10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 31, 2016.

or

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from  to .

Commission File Number: 0-7617

UNIVEST CORPORATION OF PENNSYLVANIA

(Exact name of registrant as specified in its charter)

Pennsylvania	23-1886144
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

14 North Main Street, Souderton, Pennsylvania 18964

(Address of principal executive offices)(Zip Code)

Registrant’s telephone number, including area code: (215) 721-2400

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock, $5 par value	19,616,172
(Title of Class)	(Number of shares outstanding at April 29, 2016)

UNIVEST CORPORATION OF PENNSYLVANIA AND SUBSIDIARIES

INDEX

			Page Number
Part I.	Financial Information:
	Item 1.	Financial Statements (Unaudited)
		Consolidated Balance Sheets at March 31, 2016 and December 31, 2015	2
		Consolidated Statements of Income for the Three Months Ended March 31, 2016 and 2015	3
		Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2016 and 2015	4
		Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended March 31, 2016 and 2015	5
		Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2016 and 2015	6
		Notes to Consolidated Financial Statements	7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	38
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	53
	Item 4.	Controls and Procedures	53
Part II.	Other Information
	Item 1.	Legal Proceedings	53
	Item 1A.	Risk Factors	53
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	54
	Item 3.	Defaults Upon Senior Securities	54
	Item 4.	Mine Safety Disclosures	54
	Item 5.	Other Information	54
	Item 6.	Exhibits	55
Signatures			56

1

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

UNIVEST CORPORATION OF PENNSYLVANIA

CONSOLIDATED BALANCE SHEETS

	(UNAUDITED)
(Dollars in thousands, except share data)	At March 31, 2016			At December 31, 2015
ASSETS
Cash and due from banks	$	31,260		$	32,356
Interest-earning deposits with other banks	7,287			28,443
Investment securities held-to-maturity (fair value $37,031 and $41,061 at March 31, 2016 and December 31, 2015, respectively)	36,932			40,990
Investment securities available-for-sale	292,425			329,770
Loans held for sale	3,818			4,680
Loans and leases held for investment	2,183,256			2,179,013
Less: Reserve for loan and lease losses	(16,452		)	(17,628		)
Net loans and leases held for investment	2,166,804			2,161,385
Premises and equipment, net	43,385			42,156
Goodwill	112,657			112,657
Other intangibles, net of accumulated amortization and fair value adjustments of $14,349 and $15,360 at March 31, 2016 and December 31, 2015, respectively	12,096			12,620
Bank owned life insurance	72,030			71,560
Accrued interest receivable and other assets	46,083			42,834
Total assets	$	2,824,777		$	2,879,451
LIABILITIES
Noninterest-bearing deposits	$	559,827		$	541,460
Interest-bearing deposits:
Demand deposits	748,576			790,800
Savings deposits	643,050			607,694
Time deposits	382,908			454,406
Total deposits	2,334,361			2,394,360
Customer repurchase agreements	25,851			24,211
Subordinated notes	49,414			49,377
Accrued interest payable and other liabilities	48,148			49,929
Total liabilities	2,457,774			2,517,877
SHAREHOLDERS’ EQUITY
Common stock, $5 par value: 48,000,000 shares authorized at March 31, 2016 and December 31, 2015; 22,054,270 shares issued at March31, 2016 and December 31, 2015; 19,592,798 and 19,530,930 shares outstanding at March31, 2016 and December 31, 2015, respectively	110,271			110,271
Additional paid-in capital	120,906			121,280
Retained earnings	196,827			193,446
Accumulated other comprehensive loss, net of tax benefit	(15,481		)	(16,708		)
Treasury stock, at cost;2,461,472 and 2,523,340 shares at March 31, 2016 and December 31, 2015, respectively	(45,520		)	(46,715		)
Total shareholders’ equity	367,003			361,574
Total liabilities and shareholders’ equity	$	2,824,777		$	2,879,451

Note: See accompanying notes to the unaudited consolidated financial statements.

2

UNIVEST CORPORATION OF PENNSYLVANIA

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended   March 31,
(Dollars in thousands, except per share data)	2016		2015
Interest income
Interest and fees on loans and leases:
Taxable	$	21,850	$	21,254
Exempt from federal income taxes	1,716		1,584
Total interest and fees on loans and leases	23,566		22,838
Interest and dividends on investment securities:
Taxable	1,274		1,034
Exempt from federal income taxes	734		859
Interest on federal funds sold	7		2
Other interest income	28		5
Total interest income	25,609		24,738
Interest expense
Interest on deposits	1,533		1,417
Interest on short-term borrowings	3		10
Interest on long-term borrowings	675		7
Total interest expense	2,211		1,434
Net interest income	23,398		23,304
Provision for loan and lease losses	326		1,074
Net interest income after provision for loan and lease losses	23,072		22,230
Noninterest income
Trust fee income	1,865		1,820
Service charges on deposit accounts	998		1,063
Investment advisory commission and fee income	2,669		2,763
Insurance commission and fee income	4,558		4,146
Other service fee income	1,833		1,598
Bank owned life insurance income	470		353
Net gain on sales of investment securities	44		91
Net gain on mortgage banking activities	1,218		1,258
Other income	301		339
Total noninterest income	13,956		13,431
Noninterest expense
Salaries and benefits	14,182		13,314
Commissions	1,895		1,814
Net occupancy	2,096		2,358
Equipment	1,888		1,689
Professional fees	1,020		807
Marketing and advertising	538		360
Deposit insurance premiums	447		412
Intangible expenses	770		786
Acquisition-related costs	214		466
Integration costs	6		1,374
Other expense	3,883		4,031
Total noninterest expense	26,939		27,411
Income before income taxes	10,089		8,250
Income taxes	2,800		2,134
Net income	$	7,289	$	6,116
Net income per share:
Basic	$	0.37	$	0.31
Diluted	0.37		0.31
Dividends declared	0.20		0.20

Note: See accompanying notes to the unaudited consolidated financial statements.

3

UNIVEST CORPORATION OF PENNSYLVANIA

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended March 31,
(Dollars in thousands)	2016									2015
	Before Tax Amount			Tax Expense (Benefit)			Net of Tax Amount			Before Tax Amount			Tax Expense (Benefit)			Net of Tax Amount
Income	$	10,089		$	2,800		$	7,289		$	8,250		$	2,134		$	6,116
Other comprehensive income:
Net unrealized gains on available-for-sale investment securities:
Net unrealized holding gains arising during the period	2,218			776			1,442			2,158			755			1,403
Less: reclassification adjustment for net gains on sales realized in net income	(44		)	(15		)	(29		)	(91		)	(32		)	(59		)
Total net unrealized gains on available-for-sale investment securities	2,174			761			1,413			2,067			723			1,344
Net change in fair value of interest rate swaps used in cash flow hedges	(545		)	(191		)	(354		)	(337		)	(118		)	(219		)
Defined benefit pension plans:
Amortization of net actuarial loss included in net periodic pension costs	329			115			214			341			120			221
Accretion of prior service cost included in net periodic pension costs	(71		)	(25		)	(46		)	(70		)	(24		)	(46		)
Total defined benefit pension plans	258			90			168			271			96			175
Other comprehensive income	1,887			660			1,227			2,001			701			1,300
Total comprehensive income	$	11,976		$	3,460		$	8,516		$	10,251		$	2,835		$	7,416

Note: See accompanying notes to the unaudited consolidated financial statements.

4

UNIVEST CORPORATION OF PENNSYLVANIA

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)

(Dollars in thousands, except share and per share data)	Common Shares Outstanding		Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive (Loss) Income			Treasury Stock			Total
Three Months Ended March 31, 2016
Balance at December 31, 2015	19,530,930		$	110,271	$	121,280		$	193,446		$	(16,708	)	$	(46,715	)	$	361,574
Net income	—		—		—			7,289			—			—			7,289
Other comprehensive income, net of income tax	—		—		—			—			1,227			—			1,227
Cash dividends declared ($0.20 per share)	—		—		—			(3,908		)	—			—			(3,908		)
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs	30,121		—		8			—			—			609			617
Exercise of stock options	14,167		—		(27		)	—			—			265			238
Repurchase of cancelled restricted stock awards	(14,250	)	—		241			—			—			(241		)	—
Stock-based compensation	—		—		451			—			—			—			451
Net tax benefit on stock-based compensation	—		—		36			—			—			—			36
Purchases of treasury stock	(26,750	)	—		—			—			—			(521		)	(521		)
Restricted stock awards granted	58,580		—		(1,083		)	—			—			1,083			—
Balance at March 31, 2016	19,592,798		$	110,271	$	120,906		$	196,827		$	(15,481	)	$	(45,520	)	$	367,003

(Dollars in thousands, except share and per share data)	Common Shares Outstanding		Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive (Loss) Income			Treasury Stock			Total
Three Months Ended March 31, 2015
Balance at December 31, 2014	16,221,607		$	91,332	$	62,980		$	181,851		$	(14,462	)	$	(37,147	)	$	284,554
Net income	—		—		—			6,116			—			—			6,116
Other comprehensive income, net of income tax	—		—		—			—			1,300			—			1,300
Cash dividends declared ($0.20 per share)	—		—		—			(3,991		)	—			—			(3,991		)
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs	35,262		—		18			—			—			677			695
Issuance of common stock, acquisition	3,787,866		18,939		57,727			—			—			—			76,666
Exercise of stock options	4,000		—		(7		)	—			—			73			66
Repurchase of cancelled restricted stock awards	(12,375	)	—		183			—			—			(183		)	—
Stock-based compensation	—		—		412			—			—			—			412
Purchases of treasury stock	(281,291	)	—		—			—			—			(5,424		)	(5,424		)
Restricted stock awards granted	65,755		—		(1,195		)	—			—			1,195			—
Balance at March 31, 2015	19,820,824		$	110,271	$	120,118		$	183,976		$	(13,162	)	$	(40,809	)	$	360,394

Note: See accompanying notes to the unaudited consolidated financial statements.

5

UNIVEST CORPORATION OF PENNSYLVANIA

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended March 31,
(Dollars in thousands)	2016			2015
Cash flows from operating activities:
Net income	$	7,289		$	6,116
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan and lease losses	326			1,074
Depreciation of premises and equipment	942			1,038
Net gain on sales of investment securities	(44		)	(91		)
Net gain on mortgage banking activities	(1,218		)	(1,258		)
Bank owned life insurance income	(470		)	(353		)
Net accretion of acquisition accounting fair value adjustments	(100		)	(543		)
Stock-based compensation	451			412
Intangible expenses	770			786
Other adjustments to reconcile net income to cash provided by operating activities	325			323
Deferred tax expense	905			1,131
Originations of loans held for sale	(44,414		)	(47,453		)
Proceeds from the sale of loans held for sale	46,003			46,141
Contributions to pension and other postretirement benefit plans	(60		)	(81		)
Increase in accrued interest receivable and other assets	(2,385		)	(166		)
Decrease in accrued interest payable and other liabilities	(1,469		)	(2,239		)
Net cash provided by operating activities	6,851			4,837
Cash flows from investing activities:
Net cash paid due to acquisitions	—			(2,967		)
Net capital expenditures	(2,177		)	(1,189		)
Proceeds from maturities and calls of securities held-to-maturity	4,000			4,000
Proceeds from maturities and calls of securities available-for-sale	18,693			13,575
Proceeds from sales of securities available-for-sale	53,181			271
Purchases of investment securities available-for-sale	(32,573		)	(15,134		)
Net increase in loans and leases	(7,507		)	(35,925		)
Net decrease (increase) in interest-earning deposits	21,156			(29,947		)
Net decrease in federal funds sold	—			9,099
Net cash provided by (used in) investing activities	54,773			(58,217		)
Cash flows from financing activities:
Net (decrease) increase in deposits	(59,934		)	7,752
Net increase in short-term borrowings	1,640			179
Proceeds from issuance of subordinated notes	—			49,270
Payment of contingent consideration on acquisitions	(900		)	(620		)
Purchases of treasury stock	(521		)	(5,424		)
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs	617			695
Proceeds from exercise of stock options, including excess tax benefits	274			112
Cash dividends paid	(3,896		)	(3,237		)
Net cash (used in) provided by financing activities	(62,720		)	48,727
Net decrease in cash and due from banks	(1,096		)	(4,653		)
Cash and due from banks at beginning of year	32,356			31,995
Cash and due from banks at end of period	$	31,260		$	27,342
Supplemental disclosures of cash flow information:
Cash paid for interest	$	3,113		$	1,635
Cash paid (received) for income taxes, net of refunds	685			(530		)
Non cash transactions:
Transfer of loans to other real estate owned	$	1,797		$	—
Assets acquired through acquisitions	—			425,834
Liabilities assumed through acquisitions	—			389,907
Contingent consideration recorded as goodwill	—			1,424

Note: See accompanying notes to the unaudited consolidated financial statements.

6

UNIVEST CORPORATION OF PENNSYLVANIA AND SUBSIDIARIES

Notes to the Unaudited Consolidated Financial Statements

Note 1. Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of Univest Corporation of Pennsylvania (the Corporation or Univest) and its wholly owned subsidiaries; the Corporation’s primary subsidiary is Univest Bank and Trust Co. (the Bank). All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited interim consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations for interim financial information. The accompanying unaudited consolidated financial statements reflect all adjustments which are of a normal recurring nature and are, in the opinion of management, necessary for a fair presentation of the financial statements for the interim periods presented. Certain prior period amounts have been reclassified to conform to the current-year presentation. Operating results for the three-month period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ended December 31, 2016. It is suggested that these unaudited consolidated financial statements be read in conjunction with the audited financial statements and the notes thereto included in the registrant’s Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the SEC on March 4, 2016.

Use of Estimates

The preparation of the unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes include fair value measurement of investment securities available-for-sale and assessment for impairment of certain investment securities, reserve for loan and lease losses, valuation of goodwill and other intangible assets, mortgage servicing rights, deferred tax assets and liabilities, benefit plans and stock-based compensation expense.

Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) to simplify and improve employee share-based payment accounting. Under the new guidance, all excess tax benefits and tax deficiencies are recognized as an income tax benefit or expense in the income statement. The additional paid-in capital pool is eliminated. Excess tax benefits and deficiencies are recognized in the period they are deducted on the income tax return. Excess tax benefits are recorded along with other income tax cash flows as an operating activity in the statement of cash flows. The recognition of excess tax benefits and deficiencies and changes to diluted earnings per share are to be applied prospectively when this ASU is adopted. For tax benefits that were not previously recognized because the related tax deduction had not reduced taxes payable, entities record a cumulative-effect adjustment in retained earnings as of the beginning of the year of adoption. The Corporation does not record deferred tax benefits on incentive stock options when expense is accrued, therefore, the Corporation will not have a cumulative-effect adjustment when this ASU is adopted. Changes to the treatment of forfeitures will not impact the Corporation as the historical assumption for forfeitures was immaterial and not taken into account during valuations; the Corporation has recorded forfeitures as they occurred which is consistent with the new guidance. The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities, or January 1, 2017 for the Corporation. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. The Corporation does not anticipate that the adoption of this ASU will have a material impact on the financial statements.

In March 2016, the FASB issued an ASU to amend the guidance for hedge accounting to clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The amendments in this ASU are effective for financial statements of public businesses issued for fiscal years and interim periods within those years beginning after December 15, 2016, or January 1, 2017 for the Corporation. The Corporation does not anticipate the adoption of this ASU will have any impact on the financial statements.

In February 2016, the FASB issued an ASU to revise the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases. Disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical

7

expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. The ASU is effective for the first interim period within annual periods beginning after December 15, 2018, or January 1, 2019, with early adoption permitted. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements; however, the adoption of this ASU will impact the balance sheet for the recording of assets and liabilities for operating leases; any initial or continued impact of the recording of assets will have an impact on risk-based capital ratios under current regulatory guidance and possibly equity ratios.

In January 2016, the FASB issued an ASU to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The ASU will require equity investments to be measured at fair value with changes in fair value recognized in net income. When fair value is not readily determinable, an entity may elect to measure the equity investment at cost, minus impairment, plus or minus any change in the investment’s observable price. The ASU will simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. A valuation allowance on a deferred tax asset related to available-for-sale securities will need to be included. For financial liabilities that are measured at fair value, the ASU requires an entity to present separately, in other comprehensive income, any change in fair value resulting from a change in instrument-specific credit risk. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. The amendments in this ASU are effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017 or January 1, 2018 for the Corporation. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements.

In September 2015, the FASB issued an ASU simplifying the accounting for measurement-period adjustments related to business combinations. The ASU eliminates the requirement to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. Under this ASU, measurement-period adjustments are calculated as if they were known at the acquisition date, but are recognized in the reporting period in which they are determined. The ASU requires additional disclosures about the impact on current period income statement line items of adjustments that would have been recognized in prior periods if prior period information had been revised. The amendments in this ASU were effective for financial statements of public businesses issued for fiscal years and interim periods within those years beginning after December 15, 2015, or January 1, 2016 for the Corporation. The adoption of this guidance did not impact the Corporation's financial statements.

In April 2015, the FASB issued an ASU simplifying the presentation of debt issuance costs. The ASU requires that debt issuance costs related to a recognized debt liability shall be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The costs will continue to be amortized to interest expense using the effective interest method. The ASU was effective for financial statements of public businesses issued for fiscal years beginning after December 15, 2015, or January 1, 2016 for the Corporation. The adoption of this ASU did not impact the Corporation's balance sheet presentation as the Corporation followed this presentation consistent with the guidance in FASB Concepts Statement No. 6.

In May 2014, the FASB issued an ASU regarding revenue from contracts with customers which clarifies the principles for recognizing revenue and develops a common standard for U.S. GAAP and International Financial Reporting Standards. The ASU establishes a core principle that would require an entity to identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. The ASU provides for improved disclosure requirements that require entities to disclose sufficient information that enables users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In March 2016, the FASB issued an ASU clarifying the implementation guidance on the principal-versus-agent considerations in the revenue recognition standard by instructing the participants in the sale to determine whether they control the good or service and are entitled to the gross amount of the transaction or are acting as an agent and should collect only a fee or commission for arranging the sale. The original effective date of the guidance relating to revenue from contracts with customers was deferred in August 2015 by one year. This guidance is now effective for fiscal years and interim periods within those years beginning after December 15, 2017, or January 1, 2018 for the Corporation. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements; however, it is anticipated the impact will be only related to timing.

8

Note 2. Acquisition

Fox Chase Bancorp

On December 8, 2015, the Corporation and Fox Chase Bancorp, Inc. (Fox Chase), parent company of Fox Chase Bank, entered into an Agreement and Plan of Merger pursuant to which Fox Chase will be merged with and into the Corporation in a cash and stock transaction with an aggregate value of approximately $239.3 million. Fox Chase had $1.1 billion in assets, $776.7 million in loans, and $815.7 million in deposits at March 31, 2016. Fox Chase's main office is in Hatboro, Pennsylvania and operates full-service banking offices in Pennsylvania and New Jersey. Upon completion, the Corporation's presence will expand in Bucks, Chester, Philadelphia and Montgomery counties in Pennsylvania and into Atlantic and Cape May counties in New Jersey, complementing and expanding the Corporation's existing network of financial centers.

Upon completion of the merger, Fox Chase shareholders will have the right to receive either $21.00 in cash, or a fixed exchange ratio of 0.9731 shares of the Corporation’s common stock, or a combination of the two, for outstanding shares of Fox Chase. The stock/cash election is subject to allocation provisions to assure that 40% of Fox Chase shares receive cash consideration and 60% of Fox Chase shares receive stock consideration. The Merger Agreement has been approved by the Boards of Directors of the Corporation, the Bank, Fox Chase and Fox Chase Bank and remains subject to approval by the shareholders of both companies, as well as their regulatory authorities. The transaction is expected to qualify as a tax-free reorganization for federal income tax purposes. The transaction is expected to close in the third quarter of 2016.

In January 2016, the Corporation approved a $30.0 million discretionary overnight federal funds line to Fox Chase Bank at a rate of one-month LIBOR plus 0.05%. At March 31, 2016, the Corporation had no outstanding federal funds sold to Fox Chase Bank. During the first quarter of 2016, average federal funds sold to Fox Chase Bank were $5.9 million.

9

Note 3. Investment Securities

The following table shows the amortized cost and the estimated fair value of the held-to-maturity securities and available-for-sale securities at March 31, 2016 and December 31, 2015, by contractual maturity within each type:

	At March 31, 2016									At December 31, 2015
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Held-to-Maturity
Corporate bonds:
Within 1 year	$	26,924	$	114	$	—		$	27,038	$	21,047	$	134	$	—		$	21,181
After 1 year to 5 years	10,008		26		(41		)	9,993		19,943		1		(64		)	19,880
	36,932		140		(41		)	37,031		40,990		135		(64		)	41,061
Total	$	36,932	$	140	$	(41	)	$	37,031	$	40,990	$	135	$	(64	)	$	41,061
Securities Available-for-Sale
U.S. treasuries:
After 1 year to 5 years	$	—	$	—	$	—		$	—	$	4,978	$	—	$	(91	)	$	4,887
	—		—		—			—		4,978		—		(91		)	4,887
U.S. government corporations and agencies:
Within 1 year	10,278		2		—			10,280		10,389		—		(29		)	10,360
After 1 year to 5 years	57,085		302		—			57,387		92,148		26		(378		)	91,796
	67,363		304		—			67,667		102,537		26		(407		)	102,156
State and political subdivisions:
After 1 year to 5 years	17,125		134		(12		)	17,247		17,362		80		(29		)	17,413
After 5 years to 10 years	50,335		1,382		(17		)	51,700		47,969		1,188		(32		)	49,125
Over 10 years	32,560		1,301		—			33,861		34,334		1,160		—			35,494
	100,020		2,817		(29		)	102,808		99,665		2,428		(61		)	102,032
Residential mortgage-backed securities:
After 1 year to 5 years	4,920		6		—			4,926		9,713		12		(13		)	9,712
After 5 years to 10 years	59		1		—			60		60		—		—			60
Over 10 years	3,497		91		—			3,588		3,517		65		—			3,582
	8,476		98		—			8,574		13,290		77		(13		)	13,354
Collateralized mortgage obligations:
Over 10 years	3,080		—		(24		)	3,056		3,215		—		(82		)	3,133
	3,080		—		(24		)	3,056		3,215		—		(82		)	3,133
Corporate bonds:
Within 1 year	250		—		—			250		250		—		—			250
After 1 year to 5 years	18,862		142		(44		)	18,960		19,446		25		(158		)	19,313
After 5 years to 10 years	15,122		95		(63		)	15,154		10,148		—		(266		)	9,882
Over 10 years	60,000		857		(3,218		)	57,639		60,000		—		(2,770		)	57,230
	94,234		1,094		(3,325		)	92,003		89,844		25		(3,194		)	86,675
Money market mutual funds:
No stated maturity	17,563		—		—			17,563		16,726		—		—			16,726
	17,563		—		—			17,563		16,726		—		—			16,726
Equity securities:
No stated maturity	426		328		—			754		426		381		—			807
	426		328		—			754		426		381		—			807
Total	$	291,162	$	4,641	$	(3,378	)	$	292,425	$	330,681	$	2,937	$	(3,848	)	$	329,770

Expected maturities may differ from contractual maturities because debt issuers may have the right to call or prepay obligations without call or prepayment penalties. Unrealized losses in investment securities at March 31, 2016 and December 31, 2015 do not represent other-than-temporary impairments.

Securities with a carrying value of $157.4 million and $210.1 million at March 31, 2016 and December 31, 2015, respectively, were pledged to secure public deposits and for other purposes as required by law.

10

The following table presents information related to sales of securities available-for-sale during the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31,
(Dollars in thousands)	2016		2015
Securities available-for-sale:
Proceeds from sales	$	53,181	$	271
Gross realized gains on sales	106		91
Gross realized losses on sales	62		—
Tax expense related to net realized gains on sales	15		32

Management evaluates debt securities, which are comprised of U.S. government, government sponsored agencies, municipalities, corporate bonds and other issuers, for other-than-temporary impairment by considering the current economic conditions, the length of time and the extent to which the fair value has been less than cost, market interest rates and the bond rating of each security. All of the debt securities are rated as investment grade and management believes that it will not incur any losses. The unrealized losses on the Corporation’s investments in debt securities are temporary in nature since they are primarily related to market interest rates and are not related to the underlying credit quality of the issuers. The Corporation does not have the intent to sell the debt securities and believes it is more likely than not, that it will not have to sell the securities before recovery of their cost basis. The Corporation did not recognize any other-than-temporary impairment charges on debt securities for the three months ended March 31, 2016 and 2015.

The Corporation evaluates its equity securities for other-than-temporary impairment and recognizes other-than-temporary impairment charges when it has determined that it is probable that the fair value of certain equity securities will not recover to the Corporation’s cost basis in the individual securities within a reasonable period of time due to a decline in the financial stability of the underlying companies. Management evaluates the near-term prospects of the issuers in relation to the severity and duration of the impairment. The Corporation has the intent and ability to hold these securities until recovery of the Corporation’s cost basis occurs. The Corporation did not recognize any other-than-temporary impairment charges on its equity portfolio during the three months ended March 31, 2016 and 2015.

At March 31, 2016 and December 31, 2015, there were no investments in any single non-federal issuer representing more than 10% of shareholders’ equity.

11

The following table shows the fair value of securities that were in an unrealized loss position at March 31, 2016 and December 31, 2015 by the length of time those securities were in a continuous loss position:

	Less than Twelve Months					Twelve Months or Longer					Total
(Dollars in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
At March 31, 2016
Securities Held-to-Maturity
Corporate bonds	$	—	$	—		$	4,965	$	(41	)	$	4,965	$	(41	)
Total	$	—	$	—		$	4,965	$	(41	)	$	4,965	$	(41	)
Securities Available-for-Sale
U.S. government corporations and agencies	$	5,126	$	—		$	5,000	$	—		$	10,126	$	—
State and political subdivisions	5,669		(8		)	2,620		(21		)	8,289		(29		)
Collateralized mortgage obligations	—		—			3,056		(24		)	3,056		(24		)
Corporate bonds	42,051		(3,231		)	11,251		(94		)	53,302		(3,325		)
Equity securities	4		—			—		—			4		—
Total	$	52,850	$	(3,239	)	$	21,927	$	(139	)	$	74,777	$	(3,378	)
At December 31, 2015
Securities Held-to-Maturity
Corporate bonds	$	12,078	$	(9	)	$	4,953	$	(55	)	$	17,031	$	(64	)
Total	$	12,078	$	(9	)	$	4,953	$	(55	)	$	17,031	$	(64	)
Securities Available-for-Sale
U.S. treasuries	$	—	$	—		$	4,887	$	(91	)	$	4,887	$	(91	)
U.S. government corporations and agencies	72,157		(379		)	4,972		(28		)	77,129		(407		)
State and political subdivisions	10,251		(49		)	1,335		(12		)	11,586		(61		)
Residential mortgage-backed securities	4,751		(13		)	—		—			4,751		(13		)
Collateralized mortgage obligations	—		—			3,133		(82		)	3,133		(82		)
Corporate bonds	72,234		(2,941		)	10,669		(253		)	82,903		(3,194		)
Total	$	159,393	$	(3,382	)	$	24,996	$	(466	)	$	184,389	$	(3,848	)

Note 4. Loans and Leases

Summary of Major Loan and Lease Categories

	At March 31, 2016
(Dollars in thousands)	Originated			Acquired		Total
Commercial, financial and agricultural	$	486,112		$	21,207	$	507,319
Real estate-commercial	760,492			120,928		881,420
Real estate-construction	90,567			2,004		92,571
Real estate-residential secured for business purpose	103,591			114,673		218,264
Real estate-residential secured for personal purpose	185,482			3,227		188,709
Real estate-home equity secured for personal purpose	129,907			10,831		140,738
Loans to individuals	28,140			281		28,421
Lease financings	125,814			—		125,814
Total loans and leases held for investment, net of deferred income	$	1,910,105		$	273,151	$	2,183,256
Unearned lease income, included in the above table	$	(13,793	)	$	—	$	(13,793	)
Net deferred costs, included in the above table	4,568			—		4,568
Overdraft deposits included in the above table	58			—		58

12

	At December 31, 2015
(Dollars in thousands)	Originated			Acquired		Total
Commercial, financial and agricultural	$	479,980		$	24,535	$	504,515
Real estate-commercial	759,342			126,550		885,892
Real estate-construction	91,904			4,637		96,541
Real estate-residential secured for business purpose	94,280			124,503		218,783
Real estate-residential secured for personal purpose	177,850			3,305		181,155
Real estate-home equity secured for personal purpose	125,361			11,594		136,955
Loans to individuals	29,406			326		29,732
Lease financings	125,440			—		125,440
Total loans and leases held for investment, net of deferred income	$	1,883,563		$	295,450	$	2,179,013
Unearned lease income, included in the above table	$	(13,829	)	$	—	$	(13,829	)
Net deferred costs, included in the above table	4,244			—		4,244
Overdraft deposits included in the above table	35			—		35

Overdraft deposits are re-classified as loans and are included in the total loans and leases on the balance sheet.

The carrying amount of acquired loans at March 31, 2016 totaled $273.2 million, including $1.3 million of loans acquired with deteriorated credit quality, or acquired credit impaired loans from the Valley Green Bank acquisition. Acquired credit impaired loans are accounted for in accordance with Accounting Standards Codification (ASC) Topic 310-30.

The outstanding principal balance and carrying amount for acquired credit impaired loans at March 31, 2016 and December 31, 2015 were as follows:

(Dollars in thousands)	At March 31, 2016		At December 31, 2015
Outstanding principal balance	$	3,186	$	3,551
Carrying amount	1,267		1,253
Allowance for loan losses	8		8

The following table presents the changes in accretable yield on acquired credit impaired loans:

(Dollars in thousands)	Three Months Ended March 31, 2016
Beginning of period	$	144
Reclassification from nonaccretable difference	46
Accretable yield amortized to interest income	(74		)
End of period	$	116

13

Age Analysis of Past Due Loans and Leases

The following presents, by class of loans and leases, an aging of past due loans and leases, loans and leases which are current and the recorded investment in loans and leases 90 days or more past due which are accruing interest at March 31, 2016 and December 31, 2015:

(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current		Acquired Credit Impaired		Total Loans and Leases Held for Investment		Recorded Investment 90 Days or more Past Due and Accruing Interest
At March 31, 2016
Commercial, financial and agricultural	$	130	$	—	$	2,128	$	2,258	$	505,061	$	—	$	507,319	$	—
Real estate—commercial real estate and construction:
Commercial real estate	225		—		912		1,137		879,766		517		881,420		—
Construction	—		—		—		—		92,571		—		92,571		—
Real estate—residential and home equity:
Residential secured for business purpose	3,562		62		887		4,511		213,003		750		218,264		—
Residential secured for personal purpose	673		52		469		1,194		187,515		—		188,709		125
Home equity secured for personal purpose	210		159		483		852		139,886		—		140,738		353
Loans to individuals	289		137		205		631		27,790		—		28,421		205
Lease financings	1,376		413		431		2,220		123,594		—		125,814		10
Total	$	6,465	$	823	$	5,515	$	12,803	$	2,169,186	$	1,267	$	2,183,256	$	693
At December 31, 2015
Commercial, financial and agricultural	$	864	$	298	$	4,279	$	5,441	$	498,757	$	317	$	504,515	$	—
Real estate—commercial real estate and construction:
Commercial real estate	12,103		—		1,102		13,205		872,174		513		885,892		—
Construction	—		—		—		—		96,541		—		96,541		—
Real estate—residential and home equity:
Residential secured for business purpose	1,406		2,356		727		4,489		213,871		423		218,783		—
Residential secured for personal purpose	990		69		309		1,368		179,787		—		181,155		—
Home equity secured for personal purpose	777		52		174		1,003		135,952		—		136,955		—
Loans to individuals	198		97		173		468		29,264		—		29,732		173
Lease financings	1,294		652		646		2,592		122,848		—		125,440		206
Total	$	17,632	$	3,524	$	7,410	$	28,566	$	2,149,194	$	1,253	$	2,179,013	$	379

14

Non-Performing Loans and Leases

The following presents, by class of loans and leases, non-performing loans and leases at March 31, 2016 and December 31, 2015:

	At March 31, 2016								At December 31, 2015
(Dollars in thousands)	Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Non- Performing Loans and Leases		Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Non- Performing Loans and Leases
Commercial, financial and agricultural	$	6,080	$	1,443	$	—	$	7,523	$	6,915	$	1,602	$	—	$	8,517
Real estate—commercial real estate and construction:
Commercial real estate	3,981		2,417		—		6,398		4,314		2,449		—		6,763
Real estate—residential and home equity:
Residential secured for business purpose	2,496		413		—		2,909		1,863		763		—		2,626
Residential secured for personal purpose	375		—		125		500		376		421		—		797
Home equity secured for personal purpose	129		—		353		482		275		—		—		275
Loans to individuals	—		—		205		205		—		—		173		173
Lease financings	421		6		10		437		440		10		206		656
Total	$	13,482	$	4,279	$	693	$	18,454	$	14,183	$	5,245	$	379	$	19,807

* Includes nonaccrual troubled debt restructured loans and lease modifications of $1.5 million and $93 thousand at March 31, 2016 and December 31, 2015, respectively.

Credit Quality Indicators

The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at March 31, 2016 and December 31, 2015.

The Corporation employs a ten (10) grade risk rating system related to the credit quality of commercial loans and residential real estate loans secured for a business purpose of which the first six categories are pass categories (credits not adversely rated). The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. Loans with risk ratings of one through five are reviewed based on the relationship dollar amount with the borrower: loans with a relationship total of $2.5 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.5 million but greater than $500 thousand are reviewed annually based on the borrower’s fiscal year; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with a risk rating of six are also reviewed based on the relationship dollar amount with the borrower: loans with a relationship balance of $2.0 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.0 million but greater than $500 thousand are reviewed annually; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with a risk rating of seven are reviewed at least quarterly, and as often as monthly, at management’s discretion. Loans with risk ratings of eight through ten are reviewed monthly.

1. Cash Secured—No credit risk

2. Fully Secured—Negligible credit risk

3. Strong—Minimal credit risk

4. Satisfactory—Nominal credit risk

5. Acceptable—Moderate credit risk

6. Pre-Watch—Marginal, but stable credit risk

7. Special Mention—Potential weakness

8. Substandard—Well-defined weakness

9. Doubtful—Collection in-full improbable

10. Loss—Considered uncollectible

15

Commercial Credit Exposure Credit Risk by Internally Assigned Grades

The following table presents classifications for originated loans:

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial		Real Estate— Construction		Real Estate— Residential Secured for Business Purpose		Total
At March 31, 2016
Grade:
1. Cash secured/ 2. Fully secured	$	527	$	—	$	4,902	$	—	$	5,429
3. Strong	17,817		2,998		—		—		20,815
4. Satisfactory	27,198		36,971		450		8		64,627
5. Acceptable	340,778		525,195		76,592		87,621		1,030,186
6. Pre-watch	63,932		125,085		8,245		10,921		208,183
7. Special Mention	8,395		29,977		—		115		38,487
8. Substandard	27,465		40,266		378		4,926		73,035
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	486,112	$	760,492	$	90,567	$	103,591	$	1,440,762
At December 31, 2015
Grade:
1. Cash secured/ 2. Fully secured	$	968	$	—	$	5,417	$	—	$	6,385
3. Strong	17,328		10,877		—		—		28,205
4. Satisfactory	36,697		36,023		450		9		73,179
5. Acceptable	328,140		530,766		72,630		78,659		1,010,195
6. Pre-watch	61,098		119,117		13,262		7,161		200,638
7. Special Mention	6,074		20,286		—		2,347		28,707
8. Substandard	29,675		42,273		145		6,104		78,197
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	479,980	$	759,342	$	91,904	$	94,280	$	1,425,506

16

The following table presents classifications for acquired loans:

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial		Real Estate— Construction		Real Estate— Residential Secured for Business Purpose		Total
At March 31, 2016
Grade:
1. Cash secured/ 2. Fully secured	$	1,405	$	—	$	—	$	—	$	1,405
3. Strong	—		—		—		—		—
4. Satisfactory	1,163		3,000		—		604		4,767
5. Acceptable	15,557		98,120		2,004		103,018		218,699
6. Pre-watch	2,190		10,757		—		7,794		20,741
7. Special Mention	—		7,407		—		623		8,030
8. Substandard	892		1,644		—		2,634		5,170
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	21,207	$	120,928	$	2,004	$	114,673	$	258,812
December 31, 2015
Grade:
1. Cash secured/ 2. Fully secured	$	1,411	$	—	$	—	$	—	$	1,411
3. Strong	—		—		—		—		—
4. Satisfactory	1,181		3,561		—		608		5,350
5. Acceptable	18,446		102,122		4,637		113,002		238,207
6. Pre-watch	2,273		10,365		—		8,153		20,791
7. Special Mention	417		8,853		—		367		9,637
8. Substandard	807		1,649		—		2,373		4,829
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	24,535	$	126,550	$	4,637	$	124,503	$	280,225

Credit Exposure—Real Estate—Residential Secured for Personal Purpose, Real Estate—Home Equity Secured for Personal Purpose, Loans to individuals, Lease Financing Credit Risk Profile by Payment Activity

The Corporation monitors the credit risk profile by payment activity for the following classifications of loans and leases: residential real estate loans secured for a personal purpose, home equity loans secured for a personal purpose, loans to individuals and lease financings. Nonperforming loans and leases are loans past due 90 days or more, loans and leases on nonaccrual of interest and troubled debt restructured loans and lease modifications. Performing loans and leases are reviewed only if the loan becomes 60 days or more past due. Nonperforming loans and leases are reviewed monthly. Performing loans and leases have a nominal to moderate risk of loss. Nonperforming loans and leases are loans or leases with a well-defined weakness and where collection in-full is unlikely.

The following table presents classifications for originated loans:

(Dollars in thousands)	Real Estate— Residential Secured for Personal Purpose		Real Estate— Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financing		Total
At March 31, 2016
Performing	$	184,982	$	129,425	$	27,935	$	125,377	$	467,719
Nonperforming	500		482		205		437		1,624
Total	$	185,482	$	129,907	$	28,140	$	125,814	$	469,343
At December 31, 2015
Performing	$	177,053	$	125,086	$	29,233	$	124,784	$	456,156
Nonperforming	797		275		173		656		1,901
Total	$	177,850	$	125,361	$	29,406	$	125,440	$	458,057

17

The following table presents classifications for acquired loans:

(Dollars in thousands)	Real Estate— Residential Secured for Personal Purpose		Real Estate— Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financing		Total
At March 31, 2016
Performing	$	3,227	$	10,831	$	281	$	—	$	14,339
Nonperforming	—		—		—		—		—
Total	$	3,227	$	10,831	$	281	$	—	$	14,339
At December 31, 2015
Performing	$	3,305	$	11,594	$	326	$	—	$	15,225
Nonperforming	—		—		—		—		—
Total	$	3,305	$	11,594	$	326	$	—	$	15,225

Risks associated with lending activities include, among other things, the impact of changes in interest rates and economic conditions, which may adversely impact the ability of borrowers to repay outstanding loans, and impact the value of the associated collateral.

Commercial, financial and agricultural loans, commercial real estate loans, construction loans and residential real estate loans with a business purpose are generally perceived as having more risk of default than residential real estate loans with a personal purpose and consumer loans. These types of loans involve larger loan balances to a single borrower or groups of related borrowers. Commercial real estate loans may be affected to a greater extent than residential loans by adverse conditions in real estate markets or the economy because commercial real estate borrowers’ ability to repay their loans depends on successful development of their properties and factors affecting residential real estate borrowers.

Commercial, financial and agricultural business loans are typically based on the borrowers’ ability to repay the loans from the cash flow of their businesses. These loans may involve greater risk because the availability of funds to repay each loan depends substantially on the success of the business. In addition, the collateral securing the loans often depreciates over time, is difficult to appraise and liquidate and fluctuates in value based on the success of the business.

Risk of loss on a construction loan depends largely upon whether our initial estimate of the property’s value at completion of construction equals or exceeds the cost of the property construction (including interest). During the construction phase, a number of factors can result in delays and cost overruns. If estimates of value are inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan or by seizure of collateral. Included in real estate-construction is track development financing. Risk factors related to track development financing include the demand for residential housing and the real estate valuation market. When projects move slower than anticipated, the properties may have significantly lower values than when the original underwriting was completed, resulting in lower collateral values to support the loan. Extended time frames also cause the interest carrying cost for a project to be higher than the builder projected, negatively impacting the builder’s profit and cash flow and, therefore, their ability to make principal and interest payments.

Commercial real estate loans and residential real estate loans with a business purpose secured by owner-occupied properties are dependent upon the successful operation of the borrower’s business. If the operating company suffers difficulties in terms of sales volume and/or profitability, the borrower’s ability to repay the loan may be impaired. Loans secured by properties where repayment is dependent upon payment of rent by third party tenants or the sale of the property may be impacted by loss of tenants, lower lease rates needed to attract new tenants or the inability to sell a completed project in a timely fashion and at a profit.

Commercial, financial and agricultural loans, commercial real estate loans, construction loans and residential real estate loans secured for a business purpose are more susceptible to a risk of loss during a downturn in the business cycle. While the Corporation has strict underwriting, review, and monitoring procedures in place, these procedures cannot eliminate all of the risks related to these loans.

The Corporation focuses on both assessing the borrower’s capacity and willingness to repay and on obtaining sufficient collateral. Commercial, financial and agricultural loans are generally secured by the borrower’s assets and by personal guarantees. Commercial real estate and residential real estate loans secured for a business purpose are originated primarily within the Southeastern Pennsylvania market area at conservative loan-to-value ratios and often with a guarantee of the borrowers.

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Management closely monitors the composition and quality of the total commercial loan portfolio to ensure that any credit concentrations by borrower or industry are closely monitored.

The Corporation originates fixed-rate and adjustable-rate real estate-residential mortgage loans that are secured by the underlying 1-to-4 family residential properties for personal purposes. Credit risk exposure in this area of lending is minimized by the evaluation of the credit worthiness of the borrower, including debt-to-equity ratios, credit scores and adherence to underwriting policies that emphasize conservative loan-to-value ratios of generally no more than 80%. Residential mortgage loans granted in excess of the 80% loan-to-value ratio criterion are generally insured by private mortgage insurance.

In the real estate-home equity loan portfolio secured for a personal purpose, credit exposure is minimized by the evaluation of the creditworthiness of the borrower, including debt-to-equity ratios, credit scores and adherence to the Corporation’s underwriting policies. Combined loan-to-value ratios are generally limited to 80%, but increased to 85% for the Corporation’s strongest profile borrower. Other credit considerations and compensating factors may support higher combined loan-to-value ratios.

Credit risk for consumer loans is controlled by strict adherence to underwriting standards that consider debt-to-income levels and the creditworthiness of the borrower and, if secured, collateral values. These loans are included within the portfolio of loans to individuals.

