Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2013

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 June 30, 2013 and December 31, 2012, classified using the fair value hierarchy:

	At June 30, 2013
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. treasuries	$	4,763	$	—	$	—	$	4,763
U.S. government corporations and agencies		—		173,421		—		173,421
State and political subdivisions		—		119,934		—		119,934
Residential mortgage-backed securities		—		67,923		—		67,923
Collateralized mortgage obligations		—		10,474		—		10,474
Corporate bonds		—		31,008		—		31,008
Money market mutual funds		5,500		—		—		5,500
Equity securities		3,012		—		—		3,012
Total available-for-sale securities		13,275		402,760		—		416,035
Forward loan sale commitments		—		772		—		772
Total assets	$	13,275	$	403,532	$	—	$	416,807
Liabilities:
Interest rate locks with customers	$	—	$	64	$	—	$	64
Contingent consideration liability		—		—		465		465
Total liabilities	$	—	$	64	$	465	$	529

	At December 31, 2012
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. treasuries	$	4,938	$	—	$	—	$	4,938
U.S. government corporations and agencies		—		172,142		—		172,142
State and political subdivisions		—		122,168		—		122,168
Residential mortgage-backed securities		—		90,740		—		90,740
Collateralized mortgage obligations		—		27,012		—		27,012
Corporate bonds		—		5,014		—		5,014
Money market mutual funds		4,878		—		—		4,878
Equity securities		2.842		—		—		2,842
Total available-for-sale securities		12,658		417,076		—		429,734
Interest rate locks with customers		—		1,547		—		1,547
Total assets	$	12,658	$	418,623	$	—	$	431,281
Liabilities:
Interest rate swap	$	—	$	1,909	$	—	$	1,909
Forward loan sale commitments		—		54		—		54
Contingent consideration liability		—		—		903		903
Total liabilities	$	—	$	1,963	$	903	$	2,866

Contingent Consideration Liability Change in Amount

The following table presents the change in the balance of the contingent consideration liability related to acquisitions for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the six months ended June 30, 2013 and 2012:

	Six Months Ended June 30, 2013
(Dollars in thousands)	Balance at December 31, 2012		Contingent Consideration from New Acquisition		Payment of Contingent Consideration		Adjustment of Contingent Consideration			Balance at June 30, 2013
Javers Group	$	903	$	—	$	—	$	(903	)	$	—
John T. Fretz Insurance Agency, Inc.		—		454		—		11			465
Total contingent consideration liability	$	903	$	454	$	—	$	(892	)	$	465

	Six Months Ended June 30, 2012
(Dollars in thousands)	Balance at December 31, 2011		Contingent Consideration from New Acquisition		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at June 30, 2012
Javers Group	$	—	$	842	$	—	$	—	$	842
Total contingent consideration liability	$	—	$	842	$	—	$	—	$	842

Assets Measured at Fair Value on Non-Recurring Basis

The following table represents assets measured at fair value on a non-recurring basis at June 30, 2013 and December 31, 2012:

	At June 30, 2013
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	38,324	$	38,324
Loans held for sale**		—		3,609		—		3,609
Total	$	—	$	3,609	$	38,324	$	41,933

	At December 31, 2012
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	44,976	$	44,976
Mortgage servicing rights*		—		4,152		—		4,152
Other real estate owned*		—		1,607		—		1,607
Total	$	—	$	5,759	$	44,976	$	50,735

* The fair value was lower than cost, therefore written down to fair value at December 31, 2012. At June 30, 2013, fair value was greater than cost.

** The fair value was lower than cost, therefore written down to fair value at June 30, 2013. At December 31, 2012, fair value was greater than cost.

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

The following table presents assets and liabilities and off-balance sheet items not measured at fair value on a recurring or non-recurring basis in the Corporation’s consolidated balance sheets but for which the fair value is required to be disclosed at June 30, 2013 and December 31, 2012. The disclosed fair values are classified using the fair value hierarchy.

	At June 30, 2013
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	86,554	$	—		$	—	$	86,554		$	86,554
Held-to-maturity securities		—		70,029			—		70,029			69,425
Net loans and leases held for investment		—		—			1,457,116		1,457,116			1,436,951
Mortgage servicing rights		—		6,476			—		6,476			5,227
Other real estate owned		—		1,650			—		1,650			1,650
Total assets	$	86,554	$	78,155		$	1,457,116	$	1,621,825		$	1,599,807
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,574,035	$	—		$	—	$	1,574,035		$	1,574,035
Time deposits		—		297,283			—		297,283			299,016
Total deposits		1,574,035		297,283			—		1,871,318			1,873,051
Short-term borrowings		—		43,474			—		43,474			45,388
Long-term borrowings		—		20,583			—		20,583			20,619
Total liabilities	$	1,574,035	$	361,340		$	—	$	1,935,375		$	1,939,058
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,318	)	$	—	$	(1,318	)	$	—

	At December 31, 2012
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	146,112	$	—		$	—	$	146,112		$	146,112
Held-to-maturity securities		—		71,327			—		71,327			69,845
Loans held for sale		—		4,653			—		4,653			4,530
Net loans and leases held for investment		—		—			1,433,990		1,433,990			1,412,140
Total assets	$	146,112	$	75,980		$	1,433,990	$	1,656,082		$	1,632,627
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,533,822	$	—		$	—	$	1,533,822		$	1,533,822
Time deposits		—		334,164			—		334,164			331,511
Total deposits		1,533,822		334,164			—		1,867,986			1,865,333
Short-term borrowings		—		94,066			—		94,066			96,282
Long-term borrowings		—		20,965			—		20,965			20,994
Total liabilities	$	1,533,822	$	449,195		$	—	$	1,983,017		$	1,982,609
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,286	)	$	—	$	(1,286	)	$	—