Fair Value Measurement (Tables)

9 Months Ended

Sep. 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 September 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 nine month period ended September 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.



	September 30, 2015
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Securities available-for-sale:
U.S. Treasury securities	$	—	$	15,062	$	—	$	15,062
Obligations of U.S. government corporations and agencies	—		271,332		—		271,332
Collateralized mortgage obligations of U.S. government corporations and agencies	—		135,216		—		135,216
Residential mortgage-backed securities of U.S. government corporations and agencies	—		42,065		—		42,065
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		50,223		—		50,223
Obligations of states and political subdivisions	—		137,335		—		137,335
Marketable equity securities	—		8,813		—		8,813
Total securities available-for-sale	—		660,046		—		660,046
Trading securities held in a Rabbi Trust	3,690		—		—		3,690
Total securities	3,690		660,046		—		663,736
Derivative financial assets:
Interest rate swaps	—		14,232		—		14,232
Interest rate lock commitments	—		574		—		574
Total Assets	$	3,690	$	674,852	$	—	$	678,542
LIABILITIES
Derivative financial liabilities:
Interest rate swaps	$	—	$	14,184	$	—	$	14,184
Forward sale contracts	—		126		—		126
Total Liabilities	$	—	$	14,310	$	—	$	14,310



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



	September 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	$	—	$	—	$	216	$	216	$	—	$	—	$	—	$	—
Impaired loans	—		—		8,870		8,870		—		—		12,916		12,916
Other real estate owned	—		—		439		439		—		—		117		117
Mortgage servicing rights	—		—		1,827		1,827		—		—		2,934		2,934
Total Assets	$	—	$	—	$	11,352	$	11,352	$	—	$	—	$	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 September 30, 2015 and December 31, 2014 are presented in the following tables:



	Carrying Value⁽¹⁾		Fair Value Measurements at September 30, 2015
(dollars in thousands)			Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	115,347	$	115,347	$	115,347	$	—	$	—
Securities available-for-sale	660,046		660,046		—		660,046		—
Loans held for sale	13,794		14,134		—		—		14,134
Portfolio loans, net of unearned income	4,925,963		4,902,661		—		—		4,902,661
Bank owned life insurance	79,894		79,894		—		79,894		—
FHLB and other restricted stock	20,352		20,352		—		—		20,352
Trading securities held in a Rabbi Trust	3,690		3,690		3,690		—		—
Mortgage servicing rights	3,083		3,170		—		—		3,170
Interest rate swaps	14,232		14,232		—		14,232		—
Interest rate lock commitments	574		574		—		574		—
LIABILITIES
Deposits	$	4,877,409	$	4,883,132	$	—	$	—	$	4,883,132
Securities sold under repurchase agreements	42,971		42,971		—		—		42,971
Short-term borrowings	280,000		280,000		—		—		280,000
Long-term borrowings	117,613		118,646		—		—		118,646
Junior subordinated debt securities	45,619		45,619		—		—		45,619
Interest rate swaps	14,184		14,184		—		14,184		—
Forward sale contracts	126		126		—		126		—
⁽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