The primary risks that are involved with lease financing receivables are credit underwriting and borrower industry concentrations. The Corporation has strict underwriting, review, and monitoring procedures in place to mitigate this risk. Risk also lies in the residual value of the underlying equipment. Residual values are subject to judgments as to the value of the underlying equipment that can be affected by changes in economic and market conditions and the financial viability of the residual guarantors and insurers. To the extent not guaranteed or assumed by a third party, or otherwise insured against, the Corporation bears the risk of ownership of the leased assets. This includes the risk that the actual value of the leased assets at the end of the lease term will be less than the residual value. The Corporation greatly reduces this risk primarily by using $1.00 buyout leases, in which the entire cost of the leased equipment is included in the contractual payments, leaving no residual payment at the end of the lease term.

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Reserve for Loan and Lease Losses and Recorded Investment in Loans and Leases

The following presents, by portfolio segment, a summary of the activity in the reserve for loan and lease losses, the balance in the reserve for loan and lease losses disaggregated on the basis of impairment method and the recorded investment in loans and leases disaggregated on the basis of impairment method for the three months ended March 31, 2016 and 2015:

(Dollars in thousands)	Commercial, Financial and Agricultural			Real Estate— Commercial and Construction			Real Estate— Residential Secured for Business Purpose			Real Estate— Residential and Home Equity Secured for Personal Purpose			Loans to Individuals			Lease Financings			Unallocated			Total
Three Months Ended March 31, 2016
Reserve for loan and lease losses:
Beginning balance	$	6,418		$	6,572		$	763		$	1,575		$	346		$	1,042		$	912		$	17,628
Charge-offs	(1,481		)	(26		)	(238		)	(46		)	(76		)	(205		)	N/A			(2,072		)
Recoveries	450			7			19			17			33			44			N/A			570
Provision (recovery of provision)	243			(82		)	203			(233		)	53			41			102			327
Recovery of provision for acquired credit impaired loans	—			—			—			(1		)	—			—			—			(1		)
Ending balance	$	5,630		$	6,471		$	747		$	1,312		$	356		$	922		$	1,014		$	16,452
Three Months Ended March 31, 2015
Reserve for loan and lease losses:
Beginning balance	$	6,920		$	8,943		$	763		$	1,124		$	360		$	985		$	1,567		$	20,662
Charge-offs	(300		)	(348		)	—			(31		)	(184		)	(230		)	N/A			(1,093		)
Recoveries	110			65			6			1			48			61			N/A			291
(Recovery of provision) provision	(18		)	988			(101		)	34			141			197			(167		)	1,074
Ending balance	$	6,712		$	9,648		$	668		$	1,128		$	365		$	1,013		$	1,400		$	20,934

N/A – Not applicable

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(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial and Construction		Real Estate— Residential Secured for Business Purpose		Real Estate— Residential and Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financings		Unallocated		Total
At March 31, 2016
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	151	$	140	$	20	$	30	$	—	$	—	N/A		$	341
Ending balance: collectively evaluated for impairment	5,479		6,323		727		1,282		356		922		1,014		16,103
Ending balance: acquired credit impaired loans evaluated for impairment	—		8		—		—		—		—		—		8
Total ending balance	$	5,630	$	6,471	$	747	$	1,312	$	356	$	922	$	1,014	$	16,452
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	12,977	$	29,375	$	3,618	$	504	$	—	$	—			$	46,474
Ending balance: collectively evaluated for impairment	473,135		821,684		99,973		314,885		28,140		125,814				1,863,631
Acquired non-credit impaired loans	21,207		122,415		113,923		14,058		281		—				271,884
Acquired credit impaired loans	—		517		750		—		—		—				1,267
Total ending balance	$	507,319	$	973,991	$	218,264	$	329,447	$	28,421	$	125,814			$	2,183,256
At March 31, 2015
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	1,004	$	—	$	—	$	—	$	—	$	—	N/A		$	1,004
Ending balance: collectively evaluated for impairment	5,708		9,648		668		1,128		365		1,013		1,400		19,930
Total ending balance	$	6,712	$	9,648	$	668	$	1,128	$	365	$	1,013	$	1,400	$	20,934
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	15,124	$	34,380	$	3,239	$	909	$	—	$	—			$	53,652
Ending balance: collectively evaluated for impairment	446,366		700,581		38,658		281,120		29,620		115,958				1,612,303
Acquired non-credit impaired loans	29,418		189,225		140,779		16,461		371		—				376,254
Acquired credit impaired loans	371		578		619		63		—		—				1,631
Total ending balance	$	491,279	$	924,764	$	183,295	$	298,553	$	29,991	$	115,958			$	2,043,840

N/A – Not applicable

Subsequent to the acquisition date, the methods utilized to estimate the required allowance for loan losses for acquired non-impaired loans is similar to originated loans, however, the Corporation records a provision for loan loss only when the required allowance exceeds the remaining unamortized credit mark. The present value of any decreases in expected cash flows after the acquisition date of purchased impaired loans will generally result in an impairment charge recorded as a provision for loan loss, resulting in an increase to the allowance.

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Impaired Loans

The following presents, by class of loans, the recorded investment and unpaid principal balance of impaired loans , the amounts of the impaired loans for which there is not an allowance for credit losses and the amounts for which there is an allowance for credit losses at March 31, 2016 and December 31, 2015. The impaired loans exclude loans acquired with deteriorated credit quality.

	At March 31, 2016						At December 31, 2015
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans with no related allowance recorded:
Commercial, financial and agricultural	$	12,677	$	13,921			$	10,337	$	13,318
Real estate—commercial real estate	29,009		29,885				30,088		30,996
Real estate—residential secured for business purpose	3,454		3,710				4,597		4,717
Real estate—residential secured for personal purpose	123		132				545		554
Real estate—home equity secured for personal purpose	129		129				170		170
Total impaired loans with no allowance recorded	$	45,392	$	47,777			$	45,737	$	49,755
Impaired loans with an allowance recorded:
Commercial, financial and agricultural	$	300	$	300	$	151	$	2,544	$	2,544	$	208
Real estate—commercial real estate	366		368		140		—		—		—
Real estate—residential secured for business purpose	164		167		20		295		295		45
Real estate—residential secured for personal purpose	252		252		30		252		252		16
Real estate—home equity secured for personal purpose	—		—		—		105		105		53
Total impaired loans with an allowance recorded	$	1,082	$	1,087	$	341	$	3,196	$	3,196	$	322

	At March 31, 2016						At December 31, 2015
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Total impaired loans:
Commercial, financial and agricultural	$	12,977	$	14,221	$	151	$	12,881	$	15,862	$	208
Real estate—commercial real estate	29,375		30,253		140		30,088		30,996		—
Real estate—residential secured for business purpose	3,618		3,877		20		4,892		5,012		45
Real estate—residential secured for personal purpose	375		384		30		797		806		16
Real estate—home equity secured for personal purpose	129		129		—		275		275		53
Total impaired loans	$	46,474	$	48,864	$	341	$	48,933	$	52,951	$	322

Impaired loans include nonaccrual loans accruing troubled debt restructured loans and other accruing impaired loans for which it is probable that not all principal and interest payments due will be collectible in accordance with the contractual terms. These loans are individually measured to determine the amount of potential impairment. The loans are reviewed for impairment based on the fair value of the collateral for collateral dependent loans and for certain loans based on discounted cash flows using the loans’ initial effective interest rates. Impaired loans include other accruing impaired loans of $29.1 million and $30.0 million at March 31, 2016 and December 31, 2015, respectively. Specific reserves on other accruing impaired loans were $151 thousand and $186 thousand at March 31, 2016 and December 31, 2015, respectively.

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The following presents by class of loans, the average recorded investment in impaired loans and an analysis of interest on impaired loans. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Therefore, interest income on accruing impaired loans is recognized using the accrual method. 

	Three Months Ended March 31, 2016						Three Months Ended March 31, 2015
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms		Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms
Commercial, financial and agricultural	$	13,569	$	68	$	95	$	16,094	$	142	$	87
Real estate—commercial real estate	29,212		305		70		29,124		320		83
Real estate—construction	—		—		—		5,748		—		77
Real estate—residential secured for business purpose	4,273		27		47		3,183		29		16
Real estate—residential secured for personal purpose	568		2		4		584		—		13
Real estate—home equity secured for personal purpose	177		—		2		165		—		3
Total	$	47,799	$	402	$	218	$	54,898	$	491	$	279

* Includes interest income recognized on a cash basis for nonaccrual loans of $7 thousand and $4 thousand for the three months ended March 31, 2016 and 2015, respectively and interest income recognized on the accrual method for accruing impaired loans of $395 thousand and $487 thousand for the three months ended March 31, 2016 and 2015, respectively.

Troubled Debt Restructured Loans

The following presents, by class of loans, information regarding accruing and nonaccrual loans that were restructured:

	Three Months Ended March 31, 2016							Three Months Ended March 31, 2015
(Dollars in thousands)	Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance		Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	1,545	$	1,545	$	—	1	$	143	$	143	$	—
Real estate—residential secured for business purpose	—	—		—		—		1	353		353		—
Total	1	$	1,545	$	1,545	$	—	2	$	496	$	496	$	—
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	$	—	$	—	1	$	122	$	122	$	—
Total	—	$	—	$	—	$	—	1	$	122	$	122	$	—

The Corporation grants concessions primarily related to extensions of interest-only payment periods and an occasional payment modification. These modifications typically are for a short-term basis up to one year. The goal when restructuring a credit is to establish a reasonable period of time to provide cash flow relief to customers experiencing cash flow difficulties. Accruing troubled debt restructured loans are primarily comprised of loans on which interest is being accrued under the restructured terms, and the loans are current or less than ninety days past due.

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The following presents, by class of loans, information regarding the types of concessions granted on accruing and nonaccrual loans that were restructured during the three months ended March 31, 2016 and 2015.

	Temporary Payment Reduction			Amortization Period Extension			Total Concessions Granted
(Dollars in thousands)	No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount
Three Months Ended March 31, 2016
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	1	$	1,545	1	$	1,545
Total	—	$	—	1	$	1,545	1	$	1,545
Nonaccrual Troubled Debt Restructured Loans:
Total	—	$	—	—	$	—	—	$	—
Three Months Ended March 31, 2015
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	143	—	$	—	1	$	143
Real estate—residential secured for business purpose	1	353		—	—		1	353
Total	2	$	496	—	$	—	2	$	496
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	122	—	$	—	1	$	122
Total	1	$	122	—	$	—	1	$	122

The following presents, by class of loans, information regarding accruing and nonaccrual troubled debt restructured loans, for which there were payment defaults within twelve months of the restructuring date:

	Three Months Ended March 31,
	2016			2015
(Dollars in thousands)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	50	—	$	—
Total	1	$	50	—	$	—
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	2	$	200
Total	—	$	—	2	$	200

As a result of payment default during the first quarter of 2016, a commercial accruing troubled debt restructured loan totaling $50 thousand was placed on nonaccrual of interest status.

The following presents, by class of loans, information regarding consumer mortgages collateralized by residential real estate property that are in the process of foreclosure at March 31, 2016 and December 31, 2015:

(Dollars in thousands)	At March 31, 2016		At December 31, 2015
Real estate-residential secured for personal purpose	$	313	$	313
Real estate-home equity secured for personal purpose	60		60
Total	$	373	$	373

The Corporation held no foreclosed consumer residential real estate property at March 31, 2016 and December 31, 2015.

Note 5. Goodwill and Other Intangible Assets

The Corporation has core deposit and customer-related intangibles and mortgage servicing rights, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The Corporation also has goodwill which is deemed to be an indefinite intangible asset and is not amortized.

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Changes in the carrying amount of the Corporation's goodwill by business segment for the three months ended March 31, 2016 were as follows:

(Dollars in thousands)	Banking		Wealth Management		Insurance		Consolidated
Balance at December 31, 2015	$	78,574	$	15,434	$	18,649	$	112,657
Addition to goodwill from acquisitions	—		—		—		—
Balance at March 31, 2016	$	78,574	$	15,434	$	18,649	$	112,657

The following table reflects the components of intangible assets at the dates indicated:

	At March 31, 2016						At December 31, 2015
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization and Fair Value Adjustments		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization and Fair Value Adjustments		Net Carrying Amount
Amortized intangible assets:
Core deposit intangibles	$	1,520	$	339	$	1,181	$	1,520	$	276	$	1,244
Customer related intangibles	12,381		7,305		5,076		14,227		8,728		5,499
Mortgage servicing rights	12,544		6,705		5,839		12,233		6,356		5,877
Total amortized intangible assets	$	26,445	$	14,349	$	12,096	$	27,980	$	15,360	$	12,620

The estimated aggregate amortization expense for core deposit and customer related intangibles for the remainder of 2016 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2016		$	1,385
2017		1,544
2018		1,170
2019		847
2020		577
Thereafter		734

The Corporation has originated mortgage servicing rights which are included in other intangible assets on the consolidated balance sheets. Mortgage servicing rights are amortized in proportion to, and over the period of, estimated net servicing income on a basis similar to the interest method and an accelerated amortization method for loan payoffs. Mortgage servicing rights are subject to impairment testing on a quarterly basis. The aggregate fair value of these rights was $7.2 million and $8.0 million at March 31, 2016 and December 31, 2015, respectively. The fair value of mortgage servicing rights was determined using a discount rate of 10.0% at March 31, 2016, and December 31, 2015.

Changes in the mortgage servicing rights balance are summarized as follows:

	Three Months Ended March 31,
(Dollars in thousands)	2016			2015
Beginning of period	$	5,877		$	5,509
Servicing rights capitalized	311			382
Amortization of servicing rights	(349		)	(368		)
Changes in valuation allowance	—			—
End of period	$	5,839		$	5,523
Mortgage loans serviced for others	$	872,958		$	809,342

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There was no activity in the valuation allowance for the three months ended March 31, 2016 and March 31, 2015.

The estimated amortization expense of mortgage servicing rights for the remainder of 2016 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2016		$	763
2017		900
2018		755
2019		629
2020		521
Thereafter		2,271

Note 6. Income Taxes

At March 31, 2016 and December 31, 2015, the Corporation had no material unrecognized tax benefits, accrued interest or penalties. Penalties are recorded in noninterest expense in the year they are assessed and are treated as a non-deductible expense for tax purposes. Interest is recorded in noninterest expense in the year it is assessed and is treated as a deductible expense for tax purposes. At March 31, 2016, the Corporation’s tax years 2012 through 2015 remain subject to federal examination as well as examination by state taxing jurisdictions.

Note 7. Retirement Plans and Other Postretirement Benefits

Substantially all employees who were hired before December 8, 2009 are covered by a noncontributory retirement plan. Employees hired on or after December 8, 2009 are not eligible to participate in the noncontributory retirement plan. The Corporation also provides supplemental executive retirement benefits to certain former executives, a portion of which is in excess of limits imposed on qualified plans by federal tax law; these plans are non-qualified benefit plans. These non-qualified benefit plans are not offered to new participants; all current participants are now retired. Information on these plans are aggregated and reported under “Retirement Plans” within this footnote.

The Corporation also provides certain postretirement healthcare and life insurance benefits for retired employees. Information on these benefits is reported under “Other Postretirement Benefits” within this footnote.

The Corporation sponsors a Supplemental Non-Qualified Pension Plan which was established in 1981 prior to the existence of a 401(k) deferred salary savings plan, employee stock purchase plan and long-term incentive plans and therefore is not offered to new participants; all current participants are now retired.

Components of net periodic benefit cost (income) were as follows:

	Three Months Ended March 31,
	2016			2015			2016		2015
(Dollars in thousands)	Retirement Plans						Other Post Retirement Benefits
Service cost	$	171		$	193		$	12	$	15
Interest cost	518			488			33		28
Expected return on plan assets	(754		)	(756		)	—		—
Amortization of net actuarial loss	323			328			6		13
Accretion of prior service cost	(71		)	(70		)	—		—
Net periodic benefit cost	$	187		$	183		$	51	$	56

The Corporation previously disclosed in its financial statements for the year ended December 31, 2015, that it expected to make contributions of $160 thousand to its non-qualified retirement plans and $117 thousand to its other postretirement benefit plans in 2016. During the three months ended March 31, 2016, the Corporation contributed $40 thousand to its non-qualified retirement plans and $20 thousand to its other postretirement plans. During the three months ended March 31, 2016, $609 thousand was paid to participants from the retirement plans and $20 thousand was paid to participants from the other postretirement plans.

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Note 8. Earnings per Share

The Corporation uses the two-class method to calculate earnings per share as the unvested restricted stock issued under the Corporation's equity incentive plans are participating shares with nonforfeitable rights to dividends. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the number of weighted average shares outstanding during the period.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended   March 31,
(Dollars and shares in thousands, except per share data)	2016			2015
Numerator:
Net income	$	7,289		$	6,116
Net income allocated to unvested restricted stock	(59		)	(46		)
Net income allocated to common shares	$	7,230		$	6,070
Denominator:
Denominator for basic earnings per share—weighted-average shares outstanding	19,402			19,776
Effect of dilutive securities—employee stock options	31			24
Denominator for diluted earnings per share—adjusted weighted-average shares outstanding	19,433			19,800
Basic earnings per share	$	0.37		$	0.31
Diluted earnings per share	$	0.37		$	0.31
Average anti-dilutive options and awards excluded from computation of diluted earnings per share	588			632

Note 9. Accumulated Other Comprehensive (Loss) Income

The following table shows the components of accumulated other comprehensive (loss) income, net of taxes, for the periods presented:

(Dollars in thousands)	Net Unrealized Gains (Losses) on Available-for-Sale Investment Securities			Net Change Related to Derivatives Used for Cash Flow Hedges			Net Change Related to Defined Benefit Pension Plans			Accumulated Other Comprehensive (Loss) Income
Balance, December 31, 2015	$	(592	)	$	(285	)	$	(15,831	)	$	(16,708	)
Net Change	1,413			(354		)	168			1,227
Balance, March 31, 2016	$	821		$	(639	)	$	(15,663	)	$	(15,481	)
Balance, December 31, 2014	$	1,711		$	(157	)	$	(16,016	)	$	(14,462	)
Net Change	1,344			(219		)	175			1,300
Balance, March 31, 2015	$	3,055		$	(376	)	$	(15,841	)	$	(13,162	)

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The following table illustrates the amounts reclassified out of each component of accumulated comprehensive loss for the three months ended March 31, 2016 and 2015:

Details about Accumulated Other Comprehensive (Loss) Income Components	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income						Affected Line Item in the Statement of Income
	Three Months Ended   March 31,
(Dollars in thousands)	2016			2015
Net unrealized holding gains on available-for-sale investment securities:
	$	44		$	91		Net gain on sales of investment securities
	44			91			Total before tax
	(15		)	(32		)	Tax expense
	$	29		$	59		Net of tax
Defined benefit pension plans:
Amortization of net loss included in net periodic pension costs*	$	(329	)	$	(341	)
Accretion of prior service cost included in net periodic pension costs*	71			70
	(258		)	(271		)	Total before tax
	90			96			Tax benefit
	$	(168	)	$	(175	)	Net of tax

* These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. (See Note 7—Retirement Plans and Other Postretirement Benefits for additional details.)

Note 10. Derivative Instruments and Hedging Activities

The Corporation may use interest-rate swap agreements to modify interest rate characteristics from variable to fixed or fixed to variable in order to reduce the impact of interest rate changes on future net interest income. Recorded amounts related to interest-rate swaps are included in other assets or liabilities. The Corporation’s credit exposure on interest rate swaps includes fair value and any collateral that is held by a third party. Changes in the fair value of derivative instruments designated as hedges of future cash flows are recognized in accumulated other comprehensive income until the underlying forecasted transactions occur, at which time the deferred gains and losses are recognized in earnings. For a qualifying fair value hedge, the gain or loss on the hedging instrument is recognized in earnings, and the change in fair value of the hedge item, to the extent attributable to the hedged risk, adjusts the carrying amount of the hedge item and is recognized in earnings.

Derivative loan commitments represent agreements for delayed delivery of financial instruments in which the buyer agrees to purchase and the seller agrees to deliver, at a specified future date, a specified instrument at a specified price or yield. The Corporation’s derivative loan commitments are commitments to sell loans secured by 1-to 4-family residential properties whose predominant risk characteristic is interest rate risk. The fair values of these derivative loan commitments are based upon the estimated amount the Corporation would receive or pay to terminate the contracts or agreements, taking into account current interest rates and, when appropriate, the current creditworthiness of the counterparties.

On October 24, 2014, the Corporation entered into an amortizing interest rate swap classified as a cash flow hedge with a notional amount of $20.0 million to hedge a portion of the debt financing of a pool of 10-year maturity fixed rate loans with balances totaling $29.1 million, at time of the hedge, that were originated in 2013. A brokered money market demand account with a balance exceeding the amortizing interest rate swap balance is being used for the cash flow hedge. Under the terms of the swap agreement, the Corporation pays a fixed rate of 2.10% and receives a floating rate based on the one-monthLIBOR with a maturity date of November 1, 2022. The Corporation performed an assessment of the hedge for effectiveness at the inception of the hedge and on a recurring basis to determine that the derivative has been and is expected to continue to be highly effective in offsetting changes in cash flows of the hedged item. The Corporation expects that there will be no ineffectiveness over the life of the interest rate swap, and therefore anticipates no portion of the net loss in accumulated other comprehensive loss will be reclassified into interest expense. To the extent there is ineffectiveness, the Corporation would record the ineffectiveness in interest expense.

The Corporation pledges cash or securities to cover a portion of the negative fair value of the interest rate swap, as measured by the counterparty. At March 31, 2016, the notional amount of the cash flow hedge was $19.1 million, with a negative fair value of $983 thousand. The Corporation has pledged $1.2 million to the counterparty as collateral for the negative fair value.

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The following table presents the notional amounts and fair values of derivatives not designated as hedging instruments recorded on the consolidated balance sheets at March 31, 2016 and December 31, 2015:

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At March 31, 2016
Interest rate locks with customers	$	44,520	Other Assets	$	1,721		$	—
Forward loan sale commitments	48,492			—		Other Liabilities	243
Total	$	93,012		$	1,721		$	243
At December 31, 2015
Interest rate locks with customers	$	34,450	Other Assets	$	1,089		$	—
Forward loan sale commitments	39,545			—		Other Liabilities	102
Total	$	73,995		$	1,089		$	102

The following table presents the notional amounts and fair values of derivatives designated as hedging instruments recorded on the consolidated balance sheets at March 31, 2016 and December 31, 2015:

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At March 31, 2016
Interest rate swap - cash flow hedge	$	19,096		$	—	Other Liabilities	$	983
Total	$	19,096		$	—		$	983
At December 31, 2015
Interest rate swap - cash flow hedge	$	19,269		$	—	Other Liabilities	$	438
Total	$	19,269		$	—		$	438

For the three months ended March 31, 2016 and 2015, the amounts included in the consolidated statements of income for derivatives not designated as hedging instruments are shown in the table below:

	Statement of Income Classification	Three Months Ended   March 31,
(Dollars in thousands)		2016			2015
Interest rate locks with customers	Net gain on mortgage banking activities	$	632		$	449
Forward loan sale commitments	Net loss on mortgage banking activities	(141		)	(56		)
Total		$	491		$	393

For the three months ended March 31, 2016 and 2015, the amounts included in the consolidated statements of income for derivatives designated as hedging instruments are shown in the table below:

	Statement of Income Classification	Three Months Ended   March 31,
(Dollars in thousands)		2016			2015
Interest rate swap—cash flow hedge—net interest payments	Interest expense	$	81		$	96
Net loss		$	(81	)	$	(96	)

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At March 31, 2016 and December 31, 2015, the amounts included in accumulated other comprehensive (loss) income for derivatives designated as hedging instruments are shown in the table below:

(Dollars in thousands)	Accumulated Other Comprehensive (Loss) Income	At March 31, 2016			At December 31, 2015
Interest rate swap—cash flow hedge	Fair value, net of taxes	$	(639	)	$	(285	)
Total		$	(639	)	$	(285	)

Note 11. Fair Value Disclosures

Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The Corporation determines the fair value of financial instruments based on the fair value hierarchy. The Corporation maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Corporation. Unobservable inputs are inputs that reflect the Corporation’s assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances, including assumptions about risk. Three levels of inputs are used to measure fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement. Transfers between levels are recognized at the end of the reporting period.

Level 1: Valuations are based on quoted prices in active markets for identical assets or liabilities that the Corporation can access at the measurement date. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.

Level 2: Valuations are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3: Valuations are based on inputs that are unobservable and significant to the overall fair value measurement. Assets and liabilities utilizing Level 3 inputs include: financial instruments whose value is determined using pricing models, discounted cash-flow methodologies, or similar techniques, as well as instruments for which the fair value calculation requires significant management judgment or estimation.

Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Investment Securities

Where quoted prices are available in an active market for identical instruments, investment securities are classified within Level 1 of the valuation hierarchy. Level 1 investment securities include U.S. Treasury securities, most equity securities and money market mutual funds. Mutual funds are registered investment companies which are valued at net asset value of shares on a market exchange at the end of each trading day. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Examples of instruments, which would generally be classified within Level 2 of the valuation hierarchy, include securities issued by U.S. Government sponsored enterprises, mortgage-backed securities, collateralized mortgage obligations, corporate and municipal bonds and certain equity securities. In cases where there is limited activity or less transparency around inputs to the valuation, investment securities are classified within Level 3 of the valuation hierarchy.

Fair values for securities are determined using independent pricing services and market-participating brokers. The Corporation’s independent pricing service utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information for structured securities, cash flow and, when available, loan performance data. Because many fixed income securities do not trade on a daily basis, the pricing service’s evaluated pricing applications apply information as applicable through processes, such as benchmarking of like securities, sector groupings, and matrix pricing, to prepare evaluations. If at any time, the pricing service determines that it does have not sufficient verifiable information to value a particular security, the Corporation will utilize valuations from another pricing service. Management has a sufficient understanding of the third party service’s valuation models, assumptions and inputs used in determining the fair value of securities to enable management to maintain an appropriate system of internal control.

On a quarterly basis, the Corporation reviews changes, as submitted by the pricing service, in the market value of its security portfolio. Individual changes in valuations are reviewed for consistency with general interest rate movements and any known credit concerns for specific securities. Additionally, on a quarterly basis, the Corporation has its security portfolio priced by a second pricing service to determine consistency with another market evaluator, except for municipal bonds which are priced by

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another service provider on a sample basis. If, upon the Corporation’s review or in comparing with another service, a material difference between pricing evaluations were to exist, the Corporation may submit an inquiry to the current pricing service regarding the data used to determine the valuation of a particular security. If the Corporation determines there is market information that would support a different valuation than from the current pricing service’s evaluation, the Corporation can submit a challenge for a change to that security’s valuation. There were no material differences in valuations noted at March 31, 2016.

Derivative Financial Instruments

The fair values of derivative financial instruments are based upon the estimated amount the Corporation would receive or pay to terminate the contracts or agreements, taking into account current interest rates and, when appropriate, the current creditworthiness of the counterparties. Derivative financial instruments are classified within Level 2 of the valuation hierarchy.

Contingent Consideration Liability

The Corporation estimates the fair value of the contingent consideration liability by using a discounted cash flow model of future contingent payments based on projected revenue related to the acquired business. The estimated fair value of the contingent consideration liability is reviewed on a quarterly basis and any valuation adjustments resulting from a change of estimated future contingent payments based on projected revenue of the acquired business affecting the contingent consideration liability will be recorded through noninterest expense. Changes in the original assumptions utilized at the time the acquisition closes and identified during the measurement period are recorded in accordance with ASC Topic 805 as an adjustment to goodwill. Due to the significant unobservable input related to the projected revenue, the contingent consideration liability is classified within Level 3 of the valuation hierarchy. An increase in the projected revenue may result in a higher fair value of the contingent consideration liability. Alternatively, a decrease in the projected revenue may result in a lower estimated fair value of the contingent consideration liability.

For the Sterner Insurance Associates acquisition, the remaining potential cash payments that could result from the contingent consideration arrangement range from $0 to a maximum of $3.9 million over the two-year period ending June 30, 2017. Due to updates to the original assumptions utilized for determining the contingent consideration liability for the Sterner acquisition completed on July 1, 2014, the Corporation recorded a purchase accounting adjustment, in accordance with ASC Topic 805, inthe first quarter of 2015 which resulted in an increase to the contingent consideration liability and an increase to goodwill of $1.4 million.

For the Girard Partners acquisition, the remaining potential cash payments that could result from the contingent consideration arrangement range from $0 to a maximum of $12.9 million cumulative over the three-year period ending December 31, 2018. The Corporation recorded a reduction to the contingent liability during the fourth quarter of 2015 which resulted in a reduction of noninterest expense of $550 thousand. The adjustment reflected that projected revenue levels for earn-out payments in the second through fifth years post-acquisition are anticipated to be lower than originally projected.

For the John T. Fretz Insurance Agency acquisition, the remaining potential future cash payments that could result from the contingent consideration arrangement range from $0 to a maximum of $360 thousand cumulative over the one-year period ending April 30, 2016.

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The following table presents the assets and liabilities measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015, classified using the fair value hierarchy:

	At March 31, 2016
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. government corporations and agencies	$	—	$	67,667	$	—	$	67,667
State and political subdivisions	—		102,808		—		102,808
Residential mortgage-backed securities	—		8,574		—		8,574
Collateralized mortgage obligations	—		3,056		—		3,056
Corporate bonds	—		92,003		—		92,003
Money market mutual funds	17,563		—		—		17,563
Equity securities	754		—		—		754
Total available-for-sale securities	18,317		274,108		—		292,425
Interest rate locks with customers	—		1,721		—		1,721
Total assets	$	18,317	$	275,829	$	—	$	294,146
Liabilities:
Contingent consideration liability	$	—	$	—	$	4,957	$	4,957
Interest rate swap	—		983		—		983
Forward loan sale commitments	—		243		—		243
Total liabilities	$	—	$	1,226	$	4,957	$	6,183

	At December 31, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. treasuries	$	4,887	$	—	$	—	$	4,887
U.S. government corporations and agencies	—		102,156		—		102,156
State and political subdivisions	—		102,032		—		102,032
Residential mortgage-backed securities	—		13,354		—		13,354
Collateralized mortgage obligations	—		3,133		—		3,133
Corporate bonds	—		86,675		—		86,675
Money market mutual funds	16,726		—		—		16,726
Equity securities	807		—		—		807
Total available-for-sale securities	22,420		307,350		—		329,770
Interest rate locks with customers	—		1,089		—		1,089
Total assets	$	22,420	$	308,439	$	—	$	330,859
Liabilities:
Contingent consideration liability	$	—	$	—	$	5,577	$	5,577
Interest rate swap	—		438		—		438
Forward loan sale commitments	—		102		—		102
Total liabilities	$	—	$	540	$	5,577	$	6,117

At March 31, 2016 and December 31, 2015, the Corporation had no assets measured at fair value on a recurring basis utilizing Level 3 inputs.

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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 three months ended March 31, 2016 and 2015:

	Three Months Ended March 31, 2016
(Dollars in thousands)	Balance at December 31, 2015		Contingent Consideration from New Acquisition		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at March 31, 2016
Sterner Insurance Associates	$	1,144	$	—	$	—	$	154	$	1,298
Girard Partners	4,241		—		900		119		3,460
John T. Fretz Insurance Agency	192		—		—		7		199
Total contingent consideration liability	$	5,577	$	—	$	900	$	280	$	4,957

	Three Months Ended March 31, 2015
(Dollars in thousands)	Balance at December 31, 2014		Contingent Consideration from New Acquisition*		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at March 31, 2015
Sterner Insurance Associates	$	680	$	1,424	$	—	$	24	$	2,128
Girard Partners	5,503		$	—	$	620	$	34	4,917
John T. Fretz Insurance Agency	358		—		—		13		371
Total contingent consideration liability	$	6,541	$	1,424	$	620	$	71	$	7,416

*Includes adjustments during the measurement period in accordance with ASC Topic 805.

The Corporation may be required to periodically measure certain assets and liabilities at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or market accounting or impairment charges of individual assets. The following table represents assets measured at fair value on a non-recurring basis at March 31, 2016 and December 31, 2015:

	At March 31, 2016
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	46,133	$	46,133
Total	$	—	$	—	$	46,133	$	46,133

	At December 31, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	48,611	$	48,611
Total	$	—	$	—	$	48,611	$	48,611

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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 March 31, 2016 and December 31, 2015. The disclosed fair values are classified using the fair value hierarchy.

	At March 31, 2016
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	38,547	$	—		$	—	$	38,547		$	38,547
Held-to-maturity securities			37,031					37,031			36,932
Loans held for sale			3,851					3,851			3,818
Net loans and leases held for investment						2,070,300		2,070,300			2,120,671
Mortgage servicing rights						7,203		7,203			5,839
Other real estate owned			3,073					3,073			3,073
Total assets	$	38,547	$	43,955		$	2,077,503	$	2,160,005		$	2,208,880
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,951,453	$	—		$	—	$	1,951,453		$	1,951,453
Time deposits			383,986					383,986			382,908
Total deposits	1,951,453		383,986			—		2,335,439			2,334,361
Short-term borrowings	—		24,498			—		24,498			25,851
Subordinated notes	—		50,250			—		50,250			49,414
Total liabilities	$	1,951,453	$	458,734		$	—	$	2,410,187		$	2,409,626
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,829	)	$	—	$	(1,829	)	$	—

	At December 31, 2015
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	60,799	$	—		$	—	$	60,799		$	60,799
Held-to-maturity securities	—		41,061			—		41,061			40,990
Loans held for sale	—		4,708			—		4,708			4,680
Net loans and leases held for investment	—		—			2,099,082		2,099,082			2,112,774
Mortgage servicing rights	—		—			8,047		8,047			5,877
Other real estate owned	—		1,276			—		1,276			1,276
Total assets	$	60,799	$	47,045		$	2,107,129	$	2,214,973		$	2,226,396
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,939,954	$	—		$	—	$	1,939,954		$	1,939,954
Time deposits	—		455,527			—		455,527			454,406
Total deposits	1,939,954		455,527			—		2,395,481			2,394,360
Short-term borrowings	—		22,302			—		22,302			24,211
Subordinated notes	$	—	$	50,375		$	—	$	50,375		$	49,377
Total liabilities	$	1,939,954	$	528,204		$	—	$	2,468,158		$	2,467,948
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,788	)	$	—	$	(1,788	)	$	—

The following valuation methods and assumptions were used by the Corporation in estimating the fair value for financial instruments measured at fair value on a non-recurring basis and financial instruments 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:

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Cash and short-term interest-earning assets: The carrying amounts reported in the balance sheet for cash and due from banks, interest-earning deposits with other banks, and other short-term investments approximates those assets’ fair values. Cash and short-term interest-earning assets are classified within Level 1 in the fair value hierarchy.

Held-to-maturity securities: Fair values for the held-to-maturity investment securities are estimated by using pricing models or quoted prices of securities with similar characteristics and are classified in Level 2 in the fair value hierarchy.

Loans held for sale: The fair value of the Corporation’s mortgage loans held for sale are generally determined using a pricing model based on current market information obtained from external sources, including interest rates, bids or indications provided by market participants on specific loans that are actively marketed for sale. These loans are primarily residential mortgage loans and are generally classified in Level 2 due to the observable pricing data. Loans held for sale are carried at the lower of cost or estimated fair value. There were no valuation adjustments for loans held for sale at March 31, 2016 and December 31, 2015.

Loans and leases held for investment: The fair values for loans and leases held for investment are estimated using discounted cash flow analyses, using a discount rate based on current interest rates at which similar loans with similar terms would be made to borrowers and include components for credit risk, operating expense and embedded prepayment options. An overall valuation adjustment is made for specific credit risks in addition to general portfolio risk and is significant to the valuation. As permitted, the fair value of the loans and leases are not based on the exit price concept as discussed in the first paragraph of this note. Loans and leases are classified within Level 3 in the fair value hierarchy.

Impaired loans held for investment: Impaired loans held for investment include those collateral-dependent loans for which the practical expedient was applied, resulting in a fair-value adjustment to the loan. Impaired loans are evaluated and valued at the time the loan is identified as impaired, at the lower of cost or fair value. Fair value is measured based on the value of the collateral securing these loans less costs to sell and is classified at a Level 3 in the fair value hierarchy. The fair value of collateral is based on appraisals performed by qualified licensed appraisers hired by the Corporation. At March 31, 2016, impaired loans held for investment had a carrying amount of $46.5 million with a valuation allowance of $341 thousand. At December 31, 2015, impaired loans held for investment had a carrying amount of $48.9 million with a valuation allowance of $322 thousand.

Mortgage servicing rights: The Corporation estimates the fair value of mortgage servicing rights using discounted cash flow models that calculate the present value of estimated future net servicing income. The model uses readily available prepayment speed assumptions for the interest rates of the portfolios serviced. Mortgage servicing rights are classified within Level 3 of the valuation hierarchy. The Corporation reviews the mortgage servicing rights portfolio on a quarterly basis for impairment and the mortgage servicing rights are carried at the lower of amortized cost or estimated fair value. At March 31, 2016 and December 31, 2015, mortgage servicing rights had a carrying amount of $5.8 million and $5.9 million, respectively, with no valuation allowance.

Goodwill and other identifiable assets: Certain non-financial assets subject to measurement at fair value on a non-recurring basis include goodwill and other identifiable intangible assets. During the three months ended March 31, 2016, there were no triggering events that required valuation of goodwill and other identifiable intangible assets.

Other real estate owned: The fair value of other real estate owned is estimated based upon the appraised value less costs to sell. The real estate is stated at an amount equal to the loan balance prior to foreclosure, plus costs incurred for improvements to the property but no more than the fair value of the property, less estimated costs to sell. New appraisals are generally obtained on an annual basis. Other real estate owned is classified within Level 2 of the valuation hierarchy.

Deposit liabilities: The fair values for demand and savings accounts, with no stated maturities, is the amount payable on demand at the reporting date (carrying value) and are classified within Level 1 in the fair value hierarchy. The fair values for time deposits with fixed maturities are estimated by discounting the final maturity using interest rates currently offered for deposits with similar remaining maturities. Time deposits are classified within Level 2 in the fair value hierarchy.

Short-term borrowings: The fair value of customer repurchase agreements and federal funds purchased are estimated using current market rates for similar borrowings and are classified within Level 2 in the fair value hierarchy.

Subordinated notes: The fair value of the subordinated notes are estimated by discounting the principal balance using the treasury yield curve for the term to the call date as the Corporation has the option to call the subordinated notes. The subordinated notes are classified within Level 2 in the fair value hierarchy.

Off-balance-sheet instruments: Fair values for the Corporation’s off-balance-sheet instruments are based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing and are classified within Level 2 in the fair value hierarchy.

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Note 12. Segment Reporting

At March 31, 2016, the Corporation has three reportable business segments: Banking, Wealth Management and Insurance. The Corporation determines the segments based primarily upon product and service offerings, through the types of income generated and the regulatory environment. This is strategically how the Corporation operates and has positioned itself in the marketplace. Accordingly, significant operating decisions are based upon analysis of each of these segments. At March 31, 2016, these segments meet the quantitative thresholds for separate disclosure as a business segment. Non-reportable segments include the parent holding company and intercompany eliminations, and are included in the "Other" segment.

The Corporation's Banking segment consists of commercial and consumer banking. The Wealth Management segment consists of investment advisory services, retirement plan services, trust, municipal pension services and broker/dealer services. The Insurance segment consists of commercial lines, personal lines, benefits and human resources consulting.

Each segment generates revenue from a variety of products and services it provides. Examples of products and services provided for each reportable segment are indicated below.

Ÿ	The Banking segment provides financial services to consumers, businesses and governmental units. These services include a full range of banking services such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing.
Ÿ	The Wealth Management segment offers trust and investment advisory services, guardian and custodian of employee benefits and other trust and brokerage services, as well as a registered investment advisory managing private investment accounts for both individuals and institutions.
Ÿ	The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, group life and health coverage, employee benefit solutions, personal insurance lines and human resources consulting.

The accounting policies, used in the disclosure of the operating segments, are the same as those described in Note 1, “Summary of Significant Accounting Policies".

The following table provides total assets by reportable operating segment as of the dates indicated.

(Dollars in thousands)	At March 31, 2016		At December 31, 2015		At March 31, 2015
Banking	$	2,746,433	$	2,797,746	$	2,680,245
Wealth Management	30,134		33,950		29,993
Insurance	24,715		24,436		24,447
Other	23,495		23,319		22,810
Consolidated assets	$	2,824,777	$	2,879,451	$	2,757,495

The following tables provide reportable segment-specific information and reconciliations to consolidated financial information for the three months ended March 31, 2016 and 2015.

	Three Months Ended
	March 31, 2016
(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
Interest income	$	25,600		$	2	$	—	$	7		$	25,609
Interest expense	2,211			—		—		—			2,211
Net interest income	23,389			2		—		7			23,398
Provision for loan and lease losses	326			—		—		—			326
Noninterest income	4,673			4,572		4,720		(9		)	13,956
Intangible expenses	67			303		400		—			770
Other noninterest expense	18,742			3,058		3,119		1,250			26,169
Intersegment (revenue) expense*	(511		)	219		292		—			—
Income (expense) before income taxes	9,438			994		909		(1,252		)	10,089
Income tax expense (benefit)	2,357			383		377		(317		)	2,800
Net income (loss)	$	7,081		$	611	$	532	$	(935	)	$	7,289
Capital expenditures	$	1,839		$	15	$	10	$	314		$	2,178

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	Three Months Ended
	March 31, 2015
(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
Interest income	$	24,730		$	—	$	—	$	8		$	24,738
Interest expense	1,434			—		—		—			1,434
Net interest income	23,296			—		—		8			23,304
Provision for loan and lease losses	1,074			—		—		—			1,074
Noninterest income	4,450			4,624		4,255		102			13,431
Intangible expenses	74			394		318		—			786
Other noninterest expense	21,222			2,955		2,669		(221		)	26,625
Intersegment (revenue) expense*	(534		)	222		312		—			—
Income before income taxes	5,910			1,053		956		331			8,250
Income tax expense	1,161			414		399		160			2,134
Net income	$	4,749		$	639	$	557	$	171		$	6,116
Capital expenditures	$	1,197		$	8	$	39	$	73		$	1,317

*Includes an allocation of general and administrative expenses from both the parent holding company and the Bank. Generally speaking, these expenses are allocated based upon number of employees and square footage utilized.

Note 13. Restructuring Charges

During the first quarter of 2015, the Corporation finalized a new financial center model, which is smaller in size, combines enhanced technology with personal service and provides consultive services and solutions delivered by personal bankers. These efforts led to the development of a comprehensive financial center optimization plan approved in April 2015 which includes opening new financial centers in growth markets while closing financial centers which operate in close proximity to other centers. As the Corporation announced in April 2015, six financial centers were closed in September 2015 that operated in close proximity to other centers. As a result, the Corporation recorded $1.6 million in restructuring charges during the second quarter of 2015 and related to the Banking business segment.

