock	10,838			n/a		n/a			n/a		n/a
Loans, net	1,746,742			—		—			1,804,961		1,804,961
Accrued interest receivable	12,265			—		3,719			8,546		12,265
Deposits	(2,418,589		)	—		(2,420,624		)	—		(2,420,624		)
Short-term borrowings	(23,336		)	—		(23,336		)	—		(23,336		)
Federal Home Loan Bank advances	(13,251		)	—		(13,683		)	—		(13,683		)
Accrued interest payable	(396		)	—		(396		)	—		(396		)

	December 31, 2014
	Carrying			Fair Value
(Dollar amounts in thousands)	Value			Level 1		Level 2			Level 3		Total
Cash and due from banks	$	78,102		$	22,597	$	55,505		$	—	$	78,102
Federal funds sold	8,000			—		8,000			—		8,000
Securities available-for-sale	897,053			—		875,850			21,203		897,053
Restricted stock	16,404			n/a		n/a			n/a		n/a
Loans, net	1,762,589			—		—			1,810,885		1,810,885
FDIC Indemnification Asset	(74		)	—		(74		)	—		(74		)
Accrued interest receivable	11,593			—		3,183			8,410		11,593
Deposits	(2,457,197		)	—		(2,459,703		)	—		(2,459,703		)
Short-term borrowings	(48,015		)	—		(48,015		)	—		(48,015		)
Federal Home Loan Bank advances	(12,886		)	—		(13,605		)	—		(13,605		)
Accrued interest payable	(456		)	—		(456		)	—		(456		)

5. Short-Term Borrowings

Period–end short-term borrowings were comprised of the following:

	(000 's)
	September 30, 2015		December 31, 2014
Federal Funds Purchased	$	550	$	21,192
Repurchase Agreements	22,786		26,823
	$	23,336	$	48,015

The Corporation enters into sales of securities under agreements to repurchase. The amounts received under these agreements represent short-term borrowings and are reflected as a liability in the consolidated balance sheets. The securities underlying these agreements are included in investment securities in the consolidated balance sheets. The Corporation has no control over the market value of the securities, which fluctuates due to market conditions. However, the Corporation is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price. The Corporation manages this risk by maintaining an unpledged securities portfolio that it believes is sufficient to cover a decline in the market value of the securities sold under agreements to repurchase.

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Collateral pledged to repurchase agreements by remaining maturity are as follows:

	September 30, 2015
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
(Dollar amounts in thousands)	Overnight and continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	10,225	$	—	$	—	$	12,561	$	22,786

	December 31, 2014
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
(Dollar amounts in thousands)	Overnight and continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	14,787	$	5,748	$	5,670	$	618	$	26,823

6. Components of Net Periodic Benefit Cost

	Three Months Ended September 30,										Nine Months Ended September 30,
	(000's)										(000's)
	Pension Benefits						Post-Retirement Health Benefits				Pension Benefits						Post-Retirement Health Benefits
	2015			2014			2015		2014		2015			2014			2015		2014
Service cost	$	538		$	510		$	16	$	13	$	1,615		$	1,530		$	47	$	40
Interest cost	879			939			43		44		2,637			2,817			130		131
Expected return on plan assets	(863		)	(948		)	—		—		(2,589		)	(2,845		)	—		—
Amortization of transition obligation	—			—			—		—		—			—			—		—
Net amortization of prior service cost	—			(2		)	—		—		1			(7		)	—		—
Net amortization of net (gain) loss	1,185			190			—		—		3,555			569			—		(1		)
Net Periodic Benefit Cost	$	1,739		$	689		$	59	$	57	$	5,219		$	2,064		$	177	$	170

Employer Contributions

First Financial Corporation previously disclosed in its financial statements for the year ended December 31, 2014 that it expected to contribute $1.8 million and $1.1 million respectively to its Pension Plan and ESOP and $247 thousand to the Post Retirement Health Benefits Plan in 2015. Contributions of $1.3 million have been made to the Pension Plan thus far in 2015. Contributions of $161 thousand have been made through the first nine months of 2015 for the Post Retirement Health Benefits plan. No contributions have been made in 2015 for the ESOP. The Pension plan was frozen for most employees at the end of 2012 and for those employees there will be discretionary contributions to the ESOP plan and a 401K plan in place of the former Pension benefit. In the first nine months of 2015 and 2014 there has been $1.1 million and $1.0 million of expense accrued for potential contributions to these alternative retirement benefit options.

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7. New accounting standards

In May 2014, the FASB and the International Accounting Standards Board (the "IASB") jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under GAAP and International Financial Reporting Standards ("IFRS"). Previous revenue recognition guidance in GAAP comprised broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. In contrast, IFRS provided limited revenue recognition guidance and, consequently, could be difficult to apply to complex transactions. Accordingly, the FASB and the IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that would: (1) Remove inconsistencies and weaknesses in revenue requirements; (2) Provide a more robust framework for addressing revenue issues; (3) Improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) Provide more useful information to users of financial statements through improved disclosure requirements; and (5) Simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. To meet those objectives, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies generally will be required to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The standard is effective for public entities for interim and annual periods beginning after December 15, 2017. For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. The Corporation is currently evaluating the provisions of ASU No. 2014-09 and will be closely monitoring developments and additional guidance to determine the potential impact the new standard will have on the Corporation's Consolidated Financial Statements.

In August 2014, the FASB issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. This ASU requires that a mortgage loan be derecognized and that a separate other receivable be recognized if certain conditions are met in the case of government guarantees. The amendments are effective for annual periods, and interim periods within those years, beginning after December 15, 2014. The adoption of this ASU has not had a significant impact on the Corporation's financial statements.

In June 2014, the FASB issued ASU No. 2014-11, "Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures." The new guidance aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. The guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement, which has resulted in outcomes referred to as off-balance-sheet accounting. The amendments in the ASU require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. The amendments in the ASU also require expanded disclosures, effective for the current reporting period of June 30, 2015, about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings (see Note 5 to the Consolidated Financial Statements). The Corporation adopted the amendments in this ASU effective January 1, 2015. As of September 30, 2015, all of the Company's repurchase agreements were typical in nature (i.e., not repurchase-to-maturity transactions or repurchase agreements executed as a repurchase financing) and are accounted for as secured borrowings. As such, the adoption of ASU No. 2014-11 did not have a material impact on the Corporation's Consolidated Financial Statements.

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8. Acquisitions and FDIC Indemnification Asset

The Bank is party to a loss sharing agreement with the FDIC as a result of a 2009 acquisition. Under the loss-sharing agreement (“LSA”), the Bank will share in the losses on assets covered under the agreement (referred to as covered assets). On losses up to $29 million, the FDIC has agreed to reimburse the Bank for 80 percent of the losses. On losses exceeding $29 million, the FDIC has agreed to reimburse the Bank for 95 percent of the losses. The loss-sharing agreement is subject to following servicing procedures as specified in the agreement with the FDIC. Loans acquired that are subject to the loss-sharing agreement with the FDIC are referred to as covered loans for disclosure purposes. Since the acquisition date the Bank has been reimbursed $19.4 million for losses and carrying expenses and currently carries an immaterial balance in the indemnification asset. The balance of loans covered by the loss share agreement at September 30, 2015 and December 31, 2014 totaled $6.5 million and $7.3 million, respectively. The only loans still covered by the loss share agreement are the single family loans; however recoveries on non-single family loans are still subject to sharing with the FDIC until 2017.

FASB ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, applies to a loan with evidence of deterioration of credit quality since origination, acquired by completion of a transfer for which it is probable, at acquisition, that the investor will be unable to collect all contractually required payments receivable. FASB ASC 310-30 prohibits carrying over or creating an allowance for loan losses upon initial recognition. The carrying amount of loans accounted for in accordance with FASB ASC 310-30 at September 30, 2015 and 2014 are shown in the following table:

							2015
(Dollar amounts in thousands)	Commercial			Consumer			Total
Beginning balance, July 1,	$	4,329		$	1,547		$	5,876
Discount accretion	—			—			—
Disposals	(105		)	(9		)	(114		)
ASC 310-30 Loans, September 30,	$	4,224		$	1,538		$	5,762

							2015
(Dollar amounts in thousands)	Commercial			Consumer			Total
Beginning balance, January 1,	$	4,803		$	1,571		$	6,374
Discount accretion	—			—			—
Disposals	(579		)	(33		)	(612		)
ASC 310-30 Loans, September 30,	$	4,224		$	1,538		$	5,762

							2014
(Dollar amounts in thousands)	Commercial			Consumer			Total
Beginning balance, July 1,	$	7,337		$	1,885		$	9,222
Discount accretion	—			—			—
Disposals	(1,569		)	(108		)	(1,677		)
ASC 310-30 Loans, September 30,	$	5,768		$	1,777		$	7,545

							2014
(Dollar amounts in thousands)	Commercial			Consumer			Total
Beginning balance, January 1,	$	7,676		$	2,409		$	10,085
Discount accretion	—			—			—
Disposals	(1,908		)	(632		)	(2,540		)
ASC 310-30 Loans, September 30,	$	5,768		$	1,777		$	7,545

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9. Accumulated Other Comprehensive Income

The following table summarizes the changes, net of tax within each classification of accumulated other comprehensive income for the three and nine months ended September 30, 2015 and 2014. 

	Unrealized
	gains and		2015
	Losses on available- for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans			Total
Beginning balance, July 1,	$	7,476	$	(21,524	)	$	(14,048	)
Change in other comprehensive income before reclassification	4,464		—			4,464
Amounts reclassified from accumulated other comprehensive income	7		819			826
Net Current period other comprehensive other income	4,471		819			5,290
Ending balance, September 30,	$	11,947	$	(20,705	)	$	(8,758	)

	Unrealized
	gains and		2015
	Losses on available- for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans			Total
Beginning balance, January 1,	$	10,278	$	(24,807	)	$	(14,529	)
Change in other comprehensive income before reclassification	1,654		—			1,654
Amounts reclassified from accumulated other comprehensive income	15		4,102			4,117
Net Current period other comprehensive other income	1,669		4,102			5,771
Ending balance, September 30,	$	11,947	$	(20,705	)	$	(8,758	)

	Unrealized
	gains and		2014
	Losses on available- for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans			Total
Beginning balance, July 1,	$	5,784	$	(10,104	)	$	(4,320	)
Change in other comprehensive income before reclassification	1,879		—			1,879
Amounts reclassified from accumulated other comprehensive income	—		116			116
Net Current period other comprehensive other income	1,879		116			1,995
Ending balance, September 30,	$	7,663	$	(9,988	)	$	(2,325	)

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	Unrealized
	gains and			2014
	Losses on available- for-sale			Retirement
(Dollar amounts in thousands)	Securities			plans			Total
Beginning balance, January 1,	$	(3,635	)	$	(10,334	)	$	(13,969	)
Change in other comprehensive income before reclassification	11,297			—			11,297
Amounts reclassified from accumulated other comprehensive income	1			346			347
Net Current period other comprehensive other income	11,298			346			11,644
Ending balance, September 30,	$	7,663		$	(9,988	)	$	(2,325	)

	Balance at			Current Period		Balance at
(Dollar amounts in thousands)	7/1/2015			Change		9/30/2015
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	4,429		$	4,231	$	8,660
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	3,047			240		3,287
Total unrealized loss on securities available-for-sale	$	7,476		$	4,471	$	11,947
Unrealized loss on retirement plans	(21,524		)	819		(20,705		)
TOTAL	$	(14,048	)	$	5,290	$	(8,758	)

	Balance at			Current Period		Balance at
(Dollar amounts in thousands)	12/31/2014			Change		9/30/2015
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	7,164		$	1,496	$	8,660
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	3,114			173		3,287
Total unrealized loss on securities available-for-sale	$	10,278		$	1,669	$	11,947
Unrealized loss on retirement plans	(24,807		)	4,102		(20,705		)
TOTAL	$	(14,529	)	$	5,771	$	(8,758	)

	Balance at			Current Period		Balance at
(Dollar amounts in thousands)	7/1/2014			Change		9/30/2014
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	3,296		$	831	$	4,127
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	2,488			1,048		3,536
Total unrealized loss on securities available-for-sale	$	5,784		$	1,879	$	7,663
Unrealized loss on retirement plans	(10,104		)	116		(9,988		)
TOTAL	$	(4,320	)	$	1,995	$	(2,325	)

30

	Balance at			Current Period		Balance at
(Dollar amounts in thousands)	12/31/2013			Change		9/30/2014
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	(2,499	)	$	6,626	$	4,127
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	(1,136		)	4,672		3,536
Total unrealized loss on securities available-for-sale	$	(3,635	)	$	11,298	$	7,663
Unrealized loss on retirement plans	(10,334		)	346		(9,988		)
TOTAL	$	(13,969	)	$	11,644	$	(2,325	)

	Three Months Ended September 30, 2015
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	9		Net securities gains (losses)
on available-for-sale	(2		)	Income tax expense
securities	$	7		Net of tax
Amortization of	$	1,365		(a) Salary and benefits
retirement plan items	(546		)	Income tax expense
	$	819		Net of tax
Total reclassifications for the period	$	826		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Nine Months Ended September 30, 2015
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	23		Net securities gains (losses)
on available-for-sale	(8		)	Income tax expense
securities	$	15		Net of tax
Amortization of	$	6,837		(a) Salary and benefits
retirement plan items	(2,735		)	Income tax expense
	$	4,102		Net of tax
Total reclassifications for the period	$	4,117		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

31

	Three Months Ended September 30, 2014
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	—		Net securities gains (losses)
on available-for-sale	—			Income tax expense
securities	$	—		Net of tax
Amortization of	$	(237	)	(a) Salary and benefits
retirement plan items	121			Income tax expense
	$	(116	)	Net of tax
Total reclassifications for the period	$	(116	)	Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details). 

	Nine Months Ended September 30, 2014
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	(1	)	Net securities gains (losses)
on available-for-sale	—			Income tax expense
securities	$	(1	)	Net of tax
Amortization of	$	(711	)	(a) Salary and benefits
retirement plan items	365			Income tax expense
	$	(346	)	Net of tax
Total reclassifications for the period	$	(347	)	Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

ITEMS 2. and 3. Management's Discussion and Analysis of Financial Condition and Results of Operations

and Quantitative and Qualitative Disclosures About Market Risk

The purpose of this discussion is to point out key factors in the Corporation’s recent performance compared with earlier periods. The discussion should be read in conjunction with the financial statements beginning on page three of this report. All figures are for the consolidated entities. It is presumed the readers of these financial statements and of the following narrative have previously read the Corporation’s financial statements for 2014 in the 10-K filed for the fiscal year ended December 31, 2014.

This Quarterly Report on Form 10-Q contains forward-looking statements. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation, the Corporation’s ability to effectively execute its business plans; changes in general economic and financial market conditions; changes in interest rates; changes in the competitive environment; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; losses, customer bankruptcy, claims and assessments; changes in banking regulations or other regulatory or legislative requirements affecting the Corporation’s business; and changes in accounting policies or procedures as may be required

32

by the Financial Accounting Standards Board or other regulatory agencies. Additional information concerning factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements is available in the Corporation’s Form 10-K for the year ended December 31, 2014, and subsequent filings with the United States Securities and Exchange Commission (SEC). Copies of these filings are available at no cost on the SEC’s Web site at www.sec.gov or on the Corporation’s Web site at www.first-online.com. Management may elect to update forward-looking statements at some future point; however, it specifically disclaims any obligation to do so.

Critical Accounting Policies

Certain of the Corporation’s accounting policies are important to the portrayal of the Corporation’s financial condition and results of operations, since they require management to make difficult, complex or subjective judgments, some of which may relate to matters that are inherently uncertain. Estimates associated with these policies are susceptible to material changes as a result of changes in facts and circumstances. Facts and circumstances which could affect these judgments include, without limitation, changes in interest rates, in the performance of the economy or in the financial condition of borrowers. Management believes that its critical accounting policies include determining the allowance for loan losses and the valuation of goodwill and valuing investment securities. See further discussion of these critical accounting policies in the 2014 Form 10-K.

Summary of Operating Results

Net income for the three months ended September 30, 2015 was $8.4 million, compared to $8.3 million for the same period of 2014. Basic earnings per share increased to $0.65 for the third quarter of 2015 compared to $0.62 for same period of 2014. Return on Assets and Return on Equity were 1.14% and 8.36% respectively, for the three months ended September 30, 2015 compared to 1.10% and 8.27% for the three months ended September 30, 2014. Net income for the nine months ended September 30, 2015 was $23.1 million, compared to $24.6 million for the same period of 2014. Basic earnings per share decreased to $1.79 for the nine months ended September, 30, 2015 compared to $1.85 for same period of 2014. Return on Assets and Return on Equity were 1.03% and 7.61% respectively, for the nine months ended September 30, 2015 compared to 1.08% and 8.17% for the nine months ended September 30, 2014.

The primary components of income and expense affecting net income are discussed in the following analysis.

Net Interest Income

The Corporation's primary source of earnings is net interest income, which is the difference between the interest earned on loans and other investments and the interest paid for deposits and other sources of funds. Net interest income decreased $0.6 million in the three months ended September 30, 2015 to $26.6 million from $27.1 million in the same period in 2014. The net interest margin for the three months ended September 30, 2015 is 4.12% compared to 4.15% for the same period of 2014, a .03% decrease, driven by a greater decline in the income realized on earning assets than the decline in costs of funding. Net interest income decreased $2.8 million in the nine months ended September 30, 2015 to $78.5 million from $80.9 million in the same period in 2014. The net interest margin for the nine months ended September 30, 2015 is 4.04% compared to 4.11% for the same period of 2014, a .07% decrease, driven by a greater decline in the income realized on earning assets than the decline in costs of funding.

Non-Interest Income

Non-interest income for the three months ended September 30, 2015 was $10.0 million compared to $10.5 million for the same period of 2014. Gain on the sale of mortgages increased $92 thousand. Service charges and fees on deposit accounts decreased by $125 thousand and other service fees increased by $64 thousand. Insurance commission income decreased by $398 thousand for the 3 months ended September 30, 2015 compared to the same period of 2014. Non-interest income for the nine months ended September 30, 2015 was $29.8 million compared to $29.9 million for the same period of 2014.

Non-Interest Expenses

The Corporation’s non-interest expense for the quarter ended September 30, 2015 increased by $553 thousand to $24.2 million compared to the same period in 2014. Salaries and employee benefits increased $882 thousand driven by normal merit increases and increased pension expense due in part to lower discount rates used in determining the liability as well as the use of the new RP-2014 Mortality Table. The pension plan was frozen for the majority of employees as of December 31, 2012. The Corporation’s efficiency ratio was 63.42% for the quarter ending September 30, 2015 versus 63.00% for the same period in 2014. The Corporation’s non-interest expense for the nine months ended September 30, 2015 increased by $1.2 million to $73.5 million compared to the same period in 2014.

33

Allowance for Loan Losses

The Corporation’s provision for loan losses decreased $456 thousand to $1.05 million for third quarter of 2015 compared to $1.5 million for the same period of 2014. Net charge offs for the third quarter of 2015 were $985 thousand compared to $2.3 million for the same period of 2014. During 2015, the specific allocations for impaired loans decreased as compared to the same period of 2014. The unallocated allocation decreased to $1.0 million at September 30, 2015 compared to $2.1 million for the same period of 2014. The Corporation’s provision for loan losses increased $540 thousand to $3.6 million for nine months ended September 30, 2015 compared to $3.1 million for the same period of 2014. The allowance for loan losses has increased to $19.9 million at September 30, 2015 compared to $18.8 million at December 31, 2014. The increase in the allowance was based on an increase in loans classified as substandard. Based on management’s analysis of the current portfolio, an evaluation that includes consideration of historical loss experience, non-performing loans trends, and probable incurred losses on identified problem loans, management believes the allowance is adequate.

Non-performing Loans

Non-performing loans consist of (1) non-accrual loans on which the ultimate collectability of the full amount of interest is uncertain, (2) loans which have been renegotiated to provide for a reduction or deferral of interest or principal because of a deterioration in the financial position of the borrower, and (3) loans past due ninety days or more as to principal or interest. Non-performing loans decreased to $27.6 million at September 30, 2015 compared to $30.6 million at December 31, 2014. Nonperforming loans decreased 19.4% to $27.6 million as of September 30, 2015 versus $34.2 million as of September 30, 2014. A summary of non-performing loans at September 30, 2015 and December 31, 2014 follows:

	(000's)
	September 30, 2015			December 31, 2014
Non-accrual loans	$	16,112		$	15,034
Accruing restructured loans	4,779			4,616
Nonaccrual restructured loans	5,049			10,142
Accruing loans past due over 90 days	1,632			780
	$	27,572		$	30,572
Ratio of the allowance for loan losses
as a percentage of non-performing loans	72.3		%	61.6		%

The following loan categories comprise significant components of the nonperforming non-restructured loans: 

	(000's)
	September 30, 2015		December 31, 2014
Non-accrual loans
Commercial loans	$	9,276	$	9,212
Residential loans	5,702		4,651
Consumer loans	1,134		1,171
	$	16,112	$	15,034
Past due 90 days or more
Commercial loans	$	572	$	—
Residential loans	829		624
Consumer loans	231		156
	$	1,632	$	780

34

Interest Rate Sensitivity and Liquidity

First Financial Corporation has established risk measures, limits and policy guidelines for managing interest rate risk and liquidity. Responsibility for management of these functions resides with the Asset Liability Committee. The primary goal of the Asset Liability Committee is to maximize net interest income within the interest rate risk limits approved by the Board of Directors.

Interest Rate Risk

Management considers interest rate risk to be the Corporation’s most significant market risk. Interest rate risk is the exposure to changes in net interest income as a result of changes in interest rates. Consistency in the Corporation’s net interest income is largely dependent on the effective management of this risk.

