Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2016

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, 2016 and December 31, 2015. There were no transfers between Level 1 and Level 2 for items measured at fair value on a recurring basis during the periods presented.



	March 31, 2016
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Securities available-for-sale:
U.S. Treasury securities	$	—	$	15,067	$	—	$	15,067
Obligations of U.S. government corporations and agencies	—		271,540		—		271,540
Collateralized mortgage obligations of U.S. government corporations and agencies	—		137,330		—		137,330
Residential mortgage-backed securities of U.S. government corporations and agencies	—		39,285		—		39,285
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		70,664		—		70,664
Obligations of states and political subdivisions	—		134,382		—		134,382
Marketable equity securities	—		8,953		—		8,953
Total securities available-for-sale	—		677,221		—		677,221
Trading securities held in a Rabbi Trust	4,069		—		—		4,069
Total securities	4,069		677,221		—		681,290
Derivative financial assets:
Interest rate swaps	—		15,281		—		15,281
Interest rate lock commitments	—		526		—		526
Total Assets	$	4,069	$	693,028	$	—	$	697,097
LIABILITIES
Derivative financial liabilities:
Interest rate swaps	$	—	$	15,165	$	—	$	15,165
Forward sale contracts	—		72		—		72
Total Liabilities	$	—	$	15,237	$	—	$	15,237



	December 31, 2015
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Securities available-for-sale:
U.S. Treasury securities	$	—	$	14,941	$	—	$	14,941
Obligations of U.S. government corporations and agencies	—		263,303		—		263,303
Collateralized mortgage obligations of U.S. government corporations and agencies	—		128,835		—		128,835
Residential mortgage-backed securities of U.S. government corporations and agencies	—		40,125		—		40,125
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		69,204		—		69,204
Obligations of states and political subdivisions	—		134,886		—		134,886
Marketable equity securities	—		9,669		—		9,669
Total securities available-for-sale	—		660,963		—		660,963
Trading securities held in a Rabbi Trust	4,021		—		—		4,021
Total securities	4,021		660,963		—		664,984
Derivative financial assets:
Interest rate swaps	—		11,295		—		11,295
Interest rate lock commitments	—		261		—		261
Total Assets	$	4,021	$	672,519	$	—	$	676,540
LIABILITIES
Derivative financial liabilities:
Interest rate swaps	$	—	$	11,276	$	—	$	11,276
Forward sale contracts	—		5		—		5
Total Liabilities	$	—	$	11,281	$	—	$	11,281

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

The following table presents our assets that are measured at fair value on a nonrecurring basis by the fair value hierarchy level as of the dates presented:



	March 31, 2016								December 31, 2015
(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	—		—		16,562		16,562		—		—		9,373		9,373
Other real estate owned	—		—		248		248		—		—		158		158
Mortgage servicing rights	—		—		3,112		3,112		—		—		3,396		3,396
Total Assets	$	—	$	—	$	19,922	$	19,922	$	—	$	—	$	12,927	$	12,927
⁽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, 2016 and December 31, 2015 are presented in the following tables:



	Carrying Value⁽¹⁾		Fair Value Measurements at March 31, 2016
(dollars in thousands)			Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	121,669	$	121,669	$	121,669	$	—	$	—
Securities available-for-sale	677,221		677,221		—		677,221		—
Loans held for sale	11,739		12,116		—		—		12,116
Portfolio loans, net of unearned income	5,176,748		5,163,461		—		—		5,163,461
Bank owned life insurance	70,684		70,684		—		70,684		—
FHLB and other restricted stock	23,337		23,337		—		—		23,337
Trading securities held in a Rabbi Trust	4,069		4,069		4,069		—		—
Mortgage servicing rights	3,112		3,112		—		—		3,112
Interest rate swaps	15,281		15,281		—		15,281		—
Interest rate lock commitments	526		526		—		526		—
LIABILITIES
Deposits	$	5,017,925	$	5,025,397	$	—	$	—	$	5,025,397
Securities sold under repurchase agreements	60,025		60,025		—		—		60,025
Short-term borrowings	355,000		355,000		—		—		355,000
Long-term borrowings	116,468		117,429		—		—		117,429
Junior subordinated debt securities	45,619		45,619		—		—		45,619
Interest rate swaps	15,165		15,165		—		15,165		—
Forward sale contracts	72		72		—		72		—
⁽¹⁾ As reported in the Consolidated Balance Sheets



	Carrying Value⁽¹⁾		Fair Value Measurements at December 31, 2015
(dollars in thousands)			Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	99,399	$	99,399	$	99,399	$	—	$	—
Securities available-for-sale	660,963		660,963		—		660,963		—
Loans held for sale	35,321		35,500		—		—		35,500
Portfolio loans, net of unearned income	5,027,612		5,001,004		—		—		5,001,004
Bank owned life insurance	70,175		70,175		—		70,175		—
FHLB and other restricted stock	23,032		23,032		—		—		23,032
Trading securities held in a Rabbi Trust	4,021		4,021		4,021		—		—
Mortgage servicing rights	3,237		3,396		—		—		3,396
Interest rate swaps	11,295		11,295		—		11,295		—
Interest rate lock commitments	261		261		—		261		—
LIABILITIES
Deposits	$	4,876,611	$	4,881,718	$	—	$	—	$	4,881,718
Securities sold under repurchase agreements	62,086		62,086		—		—		62,086
Short-term borrowings	356,000		356,000		—		—		356,000
Long-term borrowings	117,043		117,859		—		—		117,859
Junior subordinated debt securities	45,619		45,619		—		—		45,619
Interest rate swaps	11,276		11,276		—		11,276		—
Forward sale contracts	5		5		—		5		—
⁽¹⁾ As reported in the Consolidated Balance Sheets