Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2017

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, 2017 and December 31, 2016. There were no transfers between Level 1 and Level 2 for items measured at fair value on a recurring basis during the periods presented.



	June 30, 2017
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Securities available-for-sale:
U.S. Treasury securities	$	—	$	24,886	$	—	$	24,886
Obligations of U.S. government corporations and agencies	—		211,434		—		211,434
Collateralized mortgage obligations of U.S. government corporations and agencies	—		120,203		—		120,203
Residential mortgage-backed securities of U.S. government corporations and agencies	—		34,611		—		34,611
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		162,413		—		162,413
Obligations of states and political subdivisions	—		131,106		—		131,106
Marketable equity securities	—		4,735		—		4,735
Total securities available-for-sale	—		689,388		—		689,388
Trading securities held in a Rabbi Trust	4,790		—		—		4,790
Total securities	4,790		689,388		—		694,178
Derivative financial assets:
Interest rate swap contracts - commercial loans	—		5,442		—		5,442
Interest rate lock commitments - mortgage loans	—		456		—		456
Forward sale contracts - mortgage loans	—		14		—		14
Total Assets	$	4,790	$	695,300	$	—	$	700,090
LIABILITIES
Derivative financial liabilities:
Interest rate swap contracts - commercial loans	$	—	$	5,423	$	—	$	5,423
Total Liabilities	$	—	$	5,423	$	—	$	5,423



	December 31, 2016
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Securities available-for-sale:
U.S. Treasury securities	$	—	$	24,811	$	—	$	24,811
Obligations of U.S. government corporations and agencies	—		232,179		—		232,179
Collateralized mortgage obligations of U.S. government corporations and agencies	—		129,777		—		129,777
Residential mortgage-backed securities of U.S. government corporations and agencies	—		37,358		—		37,358
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		125,604		—		125,604
Obligations of states and political subdivisions	—		132,509		—		132,509
Marketable equity securities	—		11,249		—		11,249
Total securities available-for-sale	—		693,487		—		693,487
Trading securities held in a Rabbi Trust	4,410		—		—		4,410
Total securities	4,410		693,487		—		697,897
Derivative financial assets:
Interest rate swap contracts - commercial loans	—		6,960		—		6,960
Interest rate lock commitments - mortgage loans	—		236		—		236
Total Assets	$	4,410	$	700,683	$	—	$	705,093
LIABILITIES
Derivative financial liabilities:
Interest rate swap contracts - commercial loans	$	—	$	6,958	$	—	$	6,958
Forward sale contracts - mortgage loans	—		27		—		27
Total Liabilities	$	—	$	6,985	$	—	$	6,985

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:



	June 30, 2017								December 31, 2016
(dollars in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
ASSETS⁽¹⁾
Loans held for sale	$	—	$	—	$	—	$	—	$	—	$	—	$	1,802	$	1,802
Impaired loans	—		—		22,551		22,551		—		—		10,329		10,329
Other real estate owned	—		—		391		391		—		—		396		396
Mortgage servicing rights	—		—		508		508		—		—		4,098		4,098
Total Assets	$	—	$	—	$	23,450	$	23,450	$	—	$	—	$	16,625	$	16,625
⁽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, 2017 and December 31, 2016 are presented in the following tables:



	Carrying Value⁽¹⁾		Fair Value Measurements at June 30, 2017
(dollars in thousands)	Carrying Value⁽¹⁾		Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	125,863	$	125,863	$	125,863	$	—	$	—
Securities available-for-sale	689,388		689,388		—		689,388		—
Loans held for sale	23,120		23,258		—		—		23,258
Portfolio loans, net	5,757,819		5,695,791		—		—		5,695,791
Bank owned life insurance	72,449		72,449		—		72,449		—
FHLB and other restricted stock	33,417		33,417		—		—		33,417
Trading securities held in a Rabbi Trust	4,790		4,790		4,790		—		—
Mortgage servicing rights	3,839		4,195		—		—		4,195
Interest rate swap contracts - commercial loans	5,442		5,442		—		5,442		—
Interest rate lock commitments - mortgage loans	456		456		—		456		—
Forward sale contracts - mortgage loans	14		14		—		14		—
LIABILITIES
Deposits	$	5,409,862	$	5,414,320	$	—	$	—	$	5,414,320
Securities sold under repurchase agreements	46,489		46,489		—		—		46,489
Short-term borrowings	645,000		645,000		—		—		645,000
Long-term borrowings	13,518		13,979		—		—		13,979
Junior subordinated debt securities	45,619		45,619		—		—		45,619
Interest rate swap contracts - commercial loans	5,423		5,423		—		5,423		—
⁽¹⁾ As reported in the Consolidated Balance Sheets



	Carrying Value⁽¹⁾		Fair Value Measurements at December 31, 2016
(dollars in thousands)	Carrying Value⁽¹⁾		Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	139,486	$	139,486	$	139,486	$	—	$	—
Securities available-for-sale	693,487		693,487		—		693,487		—
Loans held for sale	3,793		3,815		—		—		3,815
Portfolio loans, net of unearned income	5,611,419		5,551,266		—		—		5,551,266
Bank owned life insurance	72,081		72,081		—		72,081		—
FHLB and other restricted stock	31,817		31,817		—		—		31,817
Trading securities held in a Rabbi Trust	4,410		4,410		4,410		—		—
Mortgage servicing rights	3,744		4,098		—		—		4,098
Interest rate swap contracts - commercial loans	6,960		6,960		—		6,960		—
Interest rate lock commitments - mortgage loans	236		236		—		236		—
LIABILITIES
Deposits	$	5,272,377	$	5,276,499	$	—	$	—	$	5,276,499
Securities sold under repurchase agreements	50,832		50,832		—		—		50,832
Short-term borrowings	660,000		660,000		—		—		660,000
Long-term borrowings	14,713		15,267		—		—		15,267
Junior subordinated debt securities	45,619		45,619		—		—		45,619
Interest rate swap contracts - commercial loans	6,958		6,958		—		6,958		—
Forward sale contracts - mortgage loans	27		27		—		27		—
⁽¹⁾ As reported in the Consolidated Balance Sheets