The Asset Liability position is measured using sophisticated risk management tools, including earning simulation and market value of equity sensitivity analysis. These tools allow management to quantify and monitor both short-term and long-term exposure to interest rate risk. Simulation modeling measures the effects of changes in interest rates, changes in the shape of the yield curve and the effects of embedded options on net interest income. This measure projects earnings in the various environments over the next three years. It is important to note that measures of interest rate risk have limitations and are dependent on various assumptions. These assumptions are inherently uncertain and, as a result, the model cannot precisely predict the impact of interest rate fluctuations on net interest income. Actual results will differ from simulated results due to timing, frequency and amount of interest rate changes as well as overall market conditions. The Committee has performed a thorough analysis of these assumptions and believes them to be valid and theoretically sound. These assumptions are continuously monitored for behavioral changes.

The Corporation from time to time utilizes derivatives to manage interest rate risk. Management continuously evaluates the merits of such interest rate risk products but does not anticipate the use of such products to become a major part of the Corporation’s risk management strategy.

The table below shows the Corporation’s estimated sensitivity profile as of September 30, 2015. The change in interest rates assumes a parallel shift in interest rates of 100 and 200 basis points. Given a 100 basis point increase in rates, net interest income would increase 2.48% over the next 12 months and increase 5.83% over the following 12 months. Given a 100 basis point decrease in rates, net interest income would decrease 0.40% over the next 12 months and decrease 1.64% over the following 12 months. These estimates assume all rate changes occur overnight and management takes no action as a result of this change. 

Basis Point	Percentage Change in Net Interest Income
Interest Rate Change	12 months		24 months		36 months
Down 200	-0.70	%	-2.92	%	-4.90	%
Down 100	-0.40		-1.64		-2.78
Up 100	2.48		5.83		9.69
Up 200	1.83		8.07		15.66

Typical rate shock analysis does not reflect management’s ability to react and thereby reduce the effect of rate changes, and represents a worst-case scenario.

Liquidity Risk

     Liquidity represents an institution’s ability to provide funds to satisfy demands from depositors, borrowers, and other creditors by either converting assets into cash or accessing new or existing sources of incremental funds. Generally the Corporation relies on deposits, loan repayments and repayments of investment securities as its primary sources of funds. The Corporation has $3.4 million of investments that mature throughout the next 12 months. The Corporation also anticipates $123.9 million of principal payments from mortgage-backed securities. Given the current rate environment, the Corporation anticipates $21.1 million in securities to be called within the next 12 months. The Corporation also has unused borrowing capacity available with the Federal Home Loan Bank of Indianapolis and several correspondent banks. With these many sources of funds, the Corporation currently anticipates adequate liquidity to meet the expected obligations of its customers.

35

Financial Condition

Comparing the first nine months of 2015 to the same period in 2014, loans, net of deferred loan costs, have decreased to $1.77 billion from $1.81 billion. Deposits remained stable at $2.4 billion at September 30, 2015, substantially the same as at September 30, 2014. Shareholders' equity increased 1.2% or $4.7 million. This financial performance increased book value per share 3.2% to $32.16 at September 30, 2015 from $31.16 at September 30, 2014. Book value per share is calculated by dividing the total shareholders' equity by the number of shares outstanding.

Capital Adequacy

The Federal Reserve, OCC and Federal Deposit Insurance Corporation (collectively, joint agencies) establish regulatory capital guidelines for U.S. banking organizations. Regulatory capital guidelines require that capital be measured in relation to the credit and market risks of both on- and off-balance sheet items using various risk weights. On January 1, 2015, the Basel 3 rules became effective and include transition provisions through January 1, 2019. Under Basel 3, Total capital consists of two tiers of capital, Tier 1 and Tier 2. Tier 1 capital is further composed of Common equity tier 1 capital and additional tier 1 capital.

Common equity tier 1 capital primarily includes qualifying common shareholders’ equity, retained earnings and certain minority interests. Goodwill, disallowed intangible assets and certain disallowed deferred tax assets are excluded from Common equity tier 1 capital.

Additional tier 1 capital primarily includes qualifying non-cumulative preferred stock, trust preferred securities (Trust Securities) subject to phase-out and certain minority interests. Certain deferred tax assets are also excluded.

Tier 2 capital primarily consists of qualifying subordinated debt, a limited portion of the allowance for loan and lease losses, Trust Securities subject to phase-out and reserves for unfunded lending commitments. The Corporation’s Total capital is the sum of Tier 1 capital plus Tier 2 capital.

To meet adequately capitalized regulatory requirements, an institution must maintain a Tier 1 capital ratio of 6.0 percent and a Total capital ratio of 8.0 percent. A “well-capitalized” institution must generally maintain capital ratios 200 bps higher than the minimum guidelines. The risk-based capital rules have been further supplemented by a Tier 1 leverage ratio, defined as Tier 1 capital divided by quarterly average total assets, after certain adjustments. BHCs must have a minimum Tier 1 leverage ratio of at least 4.0 percent. National banks must maintain a Tier 1 leverage ratio of at least 5.0 percent to be classified as “well capitalized.” Failure to meet the capital requirements established by the joint agencies can lead to certain mandatory and discretionary actions by regulators that could have a material adverse effect on the Corporation’s financial position. Below are the capital ratios for the Corporation and lead bank. 

	September 30, 2015		December 31, 2014		To Be Well Capitalized
Common equity tier 1 capital
Corporation	17.73	%	16.99	%	N/A
First Financial Bank	17.08	%	16.36	%	6.50	%
Total risk-based capital
Corporation	18.67	%	17.86	%	N/A
First Financial Bank	17.91	%	17.13	%	10.00	%
Tier I risk-based capital
Corporation	17.73	%	16.99	%	N/A
First Financial Bank	17.08	%	16.36	%	8.00	%
Tier I leverage capital
Corporation	12.92	%	12.33	%	N/A
First Financial Bank	12.34	%	11.83	%	5.00	%

36

ITEM 4. Controls and Procedures

First Financial Corporation’s management is responsible for establishing and maintaining effective disclosure controls and procedures, as defined under Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934. As of September 30, 2015, an evaluation was performed under the supervision and with the participation of management, including the principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Corporation's disclosure controls and procedures. Based on that evaluation, management, including the principal executive officer and principal financial officer, concluded that the Corporation’s disclosure controls and procedures as of September 30, 2015 were effective in ensuring material information required to be disclosed in this Quarterly Report on Form 10-Q was recorded, processed, summarized, and reported on a timely basis. Additionally, there was no change in the Corporation's internal control over financial reporting that occurred during the quarter ended September 30, 2015 that has materially affected, or is reasonably likely to materially affect, the Corporation's internal control over financial reporting.

37

PART II – Other Information

ITEM 1. Legal Proceedings.

There are no material pending legal proceedings, other than routine litigation incidental to the business of the Corporation or its subsidiaries, to which the Corporation or any of the subsidiaries is a party to or of which any of their respective property is subject. Further, there is no material legal proceeding in which any director, officer, principal shareholder, or affiliate of the Corporation or any of its subsidiaries, or any associate of such director, officer, principal shareholder or affiliate is a party, or has a material interest, adverse to the Corporation or any of its subsidiaries.

ITEM 1A. Risk Factors.

There have been no material changes in the risk factors from those disclosed in the Corporation’s 2014 financial statements in the Form 10-K filed for December 31, 2014. 

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

(a) None.

(b) Not applicable.

(c) Purchases of Equity Securities

The Corporation periodically acquires shares of its common stock directly from shareholders in individually negotiated transactions. On August 25, 2014 First Financial Corporation issued a press release announcing that its Board of Directors has authorized a stock repurchase program pursuant to which up to 5% of the Corporations outstanding shares of common stock, or approximately 667,700 shares may be repurchased.

Following is certain information regarding shares of common stock purchased by the Corporation during the quarter covered by this report.

			(c)
			Total Number Of Shares
			Purchased As Part Of	(c) Maximum
	(a) Total Number Of	(b) Average Price	Publicly Announced Plans	Number of Shares That May Yet
	Shares Purchased	Paid Per Share	Or Programs *	Be Purchased *
July 1-31, 2015	—	—	N/A	N/A
August 1-31, 2015	130,247	33.22	104,507	N/A
September 1-30, 2015	—	—	—	N/A
Total	130,247	33.22	104,507	—

ITEM 3. Defaults upon Senior Securities.

Not applicable.

ITEM 4. Mine Safety Disclosures

Not applicable.

ITEM 5. Other Information.

Not applicable.

38

ITEM 6. Exhibits.

Exhibit No.:	Description of Exhibit:
3.1	Amended and Restated Articles of Incorporation of First Financial Corporation, incorporated by reference to Exhibit 3(i) of the Corporation’s Form 10-Q filed for the quarter ended September 30, 2002.
3.2	Code of By-Laws of First Financial Corporation, incorporated by reference to Exhibit 3(ii) of the Corporation’s Form 8-K filed on August 24, 2012.
10.1*	Employment Agreement for Norman L. Lowery, dated and effective July 1, 2015, incorporated by reference to Exhibit 10.01 of the Corporation’s Form 8-K filed on June 24, 2015.
10.2*	2001 Long-Term Incentive Plan of First Financial Corporation, incorporated by reference to Exhibit 10.3 of the Corporation’s Form 10-Q filed for the quarter ended September 30, 2002.
10.3*	2015 Schedule of Director Compensation, incorporated by reference to Exhibit 10.3 of the Corporation’s Form 10-K filed for the fiscal year ended December 31, 2014.
10.4*	2015 Schedule of Named Executive Officer Compensation, incorporated by reference to Exhibit 10.4 of the Corporation’s Form 10-K filed for the fiscal year ended December 31, 2014.
10.5*	2005 Long-Term Incentive Plan of First Financial Corporation, incorporated by reference to Exhibit 10.7 of the Corporation’s Form 8-K filed on September 4, 2007.
10.6*	2005 Executives Deferred Compensation Plan, incorporated by reference to Exhibit 10.5 of the Corporation’s Form 8-K filed on September 4, 2007.
10.7*	2005 Executives Supplemental Retirement Plan, incorporated by reference to Exhibit 10.6 of the Corporation’s Form 8-K filed on September 4, 2007.
10.9*	First Financial Corporation 2010 Long-Term Incentive Compensation Plan incorporated by reference to Exhibit 10. 9 of the Corporation’s Form 10-K filed March 15, 2011.
10.10*	First Financial Corporation 2011 Short-Term Incentive Compensation Plan incorporated by reference to Exhibit 10.10 of the Corporation’s Form 10-K filed March 15, 2011.
10.11*	First Financial Corporation 2011 Omnibus Equity Incentive Plan incorporated by reference to Exhibit 10.11 of the Corporation’s Form 10-Q for the quarter ended March 31, 2011 filed on May 9, 2011.
10.12*	Form of Restricted Stock Award Agreement under the First Financial Corporation 2011 Omnibus Equity Incentive Plan
31.1	Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 by Principal Executive Officer, dated November 5, 2015.
31.2	Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 by Principal Financial Officer, dated November 5, 2015.
32.1	Certification, dated November 5, 2015, of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2005 on Form 10-Q for the quarter ended September 30, 2015.
101.1	Financial statements from the Quarterly Report on Form 10-Q of the Corporation for the quarter ended September 30, 2015, formatted in XBRL pursuant to Rule 405 : (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income and Comprehensive Income, (iii) Consolidated Statements of Cash Flows, (iv) Consolidated Statements of Shareholders’ Equity, and (v) Notes to Consolidated Financial Statements, as blocks of text and in detail**.

*Management contract or compensatory plan or arrangement.

**Furnished, not filed, for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934.

39

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.

		FIRST FINANCIAL CORPORATION
		(Registrant)
Date:	November 5, 2015	By     /s/ Norman L. Lowery
		Norman L. Lowery, Vice Chairman, President and CEO
		(Principal Executive Officer)
Date:	November 5, 2015	By     /s/ Rodger A. McHargue
		Rodger A. McHargue, Treasurer and CFO
		(Principal Financial Officer)

40

EX-31.1

Exhibit 31.1

Sarbanes-Oxley Act of 2002, Section 302

Certification of Principal Executive Officer

I, Norman L. Lowery, certify that:

1		I have reviewed this quarterly report on Form 10-Q of First Financial Corporation;
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 l5d-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 purpose 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; and
	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 the 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 5, 2015

By   /s/ Norman L. Lowery

Norman L. Lowery,

Vice Chairman, President and CEO

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Sarbanes-Oxley Act of 2002, Section 302

Certification of Principal Executive Officer

I, Rodger A. McHargue, certify that:

1		I have reviewed this quarterly report on Form 10-Q of First Financial Corporation;
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 l5d-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 purpose 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; and
	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 the 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 5, 2015

By   /s/ Rodger A. McHargue

Rodger A. McHargue

Treasurer and CFO

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Sarbanes-Oxley Act of 2002, Section 906

Certification of Principal Executive and Principal Financial Officers

In connection with the Quarterly Report on Form 10-Q of First Financial Corporation (the “Company”) for the Quarterly period ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Norman L. Lowery , as the Chief Executive Officer of the Company, and Rodger A. McHargue, as the Chief Financial Officer of the Company, each 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.     This Report fully complies with the requirements of Sections 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 operations of the Company.

November 5, 2015	By    /s/ Norman L. Lowery
	Norman L. Lowery, Vice Chairman, President & CEO
	(Principal Executive Officer)
November 5, 2015	By  /s/ Rodger A. McHargue
	Rodger A. McHargue, Treasurer & CFO
	(Principal Financial Officer)

XML

Fair Value (Details 1) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Fair value measurement using significant unobservable input
Securities available-for-sale	$ 885,836	$ 885,836	$ 897,053
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs
Beginning balance	19,591	21,203	13,569
Total realized/unrealized gains or losses - Included in earnings	0	0	0
Total realized/unrealized gains or losses - Included in other comprehensive income	307	122	7,100
Transfers	0	0
Purchases			4,000
Settlements	(56)	(1,483)	(3,466)
Ending balance	19,842	19,842	21,203
US Government Agencies Debt Securities [Member]
Fair value measurement using significant unobservable input
Securities available-for-sale	11,120	11,120	1,467
State and Municipal Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	211,340	211,340	207,675
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs
Beginning balance	4,725	5,900	4,525
Total realized/unrealized gains or losses - Included in earnings	0	0	0
Total realized/unrealized gains or losses - Included in other comprehensive income	0	0	0
Transfers	0	0
Purchases			4,000
Settlements	0	(1,175)	(2,625)
Ending balance	4,725	4,725	5,900
Collateralized Debt Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	15,117	15,117	15,303
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs
Beginning balance	14,866	15,303	9,044
Total realized/unrealized gains or losses - Included in earnings	0	0	0
Total realized/unrealized gains or losses - Included in other comprehensive income	307	122	7,100
Transfers	0	0
Purchases			0
Settlements	(56)	(308)	(841)
Ending balance	15,117	15,117	15,303
Mortgage Backed Securities - Residential
Fair value measurement using significant unobservable input
Securities available-for-sale	194,340	194,340	187,936
Mortgage Backed Securities - Commercial
Fair value measurement using significant unobservable input
Securities available-for-sale	10	10	17
Collateralized Mortgage Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	453,909	453,909	484,655
Fair Value, Inputs, Level 3 [Member]
Fair value measurement using significant unobservable input
Securities available-for-sale	19,842	19,842	21,203
Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member]
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0	0
Fair Value, Inputs, Level 3 [Member] | State and Municipal Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	4,725	4,725	5,900
Fair Value, Inputs, Level 3 [Member] | Collateralized Debt Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	15,117	15,117	15,303
Fair Value, Inputs, Level 3 [Member] | Mortgage Backed Securities - Residential
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0	0
Fair Value, Inputs, Level 3 [Member] | Mortgage Backed Securities - Commercial
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0	0
Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0	0
Fair Value, Inputs, Level 1 [Member]
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0	0
Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member]
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0	0
Fair Value, Inputs, Level 1 [Member] | State and Municipal Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0	0
Fair Value, Inputs, Level 1 [Member] | Collateralized Debt Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0	0
Fair Value, Inputs, Level 1 [Member] | Mortgage Backed Securities - Residential
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0	0
Fair Value, Inputs, Level 1 [Member] | Mortgage Backed Securities - Commercial
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0	0
Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0	0
Fair Value, Inputs, Level 2 [Member]
Fair value measurement using significant unobservable input
Securities available-for-sale	865,994	865,994	875,850
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs
Derivative Assets	1,568	1,568	1,062
Derivative Liability	1,568	1,568	1,062
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member]
Fair value measurement using significant unobservable input
Securities available-for-sale	11,120	11,120	1,467
Fair Value, Inputs, Level 2 [Member] | State and Municipal Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	206,615	206,615	201,775
Fair Value, Inputs, Level 2 [Member] | Collateralized Debt Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	0	0	0
Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities - Residential
Fair value measurement using significant unobservable input
Securities available-for-sale	194,340	194,340	187,936
Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities - Commercial
Fair value measurement using significant unobservable input
Securities available-for-sale	10	10	17
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations
Fair value measurement using significant unobservable input
Securities available-for-sale	$ 453,909	$ 453,909	$ 484,655

XML

Acquisitions and FDIC Indemnification Asset (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount, Covered					$ 5,876	$ 6,374	$ 9,222	$ 10,085
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion	$ 0	$ 0	$ 0	$ 0
Loans and Leases Receivable, Disposals	(114)	(1,677)	(612)	(2,540)
Total Covered Assets	5,762	7,545	5,762	7,545
Consumer Loan [Member]
Business Acquisition [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount, Covered					1,547	1,571	1,885	2,409
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion	0	0	0	0
Loans and Leases Receivable, Disposals	(9)	(108)	(33)	(632)
Total Covered Assets	1,538	1,777	1,538	1,777
Commercial Loan [Member]
Business Acquisition [Line Items]
Loans and Leases Receivable, Gross, Carrying Amount, Covered					$ 4,329	$ 4,803	$ 7,337	$ 7,676
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion	0	0	0	0
Loans and Leases Receivable, Disposals	(105)	(1,569)	(579)	(1,908)
Total Covered Assets	$ 4,224	$ 5,768	$ 4,224	$ 5,768

XML

Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	$ 866,840	$ 880,946
Unrealized Gains	(23,311)	(24,296)
Unrealized Losses	(4,315)	(8,189)
Securities available-for-sale	885,836	897,053
US Government Agencies Debt Securities [Member]
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	11,059	1,411
Unrealized Gains	(61)	(56)
Unrealized Losses	0	0
Securities available-for-sale	11,120	1,467
Mortgage Backed Securities - Residential
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	188,184	180,673
Unrealized Gains	(6,391)	(7,593)
Unrealized Losses	(235)	(330)
Securities available-for-sale	194,340	187,936
Mortgage Backed Securities - Commercial
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	10	17
Unrealized Gains	0	0
Unrealized Losses	0	0
Securities available-for-sale	10	17
Collateralized Mortgage Obligations
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	453,593	489,765
Unrealized Gains	(4,019)	(2,513)
Unrealized Losses	(3,703)	(7,623)
Securities available-for-sale	453,909	484,655
State and Municipal Obligations
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	204,279	198,875
Unrealized Gains	(7,438)	(9,019)
Unrealized Losses	(377)	(219)
Securities available-for-sale	211,340	207,675
Collateralized Debt Obligations
Amortized cost and fair value of investments classified as available for sale
Amortized Cost	9,715	10,205
Unrealized Gains	(5,402)	(5,115)
Unrealized Losses	0	(17)
Securities available-for-sale	$ 15,117	$ 15,303

XML

Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2015		Sep. 30, 2014		Sep. 30, 2015		Sep. 30, 2014
Allowance for Loan Losses:
Beginning balance	$ 19,861		$ 18,255		$ 18,839		$ 20,068
Provision for loan losses	1,050	[1]	1,530	[2]	3,650	[1]	2,435	[2]
Loans charged off	(3,295)		(2,656)		(6,597)		(7,142)
Recoveries	2,309		378		4,033		2,146
Ending Balance	19,925		17,507		19,925		17,507
Commercial Portfolio Segment [Member]
Allowance for Loan Losses:
Beginning balance	10,931		10,850		10,915		12,450
Provision for loan losses	1,338	[1]	589	[2]	1,505	[1]	270	[2]
Loans charged off	(1,874)		(1,310)		(2,482)		(2,956)
Recoveries	1,694		51		2,151		416
Ending Balance	12,089		10,180		12,089		10,180
Residential Portfolio Segment [Member]
Allowance for Loan Losses:
Beginning balance	1,760		1,374		1,374		1,585
Provision for loan losses	158	[1]	72	[2]	811	[1]	84	[2]
Loans charged off	(220)		(153)		(626)		(958)
Recoveries	196		34		335		616
Ending Balance	1,894		1,327		1,894		1,327
Consumer Portfolio Segment [Member]
Allowance for Loan Losses:
Beginning balance	4,678		3,769		4,370		3,650
Provision for loan losses	1,052	[1]	1,047	[2]	2,520	[1]	2,380	[2]
Loans charged off	(1,201)		(1,193)		(3,489)		(3,228)
Recoveries	419		293		1,547		1,114
Ending Balance	4,948		3,916		4,948		3,916
Unallocated
Allowance for Loan Losses:
Beginning balance	2,492		2,262		2,180		2,383
Provision for loan losses	(1,498)	[1]	(178)	[2]	(1,186)	[1]	(299)	[2]
Loans charged off	0		0		0		0
Recoveries	0		0		0		0
Ending Balance	$ 994		$ 2,084		$ 994		$ 2,084

[1] {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmI4NGY3NTUyYjE4MjRmY2M5YTk1ZTQ3NTczOTYwYTEzfFRleHRTZWxlY3Rpb246QTI2QTg5OTAxMkRGQTU4OEIwRTkyNzMyOUNGRjA2NkYM}

[2] Provision before decrease of $24 thousand in 2014 for increase in FDIC indemnification asset

