Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present our assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy level at March 31, 2015 and December 31, 2014. Due to limited trading volume, we transferred marketable equity securities with a fair value of $0.2 million from Level 1 to Level 2 during the period ended March 31, 2015. There were no other transfers between Level 1 and Level 2 for items measured at fair value on a recurring basis during the periods presented.



	March 31, 2015
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Securities available-for-sale:
U.S. Treasury securities	$	—	$	15,030	$	—	$	15,030
Obligations of U.S. government corporations and agencies	—		271,383		—		271,383
Collateralized mortgage obligations of U.S. government corporations and agencies	—		131,404		—		131,404
Residential mortgage-backed securities of U.S. government corporations and agencies	—		48,165		—		48,165
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		40,080		—		40,080
Obligations of states and political subdivisions	—		140,676		—		140,676
Marketable equity securities	—		9,091		—		9,091
Total securities available-for-sale	—		655,829		—		655,829
Trading securities held in a Rabbi Trust	3,505		—		—		3,505
Total securities	3,505		655,829		—		659,334
Derivative financial assets:
Interest rate swaps	—		14,020		—		14,020
Interest rate lock commitments	—		371		—		371
Total Assets	$	3,505	$	670,220	$	—	$	673,725
LIABILITIES
Derivative financial liabilities:
Interest rate swaps	$	—	$	13,979	$	—	$	13,979
Forward sale contracts	—		74		—		74
Total Liabilities	$	—	$	14,053	$	—	$	14,053



	December 31, 2014
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Securities available-for-sale:
U.S. Treasury securities	$	—	$	14,880	$	—	$	14,880
Obligations of U.S. government corporations and agencies	—		269,285		—		269,285
Collateralized mortgage obligations of U.S. government corporations and agencies	—		118,006		—		118,006
Residential mortgage-backed securities of U.S. government corporations and agencies	—		46,668		—		46,668
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		39,673		—		39,673
Obligations of states and political subdivisions	—		142,702		—		142,702
Marketable equity securities	178		8,881		—		9,059
Total securities available-for-sale	178		640,095		—		640,273
Trading securities held in a Rabbi Trust	3,456		—		—		3,456
Total securities	3,634		640,095		—		643,729
Derivative financial assets:
Interest rate swaps	—		12,981		—		12,981
Interest rate lock commitments	—		235		—		235
Forward sale contracts	—		—		—		—
Total Assets	$	3,634	$	653,311	$	—	$	656,945
LIABILITIES
Derivative financial liabilities:
Interest rate swaps	$	—	$	12,953	$	—	$	12,953
Forward sale contracts	—		57		—		57
Total Liabilities	$	—	$	13,010	$	—	$	13,010

Assets Measured at Estimated Fair Value on Nonrecurring Basis by Fair Value Hierarchy

The following table presents our assets that were measured at fair value on a nonrecurring basis by the fair value hierarchy level at March 31, 2015 and December 31, 2014. There were no liabilities measured at fair value on a nonrecurring basis during these periods.



	March 31, 2015								December 31, 2014
(dollars in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
ASSETS⁽¹⁾
Loans held for sale	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Impaired loans	—		—		14,940		14,940		—		—		12,916		12,916
Other real estate owned	—		—		1,294		1,294		—		—		117		117
Mortgage servicing rights	—		—		2,865		2,865		—		—		2,934		2,934
Total Assets	$	—	$	—	$	19,099	$	19,099	$	—	$	—	$	15,967	$	15,967
⁽¹⁾This table presents only the nonrecurring items that are recorded at fair value in our financial statements.

Carrying Values and Fair Values of Financial Instruments

The carrying values and fair values of our financial instruments at March 31, 2015 and December 31, 2014 are presented in the following tables:



	Carrying Value⁽¹⁾		Fair Value Measurements at March 31, 2015
(dollars in thousands)			Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	124,737	$	124,737	$	124,737	$	—	$	—
Securities available-for-sale	655,829		655,829		—		655,829		—
Loans held for sale	6,126		6,160		—		—		6,160
Portfolio loans, net of unearned income	4,683,698		4,673,187		—		—		4,673,187
Bank owned life insurance	78,738		78,738		—		78,738		—
FHLB and other restricted stock	19,729		19,729		—		—		19,729
Trading securities held in a Rabbi Trust	3,505		3,505		3,505		—		—
Mortgage servicing rights	2,788		2,865		—		—		2,865
Interest rate swaps	14,020		14,020		—		14,020		—
Interest rate lock commitments	371		371		—		371		—
LIABILITIES
Deposits	$	4,828,531	$	4,834,805	$	—	$	—	$	4,834,805
Securities sold under repurchase agreements	46,721		46,721		—		—		46,721
Short-term borrowings	199,573		199,573		—		—		199,573
Long-term borrowings	18,838		19,928		—		—		19,928
Junior subordinated debt securities	50,619		50,619		—		—		50,619
Interest rate swaps	13,979		13,979		—		13,979		—
Forward sale contracts	74		74		—		74		—
⁽¹⁾ As reported in the Consolidated Balance Sheets



	Carrying Value⁽¹⁾		Fair Value Measurements at December 31, 2014
(dollars in thousands)			Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	109,580	$	109,580	$	109,580	$	—	$	—
Securities available-for-sale	640,273		640,273		178		640,095		—
Loans held for sale	2,970		2,991		—		—		2,991
Portfolio loans, net of unearned income	3,868,746		3,827,634		—		—		3,827,634
Bank owned life insurance	62,252		62,252		—		62,252		—
FHLB and other restricted stock	15,135		15,135		—		—		15,135
Trading securities held in a Rabbi Trust	3,456		3,456		3,456		—		—
Mortgage servicing rights	2,817		2,934		—		—		2,934
Interest rate swaps	12,981		12,981		—		12,981		—
Interest rate lock commitments	235		235		—		235		—
LIABILITIES
Deposits	$	3,908,842	$	3,910,342	$	—	$	—	$	3,910,342
Securities sold under repurchase agreements	30,605		30,605		—		—		30,605
Short-term borrowings	290,000		290,000		—		—		290,000
Long-term borrowings	19,442		20,462		—		—		20,462
Junior subordinated debt securities	45,619		45,619		—		—		45,619
Interest rate swaps	12,953		12,953		—		12,953		—
Forward sale contracts	57		57		—		57		—
⁽¹⁾ As reported in the Consolidated Balance Sheets

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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