Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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 June 30, 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 six month period ended June 30, 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.



	June 30, 2015
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Securities available-for-sale:
U.S. Treasury securities	$	—	$	15,018	$	—	$	15,018
Obligations of U.S. government corporations and agencies	—		270,112		—		270,112
Collateralized mortgage obligations of U.S. government corporations and agencies	—		139,577		—		139,577
Residential mortgage-backed securities of U.S. government corporations and agencies	—		43,419		—		43,419
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		49,676		—		49,676
Obligations of states and political subdivisions	—		139,947		—		139,947
Marketable equity securities	—		8,875		—		8,875
Total securities available-for-sale	—		666,624		—		666,624
Trading securities held in a Rabbi Trust	3,796		—		—		3,796
Total securities	3,796		666,624		—		670,420
Derivative financial assets:
Interest rate swaps	—		11,013		—		11,013
Interest rate lock commitments	—		366		—		366
Forward sale contracts	—		17		—		17
Total Assets	$	3,796	$	678,020	$	—	$	681,816
LIABILITIES
Derivative financial liabilities:
Interest rate swaps	$	—	$	10,994	$	—	$	10,994
Total Liabilities	$	—	$	10,994	$	—	$	10,994



	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 June 30, 2015 and December 31, 2014. There were no liabilities measured at fair value on a nonrecurring basis during these periods.



	June 30, 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	$	—	$	—	$	2,900	$	2,900	$	—	$	—	$	—	$	—
Impaired loans	—		—		13,913		13,913		—		—		12,916		12,916
Other real estate owned	—		—		747		747		—		—		117		117
Mortgage servicing rights	—		—		721		721		—		—		1,176		1,176
Total Assets	$	—	$	—	$	18,281	$	18,281	$	—	$	—	$	14,209	$	14,209
⁽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 June 30, 2015 and December 31, 2014 are presented in the following tables:



	Carrying Value⁽¹⁾		Fair Value Measurements at June 30, 2015
(dollars in thousands)			Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	146,582	$	146,582	$	146,582	$	—	$	—
Securities available-for-sale	666,624		666,624		—		666,624		—
Loans held for sale	13,634		13,722		—		—		13,722
Portfolio loans, net of unearned income	4,798,498		4,774,871		—		—		4,774,871
Bank owned life insurance	79,314		79,314		—		79,314		—
FHLB and other restricted stock	23,553		23,553		—		—		23,553
Trading securities held in a Rabbi Trust	3,796		3,796		3,796		—		—
Mortgage servicing rights	2,974		3,137		—		—		3,137
Interest rate swaps	11,013		11,013		—		11,013		—
Interest rate lock commitments	366		366		—		366		—
Forward sale contracts	17		17		—		17		—
LIABILITIES
Deposits	$	4,859,415	$	4,865,521	$	—	$	—	$	4,865,521
Securities sold under repurchase agreements	46,235		46,235		—		—		46,235
Short-term borrowings	230,975		230,975		—		—		230,975
Long-term borrowings	118,228		119,148		—		—		119,148
Junior subordinated debt securities	45,619		45,619		—		—		45,619
Interest rate swaps	10,994		10,994		—		10,994		—
⁽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