XML

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	$ 5,290	$ 1,995	$ 5,771	$ 11,644
Change in Other comprehensive income before reclassification, Unrealized gains and Losses on available-for-sale Securities	4,464	1,879	1,654	11,297
Amount reclassified from accumalted other comperhensive income, unrealized gain and losses and available for sale securities	826	116	4,117	347
Net Current period other comprehensive other income, Unrealized gains and Losses on available-for-sale Securities	5,290	1,995	5,771	11,644
TOTAL Balance	(14,048)	(4,320)	(14,529)	(13,969)
TOTAL Balance	(8,758)	(2,325)	(8,758)	(2,325)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	4,471	1,879	1,669	11,298
Change in Other comprehensive income before reclassification, Unrealized gains and Losses on available-for-sale Securities	4,464	1,879	1,654	11,297
Amount reclassified from accumalted other comperhensive income, unrealized gain and losses and available for sale securities	7	0	15	1
Net Current period other comprehensive other income, Unrealized gains and Losses on available-for-sale Securities	4,471	1,879	1,669	11,298
TOTAL Balance	7,476	5,784	10,278	(3,635)
TOTAL Balance	11,947	7,663	11,947	7,663
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	819	116	4,102	346
Change in Other comprehensive income before reclassification, Unrealized gains and Losses on available-for-sale Securities	0	0	0	0
Amount reclassified from accumalted other comperhensive income, unrealized gain and losses and available for sale securities	819	116	4,102	346
Net Current period other comprehensive other income, Unrealized gains and Losses on available-for-sale Securities	819	116	4,102	346
TOTAL Balance	(21,524)	(10,104)	(24,807)	(10,334)
TOTAL Balance	$ (20,705)	$ (9,988)	$ (20,705)	$ (9,988)

XML

Fair Value (Details 4) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Carrying amount and estimated fair value of financial instruments
Fair value	$ 10,582	$ 14,606
Securities available-for-sale	885,836	897,053
Restricted Investments	10,838	16,404
Accrued interest receivable	12,265	11,593
Deposits	(2,418,589)	(2,457,197)
Fair Value, Inputs, Level 1 [Member]
Carrying amount and estimated fair value of financial instruments
Cash and Cash Equivalents, Fair Value Disclosure	21,962	22,597
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure	0	0
Securities available-for-sale	0	0
Loans Receivable, Fair Value Disclosure	0	0
FDIC Indemnification Asset		0
Accrued interest receivable	0	0
Deposits	0	0
Short-term borrowings	0	0
Federal Home Loan Bank advances	0	0
Accrued interest payable	0	0
Fair Value, Inputs, Level 2 [Member]
Carrying amount and estimated fair value of financial instruments
Cash and Cash Equivalents, Fair Value Disclosure	41,316	55,505
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure	0	8,000
Securities available-for-sale	865,994	875,850
Loans Receivable, Fair Value Disclosure	0	0
FDIC Indemnification Asset		(74)
Accrued interest receivable	3,719	3,183
Deposits	(2,420,624)	(2,459,703)
Short-term borrowings	(23,336)	(48,015)
Federal Home Loan Bank advances	(13,683)	(13,605)
Accrued interest payable	(396)	(456)
Fair Value, Inputs, Level 3 [Member]
Carrying amount and estimated fair value of financial instruments
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure	0	0
Securities available-for-sale	19,842	21,203
Loans Receivable, Fair Value Disclosure	1,804,961	1,810,885
FDIC Indemnification Asset		0
Accrued interest receivable	8,546	8,410
Deposits	0	0
Short-term borrowings	0	0
Federal Home Loan Bank advances	0	0
Accrued interest payable	0	0
Reported Value Measurement [Member]
Carrying amount and estimated fair value of financial instruments
Cash and Cash Equivalents, Fair Value Disclosure	63,278	78,102
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure	0	8,000
Securities available-for-sale	885,836	897,053
Restricted Investments	10,838	16,404
Loans Receivable, Fair Value Disclosure	1,746,742	1,762,589
FDIC Indemnification Asset		(74)
Accrued interest receivable	12,265	11,593
Deposits	(2,418,589)	(2,457,197)
Short-term borrowings	(23,336)	(48,015)
Federal Home Loan Bank advances	(13,251)	(12,886)
Accrued interest payable	(396)	(456)
Estimate of Fair Value Measurement [Member]
Carrying amount and estimated fair value of financial instruments
Cash and Cash Equivalents, Fair Value Disclosure	63,278	78,102
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure	0	8,000
Securities available-for-sale	885,836	897,053
Loans Receivable, Fair Value Disclosure	1,804,961	1,810,885
FDIC Indemnification Asset		(74)
Accrued interest receivable	12,265	11,593
Deposits	(2,420,624)	(2,459,703)
Short-term borrowings	(23,336)	(48,015)
Federal Home Loan Bank advances	(13,683)	(13,605)
Accrued interest payable	$ (396)	$ (456)

XML

Securities (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Gain on sale of investments	$ (9)	$ 0	$ (23)	$ 1
Gross unrealized losses	4,315		4,315			$ 8,189
Cumulative OTTI charges	13,995	$ 14,050	13,995	$ 14,050	$ 13,995	14,050	$ 14,079	$ 14,079
Amortized Cost	866,840		866,840			880,946
Securities available-for-sale	$ 885,836		$ 885,836			$ 897,053
Minimum [Member]
Schedule of Available-for-sale Securities [Line Items]
Basis point spread on variable rate	1.60%		1.60%
Minimum [Member] | Standard Poors [Member]
Schedule of Available-for-sale Securities [Line Items]
Credit Quality Indicator Pricing	44.9		44.9
Minimum [Member] | Moody Investor Service [Member]
Schedule of Available-for-sale Securities [Line Items]
Credit Quality Indicator Pricing	7.2		7.2
Maximum [Member]
Schedule of Available-for-sale Securities [Line Items]
Basis point spread on variable rate	1.80%		1.80%
Maximum [Member] | Standard Poors [Member]
Schedule of Available-for-sale Securities [Line Items]
Credit Quality Indicator Pricing	63.8		63.8
Maximum [Member] | Moody Investor Service [Member]
Schedule of Available-for-sale Securities [Line Items]
Credit Quality Indicator Pricing	16.3		16.3

XML

Accumulated Other Comprehensive Income (Details 2) - 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 on Derivatives [Line Items]
Net securities gains (losses)	$ 9	$ 0	$ 23	$ (1)
Income tax expense	(2,927)	(3,156)	(8,098)	(10,903)
Unrealized gain (loss) on securities, net of tax	8,398	8,272	23,082	24,591
Change in funded status of post retirement benefits	819	116	4,102	346
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Unrealized gain (loss) on securities, net of tax	826	(116)	4,117	(347)
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Net securities gains (losses)	9	0	23	(1)
Income tax expense	(2)	0	(8)	0
Unrealized gain (loss) on securities, net of tax	7	0	15	(1)
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Income tax expense	(546)	121	(2,735)	365
Unrealized gain (loss) on securities, net of tax	819	(116)	4,102	(346)
Change in funded status of post retirement benefits	$ 1,365	$ (237)	$ 6,837	$ (711)

XML

Components of Net Periodic Benefit Cost (Details Textual) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Defined Benefits Plan Estimated Future Employer Contributions In Next Fiscal Year			$ 1,800
Defined Benefit Plan, Expected Future Benefit Payments, Next Rolling Twelve Months			1,100
Defined Contribution Plan Employer Accrued Discretionary Contribution Amount	$ 1,100	$ 1,000
Post Retirement Health Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefits Plan Estimated Future Employer Contributions In Next Fiscal Year			$ 247
Defined Benefit Plan, Contributions by Employer	161
Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Contributions by Employer	$ 1,300

XML

Allowance for Loan Losses

9 Months Ended

Sep. 30, 2015

Loans and Leases Receivable, Allowance [Abstract]

Allowance for Loan Losses

The following table presents the activity of the allowance for loan losses by portfolio segment for the three months

ended September 30. 

Allowance for Loan Losses:	September 30, 2015
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated			Total
Beginning balance	$	10,931		$	1,760		$	4,678		$	2,492		$	19,861
Provision for loan losses	1,338			158			1,052			(1,498		)	1,050
Loans charged -off	(1,874		)	(220		)	(1,201		)	—			(3,295		)
Recoveries	1,694			196			419			—			2,309
Ending Balance	$	12,089		$	1,894		$	4,948		$	994		$	19,925

Allowance for Loan Losses:	September 30, 2014
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated			Total
Beginning balance	$	10,850		$	1,374		$	3,769		$	2,262		$	18,255
Provision for loan losses*	589			72			1,047			(178		)	1,530
Loans charged -off	(1,310		)	(153		)	(1,193		)	—			(2,656		)
Recoveries	51			34			293			—			378
Ending Balance	$	10,180		$	1,327		$	3,916		$	2,084		$	17,507

* Provision before decrease of $24 thousand in 2014 for increase in FDIC indemnification asset

The following table presents the activity of the allowance for loan losses by portfolio segment for the nine months

ended September 30

Allowance for Loan Losses:	September 30, 2015
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated			Total
Beginning balance	$	10,915		$	1,374		$	4,370		$	2,180		$	18,839
Provision for loan losses	1,505			811			2,520			(1,186		)	3,650
Loans charged -off	(2,482		)	(626		)	(3,489		)	—			(6,597		)
Recoveries	2,151			335			1,547			—			4,033
Ending Balance	$	12,089		$	1,894		$	4,948		$	994		$	19,925

Allowance for Loan Losses:	September 30, 2014
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated			Total
Beginning balance	$	12,450		$	1,585		$	3,650		$	2,383		$	20,068
Provision for loan losses*	270			84			2,380			(299		)	2,435
Loans charged -off	(2,956		)	(958		)	(3,228		)	—			(7,142		)
Recoveries	416			616			1,114			—			2,146
Ending Balance	$	10,180		$	1,327		$	3,916		$	2,084		$	17,507

* Provision before increase of $675 thousand in 2014 for decrease in FDIC indemnification asset

The following table presents the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method at September 30, 2015 and December 31, 2014. 

Allowance for Loan Losses	September 30, 2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	$	996	$	232	$	—	$	—	$	1,228
Collectively evaluated for impairment	10,902		1,662		4,948		994		18,506
Acquired with deteriorated credit quality	191		—		—		—		191
Ending Balance	$	12,089	$	1,894	$	4,948	$	994	$	19,925

Loans:	September 30, 2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	$	9,648	$	934	$	—	$	10,582
Collectively evaluated for impairment	1,032,992		450,198		273,436		1,756,626
Acquired with deteriorated credit quality	4,194		1,586		—		5,780
Ending Balance	$	1,046,834	$	452,718	$	273,436	$	1,772,988

Allowance for Loan Losses:	December 31, 2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	1,911		—		—		—		1,911
Collectively evaluated for impairment	8,733		1,365		4,370		2,180		16,648
Acquired with deteriorated credit quality	271		9		—		—		280
Ending Balance	$	10,915	$	1,374	$	4,370	$	2,180	$	18,839

Loans	December 31, 2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	14,573		33		—		14,606
Collectively evaluated for impairment	1,030,949		468,872		267,880		1,767,701
Acquired with deteriorated credit quality	4,887		1,631		—		6,518
Ending Balance	$	1,050,409	$	470,536	$	267,880	$	1,788,825

The following tables present loans individually evaluated for impairment by class of loans. 

					September 30, 2015
	Unpaid Principal		Recorded		Allowance for Loan Losses		Average Recorded		Interest Income		Cash Basis Interest
(Dollar amounts in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,565	$	1,272	$	—	$	1,939	$	—	$	—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	3,243		3,243		—		1,800		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	1,776		1,776		—		1,029		—		—
Residential
First Liens	30		30		—		15		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	1,618		1,618		278		4,080		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	1,506		1,506		718		4,248		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	233		233		—		548		—		—
Residential
First Liens	904		904		232		357		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	10,875	$	10,582	$	1,228	$	14,016	$	—	$	—

					December 31, 2014
	Unpaid Principal		Recorded		Allowance for Loan Losses		Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,200	$	926	$	—	$	2,589	$	—	$	—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	—		—		—		58		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	292		292		—		58		—		—
Residential
First Liens	—		—		—		5		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	7,388		5,874		1,056		6,177		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	6,654		6,654		753		6,698		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	827		827		102		1,112		—		—
Residential
First Liens	33		33		—		35		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	16,394	$	14,606	$	1,911	$	16,732	$	—	$	—

	Three Months Ended   September 30, 2015						Nine Months Ended   September 30, 2015
	Average Recorded		Interest Income		Cash Basis Interest Income		Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Investment		Recognized		Recognized		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	3,290	$	—	$	—	$	1,939	$	—	$	—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	3,599		—		—		1,800		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	1,785		—		—		1,029		—		—
Residential
First Liens	31		—		—		15		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	1,714		—		—		4,080		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	1,929		—		—		4,248		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	393		—		—		548		—		—
Residential
First Liens	565		—		—		357		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	13,306	$	—	$	—	$	14,016	$	—	$	—

	Three Months Ended   September 30, 2014						Nine Months Ended   September 30, 2014
	Average Recorded		Interest Income		Cash Basis Interest Income		Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Investment		Recognized		Recognized		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	4,103	$	—	$	—	$	3,005	$	—	$	—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	42		—		—		73		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	—		—		—		—		—		—
Residential
First Liens	12		—		—		6		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	4,420		—		—		6,253		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	6,677		—		—		6,709		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	1,322		—		—		1,184		—		—
Residential
First Liens	35		—		—		36		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	16,611	$	—	$	—	$	17,266	$	—	$	—

The tables below presents the recorded investment in non-performing loans.

	September 30, 2015
	Loans Past Due Over 90 Day Still		Troubled Debt
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		Nonaccrual
Commercial
Commercial & Industrial	$	—	$	5	$	430	$	3,943
Farmland	—		—		—		385
Non Farm, Non Residential	—		7		3,190		2,666
Agriculture	588		—		—		289
All Other Commercial	—		—		—		1,993
Residential
First Liens	798		4,558		995		5,062
Home Equity	62		—		—		295
Junior Liens	13		—		—		230
Multifamily	—		—		—		—
All Other Residential	—		—		—		115
Consumer
Motor Vehicle	234		181		11		150
All Other Consumer	6		40		423		984
TOTAL	$	1,701	$	4,791	$	5,049	$	16,112

	December 31, 2014
	Loans Past Due Over 90 Day Still		Troubled Debt
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		Nonaccrual
Commercial
Commercial & Industrial	$	—	$	7	$	4,961	$	3,720
Farmland	—		—		—		79
Non Farm, Non Residential	—		10		3,987		3,388
Agriculture	—		—		—		767
All Other Commercial	—		—		—		1,258
Residential
First Liens	603		4,357		842		3,861
Home Equity	88		—		—		404
Junior Liens	12		—		—		275
Multifamily	—		—		—		—
All Other Residential	5		—		—		111
Consumer
Motor Vehicle	162		257		83		210
All Other Consumer	3		1		269		961
TOTAL	$	873	$	4,632	$	10,142	$	15,034

There are $184 thousand loans covered by loss share agreements with the FDIC included in loans past due over 90 days still on accrual at September 30, 2015 and there were $37 thousand at December 31, 2014. There were $242 thousand of covered loans included in non-accrual loans at September 30, 2015 and there were $274 thousand at December 31, 2014. There were no covered loans at September 30, 2015 or December 31, 2014 that were deemed impaired.

Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The following tables presents the aging of the recorded investment in loans by past due category and class of loans.  

	September 30, 2015
	30-59 Days		60-89 Days		Greater than 90 days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	190	$	321	$	1,825	$	2,336	$	474,550	$	476,886
Farmland	25		567		—		592		103,759		104,351
Non Farm, Non Residential	157		—		321		478		211,797		212,275
Agriculture	306		368		615		1,289		130,491		131,780
All Other Commercial	54		—		148		202		121,340		121,542
Residential
First Liens	1,083		813		1,723		3,619		298,948		302,567
Home Equity	154		61		161		376		37,837		38,213
Junior Liens	306		87		187		580		30,602		31,182
Multifamily	—		—		—		—		71,916		71,916
All Other Residential	—		—		—		—		8,840		8,840
Consumer
Motor Vehicle	2,619		495		251		3,365		247,719		251,084
All Other Consumer	94		49		6		149		22,203		22,352
TOTAL	$	4,988	$	2,761	$	5,237	$	12,986	$	1,760,002	$	1,772,988

	December 31, 2014
	30-59 Days		60-89 Days		Greater than 90 days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	574	$	416	$	3,046	$	4,036	$	451,549	$	455,585
Farmland	—		—		—		—		95,452		95,452
Non Farm, Non Residential	1,528		68		202		1,798		232,440		234,238
Agriculture	246		18		502		766		149,099		149,865
All Other Commercial	255		—		—		255		115,014		115,269
Residential
First Liens	6,011		963		1,522		8,496		308,068		316,564
Home Equity	141		33		310		484		40,043		40,527
Junior Liens	270		83		217		570		31,487		32,057
Multifamily	—		—		—		—		72,310		72,310
All Other Residential	112		—		5		117		8,961		9,078
Consumer
Motor Vehicle	3,026		557		180		3,763		242,406		246,169
All Other Consumer	114		7		3		124		21,587		21,711
TOTAL	$	12,277	$	2,145	$	5,987	$	20,409	$	1,768,416	$	1,788,825

During the three and nine months ended September 30, 2015 and 2014, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR's.

			2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
July 1,	8,705		5,589		657		14,951
Added	—		16		50		66
Charged Off	—		—		(4	)	(4	)
Payments	(5,081	)	(63	)	(41	)	(5,185	)
September 30,	3,624		5,542		662		9,828

			2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
January 1,	8,955		5,189		614		14,758
Added	—		668		239		907
Charged Off	—		(62	)	(44	)	(106	)
Payments	(5,331	)	(253	)	(147	)	(5,731	)
September 30,	3,624		5,542		662		9,828

			2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
July 1,	9,206		4,956		559		14,721
Added	—		340		115		455
Charged Off	—		(67	)	(24	)	(91	)
Payments	(122	)	(124	)	(81	)	(327	)
September 30,	9,084		5,105		569		14,758

			2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
January 1,	12,327		4,330		644		17,301
Added	441		1,141		213		1,795
Charged Off	(1,069	)	(67	)	(63	)	(1,199	)
Payments	(2,615	)	(299	)	(225	)	(3,139	)
September 30,	9,084		5,105		569		14,758

Modification of the terms of such loans typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. No modification in 2015 or 2014 resulted in the permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from twelve months to five years. Modifications involving an extension of the maturity date were for periods ranging from twelve months to ten years. Troubled debt restructurings during the three and nine months ended September 30, 2015 and 2014 did not result in any material charge-offs or additional provision expense.

The Corporation has allocated $36 thousand and $81 thousand of specific reserves to customers whose loan terms have been modified in troubled debt restructurings at both September 30, 2015 and 2014, respectively. The Corporation has not committed to lend additional amounts as of September 30, 2015 and 2014 to customers with outstanding loans that are classified as troubled debt restructurings. The charge-offs during the three and nine months ended September 30, 2015 and 2014 were not of any restructurings that had taken place in the previous 12 months.

Credit Quality Indicators:

The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial loans, with an outstanding balance greater than $100 thousand. Any consumer loans outstanding to a borrower who had commercial loans analyzed will be similarly risk rated. This analysis is performed on a quarterly basis. The Corporation uses the following definitions for risk ratings:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and debt service capacity of the borrower or of any pledged collateral. These loans have a well-defined weakness or weaknesses which have clearly jeopardized repayment of principal and interest as originally intended. They are characterized by the distinct possibility that the institution will sustain some future loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those graded substandard, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable or improbable based upon currently existing facts, conditions, and values.