A roll-forward of the accrued restructuring expense for the three months ended March 31, 2016 is as follows:

(Dollars in thousands)	Write-downs and retirements of fixed assets		Lease cancellations			Total
Accrued at January 1, 2016	$	228	$	834		$	1,062
Payments	—		(73		)	(73		)
Accelerated depreciation	—		—			—
Accrued at March 31, 2016	$	228	$	761		$	989

37

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

(All dollar amounts presented within tables are in thousands, except per share data. “BP” equates to “basis points”; “N/ M” equates to “not meaningful”; “—” equates to “zero” or “doesn’t round to a reportable number”; and “N/A” equates to “not applicable.” Certain amounts have been reclassified to conform to the current-year presentation.)

Forward-Looking Statements

The information contained in this report may contain forward-looking statements. When used or incorporated by reference in disclosure documents, the words “believe,” “anticipate,” “estimate,” “expect,” “project,” “target,” “goal” and similar expressions are intended to identify forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including those set forth below:

• Operating, legal and regulatory risks

• Economic, political and competitive forces impacting various lines of business

• The risk that our analysis of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful

• Volatility in interest rates

• Other risks and uncertainties, including those occurring in the U.S. and world financial systems

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, expected or projected. These forward-looking statements speak only at the date of the report. The Corporation expressly disclaims any obligation to publicly release any updates or revisions to reflect any change in the Corporation’s expectations with regard to any change in events, conditions or circumstances on which any such statement is based.

Critical Accounting Policies

Management, in order to prepare the Corporation’s financial statements in conformity with U.S. generally accepted accounting principles, is required to make estimates and assumptions that affect the amounts reported in the Corporation’s financial statements. There are uncertainties inherent in making these estimates and assumptions. Certain critical accounting policies, discussed below, could materially affect the results of operations and financial position of the Corporation should changes in circumstances require a change in related estimates or assumptions. The Corporation has identified the fair value measurement of investment securities available-for-sale and assessment for impairment of certain investment securities, reserve for loan and lease losses, valuation of goodwill and other intangible assets, mortgage servicing rights, deferred tax assets and liabilities, benefit plans and stock-based compensation as areas with critical accounting policies. For more information on these critical accounting policies, please refer to the Corporation’s 2015 Annual Report on Form 10-K.

General

Univest Corporation of Pennsylvania (the Corporation), is a Bank Holding Company owning all of the capital stock of Univest Bank and Trust Co. (the Bank).

The Bank is engaged in the commercial and consumer banking business and provides a full range of banking and trust services to customers. The Bank is the parent company of Delview, Inc., which is the parent company of Univest Insurance, Inc., an independent insurance agency, Univest Investments, Inc., a full-service broker-dealer and investment advisory firm and Girard Partners (Girard), a registered investment advisory firm. The Bank is also the parent company of Univest Capital, Inc., an equipment financing business, and TCG Investment Advisory, a registered investment advisor which provides discretionary investment consulting and management services. Through its wholly-owned subsidiaries, the Bank provides a variety of financial services to individuals, municipalities and businesses throughout the Bank's markets of operation.

The Corporation earns revenues primarily from the margins and fees generated from lending and depository services to customers as well as fee-based income from trust, insurance, mortgage banking and investment services to customers. The Corporation seeks to achieve adequate and reliable earnings through business growth while maintaining adequate levels of capital and liquidity and limiting exposure to credit and interest rate risk to Board of Directors approved levels. As interest rates increase, fixed-rate assets that banks hold will tend to decrease in value; conversely, as interest rates decline, fixed-rate assets that banks hold will tend to increase in value. The Corporation is in a liability sensitive position from both a short-term maturity perspective and a short-term repricing perspective, as interest rates remain at historically low levels. Despite being liability sensitive, the Corporation projects increased net interest income in rising rate scenarios as the magnitude of the asset pricing change exceeds the liability pricing change.

The Corporation seeks to establish itself as the financial provider of choice in the markets it serves. The Corporation plans to achieve this goal by offering a broad range of high quality financial products and services and by increasing market awareness of its brand and the benefits that can be derived from its products. The Corporation operates in an attractive market for financial services but also is in intense competition with domestic and international banking organizations and other insurance and wealth management providers for the financial services business. The Corporation has taken initiatives to achieve its business objectives by acquiring banks and other financial service providers in strategic markets, through marketing, public relations and advertising, by establishing standards of service excellence for customers, and by using technology to ensure that the needs of customers are understood and satisfied.

Executive Overview

The Corporation’s consolidated net income, earnings per share and return on average assets and average equity were as follows:

	Three Months Ended   March 31,						Change
(Dollars in thousands, except per share data)	2016			2015			Amount		Percent
Net income	$	7,289		$	6,116		$	1,173	19	%
Net income per share:
Basic	$	0.37		$	0.31		$	0.06	19
Diluted	0.37			0.31			0.06		19
Return on average assets	1.03		%	0.92		%	11 BP		12
Return on average equity	8.05		%	6.85		%	120 BP		18

The Corporation reported net income of $7.3 million or $0.37 diluted earnings per share for the quarter ended March 31, 2016, a 19% increase from reported net income of $6.1 million or $0.31 diluted earnings per share for the quarter ended March 31, 2015. The financial results for the quarter ended March 31, 2016 included $220 thousand ($218 thousand, net of tax) of acquisition-related and integration costs associated with the pending merger with Fox Chase Bancorp, or $0.01 diluted earnings per share on a tax affected basis. The quarter ended March 31, 2015 included $1.8 million of integration and acquisition-related costs ($1.2 million, net of tax) associated with Valley Green Bank or $0.06 diluted earnings per share on a tax affected basis.

Net interest income on a tax-equivalent basis of $24.7 million for the three months ended March 31, 2016 was consistent with the same period in 2015. The net interest margin on a tax-equivalent basis for the first quarter of 2016 was 3.90%, compared to 4.12% for the first quarter of 2015. Increases in net interest income from the comparable period in the prior year, due to loan growth, were partially offset by reductions in loan rates and a decrease in the net accretion of acquisition accounting fair value adjustments related to the Valley Green Bank acquisition (the favorable impact of the acquisition accounting adjustments was two basis points for the three months ended March 31, 2016 compared to ten basis points for the three months ended March 31, 2015). In addition, the subordinated debt issuance of $50 million on March 30, 2015 increased funding costs by 14 basis points in the three months ended March 31, 2016 from the same period in 2015.

The provision for loan and lease losses for the three months ended March 31, 2016 was $326 thousand, down from $1.1 million for the same period in 2015 as asset quality continues to improve; both qualitative factors and historical loss factors have improved.

Noninterest income for the three months ended March 31, 2016 was $14.0 million, an increase of $525 thousand or 4% from the same period in the prior year. The increase was mainly due to higher insurance commission and fee income and bank owned life insurance income.

Non-interest expense for the three months ended March 31, 2016 was $26.9 million, a decrease of $472 thousand, or 2% from the same period in the prior year. Non-interest expense for the three months ended March 31, 2016 included $220 thousand of acquisition-related and integration costs associated with the pending merger with Fox Chase Bancorp. Non-interest expense for the three months ended March 31, 2015 included $1.8 million of acquisition-related and integration costs related to the Valley Green Bank acquisition. Salaries and benefit expense increased $868 thousand for the three months ended March 31, 2016, primarily attributable to additional staff hired to support revenue generation across all business lines partially offset by higher deferred loan origination costs.

38

Gross loans and leases held for investment were $2.2 billion at March 31, 2016, an increase of $4.2 million from December 31, 2015. Consistent with prior years, sluggish economic growth led to flat funded loan growth in the first quarter of 2016, however, loan activity did increase during the quarter leading to growth in the Corporation's loan pipeline. Deposits declined$60.0 million, or 3% from December 31, 2015, primarily due to a decrease in public funds.

Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and lease modifications were $13.5 million at March 31, 2016 compared to $14.2 million at December 31, 2015 and $18.6 million at March 31, 2015. Nonaccrual loans and leases as a percentage of total loans and leases held for investment were 0.62% at March 31, 2016 compared to 0.65% at December 31, 2015 and 0.91% at March 31, 2015. Net loan and lease charge-offs were $1.5 million for the three months ended March 31, 2016 compared to $802 thousand for the same period in the prior year.

The Corporation and the Bank continue to remain well-capitalized at March 31, 2016. Total risk-based capital at March 31, 2016 was 13.47% for the Corporation and 12.13% for the Bank, well in excess of the regulatory minimum for well-capitalized status of 10.00%.

Details of the changes in the various components of net income and the balance sheet are further discussed in the sections that follow.

Fox Chase Bank Acquisition

On December 8, 2015, the Corporation and Fox Chase Bancorp, Inc. (Fox Chase), parent company of Fox Chase Bank, entered into an Agreement and Plan of Merger pursuant to which Fox Chase will be merged with and into the Corporation in a cash and stock transaction with an aggregate value of approximately $239.3 million. Fox Chase had $1.1 billion in assets, $776.7 million in loans, and $815.7 million in deposits at March 31, 2016. Fox Chase's main office is in Hatboro, Pennsylvania and operates full-service banking offices in Pennsylvania and New Jersey. Upon completion, the Corporation's presence will expand in Bucks, Chester, Philadelphia and Montgomery counties in Pennsylvania and into Atlantic and Cape May counties in New Jersey, complementing and expanding the Corporation's existing network of financial centers.

Upon completion of the merger, Fox Chase shareholders will have the right to receive either $21.00 in cash, or a fixed exchange ratio of 0.9731 shares of the Corporation’s common stock, or a combination of the two, for outstanding shares of Fox Chase. The stock/cash election is subject to allocation provisions to assure that 40% of Fox Chase shares receive cash consideration and 60% of Fox Chase shares receive stock consideration. The Merger Agreement has been approved by the Boards of Directors of the Corporation, the Bank, Fox Chase and Fox Chase Bank and remains subject to approval by the shareholders of both companies, as well as their regulatory authorities. The transaction is expected to qualify as a tax-free reorganization for federal income tax purposes. The transaction is expected to close in the third quarter of 2016. The transaction is anticipated to be accretive to the Corporation's earnings per share in the first combined year of operations.

In January 2016, the Corporation approved a $30.0 million discretionary overnight federal funds line to Fox Chase Bank at a rate of one-month LIBOR plus 0.05%. At March 31, 2016, the Corporation had no outstanding federal funds sold to Fox Chase Bank. During the first quarter of 2016, average federal funds sold to Fox Chase Bank were $5.9 million.

39

Results of Operations

Net Interest Income

Net interest income is the difference between interest earned on loans and leases, investments and other interest-earning assets and interest paid on deposits and other interest-bearing liabilities. Net interest income is the principal source of the Corporation’s revenue. Table 1 presents a summary of the Corporation’s average balances, the tax-equivalent yields earned on average assets, and the cost of average liabilities, and shareholders’ equity on a tax-equivalent basis for the three months ended March 31, 2016 and 2015. The tax-equivalent net interest margin is tax-equivalent net interest income as a percentage of average interest-earning assets. The tax-equivalent net interest spread represents the difference between the weighted average tax-equivalent yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. The effect of net interest free funding sources represents the effect on the net interest margin of net funding provided by noninterest-earning assets, noninterest-bearing liabilities and shareholders’ equity. Table 2 analyzes the changes in the tax-equivalent net interest income for the periods broken down by their rate and volume components. Sensitivities associated with the mix of assets and liabilities are numerous and complex. The Investment Asset/Liability Management Committee works to maintain an adequate and stable net interest margin for the Corporation.

Three months ended March 31, 2016 versus 2015

Net interest income on a tax-equivalent basis of $24.7 million for the three months ended March 31, 2016 was consistent with the same period in 2015. The tax-equivalent net interest margin for the three months ended March 31, 2016 was 3.90% compared to 4.12% for the three months ended March 31, 2015. Increases in net interest income from the comparable period in the prior year, due to loan growth, were partially offset by reductions in loan rates and a decrease in the net accretion of acquisition accounting fair value adjustments related to the Valley Green Bank acquisition (the favorable impact of the acquisition accounting adjustments was two basis points for the three months ended March 31, 2016 compared to ten basis points for the three months ended March 31, 2015). In addition, the subordinated debt issuance for $50 million on March 30, 2015 increased funding costs by 14 basis points in the three months ended March 31, 2016 from the same period in 2015.

40

Table 1—Average Balances and Interest Rates—Tax-Equivalent Basis

	Three Months Ended March 31,
	2016							2015
(Dollars in thousands)	Average Balance			Income/ Expense		Average Rate		Average Balance			Income/ Expense		Average Rate
Assets:
Interest-earning deposits with other banks	$	19,619		$	28	0.57	%	$	9,135		$	5	0.22	%
U.S. government obligations	82,488			250		1.22		139,965			379		1.10
Obligations of states and political subdivisions	101,061			1,129		4.49		104,620			1,322		5.12
Other debt and equity securities	158,669			1,024		2.60		136,423			655		1.95
Federal funds sold	5,940			7		0.47		6,591			2		0.12
Total interest-earning deposits and investments	367,777			2,438		2.67		396,734			2,363		2.42
Commercial, financial and agricultural loans	411,999			4,014		3.92		422,817			4,249		4.08
Real estate—commercial and construction loans	887,118			9,919		4.50		821,902			9,631		4.75
Real estate—residential loans	541,976			5,976		4.43		473,142			5,384		4.61
Loans to individuals	29,478			399		5.44		30,622			407		5.39
Municipal loans and leases	231,498			2,625		4.56		203,999			2,437		4.84
Lease financings	75,022			1,542		8.27		71,353			1,583		9.00
Gross loans and leases	2,177,091			24,475		4.52		2,023,835			23,691		4.75
Total interest-earning assets	2,544,868			26,913		4.25		2,420,569			26,054		4.37
Cash and due from banks	31,665							30,203
Reserve for loan and lease losses	(17,771		)					(21,088		)
Premises and equipment, net	42,873							40,568
Other assets	232,922							221,261
Total assets	$	2,834,557						$	2,691,513
Liabilities:
Interest-bearing checking deposits	$	402,160		84		0.08		$	345,884		46		0.05
Money market savings	361,788			340		0.38		375,521			280		0.30
Regular savings	626,894			174		0.11		563,037			122		0.09
Time deposits	418,547			935		0.90		461,374			969		0.85
Total time and interest-bearing deposits	1,809,389			1,533		0.34		1,745,816			1,417		0.33
Short-term borrowings	27,388			3		0.04		46,837			10		0.09
Subordinated notes*	49,394			675		5.50		1,096			7		2.59
Total borrowings	76,782			678		3.55		47,933			17		0.14
Total interest-bearing liabilities	1,886,171			2,211		0.47		1,793,749			1,434		0.32
Noninterest-bearing deposits	542,427							492,014
Accrued expenses and other liabilities	41,867							43,625
Total liabilities	2,470,465							2,329,388
Shareholders’ Equity:
Common stock	110,271							110,271
Additional paid-in capital	120,824							120,159
Retained earnings and other equity	132,997							131,695
Total shareholders’ equity	364,092							362,125
Total liabilities and shareholders’ equity	$	2,834,557						$	2,691,513
Net interest income				$	24,702						$	24,620
Net interest spread						3.78							4.05
Effect of net interest-free funding sources						0.12							0.07
Net interest margin						3.90	%						4.12	%
Ratio of average interest-earning assets to average interest-bearing liabilities	134.92		%					134.94		%

* The interest rate on subordinated notes is calculated on a 30/360 day basis at a rate of 5.10%. The balance is net of debt issuance costs which are amortized to interest expense.

Notes: For rate calculation purposes, average loan and lease categories include unearned discount.

Nonaccrual loans and leases have been included in the average loan and lease balances.

Loans held for sale have been included in the average loan balances.

Tax-equivalent amounts for the three months ended March 31, 2016 and 2015 have been calculated using the

Corporation’s federal applicable rate of 35%.

41

Table 2—Analysis of Changes in Net Interest Income

The rate-volume variance analysis set forth in the table below compares changes in tax-equivalent net interest income for the periods indicated by their rate and volume components. The change in interest income/expense due to both volume and rate has been allocated proportionately.

	Three Months Ended
	March 31, 2016 Versus 2015
(Dollars in thousands)	Volume Change			Rate Change			Total
Interest income:
Interest-earning deposits with other banks	$	10		$	13		$	23
U.S. government obligations	(167		)	38			(129		)
Obligations of states and political subdivisions	(42		)	(151		)	(193		)
Other debt and equity securities	122			247			369
Federal funds sold	—			5			5
Interest on deposits, investments and federal funds sold	(77		)	152			75
Commercial, financial and agricultural loans	(93		)	(142		)	(235		)
Real estate—commercial and construction loans	785			(497		)	288
Real estate—residential loans	799			(207		)	592
Loans to individuals	(13		)	5			(8		)
Municipal loans and leases	330			(142		)	188
Lease financings	84			(125		)	(41		)
Interest and fees on loans and leases	1,892			(1,108		)	784
Total interest income	1,815			(956		)	859
Interest expense:
Interest-bearing checking deposits	8			30			38
Money market savings	(10		)	70			60
Regular savings	17			35			52
Time deposits	(91		)	57			(34		)
Interest on time and interest-bearing deposits	(76		)	192			116
Short-term borrowings	(3		)	(4		)	(7		)
Subordinated notes	651			17			668
Interest on borrowings	648			13			661
Total interest expense	572			205			777
Net interest income	$	1,243		$	(1,161	)	$	82

Interest Income

Three months ended March 31, 2016 versus 2015

Interest income on a tax-equivalent basis for the three months ended March 31, 2016 was $26.9 million, an increase of $859 thousand, or 3% from the same period in 2015. The increase was mainly due to loan growth in commercial real estate, residential real estate and municipal loans which was partially offset by decreases in loan interest rates due to re-pricing and the competitive environment. In addition, the net accretion of acquisition accounting fair value adjustments related to the Valley Green Bank acquisition favorably impacted interest-earning assets by one basis point for the three months ended March 31, 2016 compared to seven basis points for the three months ended March 31, 2015.

42

Interest Expense

Three months ended March 31, 2016 versus 2015

Interest expense for the three months ended March 31, 2016 was $2.2 million, an increase of $777 thousand from the same period in 2015. The increase in interest expense was primarily due to the subordinated debt issuance of $50 million on March 30, 2015 which increased funding costs by 14 basis for the three months ended March 31, 2016 from the same period in 2015. In addition, the net amortization of acquisition accounting fair value adjustments related to the Valley Green Bank acquisition favorably impacted interest-bearing liabilities by one basis point for the three months ended March 31, 2016 compared to four basis points for the three months ended March 31, 2015.

Provision for Loan and Lease Losses

The reserve for loan and lease losses is determined through a periodic evaluation that takes into consideration the growth of the loan and lease portfolio, the status of past-due loans and leases, current economic conditions, various types of lending activity, policies, real estate and other loan commitments, and significant changes in charge-off activity. Loans are also reviewed for impairment based on the fair value of the collateral for collateral dependent loans and for certain loans based on discounted cash flows using the loans’ initial effective interest rates. Any of the above criteria may cause the reserve to fluctuate. The provision for loan and lease losses for the three months ended March 31, 2016 was $326 thousand, down from $1.1 million for the same period in 2015 as asset quality continues to improve; both qualitative factors and historical loss factors have improved.

Noninterest Income

Noninterest income consists of trust department fee income, service charges on deposit accounts, commission income, net gains (losses) on sales of securities, net gains (losses) on mortgage banking activities, and other miscellaneous types of income. Other service fee income primarily consists of fees from credit card companies for a portion of merchant charges paid to the credit card companies for the Bank’s customer debit card usage (Mastermoney fees), non-customer debit card fees, other merchant fees, mortgage servicing income and mortgage placement income. Bank owned life insurance income represents changes in the cash surrender value of bank-owned life insurance policies, which is affected by the market value of the underlying assets, and also includes any excess proceeds from death benefit claims. The net gain on mortgage banking activities consists of gains (losses) on sales of mortgages held for sale and fair value adjustments on interest-rate locks and forward loan sale commitments. Other noninterest income includes other miscellaneous income.

The following table presents noninterest income for the periods indicated:

	Three Months Ended   March 31,				Change
(Dollars in thousands)	2016		2015		Amount			Percent
Trust fee income	$	1,865	$	1,820	$	45		2	%
Service charges on deposit accounts	998		1,063		(65		)	(6	)
Investment advisory commission and fee income	2,669		2,763		(94		)	(3	)
Insurance commission and fee income	4,558		4,146		412			10
Other service fee income	1,833		1,598		235			15
Bank owned life insurance income	470		353		117			33
Net gain on sales of investment securities	44		91		(47		)	(52	)
Net gain on mortgage banking activities	1,218		1,258		(40		)	(3	)
Other income	301		339		(38		)	(11	)
Total noninterest income	$	13,956	$	13,431	$	525		4	%

Three months ended March 31, 2016 versus 2015

Noninterest income for the three months ended March 31, 2016 was $14.0 million, an increase of $525 thousand or 4% from the same period in the prior year. Insurance commission and fee income increased $412 thousand for the three months ended March 31, 2016, primarily due to an increase in contingent commission income and commercial premiums. Bank owned life insurance (BOLI) income increased $117 thousand or 33% mainly due to the purchase of policies totaling $8.0 million during the

43

third quarter of 2015 and the transfer of policies totaling $9.8 million during 2015 to a higher yielding account structure. These increases were partially offset by a decrease of $94 thousand or 3% in investment advisory commission and fee income primarily resulting from the re-pricing of asset management fees in the Corporation's municipal pension business due to competitive pressures in the second quarter of 2015.

Noninterest Expense

The operating costs of the Corporation are known as noninterest expense, and include, but are not limited to, salaries and benefits, commissions, occupancy, equipment, professional services, intangible expenses, acquisition-related costs and integration costs. Expense control is very important to the management of the Corporation, and every effort is made to contain and minimize the growth of operating expenses, and to provide technological innovation whenever practical, as operations change or expand.

The following table presents noninterest expense for the periods indicated:

	Three Months Ended   March 31,				Change
(Dollars in thousands)	2016		2015		Amount			Percent
Salaries and benefits	$	14,182	$	13,314	$	868		7	%
Commissions	1,895		1,814		81			4
Net occupancy	2,096		2,358		(262		)	(11	)
Equipment	1,888		1,689		199			12
Professional fees	1,020		807		213			26
Marketing and advertising	538		360		178			49
Deposit insurance premiums	447		412		35			8
Intangible expenses	770		786		(16		)	(2	)
Acquisition-related costs	214		466		(252		)	(54	)
Integration costs	6		1,374		(1,368		)	N/M
Other expense	3,883		4,031		(148		)	(4	)
Total noninterest expense	$	26,939	$	27,411	$	(472	)	(2	)%

Three months ended March 31, 2016 versus 2015

Noninterest expense for the three months ended March 31, 2016 was $26.9 million, a decrease of $472 thousand or 2% from the same period in the prior year. Non-interest expense for the three months ended March 31, 2016 included $220 thousand of acquisition-related and integration costs associated with the pending merger with Fox Chase Bancorp. Non-interest expense for the three months ended March 31 2015 included $1.8 million of acquisition-related and integration costs related to the Valley Green Bank acquisition. Salaries and benefit expense increased $868 thousand for the three months ended March 31, 2016, primarily attributable to additional staff hired to support revenue generation across all business lines. This increase was partially offset by higher deferred loan origination costs.

Tax Provision

The provision for income taxes for the three months ended March 31, 2016 and 2015 was $2.8 million and $2.1 million, at effective rates of 28% and 26%, respectively. The effective tax rates reflect the benefits of tax-exempt income from investments in municipal securities, loans and bank-owned life insurance.

44

Financial Condition

Assets

The following table presents assets at the dates indicated:

	At March 31,   2016			At December 31,   2015			Change
(Dollars in thousands)							Amount			Percent
Cash and interest-earning deposits	$	38,547		$	60,799		$	(22,252	)	(37	)%
Investment securities	329,357			370,760			(41,403		)	(11	)
Loans held for sale	3,818			4,680			(862		)	(18	)
Loans and leases held for investment	2,183,256			2,179,013			4,243			—
Reserve for loan and lease losses	(16,452		)	(17,628		)	1,176			7
Premises and equipment, net	43,385			42,156			1,229			3
Goodwill and other intangibles, net	124,753			125,277			(524		)	—
Bank owned life insurance	72,030			71,560			470			1
Accrued interest receivable and other assets	46,083			42,834			3,249			8
Total assets	$	2,824,777		$	2,879,451		$	(54,674	)	(2	)%

Cash and Interest-earning Deposits

Cash and interest-earning deposits at March 31, 2016decreased$22.3 million from December 31, 2015 primarily due to a decrease in cash maintained at the Federal Reserve Bank. This was mainly due to the seasonal outflow of public funds deposits which were primarily invested in overnight fed funds partially offset by proceeds from the sale of available-for-sale investment securities.

Investment Securities

The investment portfolio is managed as part of the overall asset and liability management process to optimize income and market performance over an entire interest rate cycle while mitigating risk. Activity in this portfolio is undertaken primarily to manage liquidity and interest rate risk, to take advantage of market conditions that create more economically beneficial returns on these investments, and to collateralize public fund deposits. The securities portfolio consists primarily of U.S. Government agencies, municipals, residential mortgage-backed securities and corporate bonds.

Total investments at March 31, 2016decreased$41.4 million from December 31, 2015. Sales of $53.2 million, maturities and pay-downs of $17.9 million and calls of $4.8 million were partially offset by purchases of $32.6 million and increases in the fair value of available-for-sale investment securities of $2.2 million. The increases in fair value of available-for-sale investment securities were primarily due to the decrease in long-term interest rates during the first quarter of 2016.

Loans and Leases

Gross loans and leases held for investment were $2.2 billion at March 31, 2016, an increase of $4.2 million from December 31, 2015. Consistent with prior years, sluggish economic growth led to flat funded loan growth in the first quarter of 2016, however, loan activity did increase during the quarter leading to growth in the Corporation's loan pipeline.

Asset Quality

Performance of the entire loan and lease portfolio is reviewed on a regular basis by Bank management and lending officers. A number of factors regarding the borrower, such as overall financial strength, collateral values and repayment ability, are considered in deciding what actions should be taken when determining the collectability of interest for accrual purposes.

When a loan or lease, including a loan or lease that is impaired, is classified as nonaccrual, the accrual of interest on such a loan or lease is discontinued. A loan or lease is typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest, even though the loan or lease is currently performing. A loan or lease may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan or lease is placed on nonaccrual status, unpaid interest credited to income is reversed. Interest payments received on nonaccrual loans and leases are either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal.

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Loans or leases are usually restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

At March 31, 2016, the recorded investment in loans held for investment and loans held for sale that were considered to be impaired was $46.5 million. The related reserve for loan losses was $341 thousand. At December 31, 2015, the recorded investment in loans that were considered to be impaired was $48.9 million. The related reserve for loan losses was $322 thousand. Impaired loans include nonaccrual loans and leases, accruing troubled debt restructured loans and lease modifications and other accruing impaired loans for which it is probable that not all principal and interest payments due will be collectible in accordance with the contractual terms. The amount of the specific reserve needed for these credits could change in future periods subject to changes in facts and judgments related to these credits. Specific reserves have been established based on current facts and management’s judgments about the ultimate outcome of these credits. Interest income recognized on impaired loans for the three months ended March 31, 2016 and 2015 was $402 thousand and $491 thousand, respectively. For the three months ended March 31, 2016 and 2015, additional interest income that would have been recognized under the original terms for impaired loans was $218 thousand and $279 thousand, respectively.

The impaired loan balances consisted mainly of commercial real estate and commercial business loans. Commercial real estate impaired loans were $29.4 million and $30.1 million at March 31, 2016 and December 31, 2015, respectively. Commercial business impaired loans were $13.0 million and $12.9 million at March 31, 2016 and December 31, 2015, respectively. Other real estate owned was $3.1 million at March 31, 2016, compared to $1.3 million at December 31, 2015. During the first quarter of 2016, three commercial real estate properties with a total fair value of $1.6 million and land with a fair value of $203 thousand were transferred to other real estate owned.

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Table 3—Nonaccrual and Past Due Loans and Leases; Troubled Debt Restructured Loans and Lease Modifications; Other Real Estate Owned; and Related Ratios

The following table details information pertaining to the Corporation’s non-performing assets at the dates indicated:

(Dollars in thousands)	At March 31, 2016			At December 31, 2015			At March 31, 2015
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and lease modifications*:
Commercial, financial and agricultural	$	6,080		$	6,915		$	5,809
Real estate—commercial	3,981			4,314			4,805
Real estate—construction	—			—			5,660
Real estate—residential	3,000			2,514			1,928
Lease financings	421			440			402
Total nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and lease modifications*	13,482			14,183			18,604
Accruing troubled debt restructured loans and lease modifications not included in the above	4,279			5,245			5,341
Accruing loans and leases 90 days or more past due:
Real estate—residential	478			—			739
Loans to individuals	205			173			247
Lease financings	10			206			77
Total accruing loans and leases, 90 days or more past due	693			379			1,063
Total non-performing loans and leases	18,454			19,807			25,008
Other real estate owned	3,073			1,276			955
Total nonperforming assets	$	21,527		$	21,083		$	25,963
Nonaccrual loans and leases (including nonaccrual troubled debt restructured loans and lease modifications) / loans and leases held for investment	0.62		%	0.65		%	0.91		%
Nonperforming loans and leases / loans and leases held for investment	0.85			0.91			1.22
Nonperforming assets / total assets	0.76			0.73			0.94
Allowance for loan and lease losses / loans and leases held for investment	0.75			0.81			1.02
Allowance for loan and lease losses / loans and leases held for investment (excluding acquired loans at period-end)	0.86			0.94			1.26
Allowance for loan and lease losses / nonaccrual loans and leases held for investment	122.03			124.29			112.52
Allowance for loan and lease losses / nonperforming loans and leases held for investment	89.15			89.00			83.71
Allowance for loan and lease losses	$	16,452		$	17,628		$	20,934
Acquired credit impaired loans	$	1,267		$	1,253		$	1,631
* Nonaccrual troubled debt restructured loans and lease modifications included in nonaccrual loans and leases in the above table	$	1,459		$	93		$	3,489

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The following table provides additional information on the Corporation’s nonaccrual loans held for investment:

(Dollars in thousands)	At March 31, 2016			At December 31, 2015			At March 31, 2015
Total nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and lease modifications	$	13,482		$	14,183		$	18,604
Nonaccrual loans and leases with partial charge-offs	4,229			6,451			6,018
Life-to-date partial charge-offs on nonaccrual loans and leases	2,207			3,853			2,490
Charge-off rate of nonaccrual loans and leases with partial charge-offs	34.3		%	37.4		%	29.3		%
Specific reserves on impaired loans	$	341		$	322		$	1,004

Reserve for Loan and Lease Losses

Management believes the reserve for loan and lease losses is maintained at a level that is appropriate at March 31, 2016 to absorb probable losses in the loan and lease portfolio. Management’s methodology to determine the adequacy of and the provisions to the reserve considers specific credit reviews, past loan and lease loss experience, current economic conditions and trends, and the volume, growth, and composition of the portfolio.

The reserve for loan and lease loss analysis takes into consideration the growth of the loan and lease portfolio, the status of past-due loans and leases, current economic conditions, various types of lending activity, policies, real estate and other loan commitments, and significant changes in charge-off activity. Impaired loans, including nonaccrual loans and leases, troubled debt restructured loans and other accruing impaired loans are evaluated individually. All other loans and leases are evaluated as pools. Based on historical loss experience and qualitative factors, loss factors are determined giving consideration to the areas noted in the preceding paragraph and applied to the pooled loan and lease categories to develop the general or allocated portion of the reserve.

The reserve for loan and lease losses is determined at the end of each quarter, and more frequently for management review purposes. Calculating the Corporation's reserve for loan and lease losses begins with the Bank's loan portfolio utilizing historical loss data as a starting point, while evaluating the impact of environmental factors in a quantitative manner as they relate to the collectability of outstanding loan obligations. The Corporation utilizes a rolling eight-quarter migration analysis and loss emergence period analysis to determine the annualized net expected loan loss experience.

Each quarter, the conditions that exist within the look-back period and loss emergence period are compared to current conditions to support a conclusion as to which qualitative adjustments are (or are not) deemed necessary for each loan portfolio segment. These factors are evaluated subjectively based on management's experience and supported by the Corporation's defined analytical metrics/drivers relative to the historical look-back period. Factors include, but are not limited to, asset quality trends, portfolio growth trends, changes in lending policies and management, economic trends, concentrations of credit risk and the impact of collateral dependent lending.

The reserve for loan and lease losses is based on management’s evaluation of the loan and lease portfolio under current economic conditions and such other factors, which deserve recognition in estimating loan and lease losses. This evaluation is inherently subjective, as it requires estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change. Additions to the reserve arise from the provision for loan and lease losses charged to operations or from the recovery of amounts previously charged off. Loan and lease charge-offs reduce the reserve. Loans and leases are charged off when there has been permanent impairment or when in the opinion of management the full amount of the loan or lease will not be realized. Certain impaired loans are reported at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent, or for certain loans, at the present value of expected future cash flows using the loan’s initial effective interest rate.

The reserve for loan and lease losses consists of an allocated reserve and unallocated reserve categories. The allocated reserve is comprised of reserves established on specific loans and leases, and class reserves based on historical loan and lease loss experience and qualitative factors, current trends, and management assessments. The unallocated reserve supports other risk considerations not readily quantifiable through the allocated reserve metrics outlined above, as well as the inherent imprecision of the reserve for loan and lease losses model complexity. These considerations include, but are not limited to, the improving credit risk profile of performing loans individually measured for impairment, less than fully seasoned home equity portfolio metrics and reclassification of loan settlement exposures.

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The specific reserve element is based on a regular analysis of impaired commercial and real estate loans. For these loans, the specific reserve established is based on an analysis of related collateral value, cash flow considerations and, if applicable, guarantor capacity.

The class reserve element is determined by an internal loan and lease grading process in conjunction with associated allowance factors. The Corporation revises the class allowance factors whenever necessary, but no less than quarterly, in order to address improving or deteriorating credit quality trends or specific risks associated with a given loan or lease pool classification.

The Corporation maintains a reserve in other liabilities for off-balance sheet credit exposures that currently are unfunded in categories with historical loss experience. The reserve for these off-balance sheet credits was $374 thousand and $381 thousand at March 31, 2016 and December 31, 2015, respectively.

Goodwill and Other Intangible Assets

Goodwill and other intangible assets have been recorded on the books of the Corporation in connection with acquisitions. The Corporation has core deposit and customer-related intangibles and mortgage servicing rights, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The amortization of intangible assets was $834 thousand and $948 thousand for the three months ended March 31, 2016 and 2015, respectively. The Corporation also has goodwill with a net carrying value of $112.7 million at March 31, 2016 and December 31, 2015, which is deemed to be an indefinite intangible asset and is not amortized.

The Corporation completes a goodwill impairment analysis at least on an annual basis, or more often, if events and circumstances indicate that there may be impairment. The Corporation also completes an impairment test for other identifiable intangible assets on an annual basis or more often if events and circumstances indicate there may be impairment. There was no impairment of goodwill or identifiable intangibles during the three months ended March 31, 2016 and 2015. Since the last annual impairment analysis during 2015, there have been no circumstances to indicate impairment. There can be no assurance that future impairment assessments or tests will not result in a charge to earnings.

Other Assets

At March 31, 2016 and December 31, 2015, the Bank held $6.6 million in Federal Reserve Bank stock as required by the Federal Reserve Bank. The Bank is a member of the FHLB, and as such, is required to hold FHLB stock as a condition of membership as determined by the FHLB. The Bank is required to hold additional stock in the FHLB in relation to the level of outstanding borrowings. The Bank held FHLB stock of $2.1 million and $2.2 million at March 31, 2016 and December 31, 2015, respectively. Additionally, the FHLB might require its members to increase their capital stock investments. Changes in the credit ratings of the U.S. government and federal agencies, including the FHLB, could increase the borrowing costs of the FHLB and possibly have a negative impact on the FHLB operations and long-term performance. It is possible this could have an adverse effect on the value of the Corporation’s investment in FHLB stock. The Corporation determined there was no other-than-temporary impairment of the investment in FHLB stock. Therefore, at March 31, 2016, the FHLB stock is recorded at cost.

Liabilities

The following table presents liabilities at the dates indicated:

(Dollars in thousands)	At March 31, 2016		At December 31, 2015		Change
					Amount			Percent
Deposits	$	2,334,361	$	2,394,360	$	(59,999	)	(3	)%
Short-term borrowings	25,851		24,211		1,640			7
Long-term borrowings	49,414		49,377		37			—
Accrued interest payable and other liabilities	48,148		49,929		(1,781		)	(4	)
Total liabilities	$	2,457,774	$	2,517,877	$	(60,103	)	(2	)%

Deposits

Total deposits declined$60.0 million or 3% from December 31, 2015, primarily due to a decrease in public funds.

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Borrowings

Short-term borrowings at March 31, 2016, consisted of customer repurchase agreements on an overnight basis totaling $25.9 million. Long-term borrowings at March 31, 2016 consisted of $50.0 million in aggregate principal amount subordinated notes issued by the Corporation in a private placement transaction to institutional accredited investors with net proceeds of $49.3 million.

Shareholders’ Equity

The following table presents total shareholders’ equity at the dates indicated:

(Dollars in thousands)	At March 31, 2016			At December 31, 2015			Change
							Amount			Percent
Common stock	$	110,271		$	110,271		$	—		—	%
Additional paid-in capital	120,906			121,280			(374		)	—
Retained earnings	196,827			193,446			3,381			2
Accumulated other comprehensive loss	(15,481		)	(16,708		)	1,227			7
Treasury stock	(45,520		)	(46,715		)	1,195			3
Total shareholders’ equity	$	367,003		$	361,574		$	5,429		2	%

The increase in shareholder's equity at March 31, 2016 of $5.4 million from December 31, 2015 was primarily related to a $3.4 million increase to retained earnings. Retained earnings at March 31, 2016 were impacted by the three months of net income of $7.3 million partially offset by cash dividends declared of $3.9 million. Accumulated other comprehensive loss decreased by $1.2 million mainly attributable to increases in the fair value of available-for-sale investment securities. Treasury stock decreased by $1.2 million primarily due to the issuance of restricted stock.

Capital Adequacy

The Corporation and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s and the Bank’s financial statements. Capital adequacy guidelines, and additionally for the Bank the prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum amounts and ratios (set forth in the following table) of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined), or leverage ratio.

In July 2013, the federal bank regulatory agencies adopted final rules revising the agencies’ capital adequacy guidelines and prompt corrective action rules, designed to enhance such requirements and implement the revised standards of the Basel Committee on Banking Supervision, commonly referred to as Basel III. The new minimum capital requirements were effective on January 1, 2015. Under the new rules, in order to avoid limitations on capital distributions (including dividend payments and certain discretionary bonus payments to executive officers), a banking organization must hold a capital conservation buffer comprised of common equity Tier 1 capital above its minimum risk-based capital requirements in an amount greater than 2.5% of total risk-weighted assets. The capital conservation buffer requirements phase in over a four-year period beginning January 1, 2016.

The Corporation adopted the new Basel III regulatory capital rules during the first quarter of 2015 under the transition rules, primarily relating to regulatory deductions and adjustments impacting common equity tier 1 capital and tier 1 capital, to be phased in over a three-year period beginning January 1, 2015. Under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. During 2016, the Corporation and the Bank must hold a capital conservation buffer comprised of common equity Tier 1 capital above its minimum risk-based capital requirements in an amount greater than .625% of total risk-weighted assets in order to avoid limitations on capital distributions. Total risk-based capital at March 31, 2016 was 13.47% for the Corporation and 12.13% for the Bank, well in excess of the regulatory minimum for well-capitalized status of 10%. The regulatory capital ratios for the Corporation and the Bank at March 31, 2016 were well in excess of the regulatory minimum requirements including the capital conservation buffer requirements.

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Table 4—Regulatory Capital

The Corporation's and Bank's actual and required capital ratios as of March 31, 2016 and December 31, 2015 under BASEL III regulatory capital rules were as follows.

	Actual				For Capital Adequacy Purposes				To Be Well-Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
At March 31, 2016
Total Capital (to Risk-Weighted Assets):
Corporation	$	336,896	13.47	%	$	200,145	8.00	%	$	250,181	10.00	%
Bank	300,650		12.13		198,319		8.00		247,899		10.00
Tier 1 Capital (to Risk-Weighted Assets):
Corporation	270,381		10.81		150,109		6.00		200,145		8.00
Bank	283,549		11.44		148,739		6.00		198,319		8.00
Tier 1 Common Capital (to Risk-Weighted Assets):
Corporation	270,381		10.81		112,582		4.50		162,618		6.50
Bank	283,549		11.44		111,555		4.50		161,134		6.50
Tier 1 Capital (to Average Assets):
Corporation	270,381		9.93		108,898		4.00		136,123		5.00
Bank	283,549		10.49		108,134		4.00		135,168		5.00
At December 31, 2015
Total Capital (to Risk-Weighted Assets):
Corporation	$	334,757	13.35	%	$	200,613	8.00	%	$	250,766	10.00	%
Bank	300,527		12.09		198,816		8.00		248,521		10.00
Tier 1 Capital (to Risk-Weighted Assets):
Corporation	267,098		10.65		150,460		6.00		200,613		8.00
Bank	282,245		11.36		149,112		6.00		198,816		8.00
Tier 1 Common Capital (to Risk-Weighted Assets):
Corporation	267,098		10.65		112,845		4.50		162,998		6.50
Bank	282,245		11.36		111,834		4.50		161,538		6.50
Tier 1 Capital (to Average Assets):
Corporation	267,098		9.69		110,227		4.00		137,783		5.00
Bank	282,245		10.31		109,480		4.00		136,850		5.00

At March 31, 2016 and December 31, 2015, management believes that the Corporation and the Bank continued to meet all capital adequacy requirements to which they are subject. The Corporation, like other bank holding companies, currently is required to maintain Tier 1 Capital and Total Capital equal to at least 6.0% and 8.0%, respectively, of total risk-weighted assets (including various off-balance-sheet items). The Bank, like other depository institutions, is required to maintain similar capital levels under capital adequacy guidelines. During 2016, the Corporation and the Bank must hold a capital conservation buffer comprised of common equity Tier 1 capital above its minimum risk-based capital requirements in an amount greater than .625% of total risk-weighted assets in order to avoid limitations on capital distributions. For a depository institution to be considered “well capitalized” under the regulatory framework for prompt corrective action, Tier 1 and Total Capital ratios must be at least 8.0% and 10.0% on a risk-adjusted basis, respectively. At March 31, 2016, the Bank is categorized as “well capitalized” under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Corporation will continue to analyze the impact of the new rules as it grows and as the capital conservation buffer requirements are phased in.

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Asset/Liability Management

The primary functions of Asset/Liability Management are to assure adequate earnings, capital and liquidity while maintaining an appropriate balance between interest-earning assets and interest-bearing liabilities. Liquidity management involves the ability to meet cash flow requirements of customers and corporate needs. Interest-rate sensitivity management seeks to avoid fluctuating net interest margins and to enhance consistent growth of net interest income through periods of changing rates.

