Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 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 September 30, 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.



	September 30, 2016
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Securities available-for-sale:
U.S. Treasury securities	$	—	$	15,056	$	—	$	15,056
Obligations of U.S. government corporations and agencies	—		250,924		—		250,924
Collateralized mortgage obligations of U.S. government corporations and agencies	—		137,460		—		137,460
Residential mortgage-backed securities of U.S. government corporations and agencies	—		36,285		—		36,285
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		88,499		—		88,499
Obligations of states and political subdivisions	—		132,536		—		132,536
Marketable equity securities	—		10,368		—		10,368
Total securities available-for-sale	—		671,128		—		671,128
Trading securities held in a Rabbi Trust	4,312		—		—		4,312
Total securities	4,312		671,128		—		675,440
Derivative financial assets:
Interest rate swap contracts - commercial loans	—		15,255		—		15,255
Interest rate lock commitments - mortgage loans	—		739		—		739
Total Assets	$	4,312	$	687,122	$	—	$	691,434
LIABILITIES
Derivative financial liabilities:
Interest rate swap contracts - commercial loans	$	—	$	15,202	$	—	$	15,202
Forward sale contracts - mortgage loans	—		98		—		98
Total Liabilities	$	—	$	15,300	$	—	$	15,300



	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 swap contracts - commercial loans	—		11,295		—		11,295
Interest rate lock commitments - mortgage loans	—		261		—		261
Total Assets	$	4,021	$	672,519	$	—	$	676,540
LIABILITIES
Derivative financial liabilities:
Interest rate swap contracts - commercial loans	$	—	$	11,276	$	—	$	11,276
Forward sale contracts - mortgage loans	—		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:



	September 30, 2016								December 31, 2015
(dollars in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
ASSETS⁽¹⁾
Impaired loans	—		—		9,000		9,000		—		—		9,373		9,373
Other real estate owned	—		—		181		181		—		—		158		158
Mortgage servicing rights	—		—		3,253		3,253		—		—		3,396		3,396
Total Assets	$	—	$	—	$	12,434	$	12,434	$	—	$	—	$	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 September 30, 2016 and December 31, 2015 are presented in the following tables:



	Carrying Value⁽¹⁾		Fair Value Measurements at September 30, 2016
(dollars in thousands)			Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	125,163	$	125,163	$	125,163	$	—	$	—
Securities available-for-sale	671,128		671,128		—		671,128		—
Loans held for sale	11,695		12,176		—		—		12,176
Portfolio loans, net of unearned income	5,418,234		5,406,298		—		—		5,406,298
Bank owned life insurance	71,523		71,523		—		71,523		—
FHLB and other restricted stock	28,331		28,331		—		—		28,331
Trading securities held in a Rabbi Trust	4,312		4,312		4,312		—		—
Mortgage servicing rights	3,252		3,253		—		—		3,253
Interest rate swap contracts - commercial loans	15,255		15,255		—		15,255		—
Interest rate lock commitments - mortgage loans	739		739		—		739		—
LIABILITIES
Deposits	$	5,145,431	$	5,151,031	$	—	$	—	$	5,151,031
Securities sold under repurchase agreements	40,949		40,949		—		—		40,949
Short-term borrowings	565,000		565,000		—		—		565,000
Long-term borrowings	15,303		16,111		—		—		16,111
Junior subordinated debt securities	45,619		45,619		—		—		45,619
Interest rate swap contracts - commercial loans	15,202		15,202		—		15,202		—
Forward sale contracts - mortgage loans	98		98		—		98		—
⁽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 swap contracts - commercial loans	11,295		11,295		—		11,295		—
Interest rate lock commitments - mortgage loans	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 swap contracts - commercial loans	11,276		11,276		—		11,276		—
Forward sale contracts - mortgage loans	5		5		—		5		—
⁽¹⁾ As reported in the Consolidated Balance Sheets