Furthermore, non-homogeneous loans which were not individually analyzed, but are 90+ days past due or on non-accrual are classified as substandard. Loans included in homogeneous pools, such as residential or consumer may be classified as substandard due to 90+ days delinquency, non-accrual status, bankruptcy, or loan restructuring.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either less than $100 thousand or are included in groups of homogeneous loans. As of September 30, 2015 and December 31, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans are as follows:

	September 30, 2015
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	408,039	$	28,331	$	31,171	$	1,295	$	6,607	$	475,443
Farmland	90,255		7,354		4,825		—		16		102,450
Non Farm, Non Residential	184,252		8,191		19,380		36		—		211,859
Agriculture	111,296		9,804		8,790		27		166		130,083
All Other Commercial	105,584		2,691		11,193		101		1,273		120,842
Residential
First Liens	98,630		4,591		8,633		718		189,034		301,606
Home Equity	11,097		453		1,348		11		25,247		38,156
Junior Liens	7,578		119		482		59		22,862		31,100
Multifamily	69,077		1,616		1,026		—		25		71,744
All Other Residential	902		—		25		—		7,892		8,819
Consumer
Motor Vehicle	10,555		498		508		—		238,435		249,996
All Other Consumer	3,181		89		121		15		18,833		22,239
TOTAL	$	1,100,446	$	63,737	$	87,502	$	2,262	$	510,390	$	1,764,337

	December 31, 2014
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	393,449	$	29,081	$	24,013	$	2,900	$	4,717	$	454,160
Farmland	85,772		7,618		436		—		13		93,839
Non Farm, Non Residential	186,346		21,765		25,613		36		—		233,760
Agriculture	138,713		7,399		1,746		177		67		148,102
All Other Commercial	101,942		4,356		7,055		33		1,275		114,661
Residential
First Liens	104,854		5,929		7,733		1,035		196,008		315,559
Home Equity	12,592		375		1,374		6		26,116		40,463
Junior Liens	8,112		173		561		63		23,053		31,962
Multifamily	69,080		1,801		1,249		—		3		72,133
All Other Residential	1,799		—		28		—		7,228		9,055
Consumer
Motor Vehicle	11,135		402		224		—		233,302		245,063
All Other Consumer	3,169		141		87		21		18,175		21,593
TOTAL	$	1,116,963	$	79,040	$	70,119	$	4,271	$	509,957	$	1,780,350

XML

Fair Value (Details Textual) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Valuation allowance for impaired loans	$ 1,228	$ 1,911
Provision for impaired loan losses	(221)		$ (1,200)
Other real estate owned	3,382	3,965
Commercial Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	2,800	3,000
Residential Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	600	1,000
State and Municipal Obligation [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	$ 4,725	$ 5,900
Fair Value Measurements, Valuation Techniques	Discounted cash flow	Discounted cash flow
Fair Value Measurements Unobservable Inputs	Discount rate Probability of default	Discount rate Probability of default
Impaired Loans | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	$ 3,033	$ 11,477
Valuation allowance for impaired loans	$ 1,200	$ 1,900
Fair Value Measurements, Valuation Techniques	Sales comparison/income approach	Sales comparison/income approach
Fair Value Measurements Unobservable Inputs	Discount rate for age of appraisal and market conditions	Discount rate for age of appraisal and market conditions
Other Real Estate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Real estate, other deductions	$ 700	$ 1,100
Other Real Estate | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value	3,382	3,965
Other real estate owned	$ 3,400	$ 4,000
Fair Value Measurements, Valuation Techniques	Sales comparison/income approach	Sales comparison/income approach
Fair Value Measurements Unobservable Inputs	Discount rate for age of appraisal and market conditions	Discount rate for age of appraisal and market conditions
Minimum [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value inputs, discount rate	0.00%
Minimum [Member] | State and Municipal Obligation [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value inputs, discount rate	3.05%	3.05%
Minimum [Member] | Impaired Loans | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value inputs, discount rate	0.00%	0.00%
Minimum [Member] | Other Real Estate | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value inputs, discount rate	5.00%	5.00%
Maximum [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value inputs, discount rate	50.00%
Maximum [Member] | State and Municipal Obligation [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value inputs, discount rate	5.50%	5.50%
Maximum [Member] | Impaired Loans | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value inputs, discount rate	50.00%	50.00%
Maximum [Member] | Other Real Estate | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value inputs, discount rate	20.00%	20.00%

XML

Allowance for Loan Losses Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Financing Receivable Portfolio Segment [Domain]
Financing Receivable, Modifications [Line Items]
Added	$ 66	$ 455	$ 907	$ 1,795
Charged Off	(4)	(91)	(106)	(1,199)
Payments	(5,185)	(327)	(5,731)	(3,139)
Commercial Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Beginning Balance	8,705	9,206	8,955	12,327
Added	0	0	0	441
Charged Off	0	0	0	(1,069)
Payments	(5,081)	(122)	(5,331)	(2,615)
Ending Balance	3,624	9,084	3,624	9,084
Residential Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Beginning Balance	5,589	4,956	5,189	4,330
Added	16	340	668	1,141
Charged Off	0	(67)	(62)	(67)
Payments	(63)	(124)	(253)	(299)
Ending Balance	5,542	5,105	5,542	5,105
Consumer Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Beginning Balance	657	559	614	644
Added	50	115	239	213
Charged Off	(4)	(24)	(44)	(63)
Payments	(41)	(81)	(147)	(225)
Ending Balance	$ 662	$ 569	$ 662	$ 569

XML

Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Aging of recorded investment in loans by past due category and class of loans
Fair value	$ 10,582		$ 14,606
Financing Receivable, Modifications, Recorded Investment	9,828	$ 14,951	14,758	$ 14,758	$ 14,721	$ 17,301
Commercial & Industrial
Aging of recorded investment in loans by past due category and class of loans
Fair value	1,340		4,818
Farmland
Aging of recorded investment in loans by past due category and class of loans
Fair value	0		0
Non Farm, Non Residential
Aging of recorded investment in loans by past due category and class of loans
Fair value	788		5,901
Agriculture
Aging of recorded investment in loans by past due category and class of loans
Fair value	0		0
All Other Commercial
Aging of recorded investment in loans by past due category and class of loans
Fair value	233		725
First Liens
Aging of recorded investment in loans by past due category and class of loans
Fair value	672		33
Home Equity
Aging of recorded investment in loans by past due category and class of loans
Fair value	0		0
Junior Liens
Aging of recorded investment in loans by past due category and class of loans
Fair value	0		0
Multifamily
Aging of recorded investment in loans by past due category and class of loans
Fair value	0		0
All Other Residential
Aging of recorded investment in loans by past due category and class of loans
Fair value	0		0
Motor Vehicle
Aging of recorded investment in loans by past due category and class of loans
Fair value	0		0
All Other Consumer
Aging of recorded investment in loans by past due category and class of loans
Fair value	0		0
Nonperforming Financing Receivable [Member]
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	1,701		873
Nonaccrual	16,112		15,034
Financing Receivable, Modifications, Recorded Investment	4,791		4,632
Financing Receivable, Modifications, Nonaccrual	5,049		10,142
Nonperforming Financing Receivable [Member] | Commercial & Industrial
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	0		0
Nonaccrual	3,943		3,720
Financing Receivable, Modifications, Recorded Investment	5		7
Financing Receivable, Modifications, Nonaccrual	430		4,961
Nonperforming Financing Receivable [Member] | Farmland
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	0		0
Nonaccrual	385		79
Financing Receivable, Modifications, Recorded Investment	0		0
Financing Receivable, Modifications, Nonaccrual	0		0
Nonperforming Financing Receivable [Member] | Non Farm, Non Residential
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	0		0
Nonaccrual	2,666		3,388
Financing Receivable, Modifications, Recorded Investment	7		10
Financing Receivable, Modifications, Nonaccrual	3,190		3,987
Nonperforming Financing Receivable [Member] | Agriculture
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	588		0
Nonaccrual	289		767
Financing Receivable, Modifications, Recorded Investment	0		0
Financing Receivable, Modifications, Nonaccrual	0		0
Nonperforming Financing Receivable [Member] | All Other Commercial
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	0		0
Nonaccrual	1,993		1,258
Financing Receivable, Modifications, Recorded Investment	0		0
Financing Receivable, Modifications, Nonaccrual	0		0
Nonperforming Financing Receivable [Member] | First Liens
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	798		603
Nonaccrual	5,062		3,861
Financing Receivable, Modifications, Recorded Investment	4,558		4,357
Financing Receivable, Modifications, Nonaccrual	995		842
Nonperforming Financing Receivable [Member] | Home Equity
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	62		88
Nonaccrual	295		404
Financing Receivable, Modifications, Recorded Investment	0		0
Financing Receivable, Modifications, Nonaccrual	0		0
Nonperforming Financing Receivable [Member] | Junior Liens
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	13		12
Nonaccrual	230		275
Financing Receivable, Modifications, Recorded Investment	0		0
Financing Receivable, Modifications, Nonaccrual	0		0
Nonperforming Financing Receivable [Member] | Multifamily
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	0		0
Nonaccrual	0		0
Financing Receivable, Modifications, Recorded Investment	0		0
Financing Receivable, Modifications, Nonaccrual	0		0
Nonperforming Financing Receivable [Member] | All Other Residential
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	0		5
Nonaccrual	115		111
Financing Receivable, Modifications, Recorded Investment	0		0
Financing Receivable, Modifications, Nonaccrual	0		0
Nonperforming Financing Receivable [Member] | Motor Vehicle
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	234		162
Nonaccrual	150		210
Financing Receivable, Modifications, Recorded Investment	181		257
Financing Receivable, Modifications, Nonaccrual	11		83
Nonperforming Financing Receivable [Member] | All Other Consumer
Aging of recorded investment in loans by past due category and class of loans
Loans Past Due Over 90 Day Still Accruing	6		3
Nonaccrual	984		961
Financing Receivable, Modifications, Recorded Investment	40		1
Financing Receivable, Modifications, Nonaccrual	$ 423		$ 269

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Short-Term Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Short-term Debt [Abstract]
Federal Funds Purchased	$ 550	$ 21,192
Securities Sold under Agreements to Repurchase	22,786	26,823
Short-term borrowings	$ 23,336	$ 48,015

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Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	$ 12,986	$ 20,409
Financing Receivable, Recorded Investment, Current	1,760,002	1,768,416
Total	1,772,988	1,788,825
Commercial & Industrial
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	2,336	4,036
Financing Receivable, Recorded Investment, Current	474,550	451,549
Total	476,886	455,585
Farmland
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	592	0
Financing Receivable, Recorded Investment, Current	103,759	95,452
Total	104,351	95,452
Non Farm, Non Residential
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	478	1,798
Financing Receivable, Recorded Investment, Current	211,797	232,440
Total	212,275	234,238
Agriculture
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	1,289	766
Financing Receivable, Recorded Investment, Current	130,491	149,099
Total	131,780	149,865
All Other Commercial
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	202	255
Financing Receivable, Recorded Investment, Current	121,340	115,014
Total	121,542	115,269
First Liens
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	3,619	8,496
Financing Receivable, Recorded Investment, Current	298,948	308,068
Total	302,567	316,564
Home Equity
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	376	484
Financing Receivable, Recorded Investment, Current	37,837	40,043
Total	38,213	40,527
Junior Liens
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	580	570
Financing Receivable, Recorded Investment, Current	30,602	31,487
Total	31,182	32,057
Multifamily
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	0
Financing Receivable, Recorded Investment, Current	71,916	72,310
Total	71,916	72,310
All Other Residential
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	117
Financing Receivable, Recorded Investment, Current	8,840	8,961
Total	8,840	9,078
Motor Vehicle
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	3,365	3,763
Financing Receivable, Recorded Investment, Current	247,719	242,406
Total	251,084	246,169
All Other Consumer
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	149	124
Financing Receivable, Recorded Investment, Current	22,203	21,587
Total	22,352	21,711
Financing Receivables, 30 to 59 Days Past Due [Member]
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	4,988	12,277
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial & Industrial
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	190	574
Financing Receivables, 30 to 59 Days Past Due [Member] | Farmland
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	25	0
Financing Receivables, 30 to 59 Days Past Due [Member] | Non Farm, Non Residential
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	157	1,528
Financing Receivables, 30 to 59 Days Past Due [Member] | Agriculture
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	306	246
Financing Receivables, 30 to 59 Days Past Due [Member] | All Other Commercial
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	54	255
Financing Receivables, 30 to 59 Days Past Due [Member] | First Liens
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	1,083	6,011
Financing Receivables, 30 to 59 Days Past Due [Member] | Home Equity
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	154	141
Financing Receivables, 30 to 59 Days Past Due [Member] | Junior Liens
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	306	270
Financing Receivables, 30 to 59 Days Past Due [Member] | Multifamily
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due [Member] | All Other Residential
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	112
Financing Receivables, 30 to 59 Days Past Due [Member] | Motor Vehicle
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	2,619	3,026
Financing Receivables, 30 to 59 Days Past Due [Member] | All Other Consumer
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	94	114
Financing Receivables, 60 to 89 Days Past Due [Member]
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	2,761	2,145
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial & Industrial
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	321	416
Financing Receivables, 60 to 89 Days Past Due [Member] | Farmland
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	567	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Non Farm, Non Residential
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	68
Financing Receivables, 60 to 89 Days Past Due [Member] | Agriculture
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	368	18
Financing Receivables, 60 to 89 Days Past Due [Member] | All Other Commercial
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | First Liens
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	813	963
Financing Receivables, 60 to 89 Days Past Due [Member] | Home Equity
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	61	33
Financing Receivables, 60 to 89 Days Past Due [Member] | Junior Liens
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	87	83
Financing Receivables, 60 to 89 Days Past Due [Member] | Multifamily
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | All Other Residential
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Motor Vehicle
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	495	557
Financing Receivables, 60 to 89 Days Past Due [Member] | All Other Consumer
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	49	7
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	5,237	5,987
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial & Industrial
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	1,825	3,046
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Farmland
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Non Farm, Non Residential
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	321	202
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Agriculture
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	615	502
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | All Other Commercial
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	148	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | First Liens
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	1,723	1,522
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home Equity
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	161	310
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Junior Liens
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	187	217
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Multifamily
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | All Other Residential
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	0	5
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Motor Vehicle
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	251	180
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | All Other Consumer
Aging of recorded investment in loans by past due category and class of loans
Total Past Due	$ 6	$ 3

XML

Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	$ 1,772,988	$ 1,788,825
Financing Receivable, Recorded Investment, Past Due	12,986	20,409
Financing Receivable, Recorded Investment, Current	1,760,002	1,768,416
Total loans	1,764,337	1,780,350
Commercial & Industrial
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	476,886	455,585
Financing Receivable, Recorded Investment, Past Due	2,336	4,036
Financing Receivable, Recorded Investment, Current	474,550	451,549
Total loans	475,443	454,160
Farmland
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	104,351	95,452
Financing Receivable, Recorded Investment, Past Due	592	0
Financing Receivable, Recorded Investment, Current	103,759	95,452
Total loans	102,450	93,839
Non Farm, Non Residential
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	212,275	234,238
Financing Receivable, Recorded Investment, Past Due	478	1,798
Financing Receivable, Recorded Investment, Current	211,797	232,440
Total loans	211,859	233,760
Agriculture
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	131,780	149,865
Financing Receivable, Recorded Investment, Past Due	1,289	766
Financing Receivable, Recorded Investment, Current	130,491	149,099
Total loans	130,083	148,102
All Other Commercial
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	121,542	115,269
Financing Receivable, Recorded Investment, Past Due	202	255
Financing Receivable, Recorded Investment, Current	121,340	115,014
Total loans	120,842	114,661
First Liens
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	302,567	316,564
Financing Receivable, Recorded Investment, Past Due	3,619	8,496
Financing Receivable, Recorded Investment, Current	298,948	308,068
Total loans	301,606	315,559
Home Equity
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	38,213	40,527
Financing Receivable, Recorded Investment, Past Due	376	484
Financing Receivable, Recorded Investment, Current	37,837	40,043
Total loans	38,156	40,463
Junior Liens
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	31,182	32,057
Financing Receivable, Recorded Investment, Past Due	580	570
Financing Receivable, Recorded Investment, Current	30,602	31,487
Total loans	31,100	31,962
Multifamily
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	71,916	72,310
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivable, Recorded Investment, Current	71,916	72,310
Total loans	71,744	72,133
All Other Residential
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	8,840	9,078
Financing Receivable, Recorded Investment, Past Due	0	117
Financing Receivable, Recorded Investment, Current	8,840	8,961
Total loans	8,819	9,055
Motor Vehicle
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	251,084	246,169
Financing Receivable, Recorded Investment, Past Due	3,365	3,763
Financing Receivable, Recorded Investment, Current	247,719	242,406
Total loans	249,996	245,063
All Other Consumer
Analysis of risk category of loans by class of loans
Financing Receivable Recorded Investment	22,352	21,711
Financing Receivable, Recorded Investment, Past Due	149	124
Financing Receivable, Recorded Investment, Current	22,203	21,587
Total loans	22,239	21,593
Pass
Analysis of risk category of loans by class of loans
Total loans	1,100,446	1,116,963
Pass | Commercial & Industrial
Analysis of risk category of loans by class of loans
Total loans	408,039	393,449
Pass | Farmland
Analysis of risk category of loans by class of loans
Total loans	90,255	85,772
Pass | Non Farm, Non Residential
Analysis of risk category of loans by class of loans
Total loans	184,252	186,346
Pass | Agriculture
Analysis of risk category of loans by class of loans
Total loans	111,296	138,713
Pass | All Other Commercial
Analysis of risk category of loans by class of loans
Total loans	105,584	101,942
Pass | First Liens
Analysis of risk category of loans by class of loans
Total loans	98,630	104,854
Pass | Home Equity
Analysis of risk category of loans by class of loans
Total loans	11,097	12,592
Pass | Junior Liens
Analysis of risk category of loans by class of loans
Total loans	7,578	8,112
Pass | Multifamily
Analysis of risk category of loans by class of loans
Total loans	69,077	69,080
Pass | All Other Residential
Analysis of risk category of loans by class of loans
Total loans	902	1,799
Pass | Motor Vehicle
Analysis of risk category of loans by class of loans
Total loans	10,555	11,135
Pass | All Other Consumer
Analysis of risk category of loans by class of loans
Total loans	3,181	3,169
Special Mention
Analysis of risk category of loans by class of loans
Total loans	63,737	79,040
Special Mention | Commercial & Industrial
Analysis of risk category of loans by class of loans
Total loans	28,331	29,081
Special Mention | Farmland
Analysis of risk category of loans by class of loans
Total loans	7,354	7,618
Special Mention | Non Farm, Non Residential
Analysis of risk category of loans by class of loans
Total loans	8,191	21,765
Special Mention | Agriculture
Analysis of risk category of loans by class of loans
Total loans	9,804	7,399
Special Mention | All Other Commercial
Analysis of risk category of loans by class of loans
Total loans	2,691	4,356
Special Mention | First Liens
Analysis of risk category of loans by class of loans
Total loans	4,591	5,929
Special Mention | Home Equity
Analysis of risk category of loans by class of loans
Total loans	453	375
Special Mention | Junior Liens
Analysis of risk category of loans by class of loans
Total loans	119	173
Special Mention | Multifamily
Analysis of risk category of loans by class of loans
Total loans	1,616	1,801
Special Mention | All Other Residential
Analysis of risk category of loans by class of loans
Total loans	0	0
Special Mention | Motor Vehicle
Analysis of risk category of loans by class of loans
Total loans	498	402
Special Mention | All Other Consumer
Analysis of risk category of loans by class of loans
Total loans	89	141
Substandard
Analysis of risk category of loans by class of loans
Total loans	87,502	70,119
Substandard | Commercial & Industrial
Analysis of risk category of loans by class of loans
Total loans	31,171	24,013
Substandard | Farmland
Analysis of risk category of loans by class of loans
Total loans	4,825	436
Substandard | Non Farm, Non Residential
Analysis of risk category of loans by class of loans
Total loans	19,380	25,613
Substandard | Agriculture
Analysis of risk category of loans by class of loans
Total loans	8,790	1,746
Substandard | All Other Commercial
Analysis of risk category of loans by class of loans
Total loans	11,193	7,055
Substandard | First Liens
Analysis of risk category of loans by class of loans
Total loans	8,633	7,733
Substandard | Home Equity
Analysis of risk category of loans by class of loans
Total loans	1,348	1,374
Substandard | Junior Liens
Analysis of risk category of loans by class of loans
Total loans	482	561
Substandard | Multifamily
Analysis of risk category of loans by class of loans
Total loans	1,026	1,249
Substandard | All Other Residential
Analysis of risk category of loans by class of loans
Total loans	25	28
Substandard | Motor Vehicle
Analysis of risk category of loans by class of loans
Total loans	508	224
Substandard | All Other Consumer
Analysis of risk category of loans by class of loans
Total loans	121	87
Doubtful
Analysis of risk category of loans by class of loans
Total loans	2,262	4,271
Doubtful | Commercial & Industrial
Analysis of risk category of loans by class of loans
Total loans	1,295	2,900
Doubtful | Farmland
Analysis of risk category of loans by class of loans
Total loans	0	0
Doubtful | Non Farm, Non Residential
Analysis of risk category of loans by class of loans
Total loans	36	36
Doubtful | Agriculture
Analysis of risk category of loans by class of loans
Total loans	27	177
Doubtful | All Other Commercial
Analysis of risk category of loans by class of loans
Total loans	101	33
Doubtful | First Liens
Analysis of risk category of loans by class of loans
Total loans	718	1,035
Doubtful | Home Equity
Analysis of risk category of loans by class of loans
Total loans	11	6
Doubtful | Junior Liens
Analysis of risk category of loans by class of loans
Total loans	59	63
Doubtful | Multifamily
Analysis of risk category of loans by class of loans
Total loans	0	0
Doubtful | All Other Residential
Analysis of risk category of loans by class of loans
Total loans	0	0
Doubtful | Motor Vehicle
Analysis of risk category of loans by class of loans
Total loans	0	0
Doubtful | All Other Consumer
Analysis of risk category of loans by class of loans
Total loans	15	21
Not Rated
Analysis of risk category of loans by class of loans
Total loans	510,390	509,957
Not Rated | Commercial & Industrial
Analysis of risk category of loans by class of loans
Total loans	6,607	4,717
Not Rated | Farmland
Analysis of risk category of loans by class of loans
Total loans	16	13
Not Rated | Non Farm, Non Residential
Analysis of risk category of loans by class of loans
Total loans	0	0
Not Rated | Agriculture
Analysis of risk category of loans by class of loans
Total loans	166	67
Not Rated | All Other Commercial
Analysis of risk category of loans by class of loans
Total loans	1,273	1,275
Not Rated | First Liens
Analysis of risk category of loans by class of loans
Total loans	189,034	196,008
Not Rated | Home Equity
Analysis of risk category of loans by class of loans
Total loans	25,247	26,116
Not Rated | Junior Liens
Analysis of risk category of loans by class of loans
Total loans	22,862	23,053
Not Rated | Multifamily
Analysis of risk category of loans by class of loans
Total loans	25	3
Not Rated | All Other Residential
Analysis of risk category of loans by class of loans
Total loans	7,892	7,228
Not Rated | Motor Vehicle
Analysis of risk category of loans by class of loans
Total loans	238,435	233,302
Not Rated | All Other Consumer
Analysis of risk category of loans by class of loans
Total loans	$ 18,833	$ 18,175

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Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies

The significant accounting policies followed by the Corporation and its subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments which are, in the opinion of management, necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated financial statements and are of a normal recurring nature. The Corporation reports financial information for only one segment, banking. Some items in the prior year financials were reclassified to conform to the current presentation.