The Corporation uses both interest-sensitivity gap analysis and simulation modeling to quantify exposure to interest rate risk. The Corporation uses the gap analysis to identify and monitor long-term rate exposure and uses a simulation model to measure the short-term rate exposures. The Corporation runs various earnings simulation scenarios to quantify the effect of declining or rising interest rates on the net interest margin over a one-year and two-year horizon. The simulation uses existing portfolio rate and re-pricing information, combined with assumptions regarding future loan and deposit growth, future spreads, prepayment speeds on loans, and the discretionary pricing of non-maturity assets and liabilities. The Corporation is in a liability sensitive position from both a short-term maturity perspective and a short-term re-pricing perspective, as interest rates remain at historically low levels. Despite being liability sensitive, the Corporation projects increased net interest income in rising rate scenarios as the magnitude of the asset pricing change exceeds the liability pricing change.

Liquidity

The Corporation, in its role as a financial intermediary, is exposed to certain liquidity risks. Liquidity refers to the Corporation’s ability to ensure that sufficient cash flow and liquid assets are available to satisfy demand for loans and deposit withdrawals. The Corporation manages liquidity risk by measuring and monitoring liquidity sources and estimated funding needs. The Corporation has a contingency funding plan in place to address liquidity needs in the event of an institution-specific or a systemic financial crisis.

Sources of Funds

Core deposits and customer repurchase agreements have historically been the most significant funding sources for the Corporation. These deposits and repurchase agreements are primarily generated from a base of consumer, business and public customers primarily located in Bucks, Montgomery and Philadelphia counties, Pennsylvania. The Corporation faces increased competition for these deposits from a large array of financial market participants, including banks, credit unions, savings institutions, mutual funds, security dealers and others.

The Corporation supplements its core funding with money market funds it holds for the benefit of various trust accounts. These funds are fully collateralized by the Bank’s investment portfolio and bear interest at current money market mutual fund rates. This funding source is subject to changes in the asset allocations of the trust accounts.

The Corporation, through the Bank, has short-term and long-term credit facilities with the FHLB with a maximum borrowing capacity of approximately $821.3 million. At March 31, 2016 and December 31, 2015, there were no overnight borrowings with the FHLB. At March 31, 2016 and December 31, 2015, the Bank had outstanding short-term letters of credit with the FHLB totaling $153.4 million and $170.2 million, respectively, which were utilized to collateralize public funds deposits. The maximum borrowing capacity with the FHLB changes as a function of qualifying collateral assets as well as the FHLB’s internal credit rating of the Bank, and the amount of funds received may be reduced by additional required purchases of FHLB stock.

The Corporation has a $10.0 million line of credit with a correspondent bank. At March 31, 2016, the Corporation had no outstanding borrowings under this line.

The Corporation, through the Bank, maintains federal fund lines with several correspondent banks totaling $122.0 million at March 31, 2016 and December 31, 2015. At March 31, 2016 and December 31, 2015, the Corporation had no outstanding federal funds purchased with these correspondent banks. Future availability under these lines is subject to the prerogatives of the granting banks and may be withdrawn at will.

The Corporation, through the Bank, has an available line of credit at the Federal Reserve Bank of Philadelphia, the amount of which is dependent upon the balance of loans and securities pledged as collateral. At March 31, 2016 and December 31, 2015, the Corporation had no outstanding borrowings under this line.

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Cash Requirements

The Corporation has cash requirements for various financial obligations, including contractual obligations and commitments that require cash payments. The most significant contractual obligation, in both the under and over one year time period, is for the Bank to repay certificates of deposit. The Bank anticipates meeting these obligations by continuing to provide convenient depository and cash management services through its financial center network, thereby replacing these contractual obligations with similar fund sources at rates that are competitive in our market.

Commitments to extend credit are the Bank’s most significant commitment in both the under and over one year time periods. These commitments do not necessarily represent future cash requirements in that these commitments often expire without being drawn upon.

Recent Accounting Pronouncements

For information regarding recent accounting pronouncements, refer to Footnote 1, “Summary of Significant Accounting Policies” of this Form 10-Q.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

No material changes in the Corporation’s market risk or market strategy occurred during the current period. A detailed discussion of market risk is provided in the Corporation's Annual Report on Form 10-K for the period ended December 31, 2015.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Management is responsible for the disclosure controls and procedures of the Corporation. Disclosure controls and procedures are controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods required by the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be so disclosed by an issuer is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of the Corporation’s management, including the Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial and Accounting Officer), of the effectiveness of the design and operation of the Corporation’s disclosure controls and procedures. Based on that evaluation, the Corporation’s Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of March 31, 2016.

Changes in Internal Control over Financial Reporting

There were no changes in the Corporation’s internal control over financial reporting (as defined in Rule 13a-15(f)) during the quarter ended March 31, 2016 that materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Management is not aware of any litigation that would have a material adverse effect on the consolidated balance sheet or statement of income of the Corporation. There are no material proceedings pending other than the ordinary routine litigation incident to the business of the Corporation. In addition, there are no material proceedings pending or known to be threatened or contemplated against the Corporation or the Bank by government authorities.

Item 1A. Risk Factors

There have been no material changes in risk factors from those disclosed under Item 1A, “Risk Factors.” in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2015.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information on repurchases by the Corporation of its common stock under the Corporation's Board approved program.

ISSUER PURCHASES OF EQUITY SECURITIES
Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
January 1 – 31, 2016	—	$	—	—	1,080,246
February 1 – 29, 2016	—	—		—	1,080,246
March 1 – 31, 2016	—	—		—	1,080,246
Total	—	$	—	—

1. Transactions are reported as of trade dates.

2. On October 23, 2013, the Corporation’s Board of Directors approved a new stock repurchase plan for the repurchase of up to 800,000 shares, or approximately 5% of the shares outstanding. On May 27, 2015, the Corporation's Board of Directors approved an increase of 1,000,000 shares available for repurchase under the Corporation's share repurchase program, or approximately 5% of the Corporation's common stock outstanding as of May 27, 2015. The repurchased shares limit is net of normal treasury activity such as purchases to fund the dividend reinvestment, employee stock purchase and equity compensation plans. The program has no scheduled expiration date and the Board of Directors has the right to suspend or discontinue the program at any time.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

a.	Exhibits
	Exhibit 2.1	Agreement and Plan of Merger by and between Univest Corporation of Pennsylvania and Fox Chase Bancorp, Inc. dated as of December 8, 2015 is incorporated by reference to Exhibit 2.1 of Form 8-K, filed with the SEC on December 11, 2015.
	Exhibit 3.1	Amended and Restated Articles of Incorporation are incorporated by reference to Exhibit 3.1 of Form 8-K, filed with the SEC on April 22, 2015.
	Exhibit 3.2	Amended By-Laws effective January 1, 2015 are incorporated by reference to Exhibit 3.2 of Form 8-K, filed with the SEC on January 2, 2015.
	Exhibit 10.1	Form of Change in Control Agreement dated February 26, 2016 between Univest Corporation of Pennsylvania, Univest Bank and Trust Co. and certain executive officers is incorporated by reference to Form 8-K, filed with the SEC on March 2, 2016.
	Exhibit 31.1	Certification of Jeffrey M. Schweitzer, President and Chief Executive Officer of the Corporation, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.
	Exhibit 31.2	Certification of Michael S. Keim, Senior Executive Vice President and Chief Financial Officer of the Corporation, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.
	Exhibit 32.1	Certification of Jeffrey M. Schweitzer, President and Chief Executive Officer of the Corporation, pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002.
	Exhibit 32.2	Certification of Michael S. Keim, Senior Executive Vice President and Chief Financial Officer of the Corporation, pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002.
	Exhibit 101.INS	XBRL Instance Document
	Exhibit 101.SCH	XBRL Taxonomy Extension Schema Document
	Exhibit 101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
	Exhibit 101.LAB	XBRL Taxonomy Extension Label Linkbase Document
	Exhibit 101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
	Exhibit 101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

55

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Univest Corporation of Pennsylvania
	(Registrant)
Date: May 10, 2016	/s/ Jeffrey M. Schweitzer
	Jeffrey M. Schweitzer President and Chief Executive Officer (Principal Executive Officer)
Date: May 10, 2016	/s/ Michael S. Keim
	Michael S. Keim Senior Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

56

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Jeffrey M. Schweitzer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Univest Corporation of Pennsylvania;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: May 10, 2016

/s/ Jeffrey M. Schweitzer

Jeffrey M. Schweitzer

President and Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Michael S. Keim, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Univest Corporation of Pennsylvania;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: May 10, 2016

/s/ Michael S. Keim

Michael S. Keim

Senior Executive Vice President and Chief Financial Officer

(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Univest Corporation of Pennsylvania on Form 10-Q for the period ended March 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Corporation.

A signed original of this written statement required by Section 906 has been provided to Univest Corporation of Pennsylvania and will be retained by Univest Corporation of Pennsylvania and furnished to the Securities and Exchange Commission or its staff upon request.

/s/ Jeffrey M. Schweitzer

Jeffrey M. Schweitzer

President and Chief Executive Officer

(Principal Executive Officer)

May 10, 2016

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Univest Corporation of Pennsylvania on Form 10-Q for the period ended March 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Corporation.

A signed original of this written statement required by Section 906 has been provided to Univest Corporation of Pennsylvania and will be retained by Univest Corporation of Pennsylvania and furnished to the Securities and Exchange Commission or its staff upon request.

/s/ Michael S. Keim

Michael S. Keim

Senior Executive Vice President and Chief Financial Officer

(Principal Financial and Accounting Officer)

May 10, 2016

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 29, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	UNIVEST CORP OF PENNSYLVANIA
Entity Central Index Key	0000102212
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Trading Symbol	UVSP
Amendment Flag	false
Entity Common Stock, Shares Outstanding		19,616,172

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
ASSETS
Cash and due from banks	$ 31,260	$ 32,356
Interest-earning deposits with other banks	7,287	28,443
Investment securities held-to-maturity (fair value $37,031 and $41,061 at March 31, 2016 and December 31, 2015, respectively)	36,932	40,990
Investment securities available-for-sale	292,425	329,770
Loans held for sale	3,818	4,680
Loans and leases held for investment	2,183,256	2,179,013
Less: Reserve for loan and lease losses	(16,452)	(17,628)
Net loans and leases held for investment	2,166,804	2,161,385
Premises and equipment, net	43,385	42,156
Goodwill	112,657	112,657
Other intangibles, net of accumulated amortization and fair value adjustments of $14,349 and $15,360 at March 31, 2016 and December 31, 2015, respectively	12,096	12,620
Bank owned life insurance	72,030	71,560
Accrued interest receivable and other assets	46,083	42,834
Total assets	2,824,777	2,879,451
LIABILITIES
Noninterest-bearing deposits	559,827	541,460
Interest-bearing deposits:
Demand deposits	748,576	790,800
Savings deposits	643,050	607,694
Time deposits	382,908	454,406
Total deposits	2,334,361	2,394,360
Customer repurchase agreements	25,851	24,211
Subordinated notes	49,414	49,377
Accrued interest payable and other liabilities	48,148	49,929
Total liabilities	2,457,774	2,517,877
SHAREHOLDERS’ EQUITY
Common stock, $5 par value: 48,000,000 shares authorized at March 31, 2016 and December 31, 2015; 22,054,270 shares issued at March 31, 2016 and December 31, 2015; 19,592,798 and 19,530,930 shares outstanding at March 31, 2016 and December 31, 2015, respectively	110,271	110,271
Additional paid-in capital	120,906	121,280
Retained earnings	196,827	193,446
Accumulated other comprehensive loss, net of tax benefit	(15,481)	(16,708)
Treasury stock, at cost; 2,461,472 and 2,523,340 shares at March 31, 2016 and December 31, 2015, respectively	(45,520)	(46,715)
Total shareholders’ equity	367,003	361,574
Total liabilities and shareholders’ equity	$ 2,824,777	$ 2,879,451

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Securities Held-to-Maturity, Fair Value	$ 37,031	$ 41,061
Accumulated amortization and fair value adjustments on other intangibles	$ 14,349	$ 15,360
Common stock, par value	$ 5	$ 5
Common stock, shares authorized	48,000,000	48,000,000
Common stock, shares issued	22,054,270	22,054,270
Common stock, shares outstanding	19,592,798	19,530,930
Treasury stock, shares	2,461,472	2,523,340

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest and fees on loans and leases:
Taxable	$ 21,850	$ 21,254
Exempt from federal income taxes	1,716	1,584
Total interest and fees on loans and leases	23,566	22,838
Interest and dividends on investment securities:
Taxable	1,274	1,034
Exempt from federal income taxes	734	859
Interest on federal funds sold	7	2
Other interest income	28	5
Total interest income	25,609	24,738
Interest expense
Interest on deposits	1,533	1,417
Interest on short-term borrowings	3	10
Interest on long-term borrowings	675	7
Total interest expense	2,211	1,434
Net interest income	23,398	23,304
Provision for loan and lease losses	326	1,074
Net interest income after provision for loan and lease losses	23,072	22,230
Noninterest income
Trust fee income	1,865	1,820
Service charges on deposit accounts	998	1,063
Investment advisory commission and fee income	2,669	2,763
Insurance commission and fee income	4,558	4,146
Other service fee income	1,833	1,598
Bank owned life insurance income	470	353
Net gain on sales of investment securities	44	91
Net gain on mortgage banking activities	1,218	1,258
Other income	301	339
Total noninterest income	13,956	13,431
Noninterest expense
Salaries and benefits	14,182	13,314
Commissions	1,895	1,814
Net occupancy	2,096	2,358
Equipment	1,888	1,689
Professional fees	1,020	807
Marketing and advertising	538	360
Deposit insurance premiums	447	412
Intangible expenses	770	786
Acquisition-related costs	214	466
Integration costs	6	1,374
Other expense	3,883	4,031
Total noninterest expense	26,939	27,411
Income before income taxes	10,089	8,250
Income taxes	2,800	2,134
Net income	$ 7,289	$ 6,116
Net income per share:
Basic (in dollars per share)	$ 0.37	$ 0.31
Diluted (in dollars per share)	0.37	0.31
Dividends declared (in dollars per share)	$ 0.2	$ 0.20

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Income, Before Tax Amount	$ 10,089	$ 8,250
Net unrealized gains (losses) on available-for-sale investment securities, Before Tax Amount
Net unrealized holding gains (losses) arising during the period, Before Tax Amount	2,218	2,158
Less: reclassification adjustment for net gains on sales realized in net income, Before Tax Amount	(44)	(91)
Total net unrealized gains on available-for-sale investment securities, Before Tax Amount	2,174	2,067
Cash flow hedge derivative, Before Tax Amount
Net change in fair value of interest rate swap, Before Tax Amount	(545)	(337)
Defined benefit pension plans, Before Tax Amount
Amortization of net actuarial loss included in net periodic pension costs, Before Tax Amount	329	341
Accretion of prior service cost included in net periodic pension costs, Before Tax Amount	(71)	(70)
Total defined benefit pension plans, Before Tax Amount	258	271
Other comprehensive income (loss), Before Tax Amount	1,887	2,001
Total comprehensive income (loss), Before Tax Amount	11,976	10,251
Tax (expense) benefit	2,800	2,134
Net unrealized gains (losses) on available-for-sale investment securities, Tax Expense (Benefit)
Net unrealized holding gains (losses) arising during the period, Tax Expense (Benefit)	776	755
Less: reclassification adjustment for net gains on sales realized in net income, Tax Expense (Benefit)	(15)	(32)
Total net unrealized gains on available-for-sale investment securities, Tax Expense (Benefit)	761	723
Cash flow hedge derivative, Tax Expense (Benefit)
Net change in fair value of interest rate swap, Tax Expense (Benefit)	(191)	(118)
Defined benefit pension plans, Tax Expense (Benefit)
Amortization of net actuarial loss included in net periodic pension costs, Tax Expense (Benefit)	115	120
Accretion of prior service cost included in net periodic pension costs, Tax Expense (Benefit)	(25)	(24)
Total defined benefit pension plans, Tax Expense (Benefit)	90	96
Other comprehensive income (loss), Tax Expense (Benefit)	660	701
Total comprehensive income (loss), Tax Expense (Benefit)	3,460	2,835
Net income	7,289	6,116
Net unrealized gains (losses) on available-for-sale investment securities, Net of Tax Amount
Net unrealized holding gains (losses) arising during the period, Net of Tax Amount	1,442	1,403
Less: reclassification adjustment for net gains on sales realized in net income, Net of Tax Amount	(29)	(59)
Total net unrealized gains on available-for-sale investment securities, Net of Tax Amount	1,413	1,344
Cash flow hedge derivative, Net of Tax Amount
Net change in fair value of interest rate swap, Net of Tax Amount	(354)	(219)
Defined benefit pension plans, Net of Tax Amount
Amortization of net actuarial loss included in net periodic pension costs, Net of Tax Amount	214	221
Accretion of prior service cost included in net periodic pension costs, Net of Tax Amount	(46)	(46)
Total defined benefit pension plans, Net of Tax Amount	168	175
Other comprehensive income (loss), Net of Tax Amount	1,227	1,300
Total comprehensive income (loss), Net of Tax Amount	$ 8,516	$ 7,416

XML

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive (Loss) Income [Member]	Treasury Stock [Member]
Beginning balance at Dec. 31, 2014	$ 284,554	$ 91,332	$ 62,980	$ 181,851	$ (14,462)	$ (37,147)
Beginning balance, shares at Dec. 31, 2014		16,221,607
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,116	$ 0	0	6,116	0	0
Other comprehensive income, net of income tax	1,300	0	0	0	1,300	0
Cash dividends declared ($0.20 per share)	(3,991)	0	0	(3,991)	0	0
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs	695	$ 0	18	0	0	677
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs, shares		35,262
Issuance of common stock, acquisition	76,666	$ 18,939	57,727	0	0	0
Issuance of common stock, acquisition (shares)		3,787,866
Exercise of stock options	66	$ 0	(7)	0	0	73
Exercise of stock options, shares		4,000
Repurchase of cancelled restricted stock awards	0	$ 0	183	0	0	(183)
Repurchase of cancelled restricted stock awards, shares		(12,375)
Stock-based compensation	412	$ 0	412	0	0	0
Purchases of treasury stock	(5,424)	$ 0	0	0	0	(5,424)
Purchases of treasury stock, shares		(281,291)
Restricted stock awards granted	0	$ 0	(1,195)	0	0	1,195
Restricted stock awards granted, shares		65,755
Ending balance at Mar. 31, 2015	360,394	$ 110,271	120,118	183,976	(13,162)	(40,809)
Ending balance, shares at Mar. 31, 2015		19,820,824
Beginning balance at Dec. 31, 2015	361,574	$ 110,271	121,280	193,446	(16,708)	(46,715)
Beginning balance, shares at Dec. 31, 2015		19,530,930
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,289	$ 0	0	7,289	0	0
Other comprehensive income, net of income tax	1,227	0	0	0	1,227	0
Cash dividends declared ($0.20 per share)	(3,908)	0	0	(3,908)	0	0
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs	617	$ 0	8	0	0	609
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs, shares		30,121
Exercise of stock options	238	$ 0	(27)	0	0	265
Exercise of stock options, shares		14,167
Repurchase of cancelled restricted stock awards	0	$ 0	241	0	0	(241)
Repurchase of cancelled restricted stock awards, shares		(14,250)
Stock-based compensation	451	$ 0	451	0	0	0
Net tax benefit/deficiency on stock-based compensation	36	0	36	0	0	0
Purchases of treasury stock	(521)	$ 0	0	0	0	(521)
Purchases of treasury stock, shares		(26,750)
Restricted stock awards granted	0	$ 0	(1,083)	0	0	1,083
Restricted stock awards granted, shares		58,580
Ending balance at Mar. 31, 2016	$ 367,003	$ 110,271	$ 120,906	$ 196,827	$ (15,481)	$ (45,520)
Ending balance, shares at Mar. 31, 2016		19,592,798

XML

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Stockholders' Equity [Abstract]
Cash dividends declared, per share	$ 0.2	$ 0.20

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income	$ 7,289	$ 6,116
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan and lease losses	326	1,074
Depreciation of premises and equipment	942	1,038
Net gain on sales of investment securities	(44)	(91)
Net gain on mortgage banking activities	(1,218)	(1,258)
Bank owned life insurance income	(470)	(353)
Net accretion of acquisition accounting fair value adjustments	(100)	(543)
Stock-based compensation	451	412
Intangible expenses	770	786
Other adjustments to reconcile net income to cash provided by operating activities	325	323
Deferred tax expense	905	1,131
Originations of loans held for sale	(44,414)	(47,453)
Proceeds from the sale of loans held for sale	46,003	46,141
Contributions to pension and other postretirement benefit plans	(60)	(81)
Increase in accrued interest receivable and other assets	(2,385)	(166)
Decrease in accrued interest payable and other liabilities	(1,469)	(2,239)
Net cash provided by operating activities	6,851	4,837
Cash flows from investing activities:
Net cash paid due to acquisitions	0	(2,967)
Net capital expenditures	(2,177)	(1,189)
Proceeds from maturities and calls of securities held-to-maturity	4,000	4,000
Proceeds from maturities and calls of securities available-for-sale	18,693	13,575
Proceeds from sales of securities available-for-sale	53,181	271
Purchases of investment securities available-for-sale	(32,573)	(15,134)
Net increase in loans and leases	(7,507)	(35,925)
Net decrease (increase) in interest-earning deposits	21,156	(29,947)
Net decrease in federal funds sold	0	9,099
Net cash provided by (used in) investing activities	54,773	(58,217)
Cash flows from financing activities:
Net (decrease) increase in deposits	(59,934)	7,752
Net increase in short-term borrowings	1,640	179
Proceeds from issuance of subordinated notes	0	49,270
Payment of contingent consideration on acquisitions	(900)	(620)
Purchases of treasury stock	(521)	(5,424)
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs	617	695
Proceeds from exercise of stock options, including excess tax benefits	274	112
Cash dividends paid	(3,896)	(3,237)
Net cash (used in) provided by financing activities	(62,720)	48,727
Net decrease in cash and due from banks	(1,096)	(4,653)
Cash and due from banks at beginning of year	32,356	31,995
Cash and due from banks at end of period	31,260	27,342
Supplemental disclosures of cash flow information:
Cash paid for interest	3,113	1,635
Cash paid (received) for income taxes, net of refunds	685	(530)
Non cash transactions:
Transfer of loans to other real estate owned	1,797	0
Assets acquired through acquisitions	0	425,834
Liabilities assumed through acquisitions	0	389,907
Contingent consideration recorded as goodwill	$ 0	$ 1,424

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of Univest Corporation of Pennsylvania (the Corporation or Univest) and its wholly owned subsidiaries; the Corporation’s primary subsidiary is Univest Bank and Trust Co. (the Bank). All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited interim consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations for interim financial information. The accompanying unaudited consolidated financial statements reflect all adjustments which are of a normal recurring nature and are, in the opinion of management, necessary for a fair presentation of the financial statements for the interim periods presented. Certain prior period amounts have been reclassified to conform to the current-year presentation. Operating results for the three-month period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ended December 31, 2016. It is suggested that these unaudited consolidated financial statements be read in conjunction with the audited financial statements and the notes thereto included in the registrant’s Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the SEC on March 4, 2016.

Use of Estimates

The preparation of the unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes include fair value measurement of investment securities available-for-sale and assessment for impairment of certain investment securities, reserve for loan and lease losses, valuation of goodwill and other intangible assets, mortgage servicing rights, deferred tax assets and liabilities, benefit plans and stock-based compensation expense.

Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) to simplify and improve employee share-based payment accounting. Under the new guidance, all excess tax benefits and tax deficiencies are recognized as an income tax benefit or expense in the income statement. The additional paid-in capital pool is eliminated. Excess tax benefits and deficiencies are recognized in the period they are deducted on the income tax return. Excess tax benefits are recorded along with other income tax cash flows as an operating activity in the statement of cash flows. The recognition of excess tax benefits and deficiencies and changes to diluted earnings per share are to be applied prospectively when this ASU is adopted. For tax benefits that were not previously recognized because the related tax deduction had not reduced taxes payable, entities record a cumulative-effect adjustment in retained earnings as of the beginning of the year of adoption. The Corporation does not record deferred tax benefits on incentive stock options when expense is accrued, therefore, the Corporation will not have a cumulative-effect adjustment when this ASU is adopted. Changes to the treatment of forfeitures will not impact the Corporation as the historical assumption for forfeitures was immaterial and not taken into account during valuations; the Corporation has recorded forfeitures as they occurred which is consistent with the new guidance. The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities, or January 1, 2017 for the Corporation. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. The Corporation does not anticipate that the adoption of this ASU will have a material impact on the financial statements.

In March 2016, the FASB issued an ASU to amend the guidance for hedge accounting to clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The amendments in this ASU are effective for financial statements of public businesses issued for fiscal years and interim periods within those years beginning after December 15, 2016, or January 1, 2017 for the Corporation. The Corporation does not anticipate the adoption of this ASU will have any impact on the financial statements.

In February 2016, the FASB issued an ASU to revise the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases. Disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. The ASU is effective for the first interim period within annual periods beginning after December 15, 2018, or January 1, 2019, with early adoption permitted. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements; however, the adoption of this ASU will impact the balance sheet for the recording of assets and liabilities for operating leases; any initial or continued impact of the recording of assets will have an impact on risk-based capital ratios under current regulatory guidance and possibly equity ratios.

In January 2016, the FASB issued an ASU to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The ASU will require equity investments to be measured at fair value with changes in fair value recognized in net income. When fair value is not readily determinable, an entity may elect to measure the equity investment at cost, minus impairment, plus or minus any change in the investment’s observable price. The ASU will simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. A valuation allowance on a deferred tax asset related to available-for-sale securities will need to be included. For financial liabilities that are measured at fair value, the ASU requires an entity to present separately, in other comprehensive income, any change in fair value resulting from a change in instrument-specific credit risk. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. The amendments in this ASU are effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017 or January 1, 2018 for the Corporation. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements.

In September 2015, the FASB issued an ASU simplifying the accounting for measurement-period adjustments related to business combinations. The ASU eliminates the requirement to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. Under this ASU, measurement-period adjustments are calculated as if they were known at the acquisition date, but are recognized in the reporting period in which they are determined. The ASU requires additional disclosures about the impact on current period income statement line items of adjustments that would have been recognized in prior periods if prior period information had been revised. The amendments in this ASU were effective for financial statements of public businesses issued for fiscal years and interim periods within those years beginning after December 15, 2015, or January 1, 2016 for the Corporation. The adoption of this guidance did not impact the Corporation's financial statements.

In April 2015, the FASB issued an ASU simplifying the presentation of debt issuance costs. The ASU requires that debt issuance costs related to a recognized debt liability shall be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The costs will continue to be amortized to interest expense using the effective interest method. The ASU was effective for financial statements of public businesses issued for fiscal years beginning after December 15, 2015, or January 1, 2016 for the Corporation. The adoption of this ASU did not impact the Corporation's balance sheet presentation as the Corporation followed this presentation consistent with the guidance in FASB Concepts Statement No. 6.

In May 2014, the FASB issued an ASU regarding revenue from contracts with customers which clarifies the principles for recognizing revenue and develops a common standard for U.S. GAAP and International Financial Reporting Standards. The ASU establishes a core principle that would require an entity to identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. The ASU provides for improved disclosure requirements that require entities to disclose sufficient information that enables users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In March 2016, the FASB issued an ASU clarifying the implementation guidance on the principal-versus-agent considerations in the revenue recognition standard by instructing the participants in the sale to determine whether they control the good or service and are entitled to the gross amount of the transaction or are acting as an agent and should collect only a fee or commission for arranging the sale. The original effective date of the guidance relating to revenue from contracts with customers was deferred in August 2015 by one year. This guidance is now effective for fiscal years and interim periods within those years beginning after December 15, 2017, or January 1, 2018 for the Corporation. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements; however, it is anticipated the impact will be only related to timing.

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Acquisition

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Acquisition

Acquisition

Fox Chase Bancorp

On December 8, 2015, the Corporation and Fox Chase Bancorp, Inc. (Fox Chase), parent company of Fox Chase Bank, entered into an Agreement and Plan of Merger pursuant to which Fox Chase will be merged with and into the Corporation in a cash and stock transaction with an aggregate value of approximately $239.3 million. Fox Chase had $1.1 billion in assets, $776.7 million in loans, and $815.7 million in deposits at March 31, 2016. Fox Chase's main office is in Hatboro, Pennsylvania and operates full-service banking offices in Pennsylvania and New Jersey. Upon completion, the Corporation's presence will expand in Bucks, Chester, Philadelphia and Montgomery counties in Pennsylvania and into Atlantic and Cape May counties in New Jersey, complementing and expanding the Corporation's existing network of financial centers.

Upon completion of the merger, Fox Chase shareholders will have the right to receive either $21.00 in cash, or a fixed exchange ratio of 0.9731 shares of the Corporation’s common stock, or a combination of the two, for outstanding shares of Fox Chase. The stock/cash election is subject to allocation provisions to assure that 40% of Fox Chase shares receive cash consideration and 60% of Fox Chase shares receive stock consideration. The Merger Agreement has been approved by the Boards of Directors of the Corporation, the Bank, Fox Chase and Fox Chase Bank and remains subject to approval by the shareholders of both companies, as well as their regulatory authorities. The transaction is expected to qualify as a tax-free reorganization for federal income tax purposes. The transaction is expected to close in the third quarter of 2016.

In January 2016, the Corporation approved a $30.0 million discretionary overnight federal funds line to Fox Chase Bank at a rate of one-month LIBOR plus 0.05%. At March 31, 2016, the Corporation had no outstanding federal funds sold to Fox Chase Bank. During the first quarter of 2016, average federal funds sold to Fox Chase Bank were $5.9 million.

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Investment Securities

3 Months Ended

Mar. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

The following table shows the amortized cost and the estimated fair value of the held-to-maturity securities and available-for-sale securities at March 31, 2016 and December 31, 2015, by contractual maturity within each type:

	At March 31, 2016									At December 31, 2015
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Held-to-Maturity
Corporate bonds:
Within 1 year	$	26,924	$	114	$	—		$	27,038	$	21,047	$	134	$	—		$	21,181
After 1 year to 5 years	10,008		26		(41		)	9,993		19,943		1		(64		)	19,880
	36,932		140		(41		)	37,031		40,990		135		(64		)	41,061
Total	$	36,932	$	140	$	(41	)	$	37,031	$	40,990	$	135	$	(64	)	$	41,061
Securities Available-for-Sale
U.S. treasuries:
After 1 year to 5 years	$	—	$	—	$	—		$	—	$	4,978	$	—	$	(91	)	$	4,887
	—		—		—			—		4,978		—		(91		)	4,887
U.S. government corporations and agencies:
Within 1 year	10,278		2		—			10,280		10,389		—		(29		)	10,360
After 1 year to 5 years	57,085		302		—			57,387		92,148		26		(378		)	91,796
	67,363		304		—			67,667		102,537		26		(407		)	102,156
State and political subdivisions:
After 1 year to 5 years	17,125		134		(12		)	17,247		17,362		80		(29		)	17,413
After 5 years to 10 years	50,335		1,382		(17		)	51,700		47,969		1,188		(32		)	49,125
Over 10 years	32,560		1,301		—			33,861		34,334		1,160		—			35,494
	100,020		2,817		(29		)	102,808		99,665		2,428		(61		)	102,032
Residential mortgage-backed securities:
After 1 year to 5 years	4,920		6		—			4,926		9,713		12		(13		)	9,712
After 5 years to 10 years	59		1		—			60		60		—		—			60
Over 10 years	3,497		91		—			3,588		3,517		65		—			3,582
	8,476		98		—			8,574		13,290		77		(13		)	13,354
Collateralized mortgage obligations:
Over 10 years	3,080		—		(24		)	3,056		3,215		—		(82		)	3,133
	3,080		—		(24		)	3,056		3,215		—		(82		)	3,133
Corporate bonds:
Within 1 year	250		—		—			250		250		—		—			250
After 1 year to 5 years	18,862		142		(44		)	18,960		19,446		25		(158		)	19,313
After 5 years to 10 years	15,122		95		(63		)	15,154		10,148		—		(266		)	9,882
Over 10 years	60,000		857		(3,218		)	57,639		60,000		—		(2,770		)	57,230
	94,234		1,094		(3,325		)	92,003		89,844		25		(3,194		)	86,675
Money market mutual funds:
No stated maturity	17,563		—		—			17,563		16,726		—		—			16,726
	17,563		—		—			17,563		16,726		—		—			16,726
Equity securities:
No stated maturity	426		328		—			754		426		381		—			807
	426		328		—			754		426		381		—			807
Total	$	291,162	$	4,641	$	(3,378	)	$	292,425	$	330,681	$	2,937	$	(3,848	)	$	329,770

Expected maturities may differ from contractual maturities because debt issuers may have the right to call or prepay obligations without call or prepayment penalties. Unrealized losses in investment securities at March 31, 2016 and December 31, 2015 do not represent other-than-temporary impairments.

Securities with a carrying value of $157.4 million and $210.1 million at March 31, 2016 and December 31, 2015, respectively, were pledged to secure public deposits and for other purposes as required by law.

The following table presents information related to sales of securities available-for-sale during the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31,
(Dollars in thousands)	2016		2015
Securities available-for-sale:
Proceeds from sales	$	53,181	$	271
Gross realized gains on sales	106		91
Gross realized losses on sales	62		—
Tax expense related to net realized gains on sales	15		32

Management evaluates debt securities, which are comprised of U.S. government, government sponsored agencies, municipalities, corporate bonds and other issuers, for other-than-temporary impairment by considering the current economic conditions, the length of time and the extent to which the fair value has been less than cost, market interest rates and the bond rating of each security. All of the debt securities are rated as investment grade and management believes that it will not incur any losses. The unrealized losses on the Corporation’s investments in debt securities are temporary in nature since they are primarily related to market interest rates and are not related to the underlying credit quality of the issuers. The Corporation does not have the intent to sell the debt securities and believes it is more likely than not, that it will not have to sell the securities before recovery of their cost basis. The Corporation did not recognize any other-than-temporary impairment charges on debt securities for the three months ended March 31, 2016 and 2015.

The Corporation evaluates its equity securities for other-than-temporary impairment and recognizes other-than-temporary impairment charges when it has determined that it is probable that the fair value of certain equity securities will not recover to the Corporation’s cost basis in the individual securities within a reasonable period of time due to a decline in the financial stability of the underlying companies. Management evaluates the near-term prospects of the issuers in relation to the severity and duration of the impairment. The Corporation has the intent and ability to hold these securities until recovery of the Corporation’s cost basis occurs. The Corporation did not recognize any other-than-temporary impairment charges on its equity portfolio during the three months ended March 31, 2016 and 2015.

At March 31, 2016 and December 31, 2015, there were no investments in any single non-federal issuer representing more than 10% of shareholders’ equity.

The following table shows the fair value of securities that were in an unrealized loss position at March 31, 2016 and December 31, 2015 by the length of time those securities were in a continuous loss position:

	Less than Twelve Months					Twelve Months or Longer					Total
(Dollars in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
At March 31, 2016
Securities Held-to-Maturity
Corporate bonds	$	—	$	—		$	4,965	$	(41	)	$	4,965	$	(41	)
Total	$	—	$	—		$	4,965	$	(41	)	$	4,965	$	(41	)
Securities Available-for-Sale
U.S. government corporations and agencies	$	5,126	$	—		$	5,000	$	—		$	10,126	$	—
State and political subdivisions	5,669		(8		)	2,620		(21		)	8,289		(29		)
Collateralized mortgage obligations	—		—			3,056		(24		)	3,056		(24		)
Corporate bonds	42,051		(3,231		)	11,251		(94		)	53,302		(3,325		)
Equity securities	4		—			—		—			4		—
Total	$	52,850	$	(3,239	)	$	21,927	$	(139	)	$	74,777	$	(3,378	)
At December 31, 2015
Securities Held-to-Maturity
Corporate bonds	$	12,078	$	(9	)	$	4,953	$	(55	)	$	17,031	$	(64	)
Total	$	12,078	$	(9	)	$	4,953	$	(55	)	$	17,031	$	(64	)
Securities Available-for-Sale
U.S. treasuries	$	—	$	—		$	4,887	$	(91	)	$	4,887	$	(91	)
U.S. government corporations and agencies	72,157		(379		)	4,972		(28		)	77,129		(407		)
State and political subdivisions	10,251		(49		)	1,335		(12		)	11,586		(61		)
Residential mortgage-backed securities	4,751		(13		)	—		—			4,751		(13		)
Collateralized mortgage obligations	—		—			3,133		(82		)	3,133		(82		)
Corporate bonds	72,234		(2,941		)	10,669		(253		)	82,903		(3,194		)
Total	$	159,393	$	(3,382	)	$	24,996	$	(466	)	$	184,389	$	(3,848	)

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Loans and Leases

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

Loans and Leases

Loans and Leases

Summary of Major Loan and Lease Categories

	At March 31, 2016
(Dollars in thousands)	Originated			Acquired		Total
Commercial, financial and agricultural	$	486,112		$	21,207	$	507,319
Real estate-commercial	760,492			120,928		881,420
Real estate-construction	90,567			2,004		92,571
Real estate-residential secured for business purpose	103,591			114,673		218,264
Real estate-residential secured for personal purpose	185,482			3,227		188,709
Real estate-home equity secured for personal purpose	129,907			10,831		140,738
Loans to individuals	28,140			281		28,421
Lease financings	125,814			—		125,814
Total loans and leases held for investment, net of deferred income	$	1,910,105		$	273,151	$	2,183,256
Unearned lease income, included in the above table	$	(13,793	)	$	—	$	(13,793	)
Net deferred costs, included in the above table	4,568			—		4,568
Overdraft deposits included in the above table	58			—		58

	At December 31, 2015
(Dollars in thousands)	Originated			Acquired		Total
Commercial, financial and agricultural	$	479,980		$	24,535	$	504,515
Real estate-commercial	759,342			126,550		885,892
Real estate-construction	91,904			4,637		96,541
Real estate-residential secured for business purpose	94,280			124,503		218,783
Real estate-residential secured for personal purpose	177,850			3,305		181,155
Real estate-home equity secured for personal purpose	125,361			11,594		136,955
Loans to individuals	29,406			326		29,732
Lease financings	125,440			—		125,440
Total loans and leases held for investment, net of deferred income	$	1,883,563		$	295,450	$	2,179,013
Unearned lease income, included in the above table	$	(13,829	)	$	—	$	(13,829	)
Net deferred costs, included in the above table	4,244			—		4,244
Overdraft deposits included in the above table	35			—		35

Overdraft deposits are re-classified as loans and are included in the total loans and leases on the balance sheet.

The carrying amount of acquired loans at March 31, 2016 totaled $273.2 million, including $1.3 million of loans acquired with deteriorated credit quality, or acquired credit impaired loans from the Valley Green Bank acquisition. Acquired credit impaired loans are accounted for in accordance with Accounting Standards Codification (ASC) Topic 310-30.

The outstanding principal balance and carrying amount for acquired credit impaired loans at March 31, 2016 and December 31, 2015 were as follows:

(Dollars in thousands)	At March 31, 2016		At December 31, 2015
Outstanding principal balance	$	3,186	$	3,551
Carrying amount	1,267		1,253
Allowance for loan losses	8		8

The following table presents the changes in accretable yield on acquired credit impaired loans:

(Dollars in thousands)	Three Months Ended March 31, 2016
Beginning of period	$	144
Reclassification from nonaccretable difference	46
Accretable yield amortized to interest income	(74		)
End of period	$	116

Age Analysis of Past Due Loans and Leases

The following presents, by class of loans and leases, an aging of past due loans and leases, loans and leases which are current and the recorded investment in loans and leases 90 days or more past due which are accruing interest at March 31, 2016 and December 31, 2015:

(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current		Acquired Credit Impaired		Total Loans and Leases Held for Investment		Recorded Investment 90 Days or more Past Due and Accruing Interest
At March 31, 2016
Commercial, financial and agricultural	$	130	$	—	$	2,128	$	2,258	$	505,061	$	—	$	507,319	$	—
Real estate—commercial real estate and construction:
Commercial real estate	225		—		912		1,137		879,766		517		881,420		—
Construction	—		—		—		—		92,571		—		92,571		—
Real estate—residential and home equity:
Residential secured for business purpose	3,562		62		887		4,511		213,003		750		218,264		—
Residential secured for personal purpose	673		52		469		1,194		187,515		—		188,709		125
Home equity secured for personal purpose	210		159		483		852		139,886		—		140,738		353
Loans to individuals	289		137		205		631		27,790		—		28,421		205
Lease financings	1,376		413		431		2,220		123,594		—		125,814		10
Total	$	6,465	$	823	$	5,515	$	12,803	$	2,169,186	$	1,267	$	2,183,256	$	693
At December 31, 2015
Commercial, financial and agricultural	$	864	$	298	$	4,279	$	5,441	$	498,757	$	317	$	504,515	$	—
Real estate—commercial real estate and construction:
Commercial real estate	12,103		—		1,102		13,205		872,174		513		885,892		—
Construction	—		—		—		—		96,541		—		96,541		—
Real estate—residential and home equity:
Residential secured for business purpose	1,406		2,356		727		4,489		213,871		423		218,783		—
Residential secured for personal purpose	990		69		309		1,368		179,787		—		181,155		—
Home equity secured for personal purpose	777		52		174		1,003		135,952		—		136,955		—
Loans to individuals	198		97		173		468		29,264		—		29,732		173
Lease financings	1,294		652		646		2,592		122,848		—		125,440		206
Total	$	17,632	$	3,524	$	7,410	$	28,566	$	2,149,194	$	1,253	$	2,179,013	$	379

Non-Performing Loans and Leases

The following presents, by class of loans and leases, non-performing loans and leases at March 31, 2016 and December 31, 2015:

	At March 31, 2016								At December 31, 2015
(Dollars in thousands)	Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Non- Performing Loans and Leases		Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Non- Performing Loans and Leases
Commercial, financial and agricultural	$	6,080	$	1,443	$	—	$	7,523	$	6,915	$	1,602	$	—	$	8,517
Real estate—commercial real estate and construction:
Commercial real estate	3,981		2,417		—		6,398		4,314		2,449		—		6,763
Real estate—residential and home equity:
Residential secured for business purpose	2,496		413		—		2,909		1,863		763		—		2,626
Residential secured for personal purpose	375		—		125		500		376		421		—		797
Home equity secured for personal purpose	129		—		353		482		275		—		—		275
Loans to individuals	—		—		205		205		—		—		173		173
Lease financings	421		6		10		437		440		10		206		656
Total	$	13,482	$	4,279	$	693	$	18,454	$	14,183	$	5,245	$	379	$	19,807

* Includes nonaccrual troubled debt restructured loans and lease modifications of $1.5 million and $93 thousand at March 31, 2016 and December 31, 2015, respectively.

Credit Quality Indicators

The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at March 31, 2016 and December 31, 2015.

