Estimated Fair Value of Financial Instruments and Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:


	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total
June 30, 2015	(Level 1)		(Level 2)		(Level 3)		Fair Value
Assets:			(in thousands)
Investment securities, available for sale
U.S. treasury and government agencies		$4,892		$95,319		$---		$100,211
Mortgage backed securities		---		311,619		---		311,619
Obligations of states and political subdivisions		---		31,088		---		31,088
Other debt securities		---		503		---		503
Equity securities		4,775		13,490		---		18,265
Total securities available for sale		9,667		452,019		---		461,686

Non-hedging interest rate derivatives		---		517		---		517
Total Assets		$9,667		$452,536		$---		$462,203

Non-hedging interest rate derivatives		$---		$517		$---		$517
Total Liabilities		$---		$517		$---		$517

December 31, 2014
Assets:
Investment securities, available for sale
U.S. treasury and government agencies		$8,321		$85,599		$---		$93,920
Mortgage backed securities		---		314,931		---		314,931
Obligations of states and political subdivisions		---		30,519		---		30,519
Other debt securities		---		505		---		505
Equity securities		4,154		13,420		---		17,574
Total securities available for sale		12,475		444,974		---		457,449

Non-hedging interest rate derivatives		---		37		---		37

Total Assets		$12,475		$445,011		$---		$457,486

Non-hedging interest rate derivatives		$---		$37		$---		$37
Total Liabilities		$---		$37		$---		$37

Fair Value of Financial Assets Measured on Nonrecurring Basis

The following table sets forth the Company’s assets subject to fair value adjustments (impairment) on a nonrecurring basis. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:


June 30, 2015	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets:	(in thousands)
Impaired Loans and Leases		$---		$---		$26,008		$26,008
Loans held for sale		---		3,348		---		3,348
Other real estate owned and other repossessed assets		---		---		1,078		1,078

December 31, 2014
Assets:
Impaired Loans and Leases		$---		$---		$25,693		$25,693
Loans held for sale		---		592		---		592
Other real estate owned and other repossessed assets		---		---		1,026		1,026

Carrying Values and Fair Values of Company's Financial Instruments

The following table presents the carrying values, fair values and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2015 and December 31, 2014:


	Carrying		Fair		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
June 30, 2015	Value		Value		(Level 1)		(Level 2)		(Level 3)
Financial Instruments - Assets	(in thousands)
Investment securities held to maturity		$123,133		$123,585		$ ---		$118,762		$4,823
Federal Home Loan Bank and other membership bank stocks		12,779		12,779		---		12,779		---
Loans and leases, net		2,724,343		2,721,370		---		---		2,721,370

Financial Instruments - Liabilities
Certificates of Deposit		306,431		306,263		---		306,263		---
Other borrowings		262,728		268,211		---		268,211		---
Subordinated debentures		41,238		31,753		---		---		31,753

December 31, 2014
Financial Instruments - Assets
Investment securities held to maturity		$107,976		$109,030		$ ---		$103,916		$5,114
Federal Home Loan Bank and other membership bank stocks		9,846		9,846		---		9,846		---
Loans and leases, net		2,623,142		2,624,581		---		---		2,624,581

Financial Instruments - Liabilities
Certificates of Deposit		279,962		279,439		---		279,439		---
Other borrowings		202,498		205,343		---		205,343		---
Subordinated debentures		41,238		30,929		---		---		30,929