The Omnibus Equity Incentive Plan is a long-term incentive plan that was designed to align the interests of participants with the interests of shareholders. Under the plan, awards may be made based on certain performance measures. The grants are made in restricted stock units that are subject to a vesting schedule. These shares vest over 3 years in increments of 33%, 33%, and 34% respectively. In 2015 and 2014, 19,683 and 22,019 shares were awarded, respectively. These shares had a grant date value of $667 thousand and $708 thousand for 2015 and 2014, vest over three years and their grant is not subject to future performance measures. Outstanding shares are increased at the award date for the total shares awarded.

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Allowance for Loan Losses (Details Textual) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2015	Dec. 31, 2014
Allowance for loan losses
Financing Receivable, Modifications, Specific Reserves Allocated to Troubled Debt Restructuring	$ 81,000	$ 81,000	$ 36,000
Increase in provision for decrease in FDIC indemnification asset	$ 24,000	$ 675,000
Fair value			10,582,000	$ 14,606,000
Minimum outstanding balance of non-homogeneous loans to be individually evaluated as to credit risk			100,000
Commercial & Industrial
Allowance for loan losses
Fair value			1,340,000	4,818,000
Farmland
Allowance for loan losses
Fair value			0	0
Covered Loans
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing			184,000	37,000
Nonaccrual			242,000	274,000
Non Farm, Non Residential
Allowance for loan losses
Fair value			788,000	5,901,000
Agriculture
Allowance for loan losses
Fair value			0	0
All Other Commercial
Allowance for loan losses
Fair value			233,000	725,000
First Liens
Allowance for loan losses
Fair value			672,000	33,000
Home Equity
Allowance for loan losses
Fair value			0	0
Junior Liens
Allowance for loan losses
Fair value			0	0
Multifamily
Allowance for loan losses
Fair value			0	0
All Other Residential
Allowance for loan losses
Fair value			0	0
Motor Vehicle
Allowance for loan losses
Fair value			0	0
All Other Consumer
Allowance for loan losses
Fair value			0	0
Nonperforming Financing Receivable [Member]
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing			1,701,000	873,000
Nonaccrual			16,112,000	15,034,000
Nonperforming Financing Receivable [Member] | Commercial & Industrial
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing			0	0
Nonaccrual			3,943,000	3,720,000
Nonperforming Financing Receivable [Member] | Farmland
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing			0	0
Nonaccrual			385,000	79,000
Nonperforming Financing Receivable [Member] | Non Farm, Non Residential
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing			0	0
Nonaccrual			2,666,000	3,388,000
Nonperforming Financing Receivable [Member] | Agriculture
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing			588,000	0
Nonaccrual			289,000	767,000
Nonperforming Financing Receivable [Member] | All Other Commercial
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing			0	0
Nonaccrual			1,993,000	1,258,000
Nonperforming Financing Receivable [Member] | First Liens
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing			798,000	603,000
Nonaccrual			5,062,000	3,861,000
Nonperforming Financing Receivable [Member] | Home Equity
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing			62,000	88,000
Nonaccrual			295,000	404,000
Nonperforming Financing Receivable [Member] | Junior Liens
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing			13,000	12,000
Nonaccrual			230,000	275,000
Nonperforming Financing Receivable [Member] | Multifamily
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing			0	0
Nonaccrual			0	0
Nonperforming Financing Receivable [Member] | All Other Residential
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing			0	5,000
Nonaccrual			115,000	111,000
Nonperforming Financing Receivable [Member] | Motor Vehicle
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing			234,000	162,000
Nonaccrual			150,000	210,000
Nonperforming Financing Receivable [Member] | All Other Consumer
Allowance for loan losses
Loans Past Due Over 90 Day Still Accruing			6,000	3,000
Nonaccrual			$ 984,000	$ 961,000

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Fair Value (Details 2) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Range of Inputs	0.00%
Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Range of Inputs	50.00%
State and Municipal Obligations | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 4,725	$ 5,900
Valuation Technique(s)	Discounted cash flow	Discounted cash flow
Unobservable Inputs	Discount rate Probability of default	Discount rate Probability of default
State and Municipal Obligations | Minimum [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Range of Inputs	3.05%	3.05%
State and Municipal Obligations | Maximum [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Range of Inputs	5.50%	5.50%
Other Real Estate | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 3,382	$ 3,965
Valuation Technique(s)	Sales comparison/income approach	Sales comparison/income approach
Unobservable Inputs	Discount rate for age of appraisal and market conditions	Discount rate for age of appraisal and market conditions
Other Real Estate | Minimum [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Range of Inputs	5.00%	5.00%
Other Real Estate | Maximum [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Range of Inputs	20.00%	20.00%
Impaired Loans | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 3,033	$ 11,477
Valuation Technique(s)	Sales comparison/income approach	Sales comparison/income approach
Unobservable Inputs	Discount rate for age of appraisal and market conditions	Discount rate for age of appraisal and market conditions
Impaired Loans | Minimum [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Range of Inputs	0.00%	0.00%
Impaired Loans | Maximum [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Range of Inputs	50.00%	50.00%

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Cash and due from banks	$ 63,278	$ 78,102
Federal funds sold	0	8,000
Securities available-for-sale	885,836	897,053
Loans:
Commercial	1,040,677	1,044,522
Residential	451,425	469,172
Consumer	272,235	266,656
Loans, gross	1,764,337	1,780,350
Less: Unearned Income	2,330	1,078
Less: Allowance for loan losses	(19,925)	(18,839)
Loans, Net	1,746,742	1,762,589
Restricted Investments	10,838	16,404
Accrued interest receivable	12,265	11,593
Premises and equipment, net	50,834	51,802
Bank-owned life insurance	81,961	80,730
Goodwill	39,489	39,489
Other intangible assets	3,375	3,901
Other real estate owned	3,382	3,965
Other assets	44,833	48,857
TOTAL ASSETS	2,942,833	3,002,485
Deposits:
Non-interest-bearing	521,310	556,389
Interest-bearing:
Certificates of deposit of $100 or more	47,154	53,733
Other interest-bearing deposits	1,850,125	1,847,075
Total Deposits	2,418,589	2,457,197
Short-term borrowings	23,336	48,015
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	13,251	12,886
Other liabilities	79,066	90,173
TOTAL LIABILITIES	2,534,242	2,608,271
Shareholders' equity
Common stock, $.125 stated value per share; Authorized shares-40,000,000 Issued shares-14,557,815 in 2015 and 14,538,132 in 2014 Outstanding shares-12,703,869 in 2015 and 12,962,607 in 2014	1,817	1,815
Additional paid-in capital	72,916	72,405
Retained earnings	394,761	377,970
Accumulated other comprehensive income (loss)	(8,758)	(14,529)
Less: Treasury shares at cost-1,853,946 in 2015 and 1,595,525 in 2014	(52,145)	(43,447)
TOTAL SHAREHOLDERS' EQUITY	408,591	394,214
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 2,942,833	$ 3,002,485

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Short-Term Borrowings Short-Term Borrowings (Details 1) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets Sold under Agreements to Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	$ 22,786	$ 26,823
Maturity Overnight [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	10,225	14,787
Maturity up to 30 days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	0	5,748
Maturity 30 to 90 Days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	0	5,670
Maturity over 90 days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	$ 12,561	$ 618

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Treasury stock purchase (in shares)	118,053	0	127,742	9,776
Cash Dividends (in dollars per share)	$ 0.49	$ 0.49	$ 0.49	$ 0.49

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Securities (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis	$ 3,399
Less Than 12 Months
Fair Value	169,932	$ 57,332
Unrealized Losses	(3,599)	(163)
More Than 12 Months
Fair Value	99,054	299,536
Unrealized Losses	(716)	(8,026)
Total
Fair Value	268,986	356,868
Unrealized Losses	(4,315)	(8,189)
Mortgage Backed Securities - Residential
Less Than 12 Months
Fair Value	18,372	0
Unrealized Losses	(180)	0
More Than 12 Months
Fair Value	19,957	23,849
Unrealized Losses	(55)	(330)
Total
Fair Value	38,329	23,849
Unrealized Losses	(235)	(330)
Collateralized Mortgage Obligations
Less Than 12 Months
Fair Value	147,188	50,832
Unrealized Losses	(3,318)	(128)
More Than 12 Months
Fair Value	55,710	264,940
Unrealized Losses	(385)	(7,495)
Total
Fair Value	202,898	315,772
Unrealized Losses	(3,703)	(7,623)
State and Municipal Obligations
Less Than 12 Months
Fair Value	4,372	6,500
Unrealized Losses	(101)	(35)
More Than 12 Months
Fair Value	23,387	10,547
Unrealized Losses	(276)	(184)
Total
Fair Value	27,759	17,047
Unrealized Losses	(377)	(219)
Collateralized Debt Obligations
Less Than 12 Months
Fair Value	0	0
Unrealized Losses	0	0
More Than 12 Months
Fair Value	0	200
Unrealized Losses	0	(17)
Total
Fair Value	0	200
Unrealized Losses	$ 0	$ (17)

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Acquisitions and FDIC Indemnification Asset (Tables)

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Schedule of carrying amount of covered assets

							2015
(Dollar amounts in thousands)	Commercial			Consumer			Total
Beginning balance, July 1,	$	4,329		$	1,547		$	5,876
Discount accretion	—			—			—
Disposals	(105		)	(9		)	(114		)
ASC 310-30 Loans, September 30,	$	4,224		$	1,538		$	5,762

							2015
(Dollar amounts in thousands)	Commercial			Consumer			Total
Beginning balance, January 1,	$	4,803		$	1,571		$	6,374
Discount accretion	—			—			—
Disposals	(579		)	(33		)	(612		)
ASC 310-30 Loans, September 30,	$	4,224		$	1,538		$	5,762

							2014
(Dollar amounts in thousands)	Commercial			Consumer			Total
Beginning balance, July 1,	$	7,337		$	1,885		$	9,222
Discount accretion	—			—			—
Disposals	(1,569		)	(108		)	(1,677		)
ASC 310-30 Loans, September 30,	$	5,768		$	1,777		$	7,545

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Securities (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Rollforward of the credit losses recognized in earnings
Beginning balance	$ 13,995	$ 14,079	$ 14,050	$ 14,079
Increases to the amount related to the credit loss for which other-than-temporary was previously recognized	0	0	0	0
Reductions for increases in cash flows collected	0	(29)	(55)	(29)
Amounts realized for securities sold during the period	0	0	0	0
Ending balance	$ 13,995	$ 14,050	$ 13,995	$ 14,050

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Significant Accounting Policies (Details Textual) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($) segment shares	Sep. 30, 2014 USD ($) shares
Accounting Policies [Abstract]
Number of Reportable Segments | segment	1
Vesting period	3 years
Incremental vesting rights for first year (as a percent)	33.00%
Incremental vesting rights for second year (as a percent)	33.00%
Incremental vesting rights for third year (as a percent)	34.00%
Number of shares awarded | shares	19,683	22,019
Grant date value	$ 667	$ 708

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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	$ 23,082	$ 24,591
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization (accretion) of premiums and discounts on investments	2,209	1,988
Provision for loan losses	3,650	3,110
Securities (gains) losses	(23)	1
(Gain) loss on sale of other real estate	76	(150)
Restricted stock compensation	513	843
Depreciation and amortization	4,159	4,536
Other, net	(18)	3,641
NET CASH FROM OPERATING ACTIVITIES	33,648	38,560
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of securities available-for-sale	3,465	355
Calls, maturities and principal reductions on securities available-for-sale	110,221	99,027
Purchases of securities available-for-sale	(101,766)	(68,704)
Increase (Decrease) in Federal Funds Sold	8,000	(10,704)
Loans made to customers, net of repayment	11,378	(26,518)
Proceeds from Sale of Restricted Investments	5,576	0
Payments to Acquire Restricted Investments	(10)	(18)
Finite-Lived Customer Lists, Gross	(103)	0
Proceeds from sales of other real estate owned	1,412	2,468
Additions to premises and equipment	(2,562)	(4,870)
NET CASH FROM INVESTING ACTIVITIES	35,611	(8,964)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	(38,662)	(7,265)
Net change in short-term borrowings	(24,679)	(561)
Maturities of other borrowings	(30,212)	(397,000)
Proceeds from Federal Home Loan Bank Borrowings	30,800	427,000
Purchase of treasury stock	(8,698)	(12,856)
Dividends paid	(12,632)	(12,949)
NET CASH FROM FINANCING ACTIVITIES	(84,083)	(3,631)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(14,824)	25,965
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	78,102	71,033
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 63,278	$ 96,998

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Common stock, stated value per share	$ 0.125	$ 0.125
Common stock, Authorized shares	40,000,000	40,000,000
Common stock, Issued shares	14,557,815	14,538,132
Common stock, Outstanding shares	12,703,869	12,962,607
Treasury, shares	1,853,946	1,575,525

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Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2015

Loans and Leases Receivable, Allowance [Abstract]

Schedule of allowances for loan losses by portfolio segment

The following table presents the activity of the allowance for loan losses by portfolio segment for the three months

ended September 30. 

Allowance for Loan Losses:	September 30, 2015
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated			Total
Beginning balance	$	10,931		$	1,760		$	4,678		$	2,492		$	19,861
Provision for loan losses	1,338			158			1,052			(1,498		)	1,050
Loans charged -off	(1,874		)	(220		)	(1,201		)	—			(3,295		)
Recoveries	1,694			196			419			—			2,309
Ending Balance	$	12,089		$	1,894		$	4,948		$	994		$	19,925

Allowance for Loan Losses:	September 30, 2014
(Dollar amounts in thousands)	Commercial			Residential			Consumer			Unallocated			Total
Beginning balance	$	10,850		$	1,374		$	3,769		$	2,262		$	18,255
Provision for loan losses*	589			72			1,047			(178		)	1,530
Loans charged -off	(1,310		)	(153		)	(1,193		)	—			(2,656		)
Recoveries	51			34			293			—			378
Ending Balance	$	10,180		$	1,327		$	3,916		$	2,084		$	17,507

* Provision before decrease of $24 thousand in 2014 for increase in FDIC indemnification asset

Allocation of the allowance for loan losses by portfolio segment based on the impairment method

The following table presents the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method at September 30, 2015 and December 31, 2014. 

Allowance for Loan Losses	September 30, 2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	$	996	$	232	$	—	$	—	$	1,228
Collectively evaluated for impairment	10,902		1,662		4,948		994		18,506
Acquired with deteriorated credit quality	191		—		—		—		191
Ending Balance	$	12,089	$	1,894	$	4,948	$	994	$	19,925

Loans:	September 30, 2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	$	9,648	$	934	$	—	$	10,582
Collectively evaluated for impairment	1,032,992		450,198		273,436		1,756,626
Acquired with deteriorated credit quality	4,194		1,586		—		5,780
Ending Balance	$	1,046,834	$	452,718	$	273,436	$	1,772,988

Allowance for Loan Losses:	December 31, 2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Unallocated		Total
Individually evaluated for impairment	1,911		—		—		—		1,911
Collectively evaluated for impairment	8,733		1,365		4,370		2,180		16,648
Acquired with deteriorated credit quality	271		9		—		—		280
Ending Balance	$	10,915	$	1,374	$	4,370	$	2,180	$	18,839

Loans	December 31, 2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
Individually evaluated for impairment	14,573		33		—		14,606
Collectively evaluated for impairment	1,030,949		468,872		267,880		1,767,701
Acquired with deteriorated credit quality	4,887		1,631		—		6,518
Ending Balance	$	1,050,409	$	470,536	$	267,880	$	1,788,825

Schedule of loans individually evaluated for impairment by class of loans

The following tables present loans individually evaluated for impairment by class of loans. 

					September 30, 2015
	Unpaid Principal		Recorded		Allowance for Loan Losses		Average Recorded		Interest Income		Cash Basis Interest
(Dollar amounts in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,565	$	1,272	$	—	$	1,939	$	—	$	—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	3,243		3,243		—		1,800		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	1,776		1,776		—		1,029		—		—
Residential
First Liens	30		30		—		15		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	1,618		1,618		278		4,080		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	1,506		1,506		718		4,248		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	233		233		—		548		—		—
Residential
First Liens	904		904		232		357		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	10,875	$	10,582	$	1,228	$	14,016	$	—	$	—

					December 31, 2014
	Unpaid Principal		Recorded		Allowance for Loan Losses		Average Recorded		Interest Income		Cash Basis Interest Income
(Dollar amounts in thousands)	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial
Commercial & Industrial	$	1,200	$	926	$	—	$	2,589	$	—	$	—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	—		—		—		58		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	292		292		—		58		—		—
Residential
First Liens	—		—		—		5		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
With an allowance recorded:
Commercial
Commercial & Industrial	7,388		5,874		1,056		6,177		—		—
Farmland	—		—		—		—		—		—
Non Farm, Non Residential	6,654		6,654		753		6,698		—		—
Agriculture	—		—		—		—		—		—
All Other Commercial	827		827		102		1,112		—		—
Residential
First Liens	33		33		—		35		—		—
Home Equity	—		—		—		—		—		—
Junior Liens	—		—		—		—		—		—
Multifamily	—		—		—		—		—		—
All Other Residential	—		—		—		—		—		—
Consumer
Motor Vehicle	—		—		—		—		—		—
All Other Consumer	—		—		—		—		—		—
TOTAL	$	16,394	$	14,606	$	1,911	$	16,732	$	—	$	—

Schedule of non-performing loans

The tables below presents the recorded investment in non-performing loans.

	September 30, 2015
	Loans Past Due Over 90 Day Still		Troubled Debt
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		Nonaccrual
Commercial
Commercial & Industrial	$	—	$	5	$	430	$	3,943
Farmland	—		—		—		385
Non Farm, Non Residential	—		7		3,190		2,666
Agriculture	588		—		—		289
All Other Commercial	—		—		—		1,993
Residential
First Liens	798		4,558		995		5,062
Home Equity	62		—		—		295
Junior Liens	13		—		—		230
Multifamily	—		—		—		—
All Other Residential	—		—		—		115
Consumer
Motor Vehicle	234		181		11		150
All Other Consumer	6		40		423		984
TOTAL	$	1,701	$	4,791	$	5,049	$	16,112

	December 31, 2014
	Loans Past Due Over 90 Day Still		Troubled Debt
(Dollar amounts in thousands)	Accruing		Accruing		Nonaccrual		Nonaccrual
Commercial
Commercial & Industrial	$	—	$	7	$	4,961	$	3,720
Farmland	—		—		—		79
Non Farm, Non Residential	—		10		3,987		3,388
Agriculture	—		—		—		767
All Other Commercial	—		—		—		1,258
Residential
First Liens	603		4,357		842		3,861
Home Equity	88		—		—		404
Junior Liens	12		—		—		275
Multifamily	—		—		—		—
All Other Residential	5		—		—		111
Consumer
Motor Vehicle	162		257		83		210
All Other Consumer	3		1		269		961
TOTAL	$	873	$	4,632	$	10,142	$	15,034

Troubled Debt Restructurings on Financing Receivables

During the three and nine months ended September 30, 2015 and 2014, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR's.

			2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
July 1,	8,705		5,589		657		14,951
Added	—		16		50		66
Charged Off	—		—		(4	)	(4	)
Payments	(5,081	)	(63	)	(41	)	(5,185	)
September 30,	3,624		5,542		662		9,828

			2015
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
January 1,	8,955		5,189		614		14,758
Added	—		668		239		907
Charged Off	—		(62	)	(44	)	(106	)
Payments	(5,331	)	(253	)	(147	)	(5,731	)
September 30,	3,624		5,542		662		9,828

			2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
July 1,	9,206		4,956		559		14,721
Added	—		340		115		455
Charged Off	—		(67	)	(24	)	(91	)
Payments	(122	)	(124	)	(81	)	(327	)
September 30,	9,084		5,105		569		14,758

			2014
(Dollar amounts in thousands)	Commercial		Residential		Consumer		Total
January 1,	12,327		4,330		644		17,301
Added	441		1,141		213		1,795
Charged Off	(1,069	)	(67	)	(63	)	(1,199	)
Payments	(2,615	)	(299	)	(225	)	(3,139	)
September 30,	9,084		5,105		569		14,758

Aging of recorded investment in loans by past due category and class of loans

The following tables presents the aging of the recorded investment in loans by past due category and class of loans.  