The Corporation employs a ten (10) grade risk rating system related to the credit quality of commercial loans and residential real estate loans secured for a business purpose of which the first six categories are pass categories (credits not adversely rated). The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. Loans with risk ratings of one through five are reviewed based on the relationship dollar amount with the borrower: loans with a relationship total of $2.5 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.5 million but greater than $500 thousand are reviewed annually based on the borrower’s fiscal year; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with a risk rating of six are also reviewed based on the relationship dollar amount with the borrower: loans with a relationship balance of $2.0 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.0 million but greater than $500 thousand are reviewed annually; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with a risk rating of seven are reviewed at least quarterly, and as often as monthly, at management’s discretion. Loans with risk ratings of eight through ten are reviewed monthly.

1. Cash Secured—No credit risk

2. Fully Secured—Negligible credit risk

3. Strong—Minimal credit risk

4. Satisfactory—Nominal credit risk

5. Acceptable—Moderate credit risk

6. Pre-Watch—Marginal, but stable credit risk

7. Special Mention—Potential weakness

8. Substandard—Well-defined weakness

9. Doubtful—Collection in-full improbable

10. Loss—Considered uncollectible

Commercial Credit Exposure Credit Risk by Internally Assigned Grades

The following table presents classifications for originated loans:

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial		Real Estate— Construction		Real Estate— Residential Secured for Business Purpose		Total
At March 31, 2016
Grade:
1. Cash secured/ 2. Fully secured	$	527	$	—	$	4,902	$	—	$	5,429
3. Strong	17,817		2,998		—		—		20,815
4. Satisfactory	27,198		36,971		450		8		64,627
5. Acceptable	340,778		525,195		76,592		87,621		1,030,186
6. Pre-watch	63,932		125,085		8,245		10,921		208,183
7. Special Mention	8,395		29,977		—		115		38,487
8. Substandard	27,465		40,266		378		4,926		73,035
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	486,112	$	760,492	$	90,567	$	103,591	$	1,440,762
At December 31, 2015
Grade:
1. Cash secured/ 2. Fully secured	$	968	$	—	$	5,417	$	—	$	6,385
3. Strong	17,328		10,877		—		—		28,205
4. Satisfactory	36,697		36,023		450		9		73,179
5. Acceptable	328,140		530,766		72,630		78,659		1,010,195
6. Pre-watch	61,098		119,117		13,262		7,161		200,638
7. Special Mention	6,074		20,286		—		2,347		28,707
8. Substandard	29,675		42,273		145		6,104		78,197
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	479,980	$	759,342	$	91,904	$	94,280	$	1,425,506

The following table presents classifications for acquired loans:

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial		Real Estate— Construction		Real Estate— Residential Secured for Business Purpose		Total
At March 31, 2016
Grade:
1. Cash secured/ 2. Fully secured	$	1,405	$	—	$	—	$	—	$	1,405
3. Strong	—		—		—		—		—
4. Satisfactory	1,163		3,000		—		604		4,767
5. Acceptable	15,557		98,120		2,004		103,018		218,699
6. Pre-watch	2,190		10,757		—		7,794		20,741
7. Special Mention	—		7,407		—		623		8,030
8. Substandard	892		1,644		—		2,634		5,170
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	21,207	$	120,928	$	2,004	$	114,673	$	258,812
December 31, 2015
Grade:
1. Cash secured/ 2. Fully secured	$	1,411	$	—	$	—	$	—	$	1,411
3. Strong	—		—		—		—		—
4. Satisfactory	1,181		3,561		—		608		5,350
5. Acceptable	18,446		102,122		4,637		113,002		238,207
6. Pre-watch	2,273		10,365		—		8,153		20,791
7. Special Mention	417		8,853		—		367		9,637
8. Substandard	807		1,649		—		2,373		4,829
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	24,535	$	126,550	$	4,637	$	124,503	$	280,225

Credit Exposure—Real Estate—Residential Secured for Personal Purpose, Real Estate—Home Equity Secured for Personal Purpose, Loans to individuals, Lease Financing Credit Risk Profile by Payment Activity

The Corporation monitors the credit risk profile by payment activity for the following classifications of loans and leases: residential real estate loans secured for a personal purpose, home equity loans secured for a personal purpose, loans to individuals and lease financings. Nonperforming loans and leases are loans past due 90 days or more, loans and leases on nonaccrual of interest and troubled debt restructured loans and lease modifications. Performing loans and leases are reviewed only if the loan becomes 60 days or more past due. Nonperforming loans and leases are reviewed monthly. Performing loans and leases have a nominal to moderate risk of loss. Nonperforming loans and leases are loans or leases with a well-defined weakness and where collection in-full is unlikely.

The following table presents classifications for originated loans:

(Dollars in thousands)	Real Estate— Residential Secured for Personal Purpose		Real Estate— Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financing		Total
At March 31, 2016
Performing	$	184,982	$	129,425	$	27,935	$	125,377	$	467,719
Nonperforming	500		482		205		437		1,624
Total	$	185,482	$	129,907	$	28,140	$	125,814	$	469,343
At December 31, 2015
Performing	$	177,053	$	125,086	$	29,233	$	124,784	$	456,156
Nonperforming	797		275		173		656		1,901
Total	$	177,850	$	125,361	$	29,406	$	125,440	$	458,057

The following table presents classifications for acquired loans:

(Dollars in thousands)	Real Estate— Residential Secured for Personal Purpose		Real Estate— Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financing		Total
At March 31, 2016
Performing	$	3,227	$	10,831	$	281	$	—	$	14,339
Nonperforming	—		—		—		—		—
Total	$	3,227	$	10,831	$	281	$	—	$	14,339
At December 31, 2015
Performing	$	3,305	$	11,594	$	326	$	—	$	15,225
Nonperforming	—		—		—		—		—
Total	$	3,305	$	11,594	$	326	$	—	$	15,225

Risks associated with lending activities include, among other things, the impact of changes in interest rates and economic conditions, which may adversely impact the ability of borrowers to repay outstanding loans, and impact the value of the associated collateral.

Commercial, financial and agricultural loans, commercial real estate loans, construction loans and residential real estate loans with a business purpose are generally perceived as having more risk of default than residential real estate loans with a personal purpose and consumer loans. These types of loans involve larger loan balances to a single borrower or groups of related borrowers. Commercial real estate loans may be affected to a greater extent than residential loans by adverse conditions in real estate markets or the economy because commercial real estate borrowers’ ability to repay their loans depends on successful development of their properties and factors affecting residential real estate borrowers.

Commercial, financial and agricultural business loans are typically based on the borrowers’ ability to repay the loans from the cash flow of their businesses. These loans may involve greater risk because the availability of funds to repay each loan depends substantially on the success of the business. In addition, the collateral securing the loans often depreciates over time, is difficult to appraise and liquidate and fluctuates in value based on the success of the business.

Risk of loss on a construction loan depends largely upon whether our initial estimate of the property’s value at completion of construction equals or exceeds the cost of the property construction (including interest). During the construction phase, a number of factors can result in delays and cost overruns. If estimates of value are inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan or by seizure of collateral. Included in real estate-construction is track development financing. Risk factors related to track development financing include the demand for residential housing and the real estate valuation market. When projects move slower than anticipated, the properties may have significantly lower values than when the original underwriting was completed, resulting in lower collateral values to support the loan. Extended time frames also cause the interest carrying cost for a project to be higher than the builder projected, negatively impacting the builder’s profit and cash flow and, therefore, their ability to make principal and interest payments.

Commercial real estate loans and residential real estate loans with a business purpose secured by owner-occupied properties are dependent upon the successful operation of the borrower’s business. If the operating company suffers difficulties in terms of sales volume and/or profitability, the borrower’s ability to repay the loan may be impaired. Loans secured by properties where repayment is dependent upon payment of rent by third party tenants or the sale of the property may be impacted by loss of tenants, lower lease rates needed to attract new tenants or the inability to sell a completed project in a timely fashion and at a profit.

Commercial, financial and agricultural loans, commercial real estate loans, construction loans and residential real estate loans secured for a business purpose are more susceptible to a risk of loss during a downturn in the business cycle. While the Corporation has strict underwriting, review, and monitoring procedures in place, these procedures cannot eliminate all of the risks related to these loans.

The Corporation focuses on both assessing the borrower’s capacity and willingness to repay and on obtaining sufficient collateral. Commercial, financial and agricultural loans are generally secured by the borrower’s assets and by personal guarantees. Commercial real estate and residential real estate loans secured for a business purpose are originated primarily within the Southeastern Pennsylvania market area at conservative loan-to-value ratios and often with a guarantee of the borrowers. Management closely monitors the composition and quality of the total commercial loan portfolio to ensure that any credit concentrations by borrower or industry are closely monitored.

The Corporation originates fixed-rate and adjustable-rate real estate-residential mortgage loans that are secured by the underlying 1-to-4 family residential properties for personal purposes. Credit risk exposure in this area of lending is minimized by the evaluation of the credit worthiness of the borrower, including debt-to-equity ratios, credit scores and adherence to underwriting policies that emphasize conservative loan-to-value ratios of generally no more than 80%. Residential mortgage loans granted in excess of the 80% loan-to-value ratio criterion are generally insured by private mortgage insurance.

In the real estate-home equity loan portfolio secured for a personal purpose, credit exposure is minimized by the evaluation of the creditworthiness of the borrower, including debt-to-equity ratios, credit scores and adherence to the Corporation’s underwriting policies. Combined loan-to-value ratios are generally limited to 80%, but increased to 85% for the Corporation’s strongest profile borrower. Other credit considerations and compensating factors may support higher combined loan-to-value ratios.

Credit risk for consumer loans is controlled by strict adherence to underwriting standards that consider debt-to-income levels and the creditworthiness of the borrower and, if secured, collateral values. These loans are included within the portfolio of loans to individuals.

The primary risks that are involved with lease financing receivables are credit underwriting and borrower industry concentrations. The Corporation has strict underwriting, review, and monitoring procedures in place to mitigate this risk. Risk also lies in the residual value of the underlying equipment. Residual values are subject to judgments as to the value of the underlying equipment that can be affected by changes in economic and market conditions and the financial viability of the residual guarantors and insurers. To the extent not guaranteed or assumed by a third party, or otherwise insured against, the Corporation bears the risk of ownership of the leased assets. This includes the risk that the actual value of the leased assets at the end of the lease term will be less than the residual value. The Corporation greatly reduces this risk primarily by using $1.00 buyout leases, in which the entire cost of the leased equipment is included in the contractual payments, leaving no residual payment at the end of the lease term.

Reserve for Loan and Lease Losses and Recorded Investment in Loans and Leases

The following presents, by portfolio segment, a summary of the activity in the reserve for loan and lease losses, the balance in the reserve for loan and lease losses disaggregated on the basis of impairment method and the recorded investment in loans and leases disaggregated on the basis of impairment method for the three months ended March 31, 2016 and 2015:

(Dollars in thousands)	Commercial, Financial and Agricultural			Real Estate— Commercial and Construction			Real Estate— Residential Secured for Business Purpose			Real Estate— Residential and Home Equity Secured for Personal Purpose			Loans to Individuals			Lease Financings			Unallocated			Total
Three Months Ended March 31, 2016
Reserve for loan and lease losses:
Beginning balance	$	6,418		$	6,572		$	763		$	1,575		$	346		$	1,042		$	912		$	17,628
Charge-offs	(1,481		)	(26		)	(238		)	(46		)	(76		)	(205		)	N/A			(2,072		)
Recoveries	450			7			19			17			33			44			N/A			570
Provision (recovery of provision)	243			(82		)	203			(233		)	53			41			102			327
Recovery of provision for acquired credit impaired loans	—			—			—			(1		)	—			—			—			(1		)
Ending balance	$	5,630		$	6,471		$	747		$	1,312		$	356		$	922		$	1,014		$	16,452
Three Months Ended March 31, 2015
Reserve for loan and lease losses:
Beginning balance	$	6,920		$	8,943		$	763		$	1,124		$	360		$	985		$	1,567		$	20,662
Charge-offs	(300		)	(348		)	—			(31		)	(184		)	(230		)	N/A			(1,093		)
Recoveries	110			65			6			1			48			61			N/A			291
(Recovery of provision) provision	(18		)	988			(101		)	34			141			197			(167		)	1,074
Ending balance	$	6,712		$	9,648		$	668		$	1,128		$	365		$	1,013		$	1,400		$	20,934

N/A – Not applicable

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial and Construction		Real Estate— Residential Secured for Business Purpose		Real Estate— Residential and Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financings		Unallocated		Total
At March 31, 2016
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	151	$	140	$	20	$	30	$	—	$	—	N/A		$	341
Ending balance: collectively evaluated for impairment	5,479		6,323		727		1,282		356		922		1,014		16,103
Ending balance: acquired credit impaired loans evaluated for impairment	—		8		—		—		—		—		—		8
Total ending balance	$	5,630	$	6,471	$	747	$	1,312	$	356	$	922	$	1,014	$	16,452
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	12,977	$	29,375	$	3,618	$	504	$	—	$	—			$	46,474
Ending balance: collectively evaluated for impairment	473,135		821,684		99,973		314,885		28,140		125,814				1,863,631
Acquired non-credit impaired loans	21,207		122,415		113,923		14,058		281		—				271,884
Acquired credit impaired loans	—		517		750		—		—		—				1,267
Total ending balance	$	507,319	$	973,991	$	218,264	$	329,447	$	28,421	$	125,814			$	2,183,256
At March 31, 2015
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	1,004	$	—	$	—	$	—	$	—	$	—	N/A		$	1,004
Ending balance: collectively evaluated for impairment	5,708		9,648		668		1,128		365		1,013		1,400		19,930
Total ending balance	$	6,712	$	9,648	$	668	$	1,128	$	365	$	1,013	$	1,400	$	20,934
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	15,124	$	34,380	$	3,239	$	909	$	—	$	—			$	53,652
Ending balance: collectively evaluated for impairment	446,366		700,581		38,658		281,120		29,620		115,958				1,612,303
Acquired non-credit impaired loans	29,418		189,225		140,779		16,461		371		—				376,254
Acquired credit impaired loans	371		578		619		63		—		—				1,631
Total ending balance	$	491,279	$	924,764	$	183,295	$	298,553	$	29,991	$	115,958			$	2,043,840

N/A – Not applicable

Subsequent to the acquisition date, the methods utilized to estimate the required allowance for loan losses for acquired non-impaired loans is similar to originated loans, however, the Corporation records a provision for loan loss only when the required allowance exceeds the remaining unamortized credit mark. The present value of any decreases in expected cash flows after the acquisition date of purchased impaired loans will generally result in an impairment charge recorded as a provision for loan loss, resulting in an increase to the allowance.

Impaired Loans

The following presents, by class of loans, the recorded investment and unpaid principal balance of impaired loans , the amounts of the impaired loans for which there is not an allowance for credit losses and the amounts for which there is an allowance for credit losses at March 31, 2016 and December 31, 2015. The impaired loans exclude loans acquired with deteriorated credit quality.

	At March 31, 2016						At December 31, 2015
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans with no related allowance recorded:
Commercial, financial and agricultural	$	12,677	$	13,921			$	10,337	$	13,318
Real estate—commercial real estate	29,009		29,885				30,088		30,996
Real estate—residential secured for business purpose	3,454		3,710				4,597		4,717
Real estate—residential secured for personal purpose	123		132				545		554
Real estate—home equity secured for personal purpose	129		129				170		170
Total impaired loans with no allowance recorded	$	45,392	$	47,777			$	45,737	$	49,755
Impaired loans with an allowance recorded:
Commercial, financial and agricultural	$	300	$	300	$	151	$	2,544	$	2,544	$	208
Real estate—commercial real estate	366		368		140		—		—		—
Real estate—residential secured for business purpose	164		167		20		295		295		45
Real estate—residential secured for personal purpose	252		252		30		252		252		16
Real estate—home equity secured for personal purpose	—		—		—		105		105		53
Total impaired loans with an allowance recorded	$	1,082	$	1,087	$	341	$	3,196	$	3,196	$	322

	At March 31, 2016						At December 31, 2015
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Total impaired loans:
Commercial, financial and agricultural	$	12,977	$	14,221	$	151	$	12,881	$	15,862	$	208
Real estate—commercial real estate	29,375		30,253		140		30,088		30,996		—
Real estate—residential secured for business purpose	3,618		3,877		20		4,892		5,012		45
Real estate—residential secured for personal purpose	375		384		30		797		806		16
Real estate—home equity secured for personal purpose	129		129		—		275		275		53
Total impaired loans	$	46,474	$	48,864	$	341	$	48,933	$	52,951	$	322

Impaired loans include nonaccrual loans accruing troubled debt restructured loans and other accruing impaired loans for which it is probable that not all principal and interest payments due will be collectible in accordance with the contractual terms. These loans are individually measured to determine the amount of potential impairment. The loans are reviewed for impairment based on the fair value of the collateral for collateral dependent loans and for certain loans based on discounted cash flows using the loans’ initial effective interest rates. Impaired loans include other accruing impaired loans of $29.1 million and $30.0 million at March 31, 2016 and December 31, 2015, respectively. Specific reserves on other accruing impaired loans were $151 thousand and $186 thousand at March 31, 2016 and December 31, 2015, respectively.

The following presents by class of loans, the average recorded investment in impaired loans and an analysis of interest on impaired loans. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Therefore, interest income on accruing impaired loans is recognized using the accrual method. 

	Three Months Ended March 31, 2016						Three Months Ended March 31, 2015
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms		Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms
Commercial, financial and agricultural	$	13,569	$	68	$	95	$	16,094	$	142	$	87
Real estate—commercial real estate	29,212		305		70		29,124		320		83
Real estate—construction	—		—		—		5,748		—		77
Real estate—residential secured for business purpose	4,273		27		47		3,183		29		16
Real estate—residential secured for personal purpose	568		2		4		584		—		13
Real estate—home equity secured for personal purpose	177		—		2		165		—		3
Total	$	47,799	$	402	$	218	$	54,898	$	491	$	279

* Includes interest income recognized on a cash basis for nonaccrual loans of $7 thousand and $4 thousand for the three months ended March 31, 2016 and 2015, respectively and interest income recognized on the accrual method for accruing impaired loans of $395 thousand and $487 thousand for the three months ended March 31, 2016 and 2015, respectively.

Troubled Debt Restructured Loans

The following presents, by class of loans, information regarding accruing and nonaccrual loans that were restructured:

	Three Months Ended March 31, 2016							Three Months Ended March 31, 2015
(Dollars in thousands)	Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance		Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	1,545	$	1,545	$	—	1	$	143	$	143	$	—
Real estate—residential secured for business purpose	—	—		—		—		1	353		353		—
Total	1	$	1,545	$	1,545	$	—	2	$	496	$	496	$	—
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	$	—	$	—	1	$	122	$	122	$	—
Total	—	$	—	$	—	$	—	1	$	122	$	122	$	—

The Corporation grants concessions primarily related to extensions of interest-only payment periods and an occasional payment modification. These modifications typically are for a short-term basis up to one year. The goal when restructuring a credit is to establish a reasonable period of time to provide cash flow relief to customers experiencing cash flow difficulties. Accruing troubled debt restructured loans are primarily comprised of loans on which interest is being accrued under the restructured terms, and the loans are current or less than ninety days past due.

The following presents, by class of loans, information regarding the types of concessions granted on accruing and nonaccrual loans that were restructured during the three months ended March 31, 2016 and 2015.

	Temporary Payment Reduction			Amortization Period Extension			Total Concessions Granted
(Dollars in thousands)	No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount
Three Months Ended March 31, 2016
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	1	$	1,545	1	$	1,545
Total	—	$	—	1	$	1,545	1	$	1,545
Nonaccrual Troubled Debt Restructured Loans:
Total	—	$	—	—	$	—	—	$	—
Three Months Ended March 31, 2015
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	143	—	$	—	1	$	143
Real estate—residential secured for business purpose	1	353		—	—		1	353
Total	2	$	496	—	$	—	2	$	496
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	122	—	$	—	1	$	122
Total	1	$	122	—	$	—	1	$	122

The following presents, by class of loans, information regarding accruing and nonaccrual troubled debt restructured loans, for which there were payment defaults within twelve months of the restructuring date:

	Three Months Ended March 31,
	2016			2015
(Dollars in thousands)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	50	—	$	—
Total	1	$	50	—	$	—
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	2	$	200
Total	—	$	—	2	$	200

As a result of payment default during the first quarter of 2016, a commercial accruing troubled debt restructured loan totaling $50 thousand was placed on nonaccrual of interest status.

The following presents, by class of loans, information regarding consumer mortgages collateralized by residential real estate property that are in the process of foreclosure at March 31, 2016 and December 31, 2015:

(Dollars in thousands)	At March 31, 2016		At December 31, 2015
Real estate-residential secured for personal purpose	$	313	$	313
Real estate-home equity secured for personal purpose	60		60
Total	$	373	$	373

The Corporation held no foreclosed consumer residential real estate property at March 31, 2016 and December 31, 2015.

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Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The Corporation has core deposit and customer-related intangibles and mortgage servicing rights, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The Corporation also has goodwill which is deemed to be an indefinite intangible asset and is not amortized.

Changes in the carrying amount of the Corporation's goodwill by business segment for the three months ended March 31, 2016 were as follows:

(Dollars in thousands)	Banking		Wealth Management		Insurance		Consolidated
Balance at December 31, 2015	$	78,574	$	15,434	$	18,649	$	112,657
Addition to goodwill from acquisitions	—		—		—		—
Balance at March 31, 2016	$	78,574	$	15,434	$	18,649	$	112,657

The following table reflects the components of intangible assets at the dates indicated:

	At March 31, 2016						At December 31, 2015
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization and Fair Value Adjustments		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization and Fair Value Adjustments		Net Carrying Amount
Amortized intangible assets:
Core deposit intangibles	$	1,520	$	339	$	1,181	$	1,520	$	276	$	1,244
Customer related intangibles	12,381		7,305		5,076		14,227		8,728		5,499
Mortgage servicing rights	12,544		6,705		5,839		12,233		6,356		5,877
Total amortized intangible assets	$	26,445	$	14,349	$	12,096	$	27,980	$	15,360	$	12,620

The estimated aggregate amortization expense for core deposit and customer related intangibles for the remainder of 2016 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2016		$	1,385
2017		1,544
2018		1,170
2019		847
2020		577
Thereafter		734

The Corporation has originated mortgage servicing rights which are included in other intangible assets on the consolidated balance sheets. Mortgage servicing rights are amortized in proportion to, and over the period of, estimated net servicing income on a basis similar to the interest method and an accelerated amortization method for loan payoffs. Mortgage servicing rights are subject to impairment testing on a quarterly basis. The aggregate fair value of these rights was $7.2 million and $8.0 million at March 31, 2016 and December 31, 2015, respectively. The fair value of mortgage servicing rights was determined using a discount rate of 10.0% at March 31, 2016, and December 31, 2015.

Changes in the mortgage servicing rights balance are summarized as follows:

	Three Months Ended March 31,
(Dollars in thousands)	2016			2015
Beginning of period	$	5,877		$	5,509
Servicing rights capitalized	311			382
Amortization of servicing rights	(349		)	(368		)
Changes in valuation allowance	—			—
End of period	$	5,839		$	5,523
Mortgage loans serviced for others	$	872,958		$	809,342

There was no activity in the valuation allowance for the three months ended March 31, 2016 and March 31, 2015.

The estimated amortization expense of mortgage servicing rights for the remainder of 2016 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2016		$	763
2017		900
2018		755
2019		629
2020		521
Thereafter		2,271

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Income Taxes

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

At March 31, 2016 and December 31, 2015, the Corporation had no material unrecognized tax benefits, accrued interest or penalties. Penalties are recorded in noninterest expense in the year they are assessed and are treated as a non-deductible expense for tax purposes. Interest is recorded in noninterest expense in the year it is assessed and is treated as a deductible expense for tax purposes. At March 31, 2016, the Corporation’s tax years 2012 through 2015 remain subject to federal examination as well as examination by state taxing jurisdictions.

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Retirement Plans and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Retirement Plans and Other Postretirement Benefits

Retirement Plans and Other Postretirement Benefits

Substantially all employees who were hired before December 8, 2009 are covered by a noncontributory retirement plan. Employees hired on or after December 8, 2009 are not eligible to participate in the noncontributory retirement plan. The Corporation also provides supplemental executive retirement benefits to certain former executives, a portion of which is in excess of limits imposed on qualified plans by federal tax law; these plans are non-qualified benefit plans. These non-qualified benefit plans are not offered to new participants; all current participants are now retired. Information on these plans are aggregated and reported under “Retirement Plans” within this footnote.

The Corporation also provides certain postretirement healthcare and life insurance benefits for retired employees. Information on these benefits is reported under “Other Postretirement Benefits” within this footnote.

The Corporation sponsors a Supplemental Non-Qualified Pension Plan which was established in 1981 prior to the existence of a 401(k) deferred salary savings plan, employee stock purchase plan and long-term incentive plans and therefore is not offered to new participants; all current participants are now retired.

Components of net periodic benefit cost (income) were as follows:

	Three Months Ended March 31,
	2016			2015			2016		2015
(Dollars in thousands)	Retirement Plans						Other Post Retirement Benefits
Service cost	$	171		$	193		$	12	$	15
Interest cost	518			488			33		28
Expected return on plan assets	(754		)	(756		)	—		—
Amortization of net actuarial loss	323			328			6		13
Accretion of prior service cost	(71		)	(70		)	—		—
Net periodic benefit cost	$	187		$	183		$	51	$	56

The Corporation previously disclosed in its financial statements for the year ended December 31, 2015, that it expected to make contributions of $160 thousand to its non-qualified retirement plans and $117 thousand to its other postretirement benefit plans in 2016. During the three months ended March 31, 2016, the Corporation contributed $40 thousand to its non-qualified retirement plans and $20 thousand to its other postretirement plans. During the three months ended March 31, 2016, $609 thousand was paid to participants from the retirement plans and $20 thousand was paid to participants from the other postretirement plans.

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Earnings per Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share, Basic and Diluted [Abstract]

Earnings per Share

Earnings per Share

The Corporation uses the two-class method to calculate earnings per share as the unvested restricted stock issued under the Corporation's equity incentive plans are participating shares with nonforfeitable rights to dividends. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the number of weighted average shares outstanding during the period.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended   March 31,
(Dollars and shares in thousands, except per share data)	2016			2015
Numerator:
Net income	$	7,289		$	6,116
Net income allocated to unvested restricted stock	(59		)	(46		)
Net income allocated to common shares	$	7,230		$	6,070
Denominator:
Denominator for basic earnings per share—weighted-average shares outstanding	19,402			19,776
Effect of dilutive securities—employee stock options	31			24
Denominator for diluted earnings per share—adjusted weighted-average shares outstanding	19,433			19,800
Basic earnings per share	$	0.37		$	0.31
Diluted earnings per share	$	0.37		$	0.31
Average anti-dilutive options and awards excluded from computation of diluted earnings per share	588			632

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Accumulated Other Comprehensive (Loss) Income

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Accumulated Other Comprehensive (Loss) Income

Accumulated Other Comprehensive (Loss) Income

The following table shows the components of accumulated other comprehensive (loss) income, net of taxes, for the periods presented:

(Dollars in thousands)	Net Unrealized Gains (Losses) on Available-for-Sale Investment Securities			Net Change Related to Derivatives Used for Cash Flow Hedges			Net Change Related to Defined Benefit Pension Plans			Accumulated Other Comprehensive (Loss) Income
Balance, December 31, 2015	$	(592	)	$	(285	)	$	(15,831	)	$	(16,708	)
Net Change	1,413			(354		)	168			1,227
Balance, March 31, 2016	$	821		$	(639	)	$	(15,663	)	$	(15,481	)
Balance, December 31, 2014	$	1,711		$	(157	)	$	(16,016	)	$	(14,462	)
Net Change	1,344			(219		)	175			1,300
Balance, March 31, 2015	$	3,055		$	(376	)	$	(15,841	)	$	(13,162	)

The following table illustrates the amounts reclassified out of each component of accumulated comprehensive loss for the three months ended March 31, 2016 and 2015:

Details about Accumulated Other Comprehensive (Loss) Income Components	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income						Affected Line Item in the Statement of Income
	Three Months Ended   March 31,
(Dollars in thousands)	2016			2015
Net unrealized holding gains on available-for-sale investment securities:
	$	44		$	91		Net gain on sales of investment securities
	44			91			Total before tax
	(15		)	(32		)	Tax expense
	$	29		$	59		Net of tax
Defined benefit pension plans:
Amortization of net loss included in net periodic pension costs*	$	(329	)	$	(341	)
Accretion of prior service cost included in net periodic pension costs*	71			70
	(258		)	(271		)	Total before tax
	90			96			Tax benefit
	$	(168	)	$	(175	)	Net of tax

* These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. (See Note 7—Retirement Plans and Other Postretirement Benefits for additional details.)

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Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

The Corporation may use interest-rate swap agreements to modify interest rate characteristics from variable to fixed or fixed to variable in order to reduce the impact of interest rate changes on future net interest income. Recorded amounts related to interest-rate swaps are included in other assets or liabilities. The Corporation’s credit exposure on interest rate swaps includes fair value and any collateral that is held by a third party. Changes in the fair value of derivative instruments designated as hedges of future cash flows are recognized in accumulated other comprehensive income until the underlying forecasted transactions occur, at which time the deferred gains and losses are recognized in earnings. For a qualifying fair value hedge, the gain or loss on the hedging instrument is recognized in earnings, and the change in fair value of the hedge item, to the extent attributable to the hedged risk, adjusts the carrying amount of the hedge item and is recognized in earnings.

Derivative loan commitments represent agreements for delayed delivery of financial instruments in which the buyer agrees to purchase and the seller agrees to deliver, at a specified future date, a specified instrument at a specified price or yield. The Corporation’s derivative loan commitments are commitments to sell loans secured by 1-to 4-family residential properties whose predominant risk characteristic is interest rate risk. The fair values of these derivative loan commitments are based upon the estimated amount the Corporation would receive or pay to terminate the contracts or agreements, taking into account current interest rates and, when appropriate, the current creditworthiness of the counterparties.

On October 24, 2014, the Corporation entered into an amortizing interest rate swap classified as a cash flow hedge with a notional amount of $20.0 million to hedge a portion of the debt financing of a pool of 10-year maturity fixed rate loans with balances totaling $29.1 million, at time of the hedge, that were originated in 2013. A brokered money market demand account with a balance exceeding the amortizing interest rate swap balance is being used for the cash flow hedge. Under the terms of the swap agreement, the Corporation pays a fixed rate of 2.10% and receives a floating rate based on the one-monthLIBOR with a maturity date of November 1, 2022. The Corporation performed an assessment of the hedge for effectiveness at the inception of the hedge and on a recurring basis to determine that the derivative has been and is expected to continue to be highly effective in offsetting changes in cash flows of the hedged item. The Corporation expects that there will be no ineffectiveness over the life of the interest rate swap, and therefore anticipates no portion of the net loss in accumulated other comprehensive loss will be reclassified into interest expense. To the extent there is ineffectiveness, the Corporation would record the ineffectiveness in interest expense.

The Corporation pledges cash or securities to cover a portion of the negative fair value of the interest rate swap, as measured by the counterparty. At March 31, 2016, the notional amount of the cash flow hedge was $19.1 million, with a negative fair value of $983 thousand. The Corporation has pledged $1.2 million to the counterparty as collateral for the negative fair value.

The following table presents the notional amounts and fair values of derivatives not designated as hedging instruments recorded on the consolidated balance sheets at March 31, 2016 and December 31, 2015:

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At March 31, 2016
Interest rate locks with customers	$	44,520	Other Assets	$	1,721		$	—
Forward loan sale commitments	48,492			—		Other Liabilities	243
Total	$	93,012		$	1,721		$	243
At December 31, 2015
Interest rate locks with customers	$	34,450	Other Assets	$	1,089		$	—
Forward loan sale commitments	39,545			—		Other Liabilities	102
Total	$	73,995		$	1,089		$	102

The following table presents the notional amounts and fair values of derivatives designated as hedging instruments recorded on the consolidated balance sheets at March 31, 2016 and December 31, 2015:

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At March 31, 2016
Interest rate swap - cash flow hedge	$	19,096		$	—	Other Liabilities	$	983
Total	$	19,096		$	—		$	983
At December 31, 2015
Interest rate swap - cash flow hedge	$	19,269		$	—	Other Liabilities	$	438
Total	$	19,269		$	—		$	438

For the three months ended March 31, 2016 and 2015, the amounts included in the consolidated statements of income for derivatives not designated as hedging instruments are shown in the table below:

	Statement of Income Classification	Three Months Ended   March 31,
(Dollars in thousands)		2016			2015
Interest rate locks with customers	Net gain on mortgage banking activities	$	632		$	449
Forward loan sale commitments	Net loss on mortgage banking activities	(141		)	(56		)
Total		$	491		$	393

For the three months ended March 31, 2016 and 2015, the amounts included in the consolidated statements of income for derivatives designated as hedging instruments are shown in the table below:

	Statement of Income Classification	Three Months Ended   March 31,
(Dollars in thousands)		2016			2015
Interest rate swap—cash flow hedge—net interest payments	Interest expense	$	81		$	96
Net loss		$	(81	)	$	(96	)

At March 31, 2016 and December 31, 2015, the amounts included in accumulated other comprehensive (loss) income for derivatives designated as hedging instruments are shown in the table below:

(Dollars in thousands)	Accumulated Other Comprehensive (Loss) Income	At March 31, 2016			At December 31, 2015
Interest rate swap—cash flow hedge	Fair value, net of taxes	$	(639	)	$	(285	)
Total		$	(639	)	$	(285	)

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Fair Value Disclosures

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Fair Value Disclosures

Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The Corporation determines the fair value of financial instruments based on the fair value hierarchy. The Corporation maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Corporation. Unobservable inputs are inputs that reflect the Corporation’s assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances, including assumptions about risk. Three levels of inputs are used to measure fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement. Transfers between levels are recognized at the end of the reporting period.

Level 1: Valuations are based on quoted prices in active markets for identical assets or liabilities that the Corporation can access at the measurement date. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.

Level 2: Valuations are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3: Valuations are based on inputs that are unobservable and significant to the overall fair value measurement. Assets and liabilities utilizing Level 3 inputs include: financial instruments whose value is determined using pricing models, discounted cash-flow methodologies, or similar techniques, as well as instruments for which the fair value calculation requires significant management judgment or estimation.

Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Investment Securities

Where quoted prices are available in an active market for identical instruments, investment securities are classified within Level 1 of the valuation hierarchy. Level 1 investment securities include U.S. Treasury securities, most equity securities and money market mutual funds. Mutual funds are registered investment companies which are valued at net asset value of shares on a market exchange at the end of each trading day. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Examples of instruments, which would generally be classified within Level 2 of the valuation hierarchy, include securities issued by U.S. Government sponsored enterprises, mortgage-backed securities, collateralized mortgage obligations, corporate and municipal bonds and certain equity securities. In cases where there is limited activity or less transparency around inputs to the valuation, investment securities are classified within Level 3 of the valuation hierarchy.

Fair values for securities are determined using independent pricing services and market-participating brokers. The Corporation’s independent pricing service utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information for structured securities, cash flow and, when available, loan performance data. Because many fixed income securities do not trade on a daily basis, the pricing service’s evaluated pricing applications apply information as applicable through processes, such as benchmarking of like securities, sector groupings, and matrix pricing, to prepare evaluations. If at any time, the pricing service determines that it does have not sufficient verifiable information to value a particular security, the Corporation will utilize valuations from another pricing service. Management has a sufficient understanding of the third party service’s valuation models, assumptions and inputs used in determining the fair value of securities to enable management to maintain an appropriate system of internal control.

On a quarterly basis, the Corporation reviews changes, as submitted by the pricing service, in the market value of its security portfolio. Individual changes in valuations are reviewed for consistency with general interest rate movements and any known credit concerns for specific securities. Additionally, on a quarterly basis, the Corporation has its security portfolio priced by a second pricing service to determine consistency with another market evaluator, except for municipal bonds which are priced by another service provider on a sample basis. If, upon the Corporation’s review or in comparing with another service, a material difference between pricing evaluations were to exist, the Corporation may submit an inquiry to the current pricing service regarding the data used to determine the valuation of a particular security. If the Corporation determines there is market information that would support a different valuation than from the current pricing service’s evaluation, the Corporation can submit a challenge for a change to that security’s valuation. There were no material differences in valuations noted at March 31, 2016.

Derivative Financial Instruments

The fair values of derivative financial instruments are based upon the estimated amount the Corporation would receive or pay to terminate the contracts or agreements, taking into account current interest rates and, when appropriate, the current creditworthiness of the counterparties. Derivative financial instruments are classified within Level 2 of the valuation hierarchy.

Contingent Consideration Liability

The Corporation estimates the fair value of the contingent consideration liability by using a discounted cash flow model of future contingent payments based on projected revenue related to the acquired business. The estimated fair value of the contingent consideration liability is reviewed on a quarterly basis and any valuation adjustments resulting from a change of estimated future contingent payments based on projected revenue of the acquired business affecting the contingent consideration liability will be recorded through noninterest expense. Changes in the original assumptions utilized at the time the acquisition closes and identified during the measurement period are recorded in accordance with ASC Topic 805 as an adjustment to goodwill. Due to the significant unobservable input related to the projected revenue, the contingent consideration liability is classified within Level 3 of the valuation hierarchy. An increase in the projected revenue may result in a higher fair value of the contingent consideration liability. Alternatively, a decrease in the projected revenue may result in a lower estimated fair value of the contingent consideration liability.

For the Sterner Insurance Associates acquisition, the remaining potential cash payments that could result from the contingent consideration arrangement range from $0 to a maximum of $3.9 million over the two-year period ending June 30, 2017. Due to updates to the original assumptions utilized for determining the contingent consideration liability for the Sterner acquisition completed on July 1, 2014, the Corporation recorded a purchase accounting adjustment, in accordance with ASC Topic 805, inthe first quarter of 2015 which resulted in an increase to the contingent consideration liability and an increase to goodwill of $1.4 million.

For the Girard Partners acquisition, the remaining potential cash payments that could result from the contingent consideration arrangement range from $0 to a maximum of $12.9 million cumulative over the three-year period ending December 31, 2018. The Corporation recorded a reduction to the contingent liability during the fourth quarter of 2015 which resulted in a reduction of noninterest expense of $550 thousand. The adjustment reflected that projected revenue levels for earn-out payments in the second through fifth years post-acquisition are anticipated to be lower than originally projected.

For the John T. Fretz Insurance Agency acquisition, the remaining potential future cash payments that could result from the contingent consideration arrangement range from $0 to a maximum of $360 thousand cumulative over the one-year period ending April 30, 2016.

The following table presents the assets and liabilities measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015, classified using the fair value hierarchy:

	At March 31, 2016
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. government corporations and agencies	$	—	$	67,667	$	—	$	67,667
State and political subdivisions	—		102,808		—		102,808
Residential mortgage-backed securities	—		8,574		—		8,574
Collateralized mortgage obligations	—		3,056		—		3,056
Corporate bonds	—		92,003		—		92,003
Money market mutual funds	17,563		—		—		17,563
Equity securities	754		—		—		754
Total available-for-sale securities	18,317		274,108		—		292,425
Interest rate locks with customers	—		1,721		—		1,721
Total assets	$	18,317	$	275,829	$	—	$	294,146
Liabilities:
Contingent consideration liability	$	—	$	—	$	4,957	$	4,957
Interest rate swap	—		983		—		983
Forward loan sale commitments	—		243		—		243
Total liabilities	$	—	$	1,226	$	4,957	$	6,183

	At December 31, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. treasuries	$	4,887	$	—	$	—	$	4,887
U.S. government corporations and agencies	—		102,156		—		102,156
State and political subdivisions	—		102,032		—		102,032
Residential mortgage-backed securities	—		13,354		—		13,354
Collateralized mortgage obligations	—		3,133		—		3,133
Corporate bonds	—		86,675		—		86,675
Money market mutual funds	16,726		—		—		16,726
Equity securities	807		—		—		807
Total available-for-sale securities	22,420		307,350		—		329,770
Interest rate locks with customers	—		1,089		—		1,089
Total assets	$	22,420	$	308,439	$	—	$	330,859
Liabilities:
Contingent consideration liability	$	—	$	—	$	5,577	$	5,577
Interest rate swap	—		438		—		438
Forward loan sale commitments	—		102		—		102
Total liabilities	$	—	$	540	$	5,577	$	6,117

At March 31, 2016 and December 31, 2015, the Corporation had no assets measured at fair value on a recurring basis utilizing Level 3 inputs.

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 three months ended March 31, 2016 and 2015:

	Three Months Ended March 31, 2016
(Dollars in thousands)	Balance at December 31, 2015		Contingent Consideration from New Acquisition		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at March 31, 2016
Sterner Insurance Associates	$	1,144	$	—	$	—	$	154	$	1,298
Girard Partners	4,241		—		900		119		3,460
John T. Fretz Insurance Agency	192		—		—		7		199
Total contingent consideration liability	$	5,577	$	—	$	900	$	280	$	4,957

	Three Months Ended March 31, 2015
(Dollars in thousands)	Balance at December 31, 2014		Contingent Consideration from New Acquisition*		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at March 31, 2015
Sterner Insurance Associates	$	680	$	1,424	$	—	$	24	$	2,128
Girard Partners	5,503		$	—	$	620	$	34	4,917
John T. Fretz Insurance Agency	358		—		—		13		371
Total contingent consideration liability	$	6,541	$	1,424	$	620	$	71	$	7,416

*Includes adjustments during the measurement period in accordance with ASC Topic 805.

The Corporation may be required to periodically measure certain assets and liabilities at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or market accounting or impairment charges of individual assets. The following table represents assets measured at fair value on a non-recurring basis at March 31, 2016 and December 31, 2015:

	At March 31, 2016
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	46,133	$	46,133
Total	$	—	$	—	$	46,133	$	46,133

	At December 31, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	48,611	$	48,611
Total	$	—	$	—	$	48,611	$	48,611

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 March 31, 2016 and December 31, 2015. The disclosed fair values are classified using the fair value hierarchy.

