Disclosure about Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

The carrying amount and fair value of the Corporation’s financial instruments are as follows:



		As of December 31,
		2018				2017
(dollars in thousands)	Fair Value Hierarchy Level⁽¹⁾	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	48,456	$	48,456	$	60,024	$	60,024
Investment securities - available for sale	See Note 22	737,442		737,442		689,202		689,202
Investment securities - trading	See Note 22	7,502		7,502		4,610		4,610
Investment securities – held to maturity	Level 2	8,684		8,438		7,932		7,851
Loans held for sale	Level 2	1,749		1,749		3,794		3,794
Net portfolio loans and leases	Level 3	3,407,728		3,414,921		3,268,333		3,293,802
Mortgage servicing rights	Level 3	5,047		6,277		5,861		6,397
Interest rate swaps	Level 2	12,550		12,550		1,895		1,895
Risk participation agreements purchased	Level 2	71		71		21		21
Other assets	Level 3	43,641		43,641		46,799		46,799
Total financial assets		$	4,272,870	$	4,281,047	$	4,088,471	$	4,114,395
Financial liabilities:
Deposits	Level 2	$	3,599,087	$	3,594,123	$	3,373,798	$	3,368,276
Short-term borrowings	Level 2	252,367		252,367		237,865		237,865
Long-term FHLB advances	Level 2	55,374		54,803		139,140		138,685
Subordinated notes	Level 2	98,526		100,120		98,416		95,044
Junior subordinated debentures	Level 2	21,580		31,176		21,416		19,366
Interest rate swaps	Level 2	12,549		12,549		1,895		1,895
Risk participation agreements sold	Level 2	2		2		3		3
Other liabilities	Level 3	60,847		60,847		49,071		49,071
Total financial liabilities		$	4,100,332	$	4,105,987	$	3,921,604	$	3,910,205

(1) See Note 22, “Fair Value Measurement,” in the accompanying Notes to the Consolidated Financial Statements in this Annual Report on Form 10-K for a description of hierarchy levels.