	September 30, 2015
	30-59 Days		60-89 Days		Greater than 90 days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	190	$	321	$	1,825	$	2,336	$	474,550	$	476,886
Farmland	25		567		—		592		103,759		104,351
Non Farm, Non Residential	157		—		321		478		211,797		212,275
Agriculture	306		368		615		1,289		130,491		131,780
All Other Commercial	54		—		148		202		121,340		121,542
Residential
First Liens	1,083		813		1,723		3,619		298,948		302,567
Home Equity	154		61		161		376		37,837		38,213
Junior Liens	306		87		187		580		30,602		31,182
Multifamily	—		—		—		—		71,916		71,916
All Other Residential	—		—		—		—		8,840		8,840
Consumer
Motor Vehicle	2,619		495		251		3,365		247,719		251,084
All Other Consumer	94		49		6		149		22,203		22,352
TOTAL	$	4,988	$	2,761	$	5,237	$	12,986	$	1,760,002	$	1,772,988

	December 31, 2014
	30-59 Days		60-89 Days		Greater than 90 days		Total
(Dollar amounts in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial
Commercial & Industrial	$	574	$	416	$	3,046	$	4,036	$	451,549	$	455,585
Farmland	—		—		—		—		95,452		95,452
Non Farm, Non Residential	1,528		68		202		1,798		232,440		234,238
Agriculture	246		18		502		766		149,099		149,865
All Other Commercial	255		—		—		255		115,014		115,269
Residential
First Liens	6,011		963		1,522		8,496		308,068		316,564
Home Equity	141		33		310		484		40,043		40,527
Junior Liens	270		83		217		570		31,487		32,057
Multifamily	—		—		—		—		72,310		72,310
All Other Residential	112		—		5		117		8,961		9,078
Consumer
Motor Vehicle	3,026		557		180		3,763		242,406		246,169
All Other Consumer	114		7		3		124		21,587		21,711
TOTAL	$	12,277	$	2,145	$	5,987	$	20,409	$	1,768,416	$	1,788,825

Analysis of risk category of loans by class of loans

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either less than $100 thousand or are included in groups of homogeneous loans. As of September 30, 2015 and December 31, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans are as follows:

	September 30, 2015
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	408,039	$	28,331	$	31,171	$	1,295	$	6,607	$	475,443
Farmland	90,255		7,354		4,825		—		16		102,450
Non Farm, Non Residential	184,252		8,191		19,380		36		—		211,859
Agriculture	111,296		9,804		8,790		27		166		130,083
All Other Commercial	105,584		2,691		11,193		101		1,273		120,842
Residential
First Liens	98,630		4,591		8,633		718		189,034		301,606
Home Equity	11,097		453		1,348		11		25,247		38,156
Junior Liens	7,578		119		482		59		22,862		31,100
Multifamily	69,077		1,616		1,026		—		25		71,744
All Other Residential	902		—		25		—		7,892		8,819
Consumer
Motor Vehicle	10,555		498		508		—		238,435		249,996
All Other Consumer	3,181		89		121		15		18,833		22,239
TOTAL	$	1,100,446	$	63,737	$	87,502	$	2,262	$	510,390	$	1,764,337

	December 31, 2014
(Dollar amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Not Rated		Total
Commercial
Commercial & Industrial	$	393,449	$	29,081	$	24,013	$	2,900	$	4,717	$	454,160
Farmland	85,772		7,618		436		—		13		93,839
Non Farm, Non Residential	186,346		21,765		25,613		36		—		233,760
Agriculture	138,713		7,399		1,746		177		67		148,102
All Other Commercial	101,942		4,356		7,055		33		1,275		114,661
Residential
First Liens	104,854		5,929		7,733		1,035		196,008		315,559
Home Equity	12,592		375		1,374		6		26,116		40,463
Junior Liens	8,112		173		561		63		23,053		31,962
Multifamily	69,080		1,801		1,249		—		3		72,133
All Other Residential	1,799		—		28		—		7,228		9,055
Consumer
Motor Vehicle	11,135		402		224		—		233,302		245,063
All Other Consumer	3,169		141		87		21		18,175		21,593
TOTAL	$	1,116,963	$	79,040	$	70,119	$	4,271	$	509,957	$	1,780,350

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 03, 2015
Document Information [Line Items]
Entity Registrant Name	FIRST FINANCIAL CORP /IN/
Entity Central Index Key	0000714562
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
Amendment Flag	false
Entity Common Stock, Shares Outstanding		12,703,869
Trading Symbol	THFF

XML

Securities (Tables)

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Amortized cost and fair value of investments classified as available-for-sale

	September 30, 2015
(Dollar amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Government agencies	$	11,059	$	61	$	—		$	11,120
Mortgage Backed Securities - Residential	188,184		6,391		(235		)	194,340
Mortgage Backed Securities - Commercial	10		—		—			10
Collateralized Mortgage Obligations	453,593		4,019		(3,703		)	453,909
State and Municipal Obligations	204,279		7,438		(377		)	211,340
Collateralized Debt Obligations	9,715		5,402		—			15,117
TOTAL	$	866,840	$	23,311	$	(4,315	)	$	885,836

	December 31, 2014
(Dollar amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Government agencies	$	1,411	$	56	$	—		$	1,467
Mortgage Backed Securities-residential	180,673		7,593		(330		)	187,936
Mortgage Backed Securities-commercial	17		—		—			17
Collateralized mortgage obligations	489,765		2,513		(7,623		)	484,655
State and municipal	198,875		9,019		(219		)	207,675
Collateralized debt obligations	10,205		5,115		(17		)	15,303
TOTAL	$	880,946	$	24,296	$	(8,189	)	$	897,053

Schedule of contractual maturities of debt securities

Contractual maturities of debt securities at September 30, 2015 were as follows. Securities not due at a single maturity or with no maturity date, primarily mortgage-backed and equity securities are shown separately.

	Available-for-Sale
	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	3,399	$	3,426
Due after one but within five years	40,291		41,512
Due after five but within ten years	88,042		91,552
Due after ten years	93,321		101,087
	225,053		237,577
Mortgage-backed securities and collateralized mortgage obligations	641,787		648,259
TOTAL	$	866,840	$	885,836

Schedule of gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position

The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at September 30, 2015 and December 31, 2014. 

	September 30, 2015
	Less Than 12 Months					More Than 12 Months							Total
			Unrealized					Unrealized					Unrealized
(Dollar amounts in thousands)	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
Mortgage Backed Securities - Residential	$	18,372	$	(180	)	$	19,957	$	(55	)	$	38,329	$	(235	)
Collateralized mortgage obligations	147,188		(3,318		)	55,710		(385		)	202,898		(3,703		)
State and municipal obligations	4,372		(101		)	23,387		(276		)	27,759		(377		)
Total temporarily impaired securities	$	169,932	$	(3,599	)	$	99,054	$	(716	)	$	268,986	$	(4,315	)

	December 31, 2014
	Less Than 12 Months					More Than 12 Months							Total
			Unrealized					Unrealized					Unrealized
(Dollar amounts in thousands)	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
Mortgage Backed Securities - Residential	$	—	$	—		$	23,849	$	(330	)	$	23,849	$	(330	)
Collateralized mortgage obligations	50,832		(128		)	264,940		(7,495		)	315,772		(7,623		)
State and municipal obligations	6,500		(35		)	10,547		(184		)	17,047		(219		)
Collateralized Debt Obligations	—		—			200		(17		)	200		(17		)
Total temporarily impaired securities	$	57,332	$	(163	)	$	299,536	$	(8,026	)	$	356,868	$	(8,189	)

Rollforward of the credit losses recognized in earnings

The table below presents a rollforward of the credit losses recognized in earnings for the three and nine month periods ended September 30, 2015 and 2014:

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollar amounts in thousands)	2015		2014			2015			2014
Beginning balance	$	13,995	$	14,079		$	14,050		$	14,079
Increases to the amount related to the credit
Loss for which other-than-temporary was previously recognized	—		—			—			—
Reductions for increases in cash flows collected	—		(29		)	(55		)	(29		)
Amounts realized for securities sold during the period	—		—			—			—
Ending balance	$	13,995	$	14,050		$	13,995		$	14,050

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CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
INTEREST INCOME:
Loans, including related fees	$ 21,478	$ 21,939	$ 63,048	$ 65,782
Securities:
Taxable	3,918	4,196	11,970	12,938
Tax-exempt	1,806	1,782	5,375	5,294
Other	401	459	1,265	1,301
TOTAL INTEREST INCOME	27,603	28,376	81,658	85,315
INTEREST EXPENSE:
Deposits	963	1,088	2,980	3,611
Short-term borrowings	22	49	54	85
Other borrowings	42	94	129	726
TOTAL INTEREST EXPENSE	1,027	1,231	3,163	4,422
NET INTEREST INCOME	26,576	27,145	78,495	80,893
Provision for loan losses	1,050	1,506	3,650	3,110
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	25,526	25,639	74,845	77,783
NON-INTEREST INCOME:
Trust and financial services	1,382	1,386	4,127	4,289
Service charges and fees on deposit accounts	2,688	2,813	7,557	8,058
Other service charges and fees	3,080	3,112	8,918	8,940
Net securities gains (losses)	9	0	23	(1)
Insurance commissions	1,693	2,091	5,202	5,620
Gain on sales of mortgage loans	611	519	1,512	1,352
Other	488	573	2,451	1,676
TOTAL NON-INTEREST INCOME	9,951	10,494	29,790	29,934
NON-INTEREST EXPENSE:
Salaries and employee benefits	14,963	14,081	45,105	42,064
Occupancy expense	1,756	1,776	5,322	5,490
Equipment expense	1,736	1,905	5,210	5,467
FDIC Expense	468	537	1,348	1,496
Other	5,229	6,406	16,470	17,706
TOTAL NON-INTEREST EXPENSE	24,152	24,705	73,455	72,223
INCOME BEFORE INCOME TAXES	11,325	11,428	31,180	35,494
Income tax expense	2,927	3,156	8,098	10,903
NET INCOME	8,398	8,272	23,082	24,591
OTHER COMPREHENSIVE INCOME (LOSS)
Change in unrealized gains/losses on securities, net of reclassifications	4,471	1,879	1,669	11,298
Change in funded status of post retirement benefits	819	116	4,102	346
COMPREHENSIVE INCOME (LOSS)	$ 13,688	$ 10,267	$ 28,853	$ 36,235
PER SHARE DATA
Basic and Diluted Earnings per Share (in dollars per share)	$ 0.65	$ 0.62	$ 1.79	$ 1.85
Weighted average number of shares outstanding (in thousands)	12,773	13,269	12,874	13,325

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Short-Term Borrowings

9 Months Ended

Sep. 30, 2015

Short-term Debt [Abstract]

Short-Term Borrowings

Short-Term Borrowings

Period–end short-term borrowings were comprised of the following:

	(000 's)
	September 30, 2015		December 31, 2014
Federal Funds Purchased	$	550	$	21,192
Repurchase Agreements	22,786		26,823
	$	23,336	$	48,015

The Corporation enters into sales of securities under agreements to repurchase. The amounts received under these agreements represent short-term borrowings and are reflected as a liability in the consolidated balance sheets. The securities underlying these agreements are included in investment securities in the consolidated balance sheets. The Corporation has no control over the market value of the securities, which fluctuates due to market conditions. However, the Corporation is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price. The Corporation manages this risk by maintaining an unpledged securities portfolio that it believes is sufficient to cover a decline in the market value of the securities sold under agreements to repurchase.

Collateral pledged to repurchase agreements by remaining maturity are as follows:

	September 30, 2015
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
(Dollar amounts in thousands)	Overnight and continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	10,225	$	—	$	—	$	12,561	$	22,786

	December 31, 2014
Repurchase Agreements	Remaining Contractual Maturity of the Agreements
(Dollar amounts in thousands)	Overnight and continuous		Up to 30 days		30 - 90 days		Greater than 90 days		Total
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations	$	14,787	$	5,748	$	5,670	$	618	$	26,823

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Fair Value

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value

FASB ASC No. 820-10 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level I prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The fair value of most securities available for sale is determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

For those securities that cannot be priced using quoted market prices or observable inputs a Level 3 valuation is determined. These securities are primarily trust preferred securities, which are priced using Level 3 due to current market illiquidity and certain investments in state and municipal securities. The fair value of the trust preferred securities is obtained from a third party provider without adjustment. As described previously, management obtains values from other pricing sources to validate the Standard & Poors pricing that they currently utilize. The fair value of state and municipal obligations are derived by comparing the securities to current market rates plus an appropriate credit spread to determine an estimated value. Illiquidity spreads are then considered. Credit reviews are performed on each of the issuers. The significant unobservable inputs used in the fair value measurement of the Corporation’s state and municipal obligations are credit spreads related to specific issuers. Significantly higher credit spread assumptions would result in significantly lower fair value measurement. Conversely, significantly lower credit spreads would result in a significantly higher fair value measurements.

The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).

	September 30, 2015
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2			Level 3		Total
U.S. Government agencies	$	—	$	11,120		$	—	$	11,120
Mortgage Backed Securities-residential	—		194,340			—		194,340
Mortgage Backed Securities-commercial	—		10			—		10
Collateralized mortgage obligations	—		453,909			—		453,909
State and municipal	—		206,615			4,725		211,340
Collateralized debt obligations	—		—			15,117		15,117
TOTAL	$	—	$	865,994		$	19,842	$	885,836
Derivative Assets			1,568
Derivative Liabilities			(1,568		)

	December 31, 2014
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2			Level 3		Total
U.S. Government agencies	$	—	$	1,467		$	—	$	1,467
Mortgage Backed Securities-residential	—		187,936			—		187,936
Mortgage Backed Securities-commercial	—		17			—		17
Collateralized mortgage obligations	—		484,655			—		484,655
State and municipal	—		201,775			5,900		207,675
Collateralized debt obligations	—		—			15,303		15,303
TOTAL	$	—	$	875,850		$	21,203	$	897,053
Derivative Assets			1,062
Derivative Liabilities			(1,062		)

There were no transfers between Level 1 and Level 2 during 2015 and 2014.

The tables below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2015 and the year ended December 31, 2014. 

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended September 30, 2015
	State and municipal obligations		Collateralized debt obligations			Total
Beginning balance, July 1	$	4,725	$	14,866		$	19,591
Total realized/unrealized gains or losses
Included in earnings	—		—			—
Included in other comprehensive income	—		307			307
Transfers	—		—			—
Settlements	—		(56		)	(56		)
Ending balance, September 30	$	4,725	$	15,117		$	19,842

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended September 30, 2015
	State and municipal obligations			Collateralized debt obligations			Total
Beginning balance, January 1	$	5,900		$	15,303		$	21,203
Total realized/unrealized gains or losses
Included in earnings	—			—			—
Included in other comprehensive income	—			122			122
Transfers	—			—			—
Settlements	(1,175		)	(308		)	(1,483		)
Ending balance, September 30	$	4,725		$	15,117		$	19,842

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Year Ended December 31, 2014
	State and municipal obligations			Collateralized debt obligations			Total
Beginning balance, January 1	$	4,525		$	9,044		$	13,569
Total realized/unrealized gains or losses
Included in earnings	—			—			—
Included in other comprehensive income	—			7,100			7,100
Purchases	4,000			—			4,000
Settlements	(2,625		)	(841		)	(3,466		)
Ending balance, December 31	$	5,900		$	15,303		$	21,203

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at September 30, 2015.

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	4,725	Discounted cash flow	Discount rate Probability of default	3.05%-5.50% 0%
Other real estate	$	3,382	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	5.00%-20.00%
Impaired Loans	$	3,033	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	0.00%-50.00%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2014.

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	5,900	Discounted cash flow	Discount rate Probability of default	3.05%-5.50% 0%
Other real estate	$	3,965	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	5.00%-20.00%
Impaired Loans	11,477		Sales comparison/income approach	Discount rate for age of appraisal and market conditions	0.00%-50.00%

Impaired loans disclosed in footnote 2, which are measured for impairment using the fair value of collateral, are valued at Level 3. They are carried at a fair value of $3.0 million, after a valuation allowance of $1.2 million at September 30, 2015 and at a fair value of $11.5 million, net of a valuation allowance of $1.9 million at December 31, 2014. The impact to the provision for loan losses for the three months ended September 30, 2015 and for the 12 months ended December 31, 2014 was a $221 thousand decrease and a $1.2 million decrease, respectively. Other real estate owned is valued at Level 3. Other real estate owned at September 30, 2015 with a value of $3.4 million was reduced $0.7 million for fair value adjustment. At September 30, 2015 other real estate owned was comprised of $2.8 million from commercial loans and $0.6 million from residential loans. Other real estate owned at December 31, 2014 with a value of $4.0 million was reduced $1.1 million for fair value adjustment. At December 31, 2014 other real estate owned was comprised of $3.0 million from commercial loans and $1.0 million from residential loans.

Fair value is measured based on the value of the collateral securing those loans, and is determined using several methods. Generally the fair value of real estate is determined based on appraisals by qualified licensed appraisers. Appraisals for real estate generally use three methods to derive value: cost, sales or market comparison and income approach. The cost method bases value on the cost to replace current property. The market comparison evaluates the sales price of similar properties in the same market area. The income approach considers net operating income generated by the property and the investor’s required return. The final fair value is based on a reconciliation of these three approaches. If an appraisal is not available, the fair value may be determined by using a cash flow analysis, a broker’s opinion of value, the net present value of future cash flows, or an observable market price from an active market. Fair value of other real estate is based upon the current appraised values of the properties as determined by qualified licensed appraisers and the Company’s judgment of other relevant market conditions. Appraisals are obtained annually and reductions in value are recorded as a valuation through a charge to expense. The primary unobservable input used by management in estimating fair value are additional discounts to the appraised value to consider market conditions and the age of the appraisal, which are based on management’s past experience in resolving these types of properties. These discounts range from 0% to 50%. Values for non-real estate collateral, such as business equipment, are based on appraisals performed by qualified licensed appraisers or the customers financial statements. Values for non real estate collateral use much higher discounts that real estate collateral. Other real estate and impaired loans carried at fair value are primarily comprised of smaller balance properties.

The following tables presents loans identified as impaired by class of loans as of September 30, 2015 and December 31, 2014, which are all considered Level 3.

	September 30, 2015
(Dollar amounts in thousands)	Carrying Value		Allowance for Loan Losses Allocated		Fair Value
Commercial
Commercial & Industrial	$	1,618	$	278	$	1,340
Farmland	—		—		—
Non Farm, Non Residential	1,506		718		788
Agriculture	—		—		—
All Other Commercial	233		—		233
Residential
First Liens	904		232		672
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	4,261	$	1,228	$	3,033

	December 31, 2014
(Dollar amounts in thousands)	Carrying Value		Allowance for Loan Losses Allocated		Fair Value
Commercial
Commercial & Industrial	$	5,874	$	1,056	$	4,818
Farmland	—		—		—
Non Farm, Non Residential	6,654		753		5,901
Agriculture	—		—		—
All Other Commercial	827		102		725
Residential
First Liens	33		—		33
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	13,388	$	1,911	$	11,477

The carrying amounts and estimated fair value of financial instruments at September 30, 2015 and December 31, 2014, are shown below. Carrying amount is the estimated fair value for cash and due from banks, federal funds sold, short-term borrowings, accrued interest receivable and payable, demand deposits, short-term debt and variable-rate loans or deposits that reprice frequently and fully. Security fair values were described previously. For fixed-rate, non-impaired loans or deposits, variable rate loans or deposits with infrequent repricing or repricing limits, and for longer-term borrowings, fair value is based on discounted cash flows using current market rates applied to the estimated life and considering credit risk. The valuation of impaired loans was described previously. Loan fair value estimates do not necessarily represent an exit price. Fair values of loans held for sale are based on market bids on the loans or similar loans. It was not practicable to determine the fair value of Federal Home Loan Bank stock due to restrictions placed on its transferability. Fair value of debt is based on current rates for similar financing. The fair value of off-balance sheet items is not considered material.

	September 30, 2015
	Carrying			Fair Value
(Dollar amounts in thousands)	Value			Level 1		Level 2			Level 3		Total
Cash and due from banks	$	63,278		$	21,962	$	41,316		$	—	$	63,278
Federal funds sold	—			—		—			—		—
Securities available-for-sale	885,836			—		865,994			19,842		885,836
Restricted stock	10,838			n/a		n/a			n/a		n/a
Loans, net	1,746,742			—		—			1,804,961		1,804,961
Accrued interest receivable	12,265			—		3,719			8,546		12,265
Deposits	(2,418,589		)	—		(2,420,624		)	—		(2,420,624		)
Short-term borrowings	(23,336		)	—		(23,336		)	—		(23,336		)
Federal Home Loan Bank advances	(13,251		)	—		(13,683		)	—		(13,683		)
Accrued interest payable	(396		)	—		(396		)	—		(396		)

	December 31, 2014
	Carrying			Fair Value
(Dollar amounts in thousands)	Value			Level 1		Level 2			Level 3		Total
Cash and due from banks	$	78,102		$	22,597	$	55,505		$	—	$	78,102
Federal funds sold	8,000			—		8,000			—		8,000
Securities available-for-sale	897,053			—		875,850			21,203		897,053
Restricted stock	16,404			n/a		n/a			n/a		n/a
Loans, net	1,762,589			—		—			1,810,885		1,810,885
FDIC Indemnification Asset	(74		)	—		(74		)	—		(74		)
Accrued interest receivable	11,593			—		3,183			8,410		11,593
Deposits	(2,457,197		)	—		(2,459,703		)	—		(2,459,703		)
Short-term borrowings	(48,015		)	—		(48,015		)	—		(48,015		)
Federal Home Loan Bank advances	(12,886		)	—		(13,605		)	—		(13,605		)
Accrued interest payable	(456		)	—		(456		)	—		(456		)

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income

The following table summarizes the changes, net of tax within each classification of accumulated other comprehensive income for the three and nine months ended September 30, 2015 and 2014. 