	At March 31, 2016
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	38,547	$	—		$	—	$	38,547		$	38,547
Held-to-maturity securities			37,031					37,031			36,932
Loans held for sale			3,851					3,851			3,818
Net loans and leases held for investment						2,070,300		2,070,300			2,120,671
Mortgage servicing rights						7,203		7,203			5,839
Other real estate owned			3,073					3,073			3,073
Total assets	$	38,547	$	43,955		$	2,077,503	$	2,160,005		$	2,208,880
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,951,453	$	—		$	—	$	1,951,453		$	1,951,453
Time deposits			383,986					383,986			382,908
Total deposits	1,951,453		383,986			—		2,335,439			2,334,361
Short-term borrowings	—		24,498			—		24,498			25,851
Subordinated notes	—		50,250			—		50,250			49,414
Total liabilities	$	1,951,453	$	458,734		$	—	$	2,410,187		$	2,409,626
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,829	)	$	—	$	(1,829	)	$	—

	At December 31, 2015
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	60,799	$	—		$	—	$	60,799		$	60,799
Held-to-maturity securities	—		41,061			—		41,061			40,990
Loans held for sale	—		4,708			—		4,708			4,680
Net loans and leases held for investment	—		—			2,099,082		2,099,082			2,112,774
Mortgage servicing rights	—		—			8,047		8,047			5,877
Other real estate owned	—		1,276			—		1,276			1,276
Total assets	$	60,799	$	47,045		$	2,107,129	$	2,214,973		$	2,226,396
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,939,954	$	—		$	—	$	1,939,954		$	1,939,954
Time deposits	—		455,527			—		455,527			454,406
Total deposits	1,939,954		455,527			—		2,395,481			2,394,360
Short-term borrowings	—		22,302			—		22,302			24,211
Subordinated notes	$	—	$	50,375		$	—	$	50,375		$	49,377
Total liabilities	$	1,939,954	$	528,204		$	—	$	2,468,158		$	2,467,948
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,788	)	$	—	$	(1,788	)	$	—

The following valuation methods and assumptions were used by the Corporation in estimating the fair value for financial instruments measured at fair value on a non-recurring basis and financial instruments 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:

Cash and short-term interest-earning assets: The carrying amounts reported in the balance sheet for cash and due from banks, interest-earning deposits with other banks, and other short-term investments approximates those assets’ fair values. Cash and short-term interest-earning assets are classified within Level 1 in the fair value hierarchy.

Held-to-maturity securities: Fair values for the held-to-maturity investment securities are estimated by using pricing models or quoted prices of securities with similar characteristics and are classified in Level 2 in the fair value hierarchy.

Loans held for sale: The fair value of the Corporation’s mortgage loans held for sale are generally determined using a pricing model based on current market information obtained from external sources, including interest rates, bids or indications provided by market participants on specific loans that are actively marketed for sale. These loans are primarily residential mortgage loans and are generally classified in Level 2 due to the observable pricing data. Loans held for sale are carried at the lower of cost or estimated fair value. There were no valuation adjustments for loans held for sale at March 31, 2016 and December 31, 2015.

Loans and leases held for investment: The fair values for loans and leases held for investment are estimated using discounted cash flow analyses, using a discount rate based on current interest rates at which similar loans with similar terms would be made to borrowers and include components for credit risk, operating expense and embedded prepayment options. An overall valuation adjustment is made for specific credit risks in addition to general portfolio risk and is significant to the valuation. As permitted, the fair value of the loans and leases are not based on the exit price concept as discussed in the first paragraph of this note. Loans and leases are classified within Level 3 in the fair value hierarchy.

Impaired loans held for investment: Impaired loans held for investment include those collateral-dependent loans for which the practical expedient was applied, resulting in a fair-value adjustment to the loan. Impaired loans are evaluated and valued at the time the loan is identified as impaired, at the lower of cost or fair value. Fair value is measured based on the value of the collateral securing these loans less costs to sell and is classified at a Level 3 in the fair value hierarchy. The fair value of collateral is based on appraisals performed by qualified licensed appraisers hired by the Corporation. At March 31, 2016, impaired loans held for investment had a carrying amount of $46.5 million with a valuation allowance of $341 thousand. At December 31, 2015, impaired loans held for investment had a carrying amount of $48.9 million with a valuation allowance of $322 thousand.

Mortgage servicing rights: The Corporation estimates the fair value of mortgage servicing rights using discounted cash flow models that calculate the present value of estimated future net servicing income. The model uses readily available prepayment speed assumptions for the interest rates of the portfolios serviced. Mortgage servicing rights are classified within Level 3 of the valuation hierarchy. The Corporation reviews the mortgage servicing rights portfolio on a quarterly basis for impairment and the mortgage servicing rights are carried at the lower of amortized cost or estimated fair value. At March 31, 2016 and December 31, 2015, mortgage servicing rights had a carrying amount of $5.8 million and $5.9 million, respectively, with no valuation allowance.

Goodwill and other identifiable assets: Certain non-financial assets subject to measurement at fair value on a non-recurring basis include goodwill and other identifiable intangible assets. During the three months ended March 31, 2016, there were no triggering events that required valuation of goodwill and other identifiable intangible assets.

Other real estate owned: The fair value of other real estate owned is estimated based upon the appraised value less costs to sell. The real estate is stated at an amount equal to the loan balance prior to foreclosure, plus costs incurred for improvements to the property but no more than the fair value of the property, less estimated costs to sell. New appraisals are generally obtained on an annual basis. Other real estate owned is classified within Level 2 of the valuation hierarchy.

Deposit liabilities: The fair values for demand and savings accounts, with no stated maturities, is the amount payable on demand at the reporting date (carrying value) and are classified within Level 1 in the fair value hierarchy. The fair values for time deposits with fixed maturities are estimated by discounting the final maturity using interest rates currently offered for deposits with similar remaining maturities. Time deposits are classified within Level 2 in the fair value hierarchy.

Short-term borrowings: The fair value of customer repurchase agreements and federal funds purchased are estimated using current market rates for similar borrowings and are classified within Level 2 in the fair value hierarchy.

Subordinated notes: The fair value of the subordinated notes are estimated by discounting the principal balance using the treasury yield curve for the term to the call date as the Corporation has the option to call the subordinated notes. The subordinated notes are classified within Level 2 in the fair value hierarchy.

Off-balance-sheet instruments: Fair values for the Corporation’s off-balance-sheet instruments are based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing and are classified within Level 2 in the fair value hierarchy.

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Segment Reporting

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

At March 31, 2016, the Corporation has three reportable business segments: Banking, Wealth Management and Insurance. The Corporation determines the segments based primarily upon product and service offerings, through the types of income generated and the regulatory environment. This is strategically how the Corporation operates and has positioned itself in the marketplace. Accordingly, significant operating decisions are based upon analysis of each of these segments. At March 31, 2016, these segments meet the quantitative thresholds for separate disclosure as a business segment. Non-reportable segments include the parent holding company and intercompany eliminations, and are included in the "Other" segment.

The Corporation's Banking segment consists of commercial and consumer banking. The Wealth Management segment consists of investment advisory services, retirement plan services, trust, municipal pension services and broker/dealer services. The Insurance segment consists of commercial lines, personal lines, benefits and human resources consulting.

Each segment generates revenue from a variety of products and services it provides. Examples of products and services provided for each reportable segment are indicated below.

Ÿ	The Banking segment provides financial services to consumers, businesses and governmental units. These services include a full range of banking services such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing.
Ÿ	The Wealth Management segment offers trust and investment advisory services, guardian and custodian of employee benefits and other trust and brokerage services, as well as a registered investment advisory managing private investment accounts for both individuals and institutions.
Ÿ	The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, group life and health coverage, employee benefit solutions, personal insurance lines and human resources consulting.

The accounting policies, used in the disclosure of the operating segments, are the same as those described in Note 1, “Summary of Significant Accounting Policies".

The following table provides total assets by reportable operating segment as of the dates indicated.

(Dollars in thousands)	At March 31, 2016		At December 31, 2015		At March 31, 2015
Banking	$	2,746,433	$	2,797,746	$	2,680,245
Wealth Management	30,134		33,950		29,993
Insurance	24,715		24,436		24,447
Other	23,495		23,319		22,810
Consolidated assets	$	2,824,777	$	2,879,451	$	2,757,495

The following tables provide reportable segment-specific information and reconciliations to consolidated financial information for the three months ended March 31, 2016 and 2015.

	Three Months Ended
	March 31, 2016
(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
Interest income	$	25,600		$	2	$	—	$	7		$	25,609
Interest expense	2,211			—		—		—			2,211
Net interest income	23,389			2		—		7			23,398
Provision for loan and lease losses	326			—		—		—			326
Noninterest income	4,673			4,572		4,720		(9		)	13,956
Intangible expenses	67			303		400		—			770
Other noninterest expense	18,742			3,058		3,119		1,250			26,169
Intersegment (revenue) expense*	(511		)	219		292		—			—
Income (expense) before income taxes	9,438			994		909		(1,252		)	10,089
Income tax expense (benefit)	2,357			383		377		(317		)	2,800
Net income (loss)	$	7,081		$	611	$	532	$	(935	)	$	7,289
Capital expenditures	$	1,839		$	15	$	10	$	314		$	2,178

	Three Months Ended
	March 31, 2015
(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
Interest income	$	24,730		$	—	$	—	$	8		$	24,738
Interest expense	1,434			—		—		—			1,434
Net interest income	23,296			—		—		8			23,304
Provision for loan and lease losses	1,074			—		—		—			1,074
Noninterest income	4,450			4,624		4,255		102			13,431
Intangible expenses	74			394		318		—			786
Other noninterest expense	21,222			2,955		2,669		(221		)	26,625
Intersegment (revenue) expense*	(534		)	222		312		—			—
Income before income taxes	5,910			1,053		956		331			8,250
Income tax expense	1,161			414		399		160			2,134
Net income	$	4,749		$	639	$	557	$	171		$	6,116
Capital expenditures	$	1,197		$	8	$	39	$	73		$	1,317

*Includes an allocation of general and administrative expenses from both the parent holding company and the Bank. Generally speaking, these expenses are allocated based upon number of employees and square footage utilized.

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Restructuring Charges

3 Months Ended

Mar. 31, 2016

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

During the first quarter of 2015, the Corporation finalized a new financial center model, which is smaller in size, combines enhanced technology with personal service and provides consultive services and solutions delivered by personal bankers. These efforts led to the development of a comprehensive financial center optimization plan approved in April 2015 which includes opening new financial centers in growth markets while closing financial centers which operate in close proximity to other centers. As the Corporation announced in April 2015, six financial centers were closed in September 2015 that operated in close proximity to other centers. As a result, the Corporation recorded $1.6 million in restructuring charges during the second quarter of 2015 and related to the Banking business segment.

A roll-forward of the accrued restructuring expense for the three months ended March 31, 2016 is as follows:

(Dollars in thousands)	Write-downs and retirements of fixed assets		Lease cancellations			Total
Accrued at January 1, 2016	$	228	$	834		$	1,062
Payments	—		(73		)	(73		)
Accelerated depreciation	—		—			—
Accrued at March 31, 2016	$	228	$	761		$	989

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation

The accompanying unaudited consolidated financial statements include the accounts of Univest Corporation of Pennsylvania (the Corporation or Univest) and its wholly owned subsidiaries; the Corporation’s primary subsidiary is Univest Bank and Trust Co. (the Bank). All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited interim consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations for interim financial information. The accompanying unaudited consolidated financial statements reflect all adjustments which are of a normal recurring nature and are, in the opinion of management, necessary for a fair presentation of the financial statements for the interim periods presented. Certain prior period amounts have been reclassified to conform to the current-year presentation. Operating results for the three-month period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ended December 31, 2016. It is suggested that these unaudited consolidated financial statements be read in conjunction with the audited financial statements and the notes thereto included in the registrant’s Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the SEC on March 4, 2016.

Use of Estimates

Use of Estimates

The preparation of the unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes include fair value measurement of investment securities available-for-sale and assessment for impairment of certain investment securities, reserve for loan and lease losses, valuation of goodwill and other intangible assets, mortgage servicing rights, deferred tax assets and liabilities, benefit plans and stock-based compensation expense.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) to simplify and improve employee share-based payment accounting. Under the new guidance, all excess tax benefits and tax deficiencies are recognized as an income tax benefit or expense in the income statement. The additional paid-in capital pool is eliminated. Excess tax benefits and deficiencies are recognized in the period they are deducted on the income tax return. Excess tax benefits are recorded along with other income tax cash flows as an operating activity in the statement of cash flows. The recognition of excess tax benefits and deficiencies and changes to diluted earnings per share are to be applied prospectively when this ASU is adopted. For tax benefits that were not previously recognized because the related tax deduction had not reduced taxes payable, entities record a cumulative-effect adjustment in retained earnings as of the beginning of the year of adoption. The Corporation does not record deferred tax benefits on incentive stock options when expense is accrued, therefore, the Corporation will not have a cumulative-effect adjustment when this ASU is adopted. Changes to the treatment of forfeitures will not impact the Corporation as the historical assumption for forfeitures was immaterial and not taken into account during valuations; the Corporation has recorded forfeitures as they occurred which is consistent with the new guidance. The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities, or January 1, 2017 for the Corporation. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. The Corporation does not anticipate that the adoption of this ASU will have a material impact on the financial statements.

In March 2016, the FASB issued an ASU to amend the guidance for hedge accounting to clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The amendments in this ASU are effective for financial statements of public businesses issued for fiscal years and interim periods within those years beginning after December 15, 2016, or January 1, 2017 for the Corporation. The Corporation does not anticipate the adoption of this ASU will have any impact on the financial statements.

In February 2016, the FASB issued an ASU to revise the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases. Disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. The ASU is effective for the first interim period within annual periods beginning after December 15, 2018, or January 1, 2019, with early adoption permitted. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements; however, the adoption of this ASU will impact the balance sheet for the recording of assets and liabilities for operating leases; any initial or continued impact of the recording of assets will have an impact on risk-based capital ratios under current regulatory guidance and possibly equity ratios.

In January 2016, the FASB issued an ASU to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The ASU will require equity investments to be measured at fair value with changes in fair value recognized in net income. When fair value is not readily determinable, an entity may elect to measure the equity investment at cost, minus impairment, plus or minus any change in the investment’s observable price. The ASU will simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. A valuation allowance on a deferred tax asset related to available-for-sale securities will need to be included. For financial liabilities that are measured at fair value, the ASU requires an entity to present separately, in other comprehensive income, any change in fair value resulting from a change in instrument-specific credit risk. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. The amendments in this ASU are effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017 or January 1, 2018 for the Corporation. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements.

In September 2015, the FASB issued an ASU simplifying the accounting for measurement-period adjustments related to business combinations. The ASU eliminates the requirement to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. Under this ASU, measurement-period adjustments are calculated as if they were known at the acquisition date, but are recognized in the reporting period in which they are determined. The ASU requires additional disclosures about the impact on current period income statement line items of adjustments that would have been recognized in prior periods if prior period information had been revised. The amendments in this ASU were effective for financial statements of public businesses issued for fiscal years and interim periods within those years beginning after December 15, 2015, or January 1, 2016 for the Corporation. The adoption of this guidance did not impact the Corporation's financial statements.

In April 2015, the FASB issued an ASU simplifying the presentation of debt issuance costs. The ASU requires that debt issuance costs related to a recognized debt liability shall be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The costs will continue to be amortized to interest expense using the effective interest method. The ASU was effective for financial statements of public businesses issued for fiscal years beginning after December 15, 2015, or January 1, 2016 for the Corporation. The adoption of this ASU did not impact the Corporation's balance sheet presentation as the Corporation followed this presentation consistent with the guidance in FASB Concepts Statement No. 6.

In May 2014, the FASB issued an ASU regarding revenue from contracts with customers which clarifies the principles for recognizing revenue and develops a common standard for U.S. GAAP and International Financial Reporting Standards. The ASU establishes a core principle that would require an entity to identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. The ASU provides for improved disclosure requirements that require entities to disclose sufficient information that enables users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In March 2016, the FASB issued an ASU clarifying the implementation guidance on the principal-versus-agent considerations in the revenue recognition standard by instructing the participants in the sale to determine whether they control the good or service and are entitled to the gross amount of the transaction or are acting as an agent and should collect only a fee or commission for arranging the sale. The original effective date of the guidance relating to revenue from contracts with customers was deferred in August 2015 by one year. This guidance is now effective for fiscal years and interim periods within those years beginning after December 15, 2017, or January 1, 2018 for the Corporation. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements; however, it is anticipated the impact will be only related to timing.

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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Amortized cost and estimated fair value of held to maturity securities and available for sale securities by contractual maturity

The following table shows the amortized cost and the estimated fair value of the held-to-maturity securities and available-for-sale securities at March 31, 2016 and December 31, 2015, by contractual maturity within each type:

	At March 31, 2016									At December 31, 2015
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Held-to-Maturity
Corporate bonds:
Within 1 year	$	26,924	$	114	$	—		$	27,038	$	21,047	$	134	$	—		$	21,181
After 1 year to 5 years	10,008		26		(41		)	9,993		19,943		1		(64		)	19,880
	36,932		140		(41		)	37,031		40,990		135		(64		)	41,061
Total	$	36,932	$	140	$	(41	)	$	37,031	$	40,990	$	135	$	(64	)	$	41,061
Securities Available-for-Sale
U.S. treasuries:
After 1 year to 5 years	$	—	$	—	$	—		$	—	$	4,978	$	—	$	(91	)	$	4,887
	—		—		—			—		4,978		—		(91		)	4,887
U.S. government corporations and agencies:
Within 1 year	10,278		2		—			10,280		10,389		—		(29		)	10,360
After 1 year to 5 years	57,085		302		—			57,387		92,148		26		(378		)	91,796
	67,363		304		—			67,667		102,537		26		(407		)	102,156
State and political subdivisions:
After 1 year to 5 years	17,125		134		(12		)	17,247		17,362		80		(29		)	17,413
After 5 years to 10 years	50,335		1,382		(17		)	51,700		47,969		1,188		(32		)	49,125
Over 10 years	32,560		1,301		—			33,861		34,334		1,160		—			35,494
	100,020		2,817		(29		)	102,808		99,665		2,428		(61		)	102,032
Residential mortgage-backed securities:
After 1 year to 5 years	4,920		6		—			4,926		9,713		12		(13		)	9,712
After 5 years to 10 years	59		1		—			60		60		—		—			60
Over 10 years	3,497		91		—			3,588		3,517		65		—			3,582
	8,476		98		—			8,574		13,290		77		(13		)	13,354
Collateralized mortgage obligations:
Over 10 years	3,080		—		(24		)	3,056		3,215		—		(82		)	3,133
	3,080		—		(24		)	3,056		3,215		—		(82		)	3,133
Corporate bonds:
Within 1 year	250		—		—			250		250		—		—			250
After 1 year to 5 years	18,862		142		(44		)	18,960		19,446		25		(158		)	19,313
After 5 years to 10 years	15,122		95		(63		)	15,154		10,148		—		(266		)	9,882
Over 10 years	60,000		857		(3,218		)	57,639		60,000		—		(2,770		)	57,230
	94,234		1,094		(3,325		)	92,003		89,844		25		(3,194		)	86,675
Money market mutual funds:
No stated maturity	17,563		—		—			17,563		16,726		—		—			16,726
	17,563		—		—			17,563		16,726		—		—			16,726
Equity securities:
No stated maturity	426		328		—			754		426		381		—			807
	426		328		—			754		426		381		—			807
Total	$	291,162	$	4,641	$	(3,378	)	$	292,425	$	330,681	$	2,937	$	(3,848	)	$	329,770

Information Related to Sales of Securities Available-for-Sale

The following table presents information related to sales of securities available-for-sale during the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31,
(Dollars in thousands)	2016		2015
Securities available-for-sale:
Proceeds from sales	$	53,181	$	271
Gross realized gains on sales	106		91
Gross realized losses on sales	62		—
Tax expense related to net realized gains on sales	15		32

Amount of Securities in Unrealized Loss Position

The following table shows the fair value of securities that were in an unrealized loss position at March 31, 2016 and December 31, 2015 by the length of time those securities were in a continuous loss position:

	Less than Twelve Months					Twelve Months or Longer					Total
(Dollars in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
At March 31, 2016
Securities Held-to-Maturity
Corporate bonds	$	—	$	—		$	4,965	$	(41	)	$	4,965	$	(41	)
Total	$	—	$	—		$	4,965	$	(41	)	$	4,965	$	(41	)
Securities Available-for-Sale
U.S. government corporations and agencies	$	5,126	$	—		$	5,000	$	—		$	10,126	$	—
State and political subdivisions	5,669		(8		)	2,620		(21		)	8,289		(29		)
Collateralized mortgage obligations	—		—			3,056		(24		)	3,056		(24		)
Corporate bonds	42,051		(3,231		)	11,251		(94		)	53,302		(3,325		)
Equity securities	4		—			—		—			4		—
Total	$	52,850	$	(3,239	)	$	21,927	$	(139	)	$	74,777	$	(3,378	)
At December 31, 2015
Securities Held-to-Maturity
Corporate bonds	$	12,078	$	(9	)	$	4,953	$	(55	)	$	17,031	$	(64	)
Total	$	12,078	$	(9	)	$	4,953	$	(55	)	$	17,031	$	(64	)
Securities Available-for-Sale
U.S. treasuries	$	—	$	—		$	4,887	$	(91	)	$	4,887	$	(91	)
U.S. government corporations and agencies	72,157		(379		)	4,972		(28		)	77,129		(407		)
State and political subdivisions	10,251		(49		)	1,335		(12		)	11,586		(61		)
Residential mortgage-backed securities	4,751		(13		)	—		—			4,751		(13		)
Collateralized mortgage obligations	—		—			3,133		(82		)	3,133		(82		)
Corporate bonds	72,234		(2,941		)	10,669		(253		)	82,903		(3,194		)
Total	$	159,393	$	(3,382	)	$	24,996	$	(466	)	$	184,389	$	(3,848	)

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Loans and Leases (Tables)

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

Summary of Major Loan and Lease Categories

	At March 31, 2016
(Dollars in thousands)	Originated			Acquired		Total
Commercial, financial and agricultural	$	486,112		$	21,207	$	507,319
Real estate-commercial	760,492			120,928		881,420
Real estate-construction	90,567			2,004		92,571
Real estate-residential secured for business purpose	103,591			114,673		218,264
Real estate-residential secured for personal purpose	185,482			3,227		188,709
Real estate-home equity secured for personal purpose	129,907			10,831		140,738
Loans to individuals	28,140			281		28,421
Lease financings	125,814			—		125,814
Total loans and leases held for investment, net of deferred income	$	1,910,105		$	273,151	$	2,183,256
Unearned lease income, included in the above table	$	(13,793	)	$	—	$	(13,793	)
Net deferred costs, included in the above table	4,568			—		4,568
Overdraft deposits included in the above table	58			—		58

	At December 31, 2015
(Dollars in thousands)	Originated			Acquired		Total
Commercial, financial and agricultural	$	479,980		$	24,535	$	504,515
Real estate-commercial	759,342			126,550		885,892
Real estate-construction	91,904			4,637		96,541
Real estate-residential secured for business purpose	94,280			124,503		218,783
Real estate-residential secured for personal purpose	177,850			3,305		181,155
Real estate-home equity secured for personal purpose	125,361			11,594		136,955
Loans to individuals	29,406			326		29,732
Lease financings	125,440			—		125,440
Total loans and leases held for investment, net of deferred income	$	1,883,563		$	295,450	$	2,179,013
Unearned lease income, included in the above table	$	(13,829	)	$	—	$	(13,829	)
Net deferred costs, included in the above table	4,244			—		4,244
Overdraft deposits included in the above table	35			—		35

Schedule of Impaired Loans

The outstanding principal balance and carrying amount for acquired credit impaired loans at March 31, 2016 and December 31, 2015 were as follows:

(Dollars in thousands)	At March 31, 2016		At December 31, 2015
Outstanding principal balance	$	3,186	$	3,551
Carrying amount	1,267		1,253
Allowance for loan losses	8		8

The following table presents the changes in accretable yield on acquired credit impaired loans:

(Dollars in thousands)	Three Months Ended March 31, 2016
Beginning of period	$	144
Reclassification from nonaccretable difference	46
Accretable yield amortized to interest income	(74		)
End of period	$	116

The following presents, by class of loans, the recorded investment and unpaid principal balance of impaired loans , the amounts of the impaired loans for which there is not an allowance for credit losses and the amounts for which there is an allowance for credit losses at March 31, 2016 and December 31, 2015. The impaired loans exclude loans acquired with deteriorated credit quality.

	At March 31, 2016						At December 31, 2015
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans with no related allowance recorded:
Commercial, financial and agricultural	$	12,677	$	13,921			$	10,337	$	13,318
Real estate—commercial real estate	29,009		29,885				30,088		30,996
Real estate—residential secured for business purpose	3,454		3,710				4,597		4,717
Real estate—residential secured for personal purpose	123		132				545		554
Real estate—home equity secured for personal purpose	129		129				170		170
Total impaired loans with no allowance recorded	$	45,392	$	47,777			$	45,737	$	49,755
Impaired loans with an allowance recorded:
Commercial, financial and agricultural	$	300	$	300	$	151	$	2,544	$	2,544	$	208
Real estate—commercial real estate	366		368		140		—		—		—
Real estate—residential secured for business purpose	164		167		20		295		295		45
Real estate—residential secured for personal purpose	252		252		30		252		252		16
Real estate—home equity secured for personal purpose	—		—		—		105		105		53
Total impaired loans with an allowance recorded	$	1,082	$	1,087	$	341	$	3,196	$	3,196	$	322

	At March 31, 2016						At December 31, 2015
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Total impaired loans:
Commercial, financial and agricultural	$	12,977	$	14,221	$	151	$	12,881	$	15,862	$	208
Real estate—commercial real estate	29,375		30,253		140		30,088		30,996		—
Real estate—residential secured for business purpose	3,618		3,877		20		4,892		5,012		45
Real estate—residential secured for personal purpose	375		384		30		797		806		16
Real estate—home equity secured for personal purpose	129		129		—		275		275		53
Total impaired loans	$	46,474	$	48,864	$	341	$	48,933	$	52,951	$	322

Schedule of Age Analysis of Past Due Loans and Leases

The following presents, by class of loans and leases, an aging of past due loans and leases, loans and leases which are current and the recorded investment in loans and leases 90 days or more past due which are accruing interest at March 31, 2016 and December 31, 2015:

(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current		Acquired Credit Impaired		Total Loans and Leases Held for Investment		Recorded Investment 90 Days or more Past Due and Accruing Interest
At March 31, 2016
Commercial, financial and agricultural	$	130	$	—	$	2,128	$	2,258	$	505,061	$	—	$	507,319	$	—
Real estate—commercial real estate and construction:
Commercial real estate	225		—		912		1,137		879,766		517		881,420		—
Construction	—		—		—		—		92,571		—		92,571		—
Real estate—residential and home equity:
Residential secured for business purpose	3,562		62		887		4,511		213,003		750		218,264		—
Residential secured for personal purpose	673		52		469		1,194		187,515		—		188,709		125
Home equity secured for personal purpose	210		159		483		852		139,886		—		140,738		353
Loans to individuals	289		137		205		631		27,790		—		28,421		205
Lease financings	1,376		413		431		2,220		123,594		—		125,814		10
Total	$	6,465	$	823	$	5,515	$	12,803	$	2,169,186	$	1,267	$	2,183,256	$	693
At December 31, 2015
Commercial, financial and agricultural	$	864	$	298	$	4,279	$	5,441	$	498,757	$	317	$	504,515	$	—
Real estate—commercial real estate and construction:
Commercial real estate	12,103		—		1,102		13,205		872,174		513		885,892		—
Construction	—		—		—		—		96,541		—		96,541		—
Real estate—residential and home equity:
Residential secured for business purpose	1,406		2,356		727		4,489		213,871		423		218,783		—
Residential secured for personal purpose	990		69		309		1,368		179,787		—		181,155		—
Home equity secured for personal purpose	777		52		174		1,003		135,952		—		136,955		—
Loans to individuals	198		97		173		468		29,264		—		29,732		173
Lease financings	1,294		652		646		2,592		122,848		—		125,440		206
Total	$	17,632	$	3,524	$	7,410	$	28,566	$	2,149,194	$	1,253	$	2,179,013	$	379

Schedule of Nonperforming Loans and Leases

The following presents, by class of loans and leases, non-performing loans and leases at March 31, 2016 and December 31, 2015:

	At March 31, 2016								At December 31, 2015
(Dollars in thousands)	Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Non- Performing Loans and Leases		Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Non- Performing Loans and Leases
Commercial, financial and agricultural	$	6,080	$	1,443	$	—	$	7,523	$	6,915	$	1,602	$	—	$	8,517
Real estate—commercial real estate and construction:
Commercial real estate	3,981		2,417		—		6,398		4,314		2,449		—		6,763
Real estate—residential and home equity:
Residential secured for business purpose	2,496		413		—		2,909		1,863		763		—		2,626
Residential secured for personal purpose	375		—		125		500		376		421		—		797
Home equity secured for personal purpose	129		—		353		482		275		—		—		275
Loans to individuals	—		—		205		205		—		—		173		173
Lease financings	421		6		10		437		440		10		206		656
Total	$	13,482	$	4,279	$	693	$	18,454	$	14,183	$	5,245	$	379	$	19,807

* Includes nonaccrual troubled debt restructured loans and lease modifications of $1.5 million and $93 thousand at March 31, 2016 and December 31, 2015, respectively.

Summary of Credit Quality Indicators

The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at March 31, 2016 and December 31, 2015.

The Corporation employs a ten (10) grade risk rating system related to the credit quality of commercial loans and residential real estate loans secured for a business purpose of which the first six categories are pass categories (credits not adversely rated). The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. Loans with risk ratings of one through five are reviewed based on the relationship dollar amount with the borrower: loans with a relationship total of $2.5 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.5 million but greater than $500 thousand are reviewed annually based on the borrower’s fiscal year; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with a risk rating of six are also reviewed based on the relationship dollar amount with the borrower: loans with a relationship balance of $2.0 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.0 million but greater than $500 thousand are reviewed annually; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with a risk rating of seven are reviewed at least quarterly, and as often as monthly, at management’s discretion. Loans with risk ratings of eight through ten are reviewed monthly.

1. Cash Secured—No credit risk

2. Fully Secured—Negligible credit risk

3. Strong—Minimal credit risk

4. Satisfactory—Nominal credit risk

5. Acceptable—Moderate credit risk

6. Pre-Watch—Marginal, but stable credit risk

7. Special Mention—Potential weakness

8. Substandard—Well-defined weakness

9. Doubtful—Collection in-full improbable

10. Loss—Considered uncollectible

Commercial Credit Exposure Credit Risk by Internally Assigned Grades

The following table presents classifications for originated loans:

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial		Real Estate— Construction		Real Estate— Residential Secured for Business Purpose		Total
At March 31, 2016
Grade:
1. Cash secured/ 2. Fully secured	$	527	$	—	$	4,902	$	—	$	5,429
3. Strong	17,817		2,998		—		—		20,815
4. Satisfactory	27,198		36,971		450		8		64,627
5. Acceptable	340,778		525,195		76,592		87,621		1,030,186
6. Pre-watch	63,932		125,085		8,245		10,921		208,183
7. Special Mention	8,395		29,977		—		115		38,487
8. Substandard	27,465		40,266		378		4,926		73,035
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	486,112	$	760,492	$	90,567	$	103,591	$	1,440,762
At December 31, 2015
Grade:
1. Cash secured/ 2. Fully secured	$	968	$	—	$	5,417	$	—	$	6,385
3. Strong	17,328		10,877		—		—		28,205
4. Satisfactory	36,697		36,023		450		9		73,179
5. Acceptable	328,140		530,766		72,630		78,659		1,010,195
6. Pre-watch	61,098		119,117		13,262		7,161		200,638
7. Special Mention	6,074		20,286		—		2,347		28,707
8. Substandard	29,675		42,273		145		6,104		78,197
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	479,980	$	759,342	$	91,904	$	94,280	$	1,425,506

The following table presents classifications for acquired loans:

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial		Real Estate— Construction		Real Estate— Residential Secured for Business Purpose		Total
At March 31, 2016
Grade:
1. Cash secured/ 2. Fully secured	$	1,405	$	—	$	—	$	—	$	1,405
3. Strong	—		—		—		—		—
4. Satisfactory	1,163		3,000		—		604		4,767
5. Acceptable	15,557		98,120		2,004		103,018		218,699
6. Pre-watch	2,190		10,757		—		7,794		20,741
7. Special Mention	—		7,407		—		623		8,030
8. Substandard	892		1,644		—		2,634		5,170
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	21,207	$	120,928	$	2,004	$	114,673	$	258,812
December 31, 2015
Grade:
1. Cash secured/ 2. Fully secured	$	1,411	$	—	$	—	$	—	$	1,411
3. Strong	—		—		—		—		—
4. Satisfactory	1,181		3,561		—		608		5,350
5. Acceptable	18,446		102,122		4,637		113,002		238,207
6. Pre-watch	2,273		10,365		—		8,153		20,791
7. Special Mention	417		8,853		—		367		9,637
8. Substandard	807		1,649		—		2,373		4,829
9. Doubtful	—		—		—		—		—
10.Loss	—		—		—		—		—
Total	$	24,535	$	126,550	$	4,637	$	124,503	$	280,225

The following table presents classifications for originated loans:

(Dollars in thousands)	Real Estate— Residential Secured for Personal Purpose		Real Estate— Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financing		Total
At March 31, 2016
Performing	$	184,982	$	129,425	$	27,935	$	125,377	$	467,719
Nonperforming	500		482		205		437		1,624
Total	$	185,482	$	129,907	$	28,140	$	125,814	$	469,343
At December 31, 2015
Performing	$	177,053	$	125,086	$	29,233	$	124,784	$	456,156
Nonperforming	797		275		173		656		1,901
Total	$	177,850	$	125,361	$	29,406	$	125,440	$	458,057

The following table presents classifications for acquired loans:

(Dollars in thousands)	Real Estate— Residential Secured for Personal Purpose		Real Estate— Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financing		Total
At March 31, 2016
Performing	$	3,227	$	10,831	$	281	$	—	$	14,339
Nonperforming	—		—		—		—		—
Total	$	3,227	$	10,831	$	281	$	—	$	14,339
At December 31, 2015
Performing	$	3,305	$	11,594	$	326	$	—	$	15,225
Nonperforming	—		—		—		—		—
Total	$	3,305	$	11,594	$	326	$	—	$	15,225

Summary of Activity in the Reserve for Loan and Lease Losses

The following presents, by portfolio segment, a summary of the activity in the reserve for loan and lease losses, the balance in the reserve for loan and lease losses disaggregated on the basis of impairment method and the recorded investment in loans and leases disaggregated on the basis of impairment method for the three months ended March 31, 2016 and 2015:

(Dollars in thousands)	Commercial, Financial and Agricultural			Real Estate— Commercial and Construction			Real Estate— Residential Secured for Business Purpose			Real Estate— Residential and Home Equity Secured for Personal Purpose			Loans to Individuals			Lease Financings			Unallocated			Total
Three Months Ended March 31, 2016
Reserve for loan and lease losses:
Beginning balance	$	6,418		$	6,572		$	763		$	1,575		$	346		$	1,042		$	912		$	17,628
Charge-offs	(1,481		)	(26		)	(238		)	(46		)	(76		)	(205		)	N/A			(2,072		)
Recoveries	450			7			19			17			33			44			N/A			570
Provision (recovery of provision)	243			(82		)	203			(233		)	53			41			102			327
Recovery of provision for acquired credit impaired loans	—			—			—			(1		)	—			—			—			(1		)
Ending balance	$	5,630		$	6,471		$	747		$	1,312		$	356		$	922		$	1,014		$	16,452
Three Months Ended March 31, 2015
Reserve for loan and lease losses:
Beginning balance	$	6,920		$	8,943		$	763		$	1,124		$	360		$	985		$	1,567		$	20,662
Charge-offs	(300		)	(348		)	—			(31		)	(184		)	(230		)	N/A			(1,093		)
Recoveries	110			65			6			1			48			61			N/A			291
(Recovery of provision) provision	(18		)	988			(101		)	34			141			197			(167		)	1,074
Ending balance	$	6,712		$	9,648		$	668		$	1,128		$	365		$	1,013		$	1,400		$	20,934

N/A – Not applicable

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial and Construction		Real Estate— Residential Secured for Business Purpose		Real Estate— Residential and Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financings		Unallocated		Total
At March 31, 2016
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	151	$	140	$	20	$	30	$	—	$	—	N/A		$	341
Ending balance: collectively evaluated for impairment	5,479		6,323		727		1,282		356		922		1,014		16,103
Ending balance: acquired credit impaired loans evaluated for impairment	—		8		—		—		—		—		—		8
Total ending balance	$	5,630	$	6,471	$	747	$	1,312	$	356	$	922	$	1,014	$	16,452
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	12,977	$	29,375	$	3,618	$	504	$	—	$	—			$	46,474
Ending balance: collectively evaluated for impairment	473,135		821,684		99,973		314,885		28,140		125,814				1,863,631
Acquired non-credit impaired loans	21,207		122,415		113,923		14,058		281		—				271,884
Acquired credit impaired loans	—		517		750		—		—		—				1,267
Total ending balance	$	507,319	$	973,991	$	218,264	$	329,447	$	28,421	$	125,814			$	2,183,256
At March 31, 2015
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	1,004	$	—	$	—	$	—	$	—	$	—	N/A		$	1,004
Ending balance: collectively evaluated for impairment	5,708		9,648		668		1,128		365		1,013		1,400		19,930
Total ending balance	$	6,712	$	9,648	$	668	$	1,128	$	365	$	1,013	$	1,400	$	20,934
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	15,124	$	34,380	$	3,239	$	909	$	—	$	—			$	53,652
Ending balance: collectively evaluated for impairment	446,366		700,581		38,658		281,120		29,620		115,958				1,612,303
Acquired non-credit impaired loans	29,418		189,225		140,779		16,461		371		—				376,254
Acquired credit impaired loans	371		578		619		63		—		—				1,631
Total ending balance	$	491,279	$	924,764	$	183,295	$	298,553	$	29,991	$	115,958			$	2,043,840

N/A – Not applicable

Summary of Average Recorded Investment in Impaired Loans and Leases and Analysis of Interest on Impaired Loans

The following presents by class of loans, the average recorded investment in impaired loans and an analysis of interest on impaired loans. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Therefore, interest income on accruing impaired loans is recognized using the accrual method. 

	Three Months Ended March 31, 2016						Three Months Ended March 31, 2015
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms		Average Recorded Investment		Interest Income Recognized*		Additional Interest Income That Would Have Been Recognized Under Original Terms
Commercial, financial and agricultural	$	13,569	$	68	$	95	$	16,094	$	142	$	87
Real estate—commercial real estate	29,212		305		70		29,124		320		83
Real estate—construction	—		—		—		5,748		—		77
Real estate—residential secured for business purpose	4,273		27		47		3,183		29		16
Real estate—residential secured for personal purpose	568		2		4		584		—		13
Real estate—home equity secured for personal purpose	177		—		2		165		—		3
Total	$	47,799	$	402	$	218	$	54,898	$	491	$	279

* Includes interest income recognized on a cash basis for nonaccrual loans of $7 thousand and $4 thousand for the three months ended March 31, 2016 and 2015, respectively and interest income recognized on the accrual method for accruing impaired loans of $395 thousand and $487 thousand for the three months ended March 31, 2016 and 2015, respectively.

Schedule of Troubled Debt Restructured Loans

The following presents, by class of loans, information regarding accruing and nonaccrual loans that were restructured:

	Three Months Ended March 31, 2016							Three Months Ended March 31, 2015
(Dollars in thousands)	Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance		Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	1,545	$	1,545	$	—	1	$	143	$	143	$	—
Real estate—residential secured for business purpose	—	—		—		—		1	353		353		—
Total	1	$	1,545	$	1,545	$	—	2	$	496	$	496	$	—
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	$	—	$	—	1	$	122	$	122	$	—
Total	—	$	—	$	—	$	—	1	$	122	$	122	$	—

The following presents, by class of loans, information regarding consumer mortgages collateralized by residential real estate property that are in the process of foreclosure at March 31, 2016 and December 31, 2015:

(Dollars in thousands)	At March 31, 2016		At December 31, 2015
Real estate-residential secured for personal purpose	$	313	$	313
Real estate-home equity secured for personal purpose	60		60
Total	$	373	$	373

Summary of Concessions Granted on Restructured Loans

The following presents, by class of loans, information regarding the types of concessions granted on accruing and nonaccrual loans that were restructured during the three months ended March 31, 2016 and 2015.

	Temporary Payment Reduction			Amortization Period Extension			Total Concessions Granted
(Dollars in thousands)	No. of Loans	Amount		No. of Loans	Amount		No. of Loans	Amount
Three Months Ended March 31, 2016
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	1	$	1,545	1	$	1,545
Total	—	$	—	1	$	1,545	1	$	1,545
Nonaccrual Troubled Debt Restructured Loans:
Total	—	$	—	—	$	—	—	$	—
Three Months Ended March 31, 2015
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	143	—	$	—	1	$	143
Real estate—residential secured for business purpose	1	353		—	—		1	353
Total	2	$	496	—	$	—	2	$	496
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	122	—	$	—	1	$	122
Total	1	$	122	—	$	—	1	$	122

Schedule of Accruing and Nonaccruing Troubled Debt Restructured Loans

The following presents, by class of loans, information regarding accruing and nonaccrual troubled debt restructured loans, for which there were payment defaults within twelve months of the restructuring date:

	Three Months Ended March 31,
	2016			2015
(Dollars in thousands)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	1	$	50	—	$	—
Total	1	$	50	—	$	—
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	2	$	200
Total	—	$	—	2	$	200

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Changes in Carrying Amount of Goodwill

Changes in the carrying amount of the Corporation's goodwill by business segment for the three months ended March 31, 2016 were as follows:

(Dollars in thousands)	Banking		Wealth Management		Insurance		Consolidated
Balance at December 31, 2015	$	78,574	$	15,434	$	18,649	$	112,657
Addition to goodwill from acquisitions	—		—		—		—
Balance at March 31, 2016	$	78,574	$	15,434	$	18,649	$	112,657

Components of Intangible Assets

The following table reflects the components of intangible assets at the dates indicated:

	At March 31, 2016						At December 31, 2015
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization and Fair Value Adjustments		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization and Fair Value Adjustments		Net Carrying Amount
Amortized intangible assets:
Core deposit intangibles	$	1,520	$	339	$	1,181	$	1,520	$	276	$	1,244
Customer related intangibles	12,381		7,305		5,076		14,227		8,728		5,499
Mortgage servicing rights	12,544		6,705		5,839		12,233		6,356		5,877
Total amortized intangible assets	$	26,445	$	14,349	$	12,096	$	27,980	$	15,360	$	12,620

Estimated Aggregate Amortization Expense

The estimated amortization expense of mortgage servicing rights for the remainder of 2016 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2016		$	763
2017		900
2018		755
2019		629
2020		521
Thereafter		2,271

The estimated aggregate amortization expense for core deposit and customer related intangibles for the remainder of 2016 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2016		$	1,385
2017		1,544
2018		1,170
2019		847
2020		577
Thereafter		734

Changes in Mortgage Servicing Rights

Changes in the mortgage servicing rights balance are summarized as follows:

	Three Months Ended March 31,
(Dollars in thousands)	2016			2015
Beginning of period	$	5,877		$	5,509
Servicing rights capitalized	311			382
Amortization of servicing rights	(349		)	(368		)
Changes in valuation allowance	—			—
End of period	$	5,839		$	5,523
Mortgage loans serviced for others	$	872,958		$	809,342

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Retirement Plans and Other Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Components of Net Periodic Benefit Cost (Income)

Components of net periodic benefit cost (income) were as follows:

	Three Months Ended March 31,
	2016			2015			2016		2015
(Dollars in thousands)	Retirement Plans						Other Post Retirement Benefits
Service cost	$	171		$	193		$	12	$	15
Interest cost	518			488			33		28
Expected return on plan assets	(754		)	(756		)	—		—
Amortization of net actuarial loss	323			328			6		13
Accretion of prior service cost	(71		)	(70		)	—		—
Net periodic benefit cost	$	187		$	183		$	51	$	56

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Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share, Basic and Diluted [Abstract]

Summary of Computation for Basic and Diluted Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended   March 31,
(Dollars and shares in thousands, except per share data)	2016			2015
Numerator:
Net income	$	7,289		$	6,116
Net income allocated to unvested restricted stock	(59		)	(46		)
Net income allocated to common shares	$	7,230		$	6,070
Denominator:
Denominator for basic earnings per share—weighted-average shares outstanding	19,402			19,776
Effect of dilutive securities—employee stock options	31			24
Denominator for diluted earnings per share—adjusted weighted-average shares outstanding	19,433			19,800
Basic earnings per share	$	0.37		$	0.31
Diluted earnings per share	$	0.37		$	0.31
Average anti-dilutive options and awards excluded from computation of diluted earnings per share	588			632

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Accumulated Other Comprehensive (Loss) Income (Tables)

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Components of Accumulated Other Comprehensive (Loss) Income, Net of Taxes

The following table shows the components of accumulated other comprehensive (loss) income, net of taxes, for the periods presented:

(Dollars in thousands)	Net Unrealized Gains (Losses) on Available-for-Sale Investment Securities			Net Change Related to Derivatives Used for Cash Flow Hedges			Net Change Related to Defined Benefit Pension Plans			Accumulated Other Comprehensive (Loss) Income
Balance, December 31, 2015	$	(592	)	$	(285	)	$	(15,831	)	$	(16,708	)
Net Change	1,413			(354		)	168			1,227
Balance, March 31, 2016	$	821		$	(639	)	$	(15,663	)	$	(15,481	)
Balance, December 31, 2014	$	1,711		$	(157	)	$	(16,016	)	$	(14,462	)
Net Change	1,344			(219		)	175			1,300
Balance, March 31, 2015	$	3,055		$	(376	)	$	(15,841	)	$	(13,162	)

Amounts Reclassified Out of Each Component of Accumulated Comprehensive (Loss) Income

The following table illustrates the amounts reclassified out of each component of accumulated comprehensive loss for the three months ended March 31, 2016 and 2015:

Details about Accumulated Other Comprehensive (Loss) Income Components	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income						Affected Line Item in the Statement of Income
	Three Months Ended   March 31,
(Dollars in thousands)	2016			2015
Net unrealized holding gains on available-for-sale investment securities:
	$	44		$	91		Net gain on sales of investment securities
	44			91			Total before tax
	(15		)	(32		)	Tax expense
	$	29		$	59		Net of tax
Defined benefit pension plans:
Amortization of net loss included in net periodic pension costs*	$	(329	)	$	(341	)
Accretion of prior service cost included in net periodic pension costs*	71			70
	(258		)	(271		)	Total before tax
	90			96			Tax benefit
	$	(168	)	$	(175	)	Net of tax

* These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. (See Note 7—Retirement Plans and Other Postretirement Benefits for additional details.)

