Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2015

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the assets and liabilities measured at fair value on a recurring basis at June 30, 2015 and December 31, 2014, classified using the fair value hierarchy:



	At June 30, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. treasuries	$	4,896	$	—	$	—	$	4,896
U.S. government corporations and agencies	—		120,023		—		120,023
State and political subdivisions	—		109,645		—		109,645
Residential mortgage-backed securities	—		13,533		—		13,533
Collateralized mortgage obligations	—		3,410		—		3,410
Corporate bonds	—		73,201		—		73,201
Money market mutual funds	5,668		—		—		5,668
Equity securities	1,200		—		—		1,200
Total available-for-sale securities	11,764		319,812		—		331,576
Interest rate locks with customers	—		925		—		925
Forward loan sale commitments	—		137		$	—	137
Total assets	$	11,764	$	320,874	$	—	$	332,638
Liabilities:
Contingent consideration liability	$	—	$	—	$	7,556	$	7,556
Interest rate swap	—		202		—		202
Total liabilities	$	—	$	202	$	7,556	$	7,758



	At December 31, 2014
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. treasuries	$	4,845	$	—	$	—	$	4,845
U.S. government corporations and agencies	—		121,844		—		121,844
State and political subdivisions	—		102,774		—		102,774
Residential mortgage-backed securities	—		13,643		—		13,643
Collateralized mortgage obligations	—		3,725		—		3,725
Corporate bonds	—		54,440		—		54,440
Money market mutual funds	11,675		—		—		11,675
Equity securities	1,337		—		—		1,337
Total available-for-sale securities	17,857		296,426		—		314,283
Interest rate locks with customers	—		788		—		788
Total assets	$	17,857	$	297,214	$	—	$	315,071
Liabilities:
Contingent consideration liability	$	—	$	—	$	6,541	$	6,541
Interest rate swap	—		241		—		241
Forward loan sale commitments	—		112		—		112
Total liabilities	$	—	$	353	$	6,541	$	6,894

Contingent Consideration Liability Change in Amount

The following table presents the change in the balance of the contingent consideration liability related to acquisitions for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the six months ended June 30, 2015 and 2014:



	Six Months Ended June 30, 2015
(Dollars in thousands)	Balance at December 31, 2014		Contingent Consideration from New Acquisition*		Payment of Contingent Consideration		Adjustment of Contingent Consideration			Balance at June 30, 2015
Sterner Insurance Associates	$	680	$	1,525	$	—	$	402		$	2,607
Girard Partners	5,503		—		620		(112		)	4,771
John T. Fretz Insurance Agency	358		—		260		80			178
Total contingent consideration liability	$	6,541	$	1,525	$	880	$	370		$	7,556



	Six Months Ended June 30, 2014
(Dollars in thousands)	Balance at December 31, 2013		Contingent Consideration from New Acquisition		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at June 30, 2014
Girard Partners	$	—	$	5,470	$	—	$	384	$	5,854
John T. Fretz Insurance Agency	501		—		310		142		333
Total contingent consideration liability	$	501	$	5,470	$	310	$	526	$	6,187

Assets Measured at Fair Value on Non-Recurring Basis

The following table represents assets measured at fair value on a non-recurring basis at June 30, 2015 and December 31, 2014:



	At June 30, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	38,503	$	38,503
Total	$	—	$	—	$	38,503	$	38,503



	At December 31, 2014
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	55,193	$	55,193
Total	$	—	$	—	$	55,193	$	55,193

Assets, Liabilities and Off-Balance Sheet Items Not Measured at Fair Value

The following table presents assets and liabilities and off-balance sheet items not measured at fair value on a recurring or non-recurring basis in the Corporation’s consolidated balance sheets but for which the fair value is required to be disclosed at June 30, 2015 and December 31, 2014. The disclosed fair values are classified using the fair value hierarchy.



	At June 30, 2015
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	35,165	$	—		$	—	$	35,165		$	35,165
Held-to-maturity securities	—		43,431			—		43,431			43,135
Loans held for sale	—		9,060			—		9,060			8,831
Net loans and leases held for investment	—		—			2,047,354		2,047,354			2,049,752
Mortgage servicing rights	—		—			7,828		7,828			5,696
Other real estate owned	—		955			—		955			955
Total assets	$	35,165	$	53,446		$	2,055,182	$	2,143,793		$	2,143,534
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,807,344	$	—		$	—	$	1,807,344		$	1,807,344
Time deposits	—		457,569			—		457,569			455,681
Total deposits	1,807,344		457,569			—		2,264,913			2,263,025
Short-term borrowings	—		59,274			—		59,274			61,176
Subordinated notes	—		50,000			—		50,000			49,304
Total liabilities	$	1,807,344	$	566,843		$	—	$	2,374,187		$	2,373,505
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,742	)	$	—	$	(1,742	)	$	—



	At December 31, 2014
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	38,565	$	—		$	—	$	38,565		$	38,565
Held-to-maturity securities	—		54,765			—		54,765			54,347
Loans held for sale	—		3,374			—		3,374			3,302
Net loans and leases held for investment	—		—			1,555,033		1,555,033			1,550,770
Mortgage servicing rights	—		—			6,941		6,941			5,509
Other real estate owned	—		955			—		955			955
Total assets	$	38,565	$	59,094		$	1,561,974	$	1,659,633		$	1,653,448
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,608,748	$	—		$	—	$	1,608,748		$	1,608,748
Time deposits	—		254,224			—		254,224			252,593
Total deposits	1,608,748		254,224			—		1,862,972			1,861,341
Short-term borrowings	—		38,631			—		38,631			41,974
Total liabilities	$	1,608,748	$	292,855		$	—	$	1,901,603		$	1,903,315
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,420	)	$	—	$	(1,420	)	$	—