	Unrealized
	gains and		2015
	Losses on available- for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans			Total
Beginning balance, July 1,	$	7,476	$	(21,524	)	$	(14,048	)
Change in other comprehensive income before reclassification	4,464		—			4,464
Amounts reclassified from accumulated other comprehensive income	7		819			826
Net Current period other comprehensive other income	4,471		819			5,290
Ending balance, September 30,	$	11,947	$	(20,705	)	$	(8,758	)

	Unrealized
	gains and		2015
	Losses on available- for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans			Total
Beginning balance, January 1,	$	10,278	$	(24,807	)	$	(14,529	)
Change in other comprehensive income before reclassification	1,654		—			1,654
Amounts reclassified from accumulated other comprehensive income	15		4,102			4,117
Net Current period other comprehensive other income	1,669		4,102			5,771
Ending balance, September 30,	$	11,947	$	(20,705	)	$	(8,758	)

	Unrealized
	gains and		2014
	Losses on available- for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans			Total
Beginning balance, July 1,	$	5,784	$	(10,104	)	$	(4,320	)
Change in other comprehensive income before reclassification	1,879		—			1,879
Amounts reclassified from accumulated other comprehensive income	—		116			116
Net Current period other comprehensive other income	1,879		116			1,995
Ending balance, September 30,	$	7,663	$	(9,988	)	$	(2,325	)

	Unrealized
	gains and			2014
	Losses on available- for-sale			Retirement
(Dollar amounts in thousands)	Securities			plans			Total
Beginning balance, January 1,	$	(3,635	)	$	(10,334	)	$	(13,969	)
Change in other comprehensive income before reclassification	11,297			—			11,297
Amounts reclassified from accumulated other comprehensive income	1			346			347
Net Current period other comprehensive other income	11,298			346			11,644
Ending balance, September 30,	$	7,663		$	(9,988	)	$	(2,325	)

Schedule Of Accumulated Other Comprehensive Income Loss Other Than Temporary Impairment

	Balance at			Current Period		Balance at
(Dollar amounts in thousands)	12/31/2014			Change		9/30/2015
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	7,164		$	1,496	$	8,660
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	3,114			173		3,287
Total unrealized loss on securities available-for-sale	$	10,278		$	1,669	$	11,947
Unrealized loss on retirement plans	(24,807		)	4,102		(20,705		)
TOTAL	$	(14,529	)	$	5,771	$	(8,758	)

	Balance at			Current Period		Balance at
(Dollar amounts in thousands)	7/1/2014			Change		9/30/2014
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	3,296		$	831	$	4,127
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	2,488			1,048		3,536
Total unrealized loss on securities available-for-sale	$	5,784		$	1,879	$	7,663
Unrealized loss on retirement plans	(10,104		)	116		(9,988		)
TOTAL	$	(4,320	)	$	1,995	$	(2,325	)

	Balance at			Current Period		Balance at
(Dollar amounts in thousands)	12/31/2013			Change		9/30/2014
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	(2,499	)	$	6,626	$	4,127
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	(1,136		)	4,672		3,536
Total unrealized loss on securities available-for-sale	$	(3,635	)	$	11,298	$	7,663
Unrealized loss on retirement plans	(10,334		)	346		(9,988		)
TOTAL	$	(13,969	)	$	11,644	$	(2,325	)

	Three Months Ended September 30, 2015
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	9		Net securities gains (losses)
on available-for-sale	(2		)	Income tax expense
securities	$	7		Net of tax
Amortization of	$	1,365		(a) Salary and benefits
retirement plan items	(546		)	Income tax expense
	$	819		Net of tax
Total reclassifications for the period	$	826		Net of tax

Accumulated Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent

	Three Months Ended September 30, 2015
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	9		Net securities gains (losses)
on available-for-sale	(2		)	Income tax expense
securities	$	7		Net of tax
Amortization of	$	1,365		(a) Salary and benefits
retirement plan items	(546		)	Income tax expense
	$	819		Net of tax
Total reclassifications for the period	$	826		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Nine Months Ended September 30, 2015
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	23		Net securities gains (losses)
on available-for-sale	(8		)	Income tax expense
securities	$	15		Net of tax
Amortization of	$	6,837		(a) Salary and benefits
retirement plan items	(2,735		)	Income tax expense
	$	4,102		Net of tax
Total reclassifications for the period	$	4,117		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Three Months Ended September 30, 2014
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	—		Net securities gains (losses)
on available-for-sale	—			Income tax expense
securities	$	—		Net of tax
Amortization of	$	(237	)	(a) Salary and benefits
retirement plan items	121			Income tax expense
	$	(116	)	Net of tax
Total reclassifications for the period	$	(116	)	Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

XML

Fair Value (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value

The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).

	September 30, 2015
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2			Level 3		Total
U.S. Government agencies	$	—	$	11,120		$	—	$	11,120
Mortgage Backed Securities-residential	—		194,340			—		194,340
Mortgage Backed Securities-commercial	—		10			—		10
Collateralized mortgage obligations	—		453,909			—		453,909
State and municipal	—		206,615			4,725		211,340
Collateralized debt obligations	—		—			15,117		15,117
TOTAL	$	—	$	865,994		$	19,842	$	885,836
Derivative Assets			1,568
Derivative Liabilities			(1,568		)

	December 31, 2014
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2			Level 3		Total
U.S. Government agencies	$	—	$	1,467		$	—	$	1,467
Mortgage Backed Securities-residential	—		187,936			—		187,936
Mortgage Backed Securities-commercial	—		17			—		17
Collateralized mortgage obligations	—		484,655			—		484,655
State and municipal	—		201,775			5,900		207,675
Collateralized debt obligations	—		—			15,303		15,303
TOTAL	$	—	$	875,850		$	21,203	$	897,053
Derivative Assets			1,062
Derivative Liabilities			(1,062		)

Roll forward of financial instruments having fair value measurements using significant unobservable inputs (Level 3)

The tables below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2015 and the year ended December 31, 2014. 

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended September 30, 2015
	State and municipal obligations		Collateralized debt obligations			Total
Beginning balance, July 1	$	4,725	$	14,866		$	19,591
Total realized/unrealized gains or losses
Included in earnings	—		—			—
Included in other comprehensive income	—		307			307
Transfers	—		—			—
Settlements	—		(56		)	(56		)
Ending balance, September 30	$	4,725	$	15,117		$	19,842

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended September 30, 2015
	State and municipal obligations			Collateralized debt obligations			Total
Beginning balance, January 1	$	5,900		$	15,303		$	21,203
Total realized/unrealized gains or losses
Included in earnings	—			—			—
Included in other comprehensive income	—			122			122
Transfers	—			—			—
Settlements	(1,175		)	(308		)	(1,483		)
Ending balance, September 30	$	4,725		$	15,117		$	19,842

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Year Ended December 31, 2014
	State and municipal obligations			Collateralized debt obligations			Total
Beginning balance, January 1	$	4,525		$	9,044		$	13,569
Total realized/unrealized gains or losses
Included in earnings	—			—			—
Included in other comprehensive income	—			7,100			7,100
Purchases	4,000			—			4,000
Settlements	(2,625		)	(841		)	(3,466		)
Ending balance, December 31	$	5,900		$	15,303		$	21,203

Quantitative information about recurring and non-recurring Level 3

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at September 30, 2015.

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	4,725	Discounted cash flow	Discount rate Probability of default	3.05%-5.50% 0%
Other real estate	$	3,382	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	5.00%-20.00%
Impaired Loans	$	3,033	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	0.00%-50.00%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2014.

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	5,900	Discounted cash flow	Discount rate Probability of default	3.05%-5.50% 0%
Other real estate	$	3,965	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	5.00%-20.00%
Impaired Loans	11,477		Sales comparison/income approach	Discount rate for age of appraisal and market conditions	0.00%-50.00%

Schedule of loans identified as impaired by class of loans

The following tables presents loans identified as impaired by class of loans as of September 30, 2015 and December 31, 2014, which are all considered Level 3.

	September 30, 2015
(Dollar amounts in thousands)	Carrying Value		Allowance for Loan Losses Allocated		Fair Value
Commercial
Commercial & Industrial	$	1,618	$	278	$	1,340
Farmland	—		—		—
Non Farm, Non Residential	1,506		718		788
Agriculture	—		—		—
All Other Commercial	233		—		233
Residential
First Liens	904		232		672
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	4,261	$	1,228	$	3,033

	December 31, 2014
(Dollar amounts in thousands)	Carrying Value		Allowance for Loan Losses Allocated		Fair Value
Commercial
Commercial & Industrial	$	5,874	$	1,056	$	4,818
Farmland	—		—		—
Non Farm, Non Residential	6,654		753		5,901
Agriculture	—		—		—
All Other Commercial	827		102		725
Residential
First Liens	33		—		33
Home Equity	—		—		—
Junior Liens	—		—		—
Multifamily	—		—		—
All Other Residential	—		—		—
Consumer
Motor Vehicle	—		—		—
All Other Consumer	—		—		—
TOTAL	$	13,388	$	1,911	$	11,477

Schedule of carrying amount and estimated fair value of financial instruments

The fair value of off-balance sheet items is not considered material.

	September 30, 2015
	Carrying			Fair Value
(Dollar amounts in thousands)	Value			Level 1		Level 2			Level 3		Total
Cash and due from banks	$	63,278		$	21,962	$	41,316		$	—	$	63,278
Federal funds sold	—			—		—			—		—
Securities available-for-sale	885,836			—		865,994			19,842		885,836
Restricted stock	10,838			n/a		n/a			n/a		n/a
Loans, net	1,746,742			—		—			1,804,961		1,804,961
Accrued interest receivable	12,265			—		3,719			8,546		12,265
Deposits	(2,418,589		)	—		(2,420,624		)	—		(2,420,624		)
Short-term borrowings	(23,336		)	—		(23,336		)	—		(23,336		)
Federal Home Loan Bank advances	(13,251		)	—		(13,683		)	—		(13,683		)
Accrued interest payable	(396		)	—		(396		)	—		(396		)

	December 31, 2014
	Carrying			Fair Value
(Dollar amounts in thousands)	Value			Level 1		Level 2			Level 3		Total
Cash and due from banks	$	78,102		$	22,597	$	55,505		$	—	$	78,102
Federal funds sold	8,000			—		8,000			—		8,000
Securities available-for-sale	897,053			—		875,850			21,203		897,053
Restricted stock	16,404			n/a		n/a			n/a		n/a
Loans, net	1,762,589			—		—			1,810,885		1,810,885
FDIC Indemnification Asset	(74		)	—		(74		)	—		(74		)
Accrued interest receivable	11,593			—		3,183			8,410		11,593
Deposits	(2,457,197		)	—		(2,459,703		)	—		(2,459,703		)
Short-term borrowings	(48,015		)	—		(48,015		)	—		(48,015		)
Federal Home Loan Bank advances	(12,886		)	—		(13,605		)	—		(13,605		)
Accrued interest payable	(456		)	—		(456		)	—		(456		)

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Acquisitions and FDIC Indemnification Asset

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Acquisitions and FDIC Indemnification Asset

Acquisitions and FDIC Indemnification Asset

The Bank is party to a loss sharing agreement with the FDIC as a result of a 2009 acquisition. Under the loss-sharing agreement (“LSA”), the Bank will share in the losses on assets covered under the agreement (referred to as covered assets). On losses up to $29 million, the FDIC has agreed to reimburse the Bank for 80 percent of the losses. On losses exceeding $29 million, the FDIC has agreed to reimburse the Bank for 95 percent of the losses. The loss-sharing agreement is subject to following servicing procedures as specified in the agreement with the FDIC. Loans acquired that are subject to the loss-sharing agreement with the FDIC are referred to as covered loans for disclosure purposes. Since the acquisition date the Bank has been reimbursed $19.4 million for losses and carrying expenses and currently carries an immaterial balance in the indemnification asset. The balance of loans covered by the loss share agreement at September 30, 2015 and December 31, 2014 totaled $6.5 million and $7.3 million, respectively. The only loans still covered by the loss share agreement are the single family loans; however recoveries on non-single family loans are still subject to sharing with the FDIC until 2017.

FASB ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, applies to a loan with evidence of deterioration of credit quality since origination, acquired by completion of a transfer for which it is probable, at acquisition, that the investor will be unable to collect all contractually required payments receivable. FASB ASC 310-30 prohibits carrying over or creating an allowance for loan losses upon initial recognition. The carrying amount of loans accounted for in accordance with FASB ASC 310-30 at September 30, 2015 and 2014 are shown in the following table:

							2015
(Dollar amounts in thousands)	Commercial			Consumer			Total
Beginning balance, July 1,	$	4,329		$	1,547		$	5,876
Discount accretion	—			—			—
Disposals	(105		)	(9		)	(114		)
ASC 310-30 Loans, September 30,	$	4,224		$	1,538		$	5,762

							2015
(Dollar amounts in thousands)	Commercial			Consumer			Total
Beginning balance, January 1,	$	4,803		$	1,571		$	6,374
Discount accretion	—			—			—
Disposals	(579		)	(33		)	(612		)
ASC 310-30 Loans, September 30,	$	4,224		$	1,538		$	5,762

							2014
(Dollar amounts in thousands)	Commercial			Consumer			Total
Beginning balance, July 1,	$	7,337		$	1,885		$	9,222
Discount accretion	—			—			—
Disposals	(1,569		)	(108		)	(1,677		)
ASC 310-30 Loans, September 30,	$	5,768		$	1,777		$	7,545

							2014
(Dollar amounts in thousands)	Commercial			Consumer			Total
Beginning balance, January 1,	$	7,676		$	2,409		$	10,085
Discount accretion	—			—			—
Disposals	(1,908		)	(632		)	(2,540		)
ASC 310-30 Loans, September 30,	$	5,768		$	1,777		$	7,545

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Components of Net Periodic Benefit Cost

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Components of Net Periodic Benefit Cost

Components of Net Periodic Benefit Cost

	Three Months Ended September 30,										Nine Months Ended September 30,
	(000's)										(000's)
	Pension Benefits						Post-Retirement Health Benefits				Pension Benefits						Post-Retirement Health Benefits
	2015			2014			2015		2014		2015			2014			2015		2014
Service cost	$	538		$	510		$	16	$	13	$	1,615		$	1,530		$	47	$	40
Interest cost	879			939			43		44		2,637			2,817			130		131
Expected return on plan assets	(863		)	(948		)	—		—		(2,589		)	(2,845		)	—		—
Amortization of transition obligation	—			—			—		—		—			—			—		—
Net amortization of prior service cost	—			(2		)	—		—		1			(7		)	—		—
Net amortization of net (gain) loss	1,185			190			—		—		3,555			569			—		(1		)
Net Periodic Benefit Cost	$	1,739		$	689		$	59	$	57	$	5,219		$	2,064		$	177	$	170

Employer Contributions

First Financial Corporation previously disclosed in its financial statements for the year ended December 31, 2014 that it expected to contribute $1.8 million and $1.1 million respectively to its Pension Plan and ESOP and $247 thousand to the Post Retirement Health Benefits Plan in 2015. Contributions of $1.3 million have been made to the Pension Plan thus far in 2015. Contributions of $161 thousand have been made through the first nine months of 2015 for the Post Retirement Health Benefits plan. No contributions have been made in 2015 for the ESOP. The Pension plan was frozen for most employees at the end of 2012 and for those employees there will be discretionary contributions to the ESOP plan and a 401K plan in place of the former Pension benefit. In the first nine months of 2015 and 2014 there has been $1.1 million and $1.0 million of expense accrued for potential contributions to these alternative retirement benefit options.

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New accounting standards

9 Months Ended

Sep. 30, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New accounting standards

New accounting standards

In May 2014, the FASB and the International Accounting Standards Board (the "IASB") jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under GAAP and International Financial Reporting Standards ("IFRS"). Previous revenue recognition guidance in GAAP comprised broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. In contrast, IFRS provided limited revenue recognition guidance and, consequently, could be difficult to apply to complex transactions. Accordingly, the FASB and the IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that would: (1) Remove inconsistencies and weaknesses in revenue requirements; (2) Provide a more robust framework for addressing revenue issues; (3) Improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) Provide more useful information to users of financial statements through improved disclosure requirements; and (5) Simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. To meet those objectives, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies generally will be required to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The standard is effective for public entities for interim and annual periods beginning after December 15, 2017. For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. The Corporation is currently evaluating the provisions of ASU No. 2014-09 and will be closely monitoring developments and additional guidance to determine the potential impact the new standard will have on the Corporation's Consolidated Financial Statements.

In August 2014, the FASB issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. This ASU requires that a mortgage loan be derecognized and that a separate other receivable be recognized if certain conditions are met in the case of government guarantees. The amendments are effective for annual periods, and interim periods within those years, beginning after December 15, 2014. The adoption of this ASU has not had a significant impact on the Corporation's financial statements.

In June 2014, the FASB issued ASU No. 2014-11, "Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures." The new guidance aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. The guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement, which has resulted in outcomes referred to as off-balance-sheet accounting. The amendments in the ASU require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. The amendments in the ASU also require expanded disclosures, effective for the current reporting period of June 30, 2015, about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings (see Note 5 to the Consolidated Financial Statements). The Corporation adopted the amendments in this ASU effective January 1, 2015. As of September 30, 2015, all of the Company's repurchase agreements were typical in nature (i.e., not repurchase-to-maturity transactions or repurchase agreements executed as a repurchase financing) and are accounted for as secured borrowings. As such, the adoption of ASU No. 2014-11 did not have a material impact on the Corporation's Consolidated Financial Statements.

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income

9. Accumulated Other Comprehensive Income

The following table summarizes the changes, net of tax within each classification of accumulated other comprehensive income for the three and nine months ended September 30, 2015 and 2014. 

	Unrealized
	gains and		2015
	Losses on available- for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans			Total
Beginning balance, July 1,	$	7,476	$	(21,524	)	$	(14,048	)
Change in other comprehensive income before reclassification	4,464		—			4,464
Amounts reclassified from accumulated other comprehensive income	7		819			826
Net Current period other comprehensive other income	4,471		819			5,290
Ending balance, September 30,	$	11,947	$	(20,705	)	$	(8,758	)

	Unrealized
	gains and		2015
	Losses on available- for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans			Total
Beginning balance, January 1,	$	10,278	$	(24,807	)	$	(14,529	)
Change in other comprehensive income before reclassification	1,654		—			1,654
Amounts reclassified from accumulated other comprehensive income	15		4,102			4,117
Net Current period other comprehensive other income	1,669		4,102			5,771
Ending balance, September 30,	$	11,947	$	(20,705	)	$	(8,758	)

	Unrealized
	gains and		2014
	Losses on available- for-sale		Retirement
(Dollar amounts in thousands)	Securities		plans			Total
Beginning balance, July 1,	$	5,784	$	(10,104	)	$	(4,320	)
Change in other comprehensive income before reclassification	1,879		—			1,879
Amounts reclassified from accumulated other comprehensive income	—		116			116
Net Current period other comprehensive other income	1,879		116			1,995
Ending balance, September 30,	$	7,663	$	(9,988	)	$	(2,325	)

	Unrealized
	gains and			2014
	Losses on available- for-sale			Retirement
(Dollar amounts in thousands)	Securities			plans			Total
Beginning balance, January 1,	$	(3,635	)	$	(10,334	)	$	(13,969	)
Change in other comprehensive income before reclassification	11,297			—			11,297
Amounts reclassified from accumulated other comprehensive income	1			346			347
Net Current period other comprehensive other income	11,298			346			11,644
Ending balance, September 30,	$	7,663		$	(9,988	)	$	(2,325	)

	Balance at			Current Period		Balance at
(Dollar amounts in thousands)	7/1/2015			Change		9/30/2015
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	4,429		$	4,231	$	8,660
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	3,047			240		3,287
Total unrealized loss on securities available-for-sale	$	7,476		$	4,471	$	11,947
Unrealized loss on retirement plans	(21,524		)	819		(20,705		)
TOTAL	$	(14,048	)	$	5,290	$	(8,758	)

	Balance at			Current Period		Balance at
(Dollar amounts in thousands)	12/31/2014			Change		9/30/2015
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	7,164		$	1,496	$	8,660
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	3,114			173		3,287
Total unrealized loss on securities available-for-sale	$	10,278		$	1,669	$	11,947
Unrealized loss on retirement plans	(24,807		)	4,102		(20,705		)
TOTAL	$	(14,529	)	$	5,771	$	(8,758	)

	Balance at			Current Period		Balance at
(Dollar amounts in thousands)	7/1/2014			Change		9/30/2014
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	3,296		$	831	$	4,127
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	2,488			1,048		3,536
Total unrealized loss on securities available-for-sale	$	5,784		$	1,879	$	7,663
Unrealized loss on retirement plans	(10,104		)	116		(9,988		)
TOTAL	$	(4,320	)	$	1,995	$	(2,325	)

	Balance at			Current Period		Balance at
(Dollar amounts in thousands)	12/31/2013			Change		9/30/2014
Unrealized gains (losses) on securities available-for-sale
without other than temporary impairment	$	(2,499	)	$	6,626	$	4,127
Unrealized gains (losses) on securities available-for-sale
with other than temporary impairment	(1,136		)	4,672		3,536
Total unrealized loss on securities available-for-sale	$	(3,635	)	$	11,298	$	7,663
Unrealized loss on retirement plans	(10,334		)	346		(9,988		)
TOTAL	$	(13,969	)	$	11,644	$	(2,325	)

	Three Months Ended September 30, 2015
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	9		Net securities gains (losses)
on available-for-sale	(2		)	Income tax expense
securities	$	7		Net of tax
Amortization of	$	1,365		(a) Salary and benefits
retirement plan items	(546		)	Income tax expense
	$	819		Net of tax
Total reclassifications for the period	$	826		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Nine Months Ended September 30, 2015
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	23		Net securities gains (losses)
on available-for-sale	(8		)	Income tax expense
securities	$	15		Net of tax
Amortization of	$	6,837		(a) Salary and benefits
retirement plan items	(2,735		)	Income tax expense
	$	4,102		Net of tax
Total reclassifications for the period	$	4,117		Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

	Three Months Ended September 30, 2014
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	—		Net securities gains (losses)
on available-for-sale	—			Income tax expense
securities	$	—		Net of tax
Amortization of	$	(237	)	(a) Salary and benefits
retirement plan items	121			Income tax expense
	$	(116	)	Net of tax
Total reclassifications for the period	$	(116	)	Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details). 

	Nine Months Ended September 30, 2014
Details about accumulated	Amount reclassified from			Affected line item in
other comprehensive	accumulated other			the statement where
income components	comprehensive income			net income is presented
	(in thousands)
Unrealized gains and losses	$	(1	)	Net securities gains (losses)
on available-for-sale	—			Income tax expense
securities	$	(1	)	Net of tax
Amortization of	$	(711	)	(a) Salary and benefits
retirement plan items	365			Income tax expense
	$	(346	)	Net of tax
Total reclassifications for the period	$	(347	)	Net of tax

(a) Included in the computation of net periodic benefit cost. (see Footnote 7 for additional details).