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Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amounts and Fair Values of Derivatives Not Designated as Hedging Instruments

The following table presents the notional amounts and fair values of derivatives not designated as hedging instruments recorded on the consolidated balance sheets at March 31, 2016 and December 31, 2015:

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At March 31, 2016
Interest rate locks with customers	$	44,520	Other Assets	$	1,721		$	—
Forward loan sale commitments	48,492			—		Other Liabilities	243
Total	$	93,012		$	1,721		$	243
At December 31, 2015
Interest rate locks with customers	$	34,450	Other Assets	$	1,089		$	—
Forward loan sale commitments	39,545			—		Other Liabilities	102
Total	$	73,995		$	1,089		$	102

Notional Amounts and Fair Value of Derivatives Designated as Hedging Instruments

The following table presents the notional amounts and fair values of derivatives designated as hedging instruments recorded on the consolidated balance sheets at March 31, 2016 and December 31, 2015:

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At March 31, 2016
Interest rate swap - cash flow hedge	$	19,096		$	—	Other Liabilities	$	983
Total	$	19,096		$	—		$	983
At December 31, 2015
Interest rate swap - cash flow hedge	$	19,269		$	—	Other Liabilities	$	438
Total	$	19,269		$	—		$	438

Income for Derivatives Not Designated as Hedging Instruments

For the three months ended March 31, 2016 and 2015, the amounts included in the consolidated statements of income for derivatives not designated as hedging instruments are shown in the table below:

	Statement of Income Classification	Three Months Ended   March 31,
(Dollars in thousands)		2016			2015
Interest rate locks with customers	Net gain on mortgage banking activities	$	632		$	449
Forward loan sale commitments	Net loss on mortgage banking activities	(141		)	(56		)
Total		$	491		$	393

Income for Derivatives Designated as Hedging Instruments

For the three months ended March 31, 2016 and 2015, the amounts included in the consolidated statements of income for derivatives designated as hedging instruments are shown in the table below:

	Statement of Income Classification	Three Months Ended   March 31,
(Dollars in thousands)		2016			2015
Interest rate swap—cash flow hedge—net interest payments	Interest expense	$	81		$	96
Net loss		$	(81	)	$	(96	)

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

At March 31, 2016 and December 31, 2015, the amounts included in accumulated other comprehensive (loss) income for derivatives designated as hedging instruments are shown in the table below:

(Dollars in thousands)	Accumulated Other Comprehensive (Loss) Income	At March 31, 2016			At December 31, 2015
Interest rate swap—cash flow hedge	Fair value, net of taxes	$	(639	)	$	(285	)
Total		$	(639	)	$	(285	)

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Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

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 March 31, 2016 and December 31, 2015, classified using the fair value hierarchy:

	At March 31, 2016
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. government corporations and agencies	$	—	$	67,667	$	—	$	67,667
State and political subdivisions	—		102,808		—		102,808
Residential mortgage-backed securities	—		8,574		—		8,574
Collateralized mortgage obligations	—		3,056		—		3,056
Corporate bonds	—		92,003		—		92,003
Money market mutual funds	17,563		—		—		17,563
Equity securities	754		—		—		754
Total available-for-sale securities	18,317		274,108		—		292,425
Interest rate locks with customers	—		1,721		—		1,721
Total assets	$	18,317	$	275,829	$	—	$	294,146
Liabilities:
Contingent consideration liability	$	—	$	—	$	4,957	$	4,957
Interest rate swap	—		983		—		983
Forward loan sale commitments	—		243		—		243
Total liabilities	$	—	$	1,226	$	4,957	$	6,183

	At December 31, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. treasuries	$	4,887	$	—	$	—	$	4,887
U.S. government corporations and agencies	—		102,156		—		102,156
State and political subdivisions	—		102,032		—		102,032
Residential mortgage-backed securities	—		13,354		—		13,354
Collateralized mortgage obligations	—		3,133		—		3,133
Corporate bonds	—		86,675		—		86,675
Money market mutual funds	16,726		—		—		16,726
Equity securities	807		—		—		807
Total available-for-sale securities	22,420		307,350		—		329,770
Interest rate locks with customers	—		1,089		—		1,089
Total assets	$	22,420	$	308,439	$	—	$	330,859
Liabilities:
Contingent consideration liability	$	—	$	—	$	5,577	$	5,577
Interest rate swap	—		438		—		438
Forward loan sale commitments	—		102		—		102
Total liabilities	$	—	$	540	$	5,577	$	6,117

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 three months ended March 31, 2016 and 2015:

	Three Months Ended March 31, 2016
(Dollars in thousands)	Balance at December 31, 2015		Contingent Consideration from New Acquisition		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at March 31, 2016
Sterner Insurance Associates	$	1,144	$	—	$	—	$	154	$	1,298
Girard Partners	4,241		—		900		119		3,460
John T. Fretz Insurance Agency	192		—		—		7		199
Total contingent consideration liability	$	5,577	$	—	$	900	$	280	$	4,957

	Three Months Ended March 31, 2015
(Dollars in thousands)	Balance at December 31, 2014		Contingent Consideration from New Acquisition*		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at March 31, 2015
Sterner Insurance Associates	$	680	$	1,424	$	—	$	24	$	2,128
Girard Partners	5,503		$	—	$	620	$	34	4,917
John T. Fretz Insurance Agency	358		—		—		13		371
Total contingent consideration liability	$	6,541	$	1,424	$	620	$	71	$	7,416

Assets Measured at Fair Value on Non-Recurring Basis

The following table represents assets measured at fair value on a non-recurring basis at March 31, 2016 and December 31, 2015:

	At March 31, 2016
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	46,133	$	46,133
Total	$	—	$	—	$	46,133	$	46,133

	At December 31, 2015
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	48,611	$	48,611
Total	$	—	$	—	$	48,611	$	48,611

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 March 31, 2016 and December 31, 2015. The disclosed fair values are classified using the fair value hierarchy.

	At March 31, 2016
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	38,547	$	—		$	—	$	38,547		$	38,547
Held-to-maturity securities			37,031					37,031			36,932
Loans held for sale			3,851					3,851			3,818
Net loans and leases held for investment						2,070,300		2,070,300			2,120,671
Mortgage servicing rights						7,203		7,203			5,839
Other real estate owned			3,073					3,073			3,073
Total assets	$	38,547	$	43,955		$	2,077,503	$	2,160,005		$	2,208,880
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,951,453	$	—		$	—	$	1,951,453		$	1,951,453
Time deposits			383,986					383,986			382,908
Total deposits	1,951,453		383,986			—		2,335,439			2,334,361
Short-term borrowings	—		24,498			—		24,498			25,851
Subordinated notes	—		50,250			—		50,250			49,414
Total liabilities	$	1,951,453	$	458,734		$	—	$	2,410,187		$	2,409,626
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,829	)	$	—	$	(1,829	)	$	—

	At December 31, 2015
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	60,799	$	—		$	—	$	60,799		$	60,799
Held-to-maturity securities	—		41,061			—		41,061			40,990
Loans held for sale	—		4,708			—		4,708			4,680
Net loans and leases held for investment	—		—			2,099,082		2,099,082			2,112,774
Mortgage servicing rights	—		—			8,047		8,047			5,877
Other real estate owned	—		1,276			—		1,276			1,276
Total assets	$	60,799	$	47,045		$	2,107,129	$	2,214,973		$	2,226,396
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,939,954	$	—		$	—	$	1,939,954		$	1,939,954
Time deposits	—		455,527			—		455,527			454,406
Total deposits	1,939,954		455,527			—		2,395,481			2,394,360
Short-term borrowings	—		22,302			—		22,302			24,211
Subordinated notes	$	—	$	50,375		$	—	$	50,375		$	49,377
Total liabilities	$	1,939,954	$	528,204		$	—	$	2,468,158		$	2,467,948
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,788	)	$	—	$	(1,788	)	$	—

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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Schedule of Segment Reporting

The following table provides total assets by reportable operating segment as of the dates indicated.

(Dollars in thousands)	At March 31, 2016		At December 31, 2015		At March 31, 2015
Banking	$	2,746,433	$	2,797,746	$	2,680,245
Wealth Management	30,134		33,950		29,993
Insurance	24,715		24,436		24,447
Other	23,495		23,319		22,810
Consolidated assets	$	2,824,777	$	2,879,451	$	2,757,495

The following tables provide reportable segment-specific information and reconciliations to consolidated financial information for the three months ended March 31, 2016 and 2015.

	Three Months Ended
	March 31, 2016
(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
Interest income	$	25,600		$	2	$	—	$	7		$	25,609
Interest expense	2,211			—		—		—			2,211
Net interest income	23,389			2		—		7			23,398
Provision for loan and lease losses	326			—		—		—			326
Noninterest income	4,673			4,572		4,720		(9		)	13,956
Intangible expenses	67			303		400		—			770
Other noninterest expense	18,742			3,058		3,119		1,250			26,169
Intersegment (revenue) expense*	(511		)	219		292		—			—
Income (expense) before income taxes	9,438			994		909		(1,252		)	10,089
Income tax expense (benefit)	2,357			383		377		(317		)	2,800
Net income (loss)	$	7,081		$	611	$	532	$	(935	)	$	7,289
Capital expenditures	$	1,839		$	15	$	10	$	314		$	2,178

	Three Months Ended
	March 31, 2015
(Dollars in thousands)	Banking			Wealth Management		Insurance		Other			Consolidated
Interest income	$	24,730		$	—	$	—	$	8		$	24,738
Interest expense	1,434			—		—		—			1,434
Net interest income	23,296			—		—		8			23,304
Provision for loan and lease losses	1,074			—		—		—			1,074
Noninterest income	4,450			4,624		4,255		102			13,431
Intangible expenses	74			394		318		—			786
Other noninterest expense	21,222			2,955		2,669		(221		)	26,625
Intersegment (revenue) expense*	(534		)	222		312		—			—
Income before income taxes	5,910			1,053		956		331			8,250
Income tax expense	1,161			414		399		160			2,134
Net income	$	4,749		$	639	$	557	$	171		$	6,116
Capital expenditures	$	1,197		$	8	$	39	$	73		$	1,317

*Includes an allocation of general and administrative expenses from both the parent holding company and the Bank. Generally speaking, these expenses are allocated based upon number of employees and square footage utilized.

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Restructuring Charges (Tables)

3 Months Ended

Mar. 31, 2016

Restructuring and Related Activities [Abstract]

Roll-Forward of Accrued Restructuring Expense

A roll-forward of the accrued restructuring expense for the three months ended March 31, 2016 is as follows:

(Dollars in thousands)	Write-downs and retirements of fixed assets		Lease cancellations			Total
Accrued at January 1, 2016	$	228	$	834		$	1,062
Payments	—		(73		)	(73		)
Accelerated depreciation	—		—			—
Accrued at March 31, 2016	$	228	$	761		$	989

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Acquisition - Narrative (Details) - Fox Chase Bank [Member] - USD ($)	3 Months Ended
	Sep. 30, 2016	Mar. 31, 2016
Business Acquisition [Line Items]
Amount of maintained fed funds sold line of credit to correspondent bank		$ 30,000,000
Federal funds sold		0
Average amount of federal funds sold to correspondent bank		$ 5,900,000
Scenario, Forecast [Member]
Business Acquisition [Line Items]
Total purchase price	$ 239,300,000
Assets acquired	1,100,000,000
Loans acquired	776,700,000
Deposits acquired	$ 815,700,000
Cash paid per share at acquisition	$ 21.00
Number of shares per common stock, exchange ratio	0.9731
Allocation provision, cash consideration	40.00%
Allocation provision, stock consideration	60.00%
London Interbank Offered Rate (LIBOR) [Member]
Business Acquisition [Line Items]
Basis spread of interest rate (LIBOR)		0.05%

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Investment Securities - Held-to-Maturity and Available-for-Sale, Scheduled Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Held-to-maturity Securities [Abstract]
Securities Held-to-Maturity, Amortized Cost	$ 36,932	$ 40,990
Securities Held-to-Maturity, Gross Unrealized Gains	140	135
Securities Held-to-Maturity, Gross Unrealized Losses	(41)	(64)
Securities Held-to-Maturity, Fair Value	37,031	41,061
Available-for-sale Securities [Abstract]
Securities Available-for-Sale, Amortized Cost	291,162	330,681
Securities Available-for-Sale, Gross Unrealized Gain	4,641	2,937
Securities Available-for-Sale, Gross Unrealized Loss	(3,378)	(3,848)
Securities Available-for-Sale, Fair Value	292,425	329,770
U.S. Treasuries [Member]
Available-for-sale Securities [Abstract]
Securities Available-for-Sale, Amortized Cost, After 1 year to 5 years	0	4,978
Securities Available-for-Sale, Gross Unrealized Gains, After 1 year to 5 years	0	0
Securities Available-for-Sale, Gross Unrealized Losses, After 1 year to 5 years	0	(91)
Securities Available-for-Sale, Fair Value, After 1 year to 5 years	0	4,887
Securities Available-for-Sale, Amortized Cost	0	4,978
Securities Available-for-Sale, Debt Securities, Gross Unrealized Gain	0	0
Securities Available-for-Sale, Debt Securities, Gross Unrealized Losses	0	(91)
Securities Available-for-Sale, Debt Securities, Fair Value	0	4,887
U.S. Government Corporations and Agencies [Member]
Available-for-sale Securities [Abstract]
Securities Available-for-Sale, Amortized Cost, Within 1 year	10,278	10,389
Securities Available-for-Sale, Gross Unrealized Gains, Within 1 year	2	0
Securities Available-for-Sale, Gross Unrealized Losses, Within 1 year	0	(29)
Securities Available-for-Sale, Fair Value, Within 1 year	10,280	10,360
Securities Available-for-Sale, Amortized Cost, After 1 year to 5 years	57,085	92,148
Securities Available-for-Sale, Gross Unrealized Gains, After 1 year to 5 years	302	26
Securities Available-for-Sale, Gross Unrealized Losses, After 1 year to 5 years	0	(378)
Securities Available-for-Sale, Fair Value, After 1 year to 5 years	57,387	91,796
Securities Available-for-Sale, Amortized Cost	67,363	102,537
Securities Available-for-Sale, Debt Securities, Gross Unrealized Gain	304	26
Securities Available-for-Sale, Debt Securities, Gross Unrealized Losses	0	(407)
Securities Available-for-Sale, Debt Securities, Fair Value	67,667	102,156
State and Political Subdivisions [Member]
Available-for-sale Securities [Abstract]
Securities Available-for-Sale, Amortized Cost, After 1 year to 5 years	17,125	17,362
Securities Available-for-Sale, Gross Unrealized Gains, After 1 year to 5 years	134	80
Securities Available-for-Sale, Gross Unrealized Losses, After 1 year to 5 years	(12)	(29)
Securities Available-for-Sale, Fair Value, After 1 year to 5 years	17,247	17,413
Securities Available-for-Sale, Amortized Cost, After 5 years to 10 years	50,335	47,969
Securities Available-for-Sale, Gross Unrealized Gains, After 5 years to 10 years	1,382	1,188
Securities Available-for-Sale, Gross Unrealized Losses, After 5 years to 10 years	(17)	(32)
Securities Available-for-Sale, Fair Value, After 5 years to 10 years	51,700	49,125
Securities Available-for-Sale, Amortized Cost, Over 10 years	32,560	34,334
Securities Available-for-Sale, Gross Unrealized Gains, Over 10 years	1,301	1,160
Securities Available-for-Sale, Gross Unrealized Losses, Over 10 years	0	0
Securities Available-for-Sale, Fair Value, Over 10 years	33,861	35,494
Securities Available-for-Sale, Amortized Cost	100,020	99,665
Securities Available-for-Sale, Debt Securities, Gross Unrealized Gain	2,817	2,428
Securities Available-for-Sale, Debt Securities, Gross Unrealized Losses	(29)	(61)
Securities Available-for-Sale, Debt Securities, Fair Value	102,808	102,032
Residential Mortgage Backed Securities [Member]
Available-for-sale Securities [Abstract]
Securities Available-for-Sale, Amortized Cost, After 1 year to 5 years	4,920	9,713
Securities Available-for-Sale, Gross Unrealized Gains, After 1 year to 5 years	6	12
Securities Available-for-Sale, Gross Unrealized Losses, After 1 year to 5 years	0	(13)
Securities Available-for-Sale, Fair Value, After 1 year to 5 years	4,926	9,712
Securities Available-for-Sale, Amortized Cost, After 5 years to 10 years	59	60
Securities Available-for-Sale, Gross Unrealized Gains, After 5 years to 10 years	1	0
Securities Available-for-Sale, Gross Unrealized Losses, After 5 years to 10 years	0	0
Securities Available-for-Sale, Fair Value, After 5 years to 10 years	60	60
Securities Available-for-Sale, Amortized Cost, Over 10 years	3,497	3,517
Securities Available-for-Sale, Gross Unrealized Gains, Over 10 years	91	65
Securities Available-for-Sale, Gross Unrealized Losses, Over 10 years	0	0
Securities Available-for-Sale, Fair Value, Over 10 years	3,588	3,582
Securities Available-for-Sale, Amortized Cost	8,476	13,290
Securities Available-for-Sale, Debt Securities, Gross Unrealized Gain	98	77
Securities Available-for-Sale, Debt Securities, Gross Unrealized Losses	0	(13)
Securities Available-for-Sale, Debt Securities, Fair Value	8,574	13,354
Collateralized Mortgage Obligations [Member]
Available-for-sale Securities [Abstract]
Securities Available-for-Sale, Amortized Cost, Over 10 years	3,080	3,215
Securities Available-for-Sale, Gross Unrealized Gains, Over 10 years	0	0
Securities Available-for-Sale, Gross Unrealized Losses, Over 10 years	(24)	(82)
Securities Available-for-Sale, Fair Value, Over 10 years	3,056	3,133
Securities Available-for-Sale, Amortized Cost	3,080	3,215
Securities Available-for-Sale, Debt Securities, Gross Unrealized Gain	0	0
Securities Available-for-Sale, Debt Securities, Gross Unrealized Losses	(24)	(82)
Securities Available-for-Sale, Debt Securities, Fair Value	3,056	3,133
Corporate Bonds [Member]
Available-for-sale Securities [Abstract]
Securities Available-for-Sale, Amortized Cost, Within 1 year	250	250
Securities Available-for-Sale, Gross Unrealized Gains, Within 1 year	0	0
Securities Available-for-Sale, Gross Unrealized Losses, Within 1 year	0	0
Securities Available-for-Sale, Fair Value, Within 1 year	250	250
Securities Available-for-Sale, Amortized Cost, After 1 year to 5 years	18,862	19,446
Securities Available-for-Sale, Gross Unrealized Gains, After 1 year to 5 years	142	25
Securities Available-for-Sale, Gross Unrealized Losses, After 1 year to 5 years	(44)	(158)
Securities Available-for-Sale, Fair Value, After 1 year to 5 years	18,960	19,313
Securities Available-for-Sale, Amortized Cost, After 5 years to 10 years	15,122	10,148
Securities Available-for-Sale, Gross Unrealized Gains, After 5 years to 10 years	95	0
Securities Available-for-Sale, Gross Unrealized Losses, After 5 years to 10 years	(63)	(266)
Securities Available-for-Sale, Fair Value, After 5 years to 10 years	15,154	9,882
Securities Available-for-Sale, Amortized Cost, Over 10 years	60,000	60,000
Securities Available-for-Sale, Gross Unrealized Gains, Over 10 years	857	0
Securities Available-for-Sale, Gross Unrealized Losses, Over 10 years	(3,218)	(2,770)
Securities Available-for-Sale, Fair Value, Over 10 years	57,639	57,230
Securities Available-for-Sale, Amortized Cost	94,234	89,844
Securities Available-for-Sale, Debt Securities, Gross Unrealized Gain	1,094	25
Securities Available-for-Sale, Debt Securities, Gross Unrealized Losses	(3,325)	(3,194)
Securities Available-for-Sale, Debt Securities, Fair Value	92,003	86,675
Money Market Mutual Funds [Member]
Available-for-sale Securities [Abstract]
Securities Available-for-Sale, Amortized Cost	17,563	16,726
Securities Available-for-Sale, Debt Securities, Gross Unrealized Gain	0	0
Securities Available-for-Sale, Debt Securities, Gross Unrealized Losses	0	0
Securities Available-for-Sale, Debt Securities, Fair Value	17,563	16,726
Equity Securities [Member]
Available-for-sale Securities [Abstract]
Equity Securities Available-for-Sale, Amortized Cost	426	426
Equity Securities Available-for-Sale, Gross Unrealized Gains	328	381
Equity Securities Available-for-Sale, Gross Unrealized Loss	0	0
Equity Securities Available-for-Sale, Fair Value	754	807
Corporate Bonds [Member]
Held-to-maturity Securities [Abstract]
Securities Held-to-Maturity, Amortized Cost, Within 1 year	26,924	21,047
Securities Held-to-Maturity, Gross Unrealized Gains, Within 1 year	114	134
Securities Held-to-Maturity, Gross Unrealized Losses, Within 1 year	0	0
Securities Held-to-Maturity, Fair Value, Within 1 year	27,038	21,181
Securities Held-to-Maturity, Amortized Cost, After 1 year to 5 years	10,008	19,943
Securities Held-to-Maturity, Gross Unrealized Gains, After 1 year to 5 years	26	1
Securities Held-to-Maturity, Gross Unrealized Losses, After 1 year to 5 years	(41)	(64)
Securities Held-to-Maturity, Fair Value, After 1 year to 5 years	9,993	19,880
Securities Held-to-Maturity, Amortized Cost	36,932	40,990
Securities Held-to-Maturity, Gross Unrealized Gains	140	135
Securities Held-to-Maturity, Gross Unrealized Losses	(41)	(64)
Securities Held-to-Maturity, Fair Value	$ 37,031	$ 41,061

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Investment Securities - Information Related to Sales of Securities Available-for-Sale (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Securities available-for-sale:
Proceeds from sales	$ 53,181	$ 271
Gross realized gains on sales	106	91
Gross realized losses on sales	62	0
Tax expense related to net realized gains on sales	$ 15	$ 32

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Investment Securities - Amount of Securities in Unrealized Loss Position (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 0	$ 12,078
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	(9)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	4,965	4,953
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(41)	(55)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	4,965	17,031
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss	(41)	(64)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than Twelve Months, Fair Value	52,850	159,393
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(3,239)	(3,382)
Twelve Months or Longer, Fair Value	21,927	24,996
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(139)	(466)
Total, Fair Value	74,777	184,389
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(3,378)	(3,848)
U.S. Treasuries [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than Twelve Months, Fair Value		0
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss		0
Twelve Months or Longer, Fair Value		4,887
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		(91)
Total, Fair Value		4,887
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss		(91)
U.S. Government Corporations and Agencies [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than Twelve Months, Fair Value	5,126	72,157
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	(379)
Twelve Months or Longer, Fair Value	5,000	4,972
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	(28)
Total, Fair Value	10,126	77,129
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	0	(407)
State and Political Subdivisions [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than Twelve Months, Fair Value	5,669	10,251
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(8)	(49)
Twelve Months or Longer, Fair Value	2,620	1,335
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(21)	(12)
Total, Fair Value	8,289	11,586
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(29)	(61)
Residential Mortgage-Backed Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than Twelve Months, Fair Value		4,751
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss		(13)
Twelve Months or Longer, Fair Value		0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		0
Total, Fair Value		4,751
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss		(13)
Collateralized Mortgage Obligations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than Twelve Months, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	0
Twelve Months or Longer, Fair Value	3,056	3,133
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(24)	(82)
Total, Fair Value	3,056	3,133
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(24)	(82)
Corporate Bonds [Member]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	0	12,078
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	(9)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	4,965	4,953
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(41)	(55)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	4,965	17,031
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss	(41)	(64)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than Twelve Months, Fair Value	42,051	72,234
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(3,231)	(2,941)
Twelve Months or Longer, Fair Value	11,251	10,669
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(94)	(253)
Total, Fair Value	53,302	82,903
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(3,325)	$ (3,194)
Equity Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than Twelve Months, Fair Value	4
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0
Twelve Months or Longer, Fair Value	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0
Total, Fair Value	4
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 0

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Investment Securities - Narrative (Detail) $ in Millions	Mar. 31, 2016 USD ($) Investment	Dec. 31, 2015 USD ($) Investment
Investments, Debt and Equity Securities [Abstract]
Carrying value of securities pledged to secure public deposits and for other purposes as required by law | $	$ 157.4	$ 210.1
Number of investments in non-federal issuer representing more than 10% of shareholders' equity | Investment	0	0
Maximum investment in any single non-federal issuer representing shareholders' equity	10.00%	10.00%

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Loans and Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable Net of Deferred Income, Acquired	$ 273,151	$ 295,450
Measure taken to reduce the risk of difference in actual value and residual value of the leased assets at maturity	The Corporation greatly reduces this risk primarily by using $1.00 buyout leases, in which the entire cost of the leased equipment is included in the contractual payments, leaving no residual payment at the end of the lease term.
Other accruing impaired loans	$ 29,100	30,000
Specific reserves for other accruing impaired loans	$ 151	$ 186
Maximum modification period on short-term basis	up to one year
Restructured loan past due period	less than ninety days past due
Minimum [Member]
Financing Receivable, Recorded Investment [Line Items]
Amount of loan relationship with risk ratings of grade 1-5 reviewed quarterly	$ 2,500
Amount of loan relationship with risk ratings of grade 1-5 reviewed annually	500
Amount of loan relationship due for review after 60 or more past due days	$ 500
Aging period due of reviewing loans rated 1 through 6	60 days
Amount of loan relationship with risk ratings of grade six reviewed quarterly	$ 2,000
Amount of loan relationship with risk ratings of grade six reviewed annually	$ 500
Loan-to-value ratio for residential mortgage loans with private mortgage insurance	80.00%
Maximum [Member]
Financing Receivable, Recorded Investment [Line Items]
Amount of loan relationship with risk ratings of grade 1-5 reviewed annually	$ 2,500
Amount of loan relationship due for review after 60 or more past due days	500
Amount of loan relationship with risk ratings of grade six reviewed annually	$ 2,000
Loan-to-value ratio for residential mortgage loans without private mortgage insurance	80.00%
Combined loan-to-value ratio for home equity loans without private mortgage insurance	80.00%
Combined loan-to-value ratio for home equity loans without private mortgage insurance for corporations strongest profile borrower	85.00%
Valley Green Bank [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and Leases Receivable Net of Deferred Income, Acquired	$ 1,300

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Loans and Leases - Summary of Major Loan and Lease Categories (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	$ 1,910,105	$ 1,883,563
Total Loans and Leases Held for Investment, Acquired	273,151	295,450
Total Loans and Leases Held for Investment	2,183,256	2,179,013	$ 2,043,840
Unearned Lease Income, Originated	(13,793)	(13,829)
Unearned Lease Income, Acquired	0	0
Unearned lease income, included in the above table	(13,793)	(13,829)
Net deferred costs, Originated	4,568	4,244
Net deferred costs, Acquired	0	0
Net deferred costs, included in the above table	4,568	4,244
Overdraft Deposits, Originated	58	35
Overdraft Deposits, Acquired	0	0
Overdraft deposits included in the above table	58	35
Commercial, Financial and Agricultural [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	486,112	479,980
Total Loans and Leases Held for Investment, Acquired	21,207	24,535
Total Loans and Leases Held for Investment	507,319	504,515	491,279
Real Estate-Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	760,492	759,342
Total Loans and Leases Held for Investment, Acquired	120,928	126,550
Total Loans and Leases Held for Investment	881,420	885,892
Real Estate-Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	90,567	91,904
Total Loans and Leases Held for Investment, Acquired	2,004	4,637
Total Loans and Leases Held for Investment	92,571	96,541
Real Estate-Residential Secured for Business Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	103,591	94,280
Total Loans and Leases Held for Investment, Acquired	114,673	124,503
Total Loans and Leases Held for Investment	218,264	218,783	183,295
Real Estate-Residential Secured for Personal Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	185,482	177,850
Total Loans and Leases Held for Investment, Acquired	3,227	3,305
Total Loans and Leases Held for Investment	188,709	181,155
Real Estate-Home Equity Secured for Personal Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	129,907	125,361
Total Loans and Leases Held for Investment, Acquired	10,831	11,594
Total Loans and Leases Held for Investment	140,738	136,955
Loans to Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	28,140	29,406
Total Loans and Leases Held for Investment, Acquired	281	326
Total Loans and Leases Held for Investment	28,421	29,732	29,991
Lease Financings [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans and Leases Held for Investment, Originated	125,814	125,440
Total Loans and Leases Held for Investment, Acquired	0	0
Total Loans and Leases Held for Investment	$ 125,814	$ 125,440	$ 115,958

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Loans and Leases - Acquired Credit Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Receivables [Abstract]
Outstanding principal balance	$ 3,186	$ 3,551
Carrying amount	1,267	1,253
Allowance for loan losses	8	$ 8
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Beginning of period	144
Reclassification from nonaccretable difference	46
Accretable yield amortized to interest income	(74)
End of period	$ 116

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Loans and Leases - Age Analysis of Past Due Loans and Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	$ 12,803	$ 28,566
Current	2,169,186	2,149,194
Acquired Credit Impaired	1,267	1,253
Loans and leases held for investment	2,183,256	2,179,013	$ 2,043,840
Recorded Investment 90 Days or more Past Due and Accruing Interest	693	379
Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	1,267	1,253
Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	6,465	17,632
Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	823	3,524
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	5,515	7,410
Commercial, Financial and Agricultural [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	2,258	5,441
Current	505,061	498,757
Loans and leases held for investment	507,319	504,515	491,279
Recorded Investment 90 Days or more Past Due and Accruing Interest	0	0
Commercial, Financial and Agricultural [Member] | Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	0	317
Commercial, Financial and Agricultural [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	130	864
Commercial, Financial and Agricultural [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	0	298
Commercial, Financial and Agricultural [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	2,128	4,279
Real Estate-Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	1,137	13,205
Current	879,766	872,174
Loans and leases held for investment	881,420	885,892
Recorded Investment 90 Days or more Past Due and Accruing Interest	0	0
Real Estate-Commercial [Member] | Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	517	513
Real Estate-Commercial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	225	12,103
Real Estate-Commercial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	0	0
Real Estate-Commercial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	912	1,102
Real Estate-Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	0	0
Current	92,571	96,541
Loans and leases held for investment	92,571	96,541
Recorded Investment 90 Days or more Past Due and Accruing Interest	0	0
Real Estate-Construction [Member] | Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	0	0
Real Estate-Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	0	0
Real Estate-Construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	0	0
Real Estate-Construction [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	0	0
Real Estate-Residential Secured for Business Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	4,511	4,489
Current	213,003	213,871
Loans and leases held for investment	218,264	218,783	183,295
Recorded Investment 90 Days or more Past Due and Accruing Interest	0	0
Real Estate-Residential Secured for Business Purpose [Member] | Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	750	423
Real Estate-Residential Secured for Business Purpose [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	3,562	1,406
Real Estate-Residential Secured for Business Purpose [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	62	2,356
Real Estate-Residential Secured for Business Purpose [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	887	727
Real Estate-Residential Secured for Personal Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	1,194	1,368
Current	187,515	179,787
Loans and leases held for investment	188,709	181,155
Recorded Investment 90 Days or more Past Due and Accruing Interest	125	0
Real Estate-Residential Secured for Personal Purpose [Member] | Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	0	0
Real Estate-Residential Secured for Personal Purpose [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	673	990
Real Estate-Residential Secured for Personal Purpose [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	52	69
Real Estate-Residential Secured for Personal Purpose [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	469	309
Real Estate-Home Equity Secured for Personal Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	852	1,003
Current	139,886	135,952
Loans and leases held for investment	140,738	136,955
Recorded Investment 90 Days or more Past Due and Accruing Interest	353	0
Real Estate-Home Equity Secured for Personal Purpose [Member] | Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	0	0
Real Estate-Home Equity Secured for Personal Purpose [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	210	777
Real Estate-Home Equity Secured for Personal Purpose [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	159	52
Real Estate-Home Equity Secured for Personal Purpose [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	483	174
Loans to Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	631	468
Current	27,790	29,264
Loans and leases held for investment	28,421	29,732	29,991
Recorded Investment 90 Days or more Past Due and Accruing Interest	205	173
Loans to Individuals [Member] | Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	0	0
Loans to Individuals [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	289	198
Loans to Individuals [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	137	97
Loans to Individuals [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	205	173
Lease Financings [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	2,220	2,592
Current	123,594	122,848
Loans and leases held for investment	125,814	125,440	$ 115,958
Recorded Investment 90 Days or more Past Due and Accruing Interest	10	206
Lease Financings [Member] | Valley Green Bank [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Credit Impaired	0	0
Lease Financings [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	1,376	1,294
Lease Financings [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	413	652
Lease Financings [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past Due	$ 431	$ 646

XML

Loans and Leases - Non-Performing Loans and Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	$ 13,482	$ 14,183
Accruing Troubled Debt Restructured Loans And Lease Modifications	4,279	5,245
Recorded Investment 90 Days or more Past Due and Accruing Interest	693	379
Total Non-Performing Loans and Leases	18,454	19,807
Nonaccrual Troubled Debt Restructured Loans And Lease Modifications	1,500	93
Commercial, Financial and Agricultural [Member]
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	6,080	6,915
Accruing Troubled Debt Restructured Loans And Lease Modifications	1,443	1,602
Recorded Investment 90 Days or more Past Due and Accruing Interest	0	0
Total Non-Performing Loans and Leases	7,523	8,517
Real Estate-Commercial [Member]
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	3,981	4,314
Accruing Troubled Debt Restructured Loans And Lease Modifications	2,417	2,449
Recorded Investment 90 Days or more Past Due and Accruing Interest	0	0
Total Non-Performing Loans and Leases	6,398	6,763
Real Estate-Residential Secured for Business Purpose [Member]
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	2,496	1,863
Accruing Troubled Debt Restructured Loans And Lease Modifications	413	763
Recorded Investment 90 Days or more Past Due and Accruing Interest	0	0
Total Non-Performing Loans and Leases	2,909	2,626
Real Estate-Residential Secured for Personal Purpose [Member]
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	375	376
Accruing Troubled Debt Restructured Loans And Lease Modifications	0	421
Recorded Investment 90 Days or more Past Due and Accruing Interest	125	0
Total Non-Performing Loans and Leases	500	797
Real Estate-Home Equity Secured for Personal Purpose [Member]
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	129	275
Accruing Troubled Debt Restructured Loans And Lease Modifications	0	0
Recorded Investment 90 Days or more Past Due and Accruing Interest	353	0
Total Non-Performing Loans and Leases	482	275
Loans to Individuals [Member]
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	0	0
Accruing Troubled Debt Restructured Loans And Lease Modifications	0	0
Recorded Investment 90 Days or more Past Due and Accruing Interest	205	173
Total Non-Performing Loans and Leases	205	173
Lease Financings [Member]
Non-Performing Loans and Leases [Line Items]
Nonaccrual Loans and Leases	421	440
Accruing Troubled Debt Restructured Loans And Lease Modifications	6	10
Recorded Investment 90 Days or more Past Due and Accruing Interest	10	206
Total Non-Performing Loans and Leases	$ 437	$ 656

XML

Loans and Leases - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	$ 1,910,105	$ 1,883,563
Total Loans and Leases Held for Investment, Acquired	273,151	295,450
Grade: 1. Cash secured/ 2. Fully secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	5,429	6,385
Total Loans and Leases Held for Investment, Acquired	1,405	1,411
Grade: 3. Strong [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	20,815	28,205
Total Loans and Leases Held for Investment, Acquired	0	0
Grade: 4. Satisfactory [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	64,627	73,179
Total Loans and Leases Held for Investment, Acquired	4,767	5,350
Grade: 5. Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	1,030,186	1,010,195
Total Loans and Leases Held for Investment, Acquired	218,699	238,207
Grade: 6. Pre-watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	208,183	200,638
Total Loans and Leases Held for Investment, Acquired	20,741	20,791
Grade: 7. Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	38,487	28,707
Total Loans and Leases Held for Investment, Acquired	8,030	9,637
Grade: 8. Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	73,035	78,197
Total Loans and Leases Held for Investment, Acquired	5,170	4,829
Grade: 9. Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0	0
Grade: 10. Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0	0
Internally Assigned Grades [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	1,440,762	1,425,506
Total Loans and Leases Held for Investment, Acquired	258,812	280,225
Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	467,719	456,156
Total Loans and Leases Held for Investment, Acquired	14,339	15,225
Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	1,624	1,901
Total Loans and Leases Held for Investment, Acquired	0	0
Performing and Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	469,343	458,057
Total Loans and Leases Held for Investment, Acquired	14,339	15,225
Commercial, Financial and Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	486,112	479,980
Total Loans and Leases Held for Investment, Acquired	21,207	24,535
Commercial, Financial and Agricultural [Member] | Grade: 1. Cash secured/ 2. Fully secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	527	968
Total Loans and Leases Held for Investment, Acquired	1,405	1,411
Commercial, Financial and Agricultural [Member] | Grade: 3. Strong [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	17,817	17,328
Total Loans and Leases Held for Investment, Acquired	0	0
Commercial, Financial and Agricultural [Member] | Grade: 4. Satisfactory [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	27,198	36,697
Total Loans and Leases Held for Investment, Acquired	1,163	1,181
Commercial, Financial and Agricultural [Member] | Grade: 5. Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	340,778	328,140
Total Loans and Leases Held for Investment, Acquired	15,557	18,446
Commercial, Financial and Agricultural [Member] | Grade: 6. Pre-watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	63,932	61,098
Total Loans and Leases Held for Investment, Acquired	2,190	2,273
Commercial, Financial and Agricultural [Member] | Grade: 7. Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	8,395	6,074
Total Loans and Leases Held for Investment, Acquired	0	417
Commercial, Financial and Agricultural [Member] | Grade: 8. Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	27,465	29,675
Total Loans and Leases Held for Investment, Acquired	892	807
Commercial, Financial and Agricultural [Member] | Grade: 9. Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0	0
Commercial, Financial and Agricultural [Member] | Grade: 10. Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0	0
Commercial, Financial and Agricultural [Member] | Internally Assigned Grades [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	486,112	479,980
Total Loans and Leases Held for Investment, Acquired	21,207	24,535
Real Estate-Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	760,492	759,342
Total Loans and Leases Held for Investment, Acquired	120,928	126,550
Real Estate-Commercial [Member] | Grade: 1. Cash secured/ 2. Fully secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Commercial [Member] | Grade: 3. Strong [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	2,998	10,877
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Commercial [Member] | Grade: 4. Satisfactory [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	36,971	36,023
Total Loans and Leases Held for Investment, Acquired	3,000	3,561
Real Estate-Commercial [Member] | Grade: 5. Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	525,195	530,766
Total Loans and Leases Held for Investment, Acquired	98,120	102,122
Real Estate-Commercial [Member] | Grade: 6. Pre-watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	125,085	119,117
Total Loans and Leases Held for Investment, Acquired	10,757	10,365
Real Estate-Commercial [Member] | Grade: 7. Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	29,977	20,286
Total Loans and Leases Held for Investment, Acquired	7,407	8,853
Real Estate-Commercial [Member] | Grade: 8. Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	40,266	42,273
Total Loans and Leases Held for Investment, Acquired	1,644	1,649
Real Estate-Commercial [Member] | Grade: 9. Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Commercial [Member] | Grade: 10. Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Commercial [Member] | Internally Assigned Grades [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	760,492	759,342
Total Loans and Leases Held for Investment, Acquired	120,928	126,550
Real Estate-Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	90,567	91,904
Total Loans and Leases Held for Investment, Acquired	2,004	4,637
Real Estate-Construction [Member] | Grade: 1. Cash secured/ 2. Fully secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	4,902	5,417
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Construction [Member] | Grade: 3. Strong [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Construction [Member] | Grade: 4. Satisfactory [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	450	450
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Construction [Member] | Grade: 5. Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	76,592	72,630
Total Loans and Leases Held for Investment, Acquired	2,004	4,637
Real Estate-Construction [Member] | Grade: 6. Pre-watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	8,245	13,262
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Construction [Member] | Grade: 7. Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Construction [Member] | Grade: 8. Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	378	145
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Construction [Member] | Grade: 9. Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Construction [Member] | Grade: 10. Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Construction [Member] | Internally Assigned Grades [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	90,567	91,904
Total Loans and Leases Held for Investment, Acquired	2,004	4,637
Real Estate-Residential Secured for Business Purpose [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	103,591	94,280
Total Loans and Leases Held for Investment, Acquired	114,673	124,503
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 1. Cash secured/ 2. Fully secured [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 3. Strong [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 4. Satisfactory [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	8	9
Total Loans and Leases Held for Investment, Acquired	604	608
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 5. Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	87,621	78,659
Total Loans and Leases Held for Investment, Acquired	103,018	113,002
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 6. Pre-watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	10,921	7,161
Total Loans and Leases Held for Investment, Acquired	7,794	8,153
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 7. Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	115	2,347
Total Loans and Leases Held for Investment, Acquired	623	367
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 8. Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	4,926	6,104
Total Loans and Leases Held for Investment, Acquired	2,634	2,373
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 9. Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Residential Secured for Business Purpose [Member] | Grade: 10. Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	0	0
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Residential Secured for Business Purpose [Member] | Internally Assigned Grades [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	103,591	94,280
Total Loans and Leases Held for Investment, Acquired	114,673	124,503
Real Estate-Residential Secured for Personal Purpose [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	185,482	177,850
Total Loans and Leases Held for Investment, Acquired	3,227	3,305
Real Estate-Residential Secured for Personal Purpose [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	184,982	177,053
Total Loans and Leases Held for Investment, Acquired	3,227	3,305
Real Estate-Residential Secured for Personal Purpose [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	500	797
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Residential Secured for Personal Purpose [Member] | Performing and Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	185,482	177,850
Total Loans and Leases Held for Investment, Acquired	3,227	3,305
Real Estate-Home Equity Secured for Personal Purpose [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	129,907	125,361
Total Loans and Leases Held for Investment, Acquired	10,831	11,594
Real Estate-Home Equity Secured for Personal Purpose [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	129,425	125,086
Total Loans and Leases Held for Investment, Acquired	10,831	11,594
Real Estate-Home Equity Secured for Personal Purpose [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	482	275
Total Loans and Leases Held for Investment, Acquired	0	0
Real Estate-Home Equity Secured for Personal Purpose [Member] | Performing and Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	129,907	125,361
Total Loans and Leases Held for Investment, Acquired	10,831	11,594
Loans to Individuals [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	28,140	29,406
Total Loans and Leases Held for Investment, Acquired	281	326
Loans to Individuals [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	27,935	29,233
Total Loans and Leases Held for Investment, Acquired	281	326
Loans to Individuals [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	205	173
Total Loans and Leases Held for Investment, Acquired	0	0
Loans to Individuals [Member] | Performing and Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	28,140	29,406
Total Loans and Leases Held for Investment, Acquired	281	326
Lease Financings [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	125,814	125,440
Total Loans and Leases Held for Investment, Acquired	0	0
Lease Financings [Member] | Performing Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	125,377	124,784
Total Loans and Leases Held for Investment, Acquired	0	0
Lease Financings [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	437	656
Total Loans and Leases Held for Investment, Acquired	0	0
Lease Financings [Member] | Performing and Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans and Leases Held for Investment, Originated	125,814	125,440
Total Loans and Leases Held for Investment, Acquired	$ 0	$ 0

XML

Loans and Leases - Reserve for Loan and Lease Losses Roll Forward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 17,628	$ 20,662
Charge-offs	(2,072)	(1,093)
Recoveries	570	291
Provision (recovery of provision)	327	1,074
Provision for acquired credit impaired loans	(1)
Ending balance	16,452	20,934
Commercial, Financial and Agricultural [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	6,418	6,920
Charge-offs	(1,481)	(300)
Recoveries	450	110
Provision (recovery of provision)	243	(18)
Provision for acquired credit impaired loans	0
Ending balance	5,630	6,712
Real Estate-Commercial and Construction [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	6,572	8,943
Charge-offs	(26)	(348)
Recoveries	7	65
Provision (recovery of provision)	(82)	988
Provision for acquired credit impaired loans	0
Ending balance	6,471	9,648
Real Estate-Residential Secured for Business Purpose [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	763	763
Charge-offs	(238)	0
Recoveries	19	6
Provision (recovery of provision)	203	(101)
Provision for acquired credit impaired loans	0
Ending balance	747	668
Real Estate-Residential and Home Equity Secured for Personal Purpose [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	1,575	1,124
Charge-offs	(46)	(31)
Recoveries	17	1
Provision (recovery of provision)	(233)	34
Provision for acquired credit impaired loans	(1)
Ending balance	1,312	1,128
Loans to Individuals [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	346	360
Charge-offs	(76)	(184)
Recoveries	33	48
Provision (recovery of provision)	53	141
Provision for acquired credit impaired loans	0
Ending balance	356	365
Lease Financings [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	1,042	985
Charge-offs	(205)	(230)
Recoveries	44	61
Provision (recovery of provision)	41	197
Provision for acquired credit impaired loans	0
Ending balance	922	1,013
Unallocated Financing Receivables [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	912	1,567
Provision (recovery of provision)	102	(167)
Provision for acquired credit impaired loans	0
Ending balance	$ 1,014	$ 1,400

XML

Loans and Leases - Reserve for Loan and Lease Losses and Recorded Investment in Loans and Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$ 341		$ 1,004
Ending balance: collectively evaluated for impairment	16,103		19,930
Ending balance: acquired credit impaired loans evaluated for impairment	8
Total ending balance	16,452	$ 17,628	20,934	$ 20,662
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	46,474		53,652
Ending balance: collectively evaluated for impairment	1,863,631		1,612,303
Acquired non-credit impaired loans	271,884		376,254
Acquired credit impaired loans	1,267		1,631
Total Loans and Leases Held for Investment	2,183,256	2,179,013	2,043,840
Commercial, Financial and Agricultural [Member]
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	151		1,004
Ending balance: collectively evaluated for impairment	5,479		5,708
Ending balance: acquired credit impaired loans evaluated for impairment	0
Total ending balance	5,630	6,418	6,712	6,920
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	12,977		15,124
Ending balance: collectively evaluated for impairment	473,135		446,366
Acquired non-credit impaired loans	21,207		29,418
Acquired credit impaired loans	0		371
Total Loans and Leases Held for Investment	507,319	504,515	491,279
Real Estate-Commercial and Construction [Member]
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	140		0
Ending balance: collectively evaluated for impairment	6,323		9,648
Ending balance: acquired credit impaired loans evaluated for impairment	8
Total ending balance	6,471	6,572	9,648	8,943
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	29,375		34,380
Ending balance: collectively evaluated for impairment	821,684		700,581
Acquired non-credit impaired loans	122,415		189,225
Acquired credit impaired loans	517		578
Total Loans and Leases Held for Investment	973,991		924,764
Real Estate-Residential Secured for Business Purpose [Member]
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	20		0
Ending balance: collectively evaluated for impairment	727		668
Ending balance: acquired credit impaired loans evaluated for impairment	0
Total ending balance	747	763	668	763
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	3,618		3,239
Ending balance: collectively evaluated for impairment	99,973		38,658
Acquired non-credit impaired loans	113,923		140,779
Acquired credit impaired loans	750		619
Total Loans and Leases Held for Investment	218,264	218,783	183,295
Real Estate-Residential and Home Equity Secured for Personal Purpose [Member]
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	30		0
Ending balance: collectively evaluated for impairment	1,282		1,128
Ending balance: acquired credit impaired loans evaluated for impairment	0
Total ending balance	1,312	1,575	1,128	1,124
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	504		909
Ending balance: collectively evaluated for impairment	314,885		281,120
Acquired non-credit impaired loans	14,058		16,461
Acquired credit impaired loans	0		63
Total Loans and Leases Held for Investment	329,447		298,553
Loans to Individuals [Member]
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	0		0
Ending balance: collectively evaluated for impairment	356		365
Ending balance: acquired credit impaired loans evaluated for impairment	0
Total ending balance	356	346	365	360
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	0		0
Ending balance: collectively evaluated for impairment	28,140		29,620
Acquired non-credit impaired loans	281		371
Acquired credit impaired loans	0		0
Total Loans and Leases Held for Investment	28,421	29,732	29,991
Lease Financings [Member]
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	0		0
Ending balance: collectively evaluated for impairment	922		1,013
Ending balance: acquired credit impaired loans evaluated for impairment	0
Total ending balance	922	1,042	1,013	985
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	0		0
Ending balance: collectively evaluated for impairment	125,814		115,958
Acquired non-credit impaired loans	0		0
Acquired credit impaired loans	0		0
Total Loans and Leases Held for Investment	125,814	125,440	115,958
Unallocated Financing Receivables [Member]
Reserve for loan and lease losses:
Ending balance: collectively evaluated for impairment	1,014		1,400
Ending balance: acquired credit impaired loans evaluated for impairment	0
Total ending balance	$ 1,014	$ 912	$ 1,400	$ 1,567

XML

Loans and Leases - Impaired Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, Recorded Investment	$ 45,392	$ 45,737
Impaired loans with an allowance recorded, Recorded Investment	1,082	3,196
Impaired loans with no related allowance, Unpaid Principal Balance	47,777	49,755
Impaired loans with an allowance recorded, Unpaid Principal Balance	1,087	3,196
Total impaired loans, Recorded Investment	46,474	48,933
Total impaired loans, Unpaid Principal Balance	48,864	52,951
Total impaired loans, Related Allowance	341	322
Commercial, Financial and Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, Recorded Investment	12,677	10,337
Impaired loans with an allowance recorded, Recorded Investment	300	2,544
Impaired loans with no related allowance, Unpaid Principal Balance	13,921	13,318
Impaired loans with an allowance recorded, Unpaid Principal Balance	300	2,544
Total impaired loans, Recorded Investment	12,977	12,881
Total impaired loans, Unpaid Principal Balance	14,221	15,862
Total impaired loans, Related Allowance	151	208
Real Estate-Commercial [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, Recorded Investment	29,009	30,088
Impaired loans with an allowance recorded, Recorded Investment	366	0
Impaired loans with no related allowance, Unpaid Principal Balance	29,885	30,996
Impaired loans with an allowance recorded, Unpaid Principal Balance	368	0
Total impaired loans, Recorded Investment	29,375	30,088
Total impaired loans, Unpaid Principal Balance	30,253	30,996
Total impaired loans, Related Allowance	140	0
Real Estate-Residential Secured for Business Purpose [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, Recorded Investment	3,454	4,597
Impaired loans with an allowance recorded, Recorded Investment	164	295
Impaired loans with no related allowance, Unpaid Principal Balance	3,710	4,717
Impaired loans with an allowance recorded, Unpaid Principal Balance	167	295
Total impaired loans, Recorded Investment	3,618	4,892
Total impaired loans, Unpaid Principal Balance	3,877	5,012
Total impaired loans, Related Allowance	20	45
Real Estate-Residential Secured for Personal Purpose [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, Recorded Investment	123	545
Impaired loans with an allowance recorded, Recorded Investment	252	252
Impaired loans with no related allowance, Unpaid Principal Balance	132	554
Impaired loans with an allowance recorded, Unpaid Principal Balance	252	252
Total impaired loans, Recorded Investment	375	797
Total impaired loans, Unpaid Principal Balance	384	806
Total impaired loans, Related Allowance	30	16
Real Estate-Home Equity Secured for Personal Purpose [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with no related allowance, Recorded Investment	129	170
Impaired loans with an allowance recorded, Recorded Investment	0	105
Impaired loans with no related allowance, Unpaid Principal Balance	129	170
Impaired loans with an allowance recorded, Unpaid Principal Balance	0	105
Total impaired loans, Recorded Investment	129	275
Total impaired loans, Unpaid Principal Balance	129	275
Total impaired loans, Related Allowance	$ 0	$ 53

XML

Loans and Leases - Average Recorded Investment in Impaired Loans and Leases and Analysis of Interest on Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	$ 47,799	$ 54,898
Interest Income Recognized	402	491
Additional Interest Income That Would Have Been Recognized Under Original Terms	218	279
Interest income, cash basis for nonaccrual loans	7	4
Interest income, accrual method	395	487
Commercial, Financial and Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	13,569	16,094
Interest Income Recognized	68	142
Additional Interest Income That Would Have Been Recognized Under Original Terms	95	87
Real Estate-Commercial [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	29,212	29,124
Interest Income Recognized	305	320
Additional Interest Income That Would Have Been Recognized Under Original Terms	70	83
Real Estate-Construction [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	0	5,748
Interest Income Recognized	0	0
Additional Interest Income That Would Have Been Recognized Under Original Terms	0	77
Real Estate-Residential Secured for Business Purpose [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	4,273	3,183
Interest Income Recognized	27	29
Additional Interest Income That Would Have Been Recognized Under Original Terms	47	16
Real Estate-Residential Secured for Personal Purpose [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	568	584
Interest Income Recognized	2	0
Additional Interest Income That Would Have Been Recognized Under Original Terms	4	13
Real Estate-Home Equity Secured for Personal Purpose [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	177	165
Interest Income Recognized	0	0
Additional Interest Income That Would Have Been Recognized Under Original Terms	$ 2	$ 3

XML

Loans and Leases - Troubled Debt Restructured Loans (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) loan	Mar. 31, 2015 USD ($) loan
Accrual Troubled Debt Restructuring Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	1	2
Pre- Restructuring Outstanding Recorded Investment	$ 1,545	$ 496
Post- Restructuring Outstanding Recorded Investment	1,545	496
Related Allowance	$ 0	$ 0
Nonaccrual Troubled Debt Restructuring Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	0	1
Pre- Restructuring Outstanding Recorded Investment	$ 0	$ 122
Post- Restructuring Outstanding Recorded Investment	0	122
Related Allowance	$ 0	$ 0
Commercial, Financial and Agricultural [Member] | Accrual Troubled Debt Restructuring Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	1	1
Pre- Restructuring Outstanding Recorded Investment	$ 1,545	$ 143
Post- Restructuring Outstanding Recorded Investment	1,545	143
Related Allowance	$ 0	$ 0
Commercial, Financial and Agricultural [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	0	1
Pre- Restructuring Outstanding Recorded Investment	$ 0	$ 122
Post- Restructuring Outstanding Recorded Investment	0	122
Related Allowance	$ 0	$ 0
Real Estate-Residential Secured for Business Purpose [Member] | Accrual Troubled Debt Restructuring Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	0	1
Pre- Restructuring Outstanding Recorded Investment	$ 0	$ 353
Post- Restructuring Outstanding Recorded Investment	0	353
Related Allowance	$ 0	$ 0

XML

Loans and Leases - Concessions Granted on Accruing and Nonaccrual Loans Restructured (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) loan	Mar. 31, 2015 USD ($) loan
Accrual Troubled Debt Restructuring Loans [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans | loan	1	2
Amount | $	$ 1,545	$ 496
Accrual Troubled Debt Restructuring Loans [Member] | Temporary Payment Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans | loan	0	2
Amount | $	$ 0	$ 496
Accrual Troubled Debt Restructuring Loans [Member] | Amortization Period Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans | loan	1	0
Amount | $	$ 1,545	$ 0
Nonaccrual Troubled Debt Restructuring Loans [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans | loan	0	1
Amount | $	$ 0	$ 122
Nonaccrual Troubled Debt Restructuring Loans [Member] | Temporary Payment Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans | loan	0	1
Amount | $	$ 0	$ 122
Nonaccrual Troubled Debt Restructuring Loans [Member] | Amortization Period Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans | loan	0	0
Amount | $	$ 0	$ 0
Commercial, Financial and Agricultural [Member] | Accrual Troubled Debt Restructuring Loans [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans | loan	1	1
Amount | $	$ 1,545	$ 143
Commercial, Financial and Agricultural [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Temporary Payment Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans | loan	0	1
Amount | $	$ 0	$ 143
Commercial, Financial and Agricultural [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Amortization Period Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans | loan	1	0
Amount | $	$ 1,545	$ 0
Commercial, Financial and Agricultural [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans | loan	0	1
Amount | $		$ 122
Commercial, Financial and Agricultural [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member] | Temporary Payment Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans | loan		1
Amount | $		$ 122
Commercial, Financial and Agricultural [Member] | Nonaccrual Troubled Debt Restructuring Loans [Member] | Amortization Period Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans | loan		0
Amount | $		$ 0
Real Estate-Residential Secured for Business Purpose [Member] | Accrual Troubled Debt Restructuring Loans [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans | loan	0	1
Amount | $		$ 353
Real Estate-Residential Secured for Business Purpose [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Temporary Payment Reduction [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans | loan		1
Amount | $		$ 353
Real Estate-Residential Secured for Business Purpose [Member] | Accrual Troubled Debt Restructuring Loans [Member] | Amortization Period Extension [Member]
Concessions granted on accruing and non-accrual loans restructured
No. of Loans | loan		0
Amount | $		$ 0

XML

Loans and Leases - Accruing and Nonaccruing Troubled Debt Restructured Loans with Payment Defaults (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) loan	Mar. 31, 2015 USD ($) loan
Accrual Troubled Debt Restructuring Loans [Member]
Accruing and nonaccrual troubled debt restructured loans with payment default
Number of Loans | loan	1	0
Recorded Investment | $	$ 50	$ 0
Accrual Troubled Debt Restructuring Loans [Member] | Commercial, Financial and Agricultural [Member]
Accruing and nonaccrual troubled debt restructured loans with payment default
Number of Loans | loan	1	0
Recorded Investment | $	$ 50	$ 0
Nonaccrual Troubled Debt Restructuring Loans [Member]
Accruing and nonaccrual troubled debt restructured loans with payment default
Number of Loans | loan	0	2
Recorded Investment | $	$ 0	$ 200
Nonaccrual Troubled Debt Restructuring Loans [Member] | Commercial, Financial and Agricultural [Member]
Accruing and nonaccrual troubled debt restructured loans with payment default
Number of Loans | loan	0	2
Recorded Investment | $	$ 0	$ 200

XML

Loans and Leases - Mortgages in Process of Foreclosure (Details) - Residential Real Estate [Member] - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Modifications [Line Items]
Mortgage Loans in Process of Foreclosure, Amount	$ 373	$ 373
Real Estate-Residential Secured for Personal Purpose [Member]
Financing Receivable, Modifications [Line Items]
Mortgage Loans in Process of Foreclosure, Amount	313	313
Real Estate-Home Equity Secured for Personal Purpose [Member]
Financing Receivable, Modifications [Line Items]
Mortgage Loans in Process of Foreclosure, Amount	$ 60	$ 60

XML

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Aggregate fair value of mortgage servicing rights	$ 7.2	$ 8.0
Range of discount rates used for valuation of mortgage servicing rights	10.00%	10.00%

XML

Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 112,657
Goodwill, Acquired During Period	0
Goodwill, Ending Balance	112,657
Banking [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	78,574
Goodwill, Acquired During Period	0
Goodwill, Ending Balance	78,574
Wealth Management [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	15,434
Goodwill, Acquired During Period	0
Goodwill, Ending Balance	15,434
Insurance [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	18,649
Goodwill, Acquired During Period	0
Goodwill, Ending Balance	$ 18,649

XML

Goodwill and Other Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 26,445	$ 27,980
Accumulated Amortization and Fair Value Adjustments	14,349	15,360
Net Carrying Amount	12,096	12,620
Core Deposit Intangibles [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,520	1,520
Accumulated Amortization and Fair Value Adjustments	339	276
Net Carrying Amount	1,181	1,244
Customer Related Intangibles [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	12,381	14,227
Accumulated Amortization and Fair Value Adjustments	7,305	8,728
Net Carrying Amount	5,076	5,499
Mortgage Servicing Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	12,544	12,233
Accumulated Amortization and Fair Value Adjustments	6,705	6,356
Net Carrying Amount	$ 5,839	$ 5,877

XML

Goodwill and Other Intangible Assets - Estimated Amortization Expense for Core Deposit and Customer Related Intangibles (Details) $ in Thousands	Mar. 31, 2016 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2016	$ 1,385
2017	1,544
2018	1,170
2019	847
2020	577
Thereafter	$ 734

XML

Goodwill and Other Intangible Assets - Changes in Mortgage Servicing Rights (Details) - Mortgage Servicing Rights [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Beginning of period	$ 5,877	$ 5,509
Servicing rights capitalized	311	382
Amortization of servicing rights	(349)	(368)
Changes in valuation allowance	0	0
End of period	5,839	5,523
Mortgage loans serviced for others	$ 872,958	$ 809,342

XML

Goodwill and Other Intangible Assets - Estimated Amortization Expense of Mortgage Servicing Rights (Details) $ in Thousands	Mar. 31, 2016 USD ($)
Finite-Lived Intangible Assets [Line Items]
Remainder of 2016	$ 1,385
2017	1,544
2018	1,170
2019	847
2020	577
Thereafter	734
Mortgage Servicing Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Remainder of 2016	763
2017	900
2018	755
2019	629
2020	521
Thereafter	$ 2,271

XML

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Income Tax Contingency [Line Items]
Unrecognized tax benefits	$ 0	$ 0
Accrued interest or penalties	$ 0	$ 0
Minimum [Member]
Income Tax Contingency [Line Items]
Open tax years	2012
Maximum [Member]
Income Tax Contingency [Line Items]
Open tax years	2015

XML

Retirement Plans and Other Postretirement Benefits - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Employee hire date no longer eligible for noncontributory retirement plan	Dec. 08, 2009
Retirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, non-qualified plans, estimated employer contributions for next fiscal year		$ 160
Defined benefit plan, contributions by employer	$ 40
Defined benefit plan, benefits paid	609
Other Post Retirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected employer contributions for next fiscal year		$ 117
Defined benefit plan, contributions by employer	20
Defined benefit plan, benefits paid	$ 20

XML

Retirement Plans and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Retirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 171	$ 193
Interest cost	518	488
Expected return on plan assets	(754)	(756)
Amortization of net actuarial loss	323	328
Accretion of prior service cost	(71)	(70)
Net periodic benefit cost	187	183
Other Post Retirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	12	15
Interest cost	33	28
Expected return on plan assets	0	0
Amortization of net actuarial loss	6	13
Accretion of prior service cost	0	0
Net periodic benefit cost	$ 51	$ 56

XML

Earnings per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share, Basic and Diluted [Abstract]
Net income	$ 7,289	$ 6,116
Net income allocated to unvested restricted stock	(59)	(46)
Net income allocated to common shares	$ 7,230	$ 6,070
Denominator for basic earnings per share—weighted-average shares outstanding	19,402	19,776
Effect of dilutive securities—employee stock options	31	24
Denominator for diluted earnings per share—adjusted weighted-average shares outstanding	19,433	19,800
Basic earnings per share	$ 0.37	$ 0.31
Diluted earnings per share	$ 0.37	$ 0.31
Average anti-dilutive options and awards excluded from computation of diluted earnings per share	588	632

XML

Accumulated Other Comprehensive (Loss) Income - Components of Accumulated Other Comprehensive (Loss) Income, Net of Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning balance	$ (16,708)	$ (14,462)
Net Change	1,227	1,300
Ending balance	(15,481)	(13,162)
Net Unrealized Holding (Losses) Gains on Available-for-Sale Investment Securities [Member]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning balance	(592)	1,711
Net Change	1,413	1,344
Ending balance	821	3,055
Net Change Related to Derivative Used for Cash Flow Hedge [Member]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning balance	(285)	(157)
Net Change	(354)	(219)
Ending balance	(639)	(376)
Net Change Related to Defined Benefit Pension Plan [Member]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning balance	(15,831)	(16,016)
Net Change	168	175
Ending balance	$ (15,663)	$ (15,841)

XML

Accumulated Other Comprehensive (Loss) Income - Amounts Reclassified Out of Each Component of Accumulated Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gain on sales of investment securities	$ 44	$ 91
Amortization of net loss included in net periodic pension costs	329	341
Accretion of prior service cost included in net periodic pension costs	(71)	(70)
Income before income taxes	10,089	8,250
Tax (expense) benefit	(2,800)	(2,134)
Net income	7,289	6,116
Amount Reclassified from Accumulated Other Comprehensive (Loss) Income [Member] | Net Unrealized Holding (Losses) Gains on Available-for-Sale Investment Securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gain on sales of investment securities	44	91
Income before income taxes	44	91
Tax (expense) benefit	(15)	(32)
Net income	29	59
Amount Reclassified from Accumulated Other Comprehensive (Loss) Income [Member] | Net Change Related to Defined Benefit Pension Plan [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of net loss included in net periodic pension costs	(329)	(341)
Accretion of prior service cost included in net periodic pension costs	71	70
Income before income taxes	(258)	(271)
Tax (expense) benefit	90	96
Net income	$ (168)	$ (175)

XML

Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($) $ in Thousands	Oct. 24, 2014	Mar. 31, 2016	Dec. 31, 2015
Derivative [Line Items]
Loans Receivable with Fixed Rates of Interest, Pool, Maturity Period	10 years
Loans Receivable with Fixed Rates of Interest	$ 29,100
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount		$ 19,096	$ 19,269
Derivative Liability, Fair Value, Amount Not Offset Against Collateral		983	438
Cash Flow Hedging [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Derivative Asset, Notional Amount	$ 20,000
Derivative, Fixed Interest Rate	2.10%
Derivative, Collateral, Right to Reclaim Cash		1,200
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount		19,096	19,269
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Derivative [Line Items]
Derivative Liability, Fair Value, Amount Not Offset Against Collateral		$ 983	$ 438

XML

Derivative Instruments and Hedging Activities - Derivatives Not Designated as Hedging Instruments (Detail) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative, Notional Amount	$ 93,012		$ 73,995
Derivative Assets, Fair Value	1,721		1,089
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	243		102
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	491	$ 393
Interest Rate Locks with Customers [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative, Notional Amount	44,520		34,450
Interest Rate Locks with Customers [Member] | Mortgage Banking Activities [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	632	449
Interest Rate Locks with Customers [Member] | Other Assets [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative Assets, Fair Value	1,721		1,089
Interest Rate Locks with Customers [Member] | Other Liabilities [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	0		0
Forward Loan Sale Commitments [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative, Notional Amount	48,492		39,545
Forward Loan Sale Commitments [Member] | Mortgage Banking Activities [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	(141)	$ (56)
Forward Loan Sale Commitments [Member] | Other Assets [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative Assets, Fair Value	0		0
Forward Loan Sale Commitments [Member] | Other Liabilities [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	$ 243		$ 102

XML

Derivative Instruments and Hedging Activities - Derivatives Designated as Hedging Instruments (Detail) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Notional Amount	$ 19,096		$ 19,269
Derivative Assets, Fair Value	0		0
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	983		438
Net loss	(81)	$ (96)
Amounts included in accumulated other comprehensive income (loss)	(639)	(285)
Interest Rate Swap [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Notional Amount	19,096		19,269
Derivative Assets, Fair Value	0		0
Amounts included in accumulated other comprehensive income (loss)	(639)	(285)
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Interest rate swap—cash flow hedge—net interest payments	81	$ 96
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Liability, Fair Value, Amount Not Offset Against Collateral	$ 983		$ 438

XML

Fair Value Disclosures - Narrative (Details) - USD ($)				3 Months Ended		12 Months Ended
	Jul. 01, 2014	Jan. 27, 2014	May. 01, 2013	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Goodwill, period increase				$ 0	$ 1,424,000
Valuation adjustments for loans held for sale				0		$ 0
Carrying value of impaired loans held for investment				46,474,000		48,933,000
Valuation allowance of impaired loans held for investment				341,000		322,000
Mortgage Servicing Rights Carrying Amount Before Valuation Allowance				5,800,000		5,900,000
Mortgage Servicing Rights Valuation Allowance				0		0
Fair Value Measured on Recurring Basis [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value on a recurring basis				294,146,000		330,859,000
Level 3 [Member] | Fair Value Measured on Recurring Basis [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets measured at fair value on a recurring basis				0		0
Sterner Insurance Associates Inc [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Potential cash payments from contingent consideration, minimum	$ 0
Potential cash payments from contingent consideration, maximum	$ 3,900,000.0
Potential cash payments from contingent consideration, period of measurement (in years)	2 years
Potential cash payments from contingent consideration, end date	Jun. 30, 2017
Goodwill, period increase				0	1,424,000
Girard Partners [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Potential cash payments from contingent consideration, minimum		$ 0
Potential cash payments from contingent consideration, maximum		$ 12,900,000.0
Potential cash payments from contingent consideration, end date		Dec. 31, 2018
Reduction Of Other Noninterest Expense						$ 550,000
Goodwill, period increase				0	0
Remaining potential cash payments from contingent consideration, period of measurement (in years)		3 years
John T. Fretz Insurance Agency [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Potential cash payments from contingent consideration, minimum			$ 0
Potential cash payments from contingent consideration, maximum			$ 360,000
Potential cash payments from contingent consideration, end date			Apr. 30, 2016
Goodwill, period increase				0	$ 0
Remaining potential cash payments from contingent consideration, period of measurement (in years)			1 year
Held for Investment [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying value of impaired loans held for investment				$ 46,500,000

XML

Fair Value Disclosures - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Assets:
Total available-for-sale securities	$ 292,425,000	$ 329,770,000
Fair Value Measured on Recurring Basis [Member]
Assets:
Total available-for-sale securities	292,425,000	329,770,000
Total assets	294,146,000	330,859,000
Liabilities:
Total liabilities	6,183,000	6,117,000
Fair Value Measured on Recurring Basis [Member] | U.S. Treasuries [Member]
Assets:
Total available-for-sale securities		4,887,000
Fair Value Measured on Recurring Basis [Member] | U.S. Government Corporations and Agencies [Member]
Assets:
Total available-for-sale securities	67,667,000	102,156,000
Fair Value Measured on Recurring Basis [Member] | State and Political Subdivisions [Member]
Assets:
Total available-for-sale securities	102,808,000	102,032,000
Fair Value Measured on Recurring Basis [Member] | Residential Mortgage-Backed Securities [Member]
Assets:
Total available-for-sale securities	8,574,000	13,354,000
Fair Value Measured on Recurring Basis [Member] | Collateralized Mortgage Obligations [Member]
Assets:
Total available-for-sale securities	3,056,000	3,133,000
Fair Value Measured on Recurring Basis [Member] | Corporate Bonds [Member]
Assets:
Total available-for-sale securities	92,003,000	86,675,000
Fair Value Measured on Recurring Basis [Member] | Money Market Mutual Funds [Member]
Assets:
Total available-for-sale securities	17,563,000	16,726,000
Fair Value Measured on Recurring Basis [Member] | Equity Securities [Member]
Assets:
Total available-for-sale securities	754,000	807,000
Fair Value Measured on Recurring Basis [Member] | Interest Rate Locks with Customers [Member]
Assets:
Derivative assets	1,721,000	1,089,000
Fair Value Measured on Recurring Basis [Member] | Contingent Consideration Liability [Member]
Liabilities:
Derivative liabilities	4,957,000	5,577,000
Fair Value Measured on Recurring Basis [Member] | Interest Rate Swap [Member]
Liabilities:
Derivative liabilities	983,000	438,000
Fair Value Measured on Recurring Basis [Member] | Forward Loan Sale Commitments [Member]
Liabilities:
Derivative liabilities	243,000	102,000
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member]
Assets:
Total available-for-sale securities	18,317,000	22,420,000
Total assets	18,317,000	22,420,000
Liabilities:
Total liabilities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | U.S. Treasuries [Member]
Assets:
Total available-for-sale securities		4,887,000
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | U.S. Government Corporations and Agencies [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | State and Political Subdivisions [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Residential Mortgage-Backed Securities [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Collateralized Mortgage Obligations [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Corporate Bonds [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Money Market Mutual Funds [Member]
Assets:
Total available-for-sale securities	17,563,000	16,726,000
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Equity Securities [Member]
Assets:
Total available-for-sale securities	754,000	807,000
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Interest Rate Locks with Customers [Member]
Assets:
Derivative assets	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Contingent Consideration Liability [Member]
Liabilities:
Derivative liabilities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Interest Rate Swap [Member]
Liabilities:
Derivative liabilities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 1 [Member] | Forward Loan Sale Commitments [Member]
Liabilities:
Derivative liabilities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member]
Assets:
Total available-for-sale securities	274,108,000	307,350,000
Total assets	275,829,000	308,439,000
Liabilities:
Total liabilities	1,226,000	540,000
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | U.S. Treasuries [Member]
Assets:
Total available-for-sale securities		0
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | U.S. Government Corporations and Agencies [Member]
Assets:
Total available-for-sale securities	67,667,000	102,156,000
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | State and Political Subdivisions [Member]
Assets:
Total available-for-sale securities	102,808,000	102,032,000
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Residential Mortgage-Backed Securities [Member]
Assets:
Total available-for-sale securities	8,574,000	13,354,000
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Collateralized Mortgage Obligations [Member]
Assets:
Total available-for-sale securities	3,056,000	3,133,000
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Corporate Bonds [Member]
Assets:
Total available-for-sale securities	92,003,000	86,675,000
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Money Market Mutual Funds [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Equity Securities [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Interest Rate Locks with Customers [Member]
Assets:
Derivative assets	1,721,000	1,089,000
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Contingent Consideration Liability [Member]
Liabilities:
Derivative liabilities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Interest Rate Swap [Member]
Liabilities:
Derivative liabilities	983,000	438,000
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member] | Forward Loan Sale Commitments [Member]
Liabilities:
Derivative liabilities	243,000	102,000
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member]
Assets:
Total available-for-sale securities	0	0
Total assets	0	0
Liabilities:
Total liabilities	4,957,000	5,577,000
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | U.S. Treasuries [Member]
Assets:
Total available-for-sale securities		0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | U.S. Government Corporations and Agencies [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | State and Political Subdivisions [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Residential Mortgage-Backed Securities [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Collateralized Mortgage Obligations [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Corporate Bonds [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Money Market Mutual Funds [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Equity Securities [Member]
Assets:
Total available-for-sale securities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Interest Rate Locks with Customers [Member]
Assets:
Derivative assets	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Contingent Consideration Liability [Member]
Liabilities:
Derivative liabilities	4,957,000	5,577,000
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Interest Rate Swap [Member]
Liabilities:
Derivative liabilities	0	0
Fair Value Measured on Recurring Basis [Member] | Level 3 [Member] | Forward Loan Sale Commitments [Member]
Liabilities:
Derivative liabilities	$ 0	$ 0

XML

Fair Value Disclosures - Change in Contingent Consideration Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Change in Contingent Consideration Liability [Roll Forward]
Beginning Balance	$ 5,577	$ 6,541
Contingent Consideration from New Acquisition	0	1,424
Payment of Contingent Consideration	900	620
Adjustment of Contingent Consideration	280	71
Ending Balance	4,957	7,416
Sterner Insurance Associates Inc [Member]
Change in Contingent Consideration Liability [Roll Forward]
Beginning Balance	1,144	680
Contingent Consideration from New Acquisition	0	1,424
Payment of Contingent Consideration	0	0
Adjustment of Contingent Consideration	154	24
Ending Balance	1,298	2,128
Girard Partners [Member]
Change in Contingent Consideration Liability [Roll Forward]
Beginning Balance	4,241	5,503
Contingent Consideration from New Acquisition	0	0
Payment of Contingent Consideration	900	620
Adjustment of Contingent Consideration	119	34
Ending Balance	3,460	4,917
John T. Fretz Insurance Agency [Member]
Change in Contingent Consideration Liability [Roll Forward]
Beginning Balance	192	358
Contingent Consideration from New Acquisition	0	0
Payment of Contingent Consideration	0	0
Adjustment of Contingent Consideration	7	13
Ending Balance	$ 199	$ 371

XML

Fair Value Disclosures - Assets Measured at Fair Value on Non-recurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans held for investment	$ 46,133	$ 48,611
Total assets	46,133	48,611
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans held for investment	0	0
Total assets	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans held for investment	0	0
Total assets	0	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans held for investment	46,133	48,611
Total assets	$ 46,133	$ 48,611

XML

Fair Value Disclosures - Assets, Liabilities and Off-balance Sheet Items Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets:
Held-to-maturity securities	$ 37,031	$ 41,061
Deposits:
Time deposits	382,908	454,406
Subordinated notes	49,414	49,377
Fair Value [Member]
Assets:
Cash and short-term interest-earning assets	38,547	60,799
Held-to-maturity securities	37,031	41,061
Loans held for sale	3,851	4,708
Net loans and leases held for investment	2,070,300	2,099,082
Mortgage servicing rights	7,203	8,047
Other real estate owned	3,073	1,276
Total assets	2,160,005	2,214,973
Deposits:
Demand and savings deposits, non-maturity	1,951,453	1,939,954
Time deposits	383,986	455,527
Total deposits	2,335,439	2,395,481
Short-term borrowings	24,498	22,302
Subordinated notes		50,375
Subordinated notes	50,250
Total liabilities	2,410,187	2,468,158
Off-Balance-Sheet:
Commitments to extend credit	(1,829)	(1,788)
Fair Value [Member] | Level 1 [Member]
Assets:
Cash and short-term interest-earning assets	$ 38,547	60,799
Held-to-maturity securities		0
Loans held for sale		0
Net loans and leases held for investment		0
Mortgage servicing rights		0
Other real estate owned		0
Total assets	$ 38,547	60,799
Deposits:
Demand and savings deposits, non-maturity	$ 1,951,453	1,939,954
Time deposits		0
Total deposits	$ 1,951,453	1,939,954
Short-term borrowings	0	0
Subordinated notes		0
Subordinated notes	0
Total liabilities	1,951,453	1,939,954
Off-Balance-Sheet:
Commitments to extend credit	0	0
Fair Value [Member] | Level 2 [Member]
Assets:
Cash and short-term interest-earning assets	0	0
Held-to-maturity securities	37,031	41,061
Loans held for sale	$ 3,851	4,708
Net loans and leases held for investment		0
Mortgage servicing rights		0
Other real estate owned	$ 3,073	1,276
Total assets	43,955	47,045
Deposits:
Demand and savings deposits, non-maturity	0	0
Time deposits	383,986	455,527
Total deposits	383,986	455,527
Short-term borrowings	24,498	22,302
Subordinated notes		50,375
Subordinated notes	50,250
Total liabilities	458,734	528,204
Off-Balance-Sheet:
Commitments to extend credit	(1,829)	(1,788)
Fair Value [Member] | Level 3 [Member]
Assets:
Cash and short-term interest-earning assets	$ 0	0
Held-to-maturity securities		0
Loans held for sale		0
Net loans and leases held for investment	$ 2,070,300	2,099,082
Mortgage servicing rights	$ 7,203	8,047
Other real estate owned		0
Total assets	$ 2,077,503	2,107,129
Deposits:
Demand and savings deposits, non-maturity	$ 0	0
Time deposits		0
Total deposits	$ 0	0
Short-term borrowings	0	0
Subordinated notes		0
Subordinated notes	0
Total liabilities	0	0
Off-Balance-Sheet:
Commitments to extend credit	0	0
Carrying Amount [Member]
Assets:
Cash and short-term interest-earning assets	38,547	60,799
Held-to-maturity securities	36,932	40,990
Loans held for sale	3,818	4,680
Net loans and leases held for investment	2,120,671	2,112,774
Mortgage servicing rights	5,839	5,877
Other real estate owned	3,073	1,276
Total assets	2,208,880	2,226,396
Deposits:
Demand and savings deposits, non-maturity	1,951,453	1,939,954
Time deposits	382,908	454,406
Total deposits	2,334,361	2,394,360
Short-term borrowings	25,851	24,211
Subordinated notes		49,377
Subordinated notes	49,414
Total liabilities	2,409,626	2,467,948
Off-Balance-Sheet:
Commitments to extend credit	$ 0	$ 0

XML

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Total assets	$ 2,824,777	$ 2,757,495	$ 2,879,451
Interest income	25,609	24,738
Interest expense	2,211	1,434
Net interest income	23,398	23,304
Provision for loan and lease losses	326	1,074
Noninterest income	13,956	13,431
Intangible expenses	770	786
Other noninterest expense	26,169	26,625
Intersegment (revenue) expense	0	0
Income before income taxes	10,089	8,250
Income taxes	2,800	2,134
Net income	7,289	6,116
Capital expenditures	2,178	1,317
Banking [Member]
Segment Reporting Information [Line Items]
Total assets	2,746,433	2,680,245	2,797,746
Interest income	25,600	24,730
Interest expense	2,211	1,434
Net interest income	23,389	23,296
Provision for loan and lease losses	326	1,074
Noninterest income	4,673	4,450
Intangible expenses	67	74
Other noninterest expense	18,742	21,222
Intersegment (revenue) expense	(511)	(534)
Income before income taxes	9,438	5,910
Income taxes	2,357	1,161
Net income	7,081	4,749
Capital expenditures	1,839	1,197
Wealth Management [Member]
Segment Reporting Information [Line Items]
Total assets	30,134	29,993	33,950
Interest income	2	0
Interest expense	0	0
Net interest income	2	0
Provision for loan and lease losses	0	0
Noninterest income	4,572	4,624
Intangible expenses	303	394
Other noninterest expense	3,058	2,955
Intersegment (revenue) expense	219	222
Income before income taxes	994	1,053
Income taxes	383	414
Net income	611	639
Capital expenditures	15	8
Insurance [Member]
Segment Reporting Information [Line Items]
Total assets	24,715	24,447	24,436
Interest income	0	0
Interest expense	0	0
Net interest income	0	0
Provision for loan and lease losses	0	0
Noninterest income	4,720	4,255
Intangible expenses	400	318
Other noninterest expense	3,119	2,669
Intersegment (revenue) expense	292	312
Income before income taxes	909	956
Income taxes	377	399
Net income	532	557
Capital expenditures	10	39
Other Segments [Member]
Segment Reporting Information [Line Items]
Total assets	23,495	22,810	$ 23,319
Interest income	7	8
Interest expense	0	0
Net interest income	7	8
Provision for loan and lease losses	0	0
Noninterest income	(9)	102
Intangible expenses	0	0
Other noninterest expense	1,250	(221)
Intersegment (revenue) expense	0	0
Income before income taxes	(1,252)	331
Income taxes	(317)	160
Net income	(935)	171
Capital expenditures	$ 314	$ 73

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Restructuring Charges - Narrative (Details) $ in Millions	3 Months Ended
	Jun. 30, 2015 USD ($)
Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 1.6

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Restructuring Charges - Roll-Forward of Accrued Restructuring Expense (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)
Restructuring Reserve [Roll Forward]
Accrued at January 1, 2016	$ 1,062
Payments	(73)
Accelerated depreciation	0
Accrued at March 31, 2016	989
Write-downs and retirements of fixed assets
Restructuring Reserve [Roll Forward]
Accrued at January 1, 2016	228
Payments	0
Accelerated depreciation	0
Accrued at March 31, 2016	228
Lease cancellations
Restructuring Reserve [Roll Forward]
Accrued at January 1, 2016	834
Payments	(73)
Accelerated depreciation	0
Accrued at March 31, 2016	$ 761