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Securities (Details 1) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Amortized Cost
Due in one year or less	$ 3,399
Due after one but within five years	40,291
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis	88,042
Due after ten years	93,321
Total of securities having specified maturity period	225,053
TOTAL	866,840	$ 880,946
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis	641,787
Fair Value
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	3,426
Due after one but within five years	41,512
Due after five but within ten years	91,552
Due after ten years	101,087
Total of securities having specified maturities period	237,577
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value	648,259
Securities available-for-sale	$ 885,836	$ 897,053

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Accumulated Other Comprehensive Income (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax	$ 4,464	$ 1,879	$ 1,654	$ 11,297
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax	5,290	1,995	5,771	11,644
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	826	116	4,117	347
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
TOTAL Balance	(8,758)	(2,325)	(8,758)	(2,325)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	5,290	1,995	5,771	11,644
TOTAL Balance	(14,048)	(4,320)	(14,529)	(13,969)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax	4,464	1,879	1,654	11,297
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax	4,471	1,879	1,669	11,298
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	7	0	15	1
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
TOTAL Balance	11,947	7,663	11,947	7,663
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	4,471	1,879	1,669	11,298
TOTAL Balance	7,476	5,784	10,278	(3,635)
Unrealized gains losses on securities available-for-sale with other than temporary impairment [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
TOTAL Balance	3,287	3,536	3,287	3,536
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	240	1,048	173	4,672
TOTAL Balance	3,047	2,488	3,114	(1,136)
Unrealized gains losses on securities available-for-sale without other than temporary impairment [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
TOTAL Balance	8,660	4,127	8,660	4,127
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	4,231	831	1,496	6,626
TOTAL Balance	4,429	3,296	7,164	(2,499)
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments, Net of Tax	0	0	0	0
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax	819	116	4,102	346
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	819	116	4,102	346
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
TOTAL Balance	(20,705)	(9,988)	(20,705)	(9,988)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	819	116	4,102	346
TOTAL Balance	$ (21,524)	$ (10,104)	$ (24,807)	$ (10,334)

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Components of Net Periodic Benefit Cost (Tables)

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Schedule of Net Benefit Costs

	Three Months Ended September 30,										Nine Months Ended September 30,
	(000's)										(000's)
	Pension Benefits						Post-Retirement Health Benefits				Pension Benefits						Post-Retirement Health Benefits
	2015			2014			2015		2014		2015			2014			2015		2014
Service cost	$	538		$	510		$	16	$	13	$	1,615		$	1,530		$	47	$	40
Interest cost	879			939			43		44		2,637			2,817			130		131
Expected return on plan assets	(863		)	(948		)	—		—		(2,589		)	(2,845		)	—		—
Amortization of transition obligation	—			—			—		—		—			—			—		—
Net amortization of prior service cost	—			(2		)	—		—		1			(7		)	—		—
Net amortization of net (gain) loss	1,185			190			—		—		3,555			569			—		(1		)
Net Periodic Benefit Cost	$	1,739		$	689		$	59	$	57	$	5,219		$	2,064		$	177	$	170

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Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Ending Balance Attributable to Loans
Individually evaluated for impairment	$ 1,228		$ 1,911
Collectively evaluated for impairment	18,506		16,648
Ending Balance	19,925	$ 19,861	18,839	$ 17,507	$ 18,255	$ 20,068
Loans
Individually evaluated for impairment	10,582		14,606
Collectively evaluated for impairment	1,756,626		1,767,701
Total	1,772,988		1,788,825
Commercial Portfolio Segment [Member]
Ending Balance Attributable to Loans
Individually evaluated for impairment	996		1,911
Collectively evaluated for impairment	10,902		8,733
Ending Balance	12,089	10,931	10,915	10,180	10,850	12,450
Loans
Individually evaluated for impairment	9,648		14,573
Collectively evaluated for impairment	1,032,992		1,030,949
Total	1,046,834		1,050,409
Residential Portfolio Segment [Member]
Ending Balance Attributable to Loans
Individually evaluated for impairment	232		0
Collectively evaluated for impairment	1,662		1,365
Ending Balance	1,894	1,760	1,374	1,327	1,374	1,585
Loans
Individually evaluated for impairment	934		33
Collectively evaluated for impairment	450,198		468,872
Total	452,718		470,536
Consumer Portfolio Segment [Member]
Ending Balance Attributable to Loans
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	4,948		4,370
Ending Balance	4,948	4,678	4,370	3,916	3,769	3,650
Loans
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	273,436		267,880
Total	273,436		267,880
Unallocated
Ending Balance Attributable to Loans
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	994		2,180
Ending Balance	994	$ 2,492	2,180	$ 2,084	$ 2,262	$ 2,383
Receivables Acquired with Deteriorated Credit Quality [Member]
Ending Balance Attributable to Loans
Financing Receivable, Allowance for Credit Losses	191		280
Loans
Financing Receivable, Net	5,780		6,518
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Portfolio Segment [Member]
Ending Balance Attributable to Loans
Financing Receivable, Allowance for Credit Losses	191		271
Loans
Financing Receivable, Net	4,194		4,887
Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Portfolio Segment [Member]
Ending Balance Attributable to Loans
Financing Receivable, Allowance for Credit Losses	0		9
Loans
Financing Receivable, Net	1,586		1,631
Receivables Acquired with Deteriorated Credit Quality [Member] | Consumer Portfolio Segment [Member]
Ending Balance Attributable to Loans
Financing Receivable, Allowance for Credit Losses	0		0
Loans
Financing Receivable, Net	0		0
Receivables Acquired with Deteriorated Credit Quality [Member] | Unallocated
Ending Balance Attributable to Loans
Financing Receivable, Allowance for Credit Losses	$ 0		$ 0

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Acquisitions and FDIC Indemnification Asset (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill	$ 39,489,000	$ 39,489,000
Loans and Leases Receivable, Net of Loans with Deteriorated Credit Quality, Covered	6,500,000	$ 7,300,000
First National Bank Of Danville [Member]
Business Acquisition [Line Items]
Reimbursements from the FDIC	19,400,000
Business Aquisition, Loss Sharing Agreement Losses On Assets Threshold	$ 29,000,000
Business Acquisition Loss Sharing Agreement Losses In Excess Of Threshold To Be Reimbursed Percentage	95.00%
Business Acquisition, Loss Sharing Agreement Losses Up To Threshold To Be Reimbursed Percentage	80.00%

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Fair Value (Details 3) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Loans identified as impaired by class of loans
Carrying Value	$ 4,261	$ 13,388
Allowance for Loan Losses Allocated	1,228	1,911
Fair value	10,582	14,606
Impaired Financing Receivable, with Related Allowance, Recorded Investment	3,033	11,477
Commercial & Industrial
Loans identified as impaired by class of loans
Carrying Value	1,618	5,874
Allowance for Loan Losses Allocated	278	1,056
Fair value	1,340	4,818
Impaired Financing Receivable, with Related Allowance, Recorded Investment	1,618	5,874
Farmland
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Non Farm, Non Residential
Loans identified as impaired by class of loans
Carrying Value	1,506	6,654
Allowance for Loan Losses Allocated	718	753
Fair value	788	5,901
Impaired Financing Receivable, with Related Allowance, Recorded Investment	1,506	6,654
Agriculture
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
All Other Commercial
Loans identified as impaired by class of loans
Carrying Value	233	827
Allowance for Loan Losses Allocated	0	102
Fair value	233	725
Impaired Financing Receivable, with Related Allowance, Recorded Investment	233	827
First Liens
Loans identified as impaired by class of loans
Carrying Value	904	33
Allowance for Loan Losses Allocated	232	0
Fair value	672	33
Impaired Financing Receivable, with Related Allowance, Recorded Investment	904	33
Home Equity
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Junior Liens
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Multifamily
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
All Other Residential
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Motor Vehicle
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
All Other Consumer
Loans identified as impaired by class of loans
Carrying Value	0	0
Allowance for Loan Losses Allocated	0	0
Fair value	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	$ 0	$ 0

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income/(Loss) [Member]	Treasury Stock [Member]
Balance at Dec. 31, 2013	$ 386,195	$ 1,811	$ 71,074	$ 357,083	$ (13,969)	$ (29,804)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	24,591	0	0	24,591	0	0
Other comprehensive income (loss)	11,644	0	0	0	11,644	0
Omnibus Equity Incentive Plan	843	3	840	0	0	0
Payments for Repurchase of Common Stock	(12,856)		0	0	0
Dividends, Common Stock, Cash	(6,544)	0	0	(6,544)	0	0
Balance at Sep. 30, 2014	403,873	1,814	71,914	375,130	(2,325)	(42,660)
Balance at Jun. 30, 2014	405,746	1,812	71,557	366,858	(4,320)	(30,161)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	8,272	0	0	8,272	0	0
Other comprehensive income (loss)	1,995	0	0	0	1,995	0
Omnibus Equity Incentive Plan	359	2	357	0	0	0
Payments for Repurchase of Common Stock	(12,499)	0	0	0	0
Balance at Sep. 30, 2014	403,873	1,814	71,914	375,130	(2,325)	(42,660)
Balance at Dec. 31, 2014	394,214	1,815	72,405	377,970	(14,529)	(43,447)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	23,082	0	0	23,082	0	0
Other comprehensive income (loss)	5,771	0	0	0	5,771	0
Omnibus Equity Incentive Plan	513	2	511	0	0	0
Payments for Repurchase of Common Stock	(8,698)		0	0	0
Dividends, Common Stock, Cash	(6,291)	0	0	(6,291)	0	0
Balance at Sep. 30, 2015	408,591	1,817	72,916	394,761	(8,758)	(52,145)
Balance at Jun. 30, 2015	399,058	1,816	72,746	386,363	(14,048)	(47,819)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	8,398	0	0	8,398	0	0
Other comprehensive income (loss)	5,290	0	0	0	5,290	0
Omnibus Equity Incentive Plan	171	1	170	0	0	0
Payments for Repurchase of Common Stock	(4,326)	0	0	0	0
Balance at Sep. 30, 2015	$ 408,591	$ 1,817	$ 72,916	$ 394,761	$ (8,758)	$ (52,145)

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Securities

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Securities

	September 30, 2015
(Dollar amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Government agencies	$	11,059	$	61	$	—		$	11,120
Mortgage Backed Securities - Residential	188,184		6,391		(235		)	194,340
Mortgage Backed Securities - Commercial	10		—		—			10
Collateralized Mortgage Obligations	453,593		4,019		(3,703		)	453,909
State and Municipal Obligations	204,279		7,438		(377		)	211,340
Collateralized Debt Obligations	9,715		5,402		—			15,117
TOTAL	$	866,840	$	23,311	$	(4,315	)	$	885,836

	December 31, 2014
(Dollar amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Government agencies	$	1,411	$	56	$	—		$	1,467
Mortgage Backed Securities-residential	180,673		7,593		(330		)	187,936
Mortgage Backed Securities-commercial	17		—		—			17
Collateralized mortgage obligations	489,765		2,513		(7,623		)	484,655
State and municipal	198,875		9,019		(219		)	207,675
Collateralized debt obligations	10,205		5,115		(17		)	15,303
TOTAL	$	880,946	$	24,296	$	(8,189	)	$	897,053

Contractual maturities of debt securities at September 30, 2015 were as follows. Securities not due at a single maturity or with no maturity date, primarily mortgage-backed and equity securities are shown separately.

	Available-for-Sale
	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	3,399	$	3,426
Due after one but within five years	40,291		41,512
Due after five but within ten years	88,042		91,552
Due after ten years	93,321		101,087
	225,053		237,577
Mortgage-backed securities and collateralized mortgage obligations	641,787		648,259
TOTAL	$	866,840	$	885,836

There were $9 thousand in gross gains and no losses from investment sales realized by the Corporation for the three months ended September 30, 2015. For the nine months ended September 30, 2015 there were $23 thousand in gross gains and no losses. For the nine months ended September 30, 2014 there were $1 thousand in gross losses on sales of investment securities. There were no gains or losses on investment securities in the third quarter of 2014.

The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at September 30, 2015 and December 31, 2014. 

	September 30, 2015
	Less Than 12 Months					More Than 12 Months							Total
			Unrealized					Unrealized					Unrealized
(Dollar amounts in thousands)	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
Mortgage Backed Securities - Residential	$	18,372	$	(180	)	$	19,957	$	(55	)	$	38,329	$	(235	)
Collateralized mortgage obligations	147,188		(3,318		)	55,710		(385		)	202,898		(3,703		)
State and municipal obligations	4,372		(101		)	23,387		(276		)	27,759		(377		)
Total temporarily impaired securities	$	169,932	$	(3,599	)	$	99,054	$	(716	)	$	268,986	$	(4,315	)

	December 31, 2014
	Less Than 12 Months					More Than 12 Months							Total
			Unrealized					Unrealized					Unrealized
(Dollar amounts in thousands)	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
Mortgage Backed Securities - Residential	$	—	$	—		$	23,849	$	(330	)	$	23,849	$	(330	)
Collateralized mortgage obligations	50,832		(128		)	264,940		(7,495		)	315,772		(7,623		)
State and municipal obligations	6,500		(35		)	10,547		(184		)	17,047		(219		)
Collateralized Debt Obligations	—		—			200		(17		)	200		(17		)
Total temporarily impaired securities	$	57,332	$	(163	)	$	299,536	$	(8,026	)	$	356,868	$	(8,189	)

Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities are generally evaluated for OTTI under FASB ASC 320, Investments - Debt and Equity Securities. However, certain purchased beneficial interests, including non-agency mortgage-backed securities, asset-backed securities, and collateralized debt obligations, that had credit ratings at the time of purchase of below AA are evaluated using the model outlined in FASB ASC 325-40, Beneficial Interests in Securitized Financial Assets.

When OTTI occurs under either model, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the OTTI shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment.

Gross unrealized losses on investment securities were $4.3 million as of September 30, 2015 and $8.2 million as of December 31, 2014. A majority of these losses represent negative adjustments to market value relative to the interest rate environment reflecting the increase in market rates and not losses related to the creditworthiness of the issuer. Based upon our review of the issuers, we do not believe these investments to be other than temporarily impaired. Management does not intend to sell these securities and it is not more likely than not that we will be required to sell them before their anticipated recovery.

There are three collateralized debt obligations securities with previously recorded OTTI but there is no OTTI in 2015 or 2014.

Management has consistently used Standard & Poors pricing to value these investments. There are a number of other pricing sources available to determine fair value for these investments. These sources utilize a variety of methods to determine fair value. The result is a wide range of estimates of fair value for these securities. The Standard & Poors pricing ranges from 44.9 to 63.8 while Moody Investor Service pricing ranges from 7.2 to 16.3, with others falling somewhere in between. We recognize that the Standard & Poors pricing utilized is an estimate, but have been consistent in using this source and its estimate of fair value.

The table below presents a rollforward of the credit losses recognized in earnings for the three and nine month periods ended September 30, 2015 and 2014:

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollar amounts in thousands)	2015		2014			2015			2014
Beginning balance	$	13,995	$	14,079		$	14,050		$	14,079
Increases to the amount related to the credit
Loss for which other-than-temporary was previously recognized	—		—			—			—
Reductions for increases in cash flows collected	—		(29		)	(55		)	(29		)
Amounts realized for securities sold during the period	—		—			—			—
Ending balance	$	13,995	$	14,050		$	13,995		$	14,050

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Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Unpaid Principal Balance
TOTAL	$ 10,875		$ 10,875		$ 16,394
Recorded Investment
Impaired Financing Receivable, with Related Allowance, Recorded Investment	3,033		3,033		11,477
Fair value	10,582		10,582		14,606
Allowance For Loan Losses Allocated
TOTAL	1,228		1,228		1,911
Average Recorded Investment
TOTAL	13,306	$ 16,611	14,016	$ 17,266	16,732
Interest Income Recognized
TOTAL	0	0	0	0	0
Cash Basis Interest Income Recognized
TOTAL	0	0	0	0	0
Commercial & Industrial
Unpaid Principal Balance
With no related allowance recorded:	1,565		1,565		1,200
With an allowance recorded:	1,618		1,618		7,388
Recorded Investment
With no related allowance recorded:	1,272		1,272		926
Impaired Financing Receivable, with Related Allowance, Recorded Investment	1,618		1,618		5,874
Fair value	1,340		1,340		4,818
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0		0
With an allowance recorded:	278		278		1,056
Average Recorded Investment
With no related allowance recorded:	3,290	4,103	1,939	3,005	2,589
With an allowance recorded:	1,714	4,420	4,080	6,253	6,177
Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Farmland
Unpaid Principal Balance
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		0
Recorded Investment
With no related allowance recorded:	0		0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0		0
Fair value	0		0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		0
Average Recorded Investment
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Non Farm, Non Residential
Unpaid Principal Balance
With no related allowance recorded:	3,243		3,243		0
With an allowance recorded:	1,506		1,506		6,654
Recorded Investment
With no related allowance recorded:	3,243		3,243		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	1,506		1,506		6,654
Fair value	788		788		5,901
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0		0
With an allowance recorded:	718		718		753
Average Recorded Investment
With no related allowance recorded:	3,599	42	1,800	73	58
With an allowance recorded:	1,929	6,677	4,248	6,709	6,698
Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Agriculture
Unpaid Principal Balance
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		0
Recorded Investment
With no related allowance recorded:	0		0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0		0
Fair value	0		0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		0
Average Recorded Investment
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
All Other Commercial
Unpaid Principal Balance
With no related allowance recorded:	1,776		1,776		292
With an allowance recorded:	233		233		827
Recorded Investment
With no related allowance recorded:	1,776		1,776		292
Impaired Financing Receivable, with Related Allowance, Recorded Investment	233		233		827
Fair value	233		233		725
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		102
Average Recorded Investment
With no related allowance recorded:	1,785	0	1,029	0	58
With an allowance recorded:	393	1,322	548	1,184	1,112
Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
First Liens
Unpaid Principal Balance
With no related allowance recorded:	30		30		0
With an allowance recorded:	904		904		33
Recorded Investment
With no related allowance recorded:	30		30		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	904		904		33
Fair value	672		672		33
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0		0
With an allowance recorded:	232		232		0
Average Recorded Investment
With no related allowance recorded:	31	12	15	6	5
With an allowance recorded:	565	35	357	36	35
Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Home Equity
Unpaid Principal Balance
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		0
Recorded Investment
With no related allowance recorded:	0		0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0		0
Fair value	0		0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		0
Average Recorded Investment
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Junior Liens
Unpaid Principal Balance
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		0
Recorded Investment
With no related allowance recorded:	0		0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0		0
Fair value	0		0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		0
Average Recorded Investment
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Multifamily
Unpaid Principal Balance
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		0
Recorded Investment
With no related allowance recorded:	0		0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0		0
Fair value	0		0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		0
Average Recorded Investment
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
All Other Residential
Unpaid Principal Balance
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		0
Recorded Investment
With no related allowance recorded:	0		0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0		0
Fair value	0		0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		0
Average Recorded Investment
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Motor Vehicle
Unpaid Principal Balance
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		0
Recorded Investment
With no related allowance recorded:	0		0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0		0
Fair value	0		0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		0
Average Recorded Investment
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
All Other Consumer
Unpaid Principal Balance
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		0
Recorded Investment
With no related allowance recorded:	0		0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0		0		0
Fair value	0		0		0
Allowance For Loan Losses Allocated
With no related allowance recorded:	0		0		0
With an allowance recorded:	0		0		0
Average Recorded Investment
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	0	0	0	0	0
Cash Basis Interest Income Recognized
With no related allowance recorded:	0	0	0	0	0
With an allowance recorded:	$ 0	$ 0	$ 0	$ 0	$ 0

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Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair value measurement
Securities available-for-sale	$ 885,836	$ 897,053
US Government Agencies Debt Securities [Member]
Fair value measurement
Securities available-for-sale	11,120	1,467
Mortgage Backed Securities - Residential
Fair value measurement
Securities available-for-sale	194,340	187,936
Mortgage Backed Securities - Commercial
Fair value measurement
Securities available-for-sale	10	17
Collateralized Mortgage Obligations
Fair value measurement
Securities available-for-sale	453,909	484,655
State and Municipal Obligations
Fair value measurement
Securities available-for-sale	211,340	207,675
Collateralized Debt Obligations
Fair value measurement
Securities available-for-sale	15,117	15,303
Fair Value, Inputs, Level 1 [Member]
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member]
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | Mortgage Backed Securities - Residential
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | Mortgage Backed Securities - Commercial
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Obligations
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | State and Municipal Obligations
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 1 [Member] | Collateralized Debt Obligations
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 2 [Member]
Fair value measurement
Securities available-for-sale	865,994	875,850
Derivative Assets	1,568	1,062
Derivative Liability	(1,568)	(1,062)
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member]
Fair value measurement
Securities available-for-sale	11,120	1,467
Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities - Residential
Fair value measurement
Securities available-for-sale	194,340	187,936
Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities - Commercial
Fair value measurement
Securities available-for-sale	10	17
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations
Fair value measurement
Securities available-for-sale	453,909	484,655
Fair Value, Inputs, Level 2 [Member] | State and Municipal Obligations
Fair value measurement
Securities available-for-sale	206,615	201,775
Fair Value, Inputs, Level 2 [Member] | Collateralized Debt Obligations
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 3 [Member]
Fair value measurement
Securities available-for-sale	19,842	21,203
Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member]
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 3 [Member] | Mortgage Backed Securities - Residential
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 3 [Member] | Mortgage Backed Securities - Commercial
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Obligations
Fair value measurement
Securities available-for-sale	0	0
Fair Value, Inputs, Level 3 [Member] | State and Municipal Obligations
Fair value measurement
Securities available-for-sale	4,725	5,900
Fair Value, Inputs, Level 3 [Member] | Collateralized Debt Obligations
Fair value measurement
Securities available-for-sale	$ 15,117	$ 15,303

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Short-Term Borrowings (Tables)

9 Months Ended

Sep. 30, 2015

Short-term Debt [Abstract]

Schedule of short-term borrowings

Period–end short-term borrowings were comprised of the following:

	(000 's)
	September 30, 2015		December 31, 2014
Federal Funds Purchased	$	550	$	21,192
Repurchase Agreements	22,786		26,823
	$	23,336	$	48,015