Fair Value Disclosures (Tables)

9 Months Ended

Sep. 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 September 30, 2013 and December 31, 2012, classified using the fair value hierarchy:

	At September 30, 2013
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
U.S. treasuries	$	4,773	$	—	$	—	$	4,773
U.S. government corporations and agencies		—		163,549		—		163,549
State and political subdivisions		—		117,394		—		117,394
Residential mortgage-backed securities		—		54,067		—		54,067
Collateralized mortgage obligations		—		9,520		—		9,520
Corporate bonds		—		32,408		—		32,408
Money market mutual funds		9,639		—		—		9,639
Equity securities		2,009		—		—		2,009
Total available-for-sale securities		16,421		376,938		—		393,359
Interest rate locks with customers		—		849		—		849
Total assets	$	16,421	$	377,787	$	—	$	394,208
Liabilities:
Forward loan sale commitments	$	—	$	361	$	—	$	361
Contingent consideration liability		—		—		483		483
Total liabilities	$	—	$	361	$	483	$	844

	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 nine months ended September 30, 2013 and 2012:

	Nine Months Ended September 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 September 30, 2013
Javers Group	$	903	$	—	$	—	$	(903	)	$	—
John T. Fretz Insurance Agency, Inc.		—		454		—		29			483
Total contingent consideration liability	$	903	$	454	$	—	$	(874	)	$	483

	Nine Months Ended September 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 September 30, 2012
Javers Group	$	—	$	842	$	—	$	34	$	876
Total contingent consideration liability	$	—	$	842	$	—	$	34	$	876

Assets Measured at Fair Value on Non-Recurring Basis

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

	At September 30, 2013
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/Liabilities at Fair Value
Impaired loans held for investment	$	—	$	—	$	63,708	$	63,708
Total	$	—	$	—	$	63,708	$	63,708

	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 September 30, 2013, 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 September 30, 2013 and December 31, 2012. The disclosed fair values are classified using the fair value hierarchy.

	At September 30, 2013
(Dollars in thousands)	Level 1		Level 2			Level 3		Fair Value			Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	79,458	$	—		$	—	$	79,458		$	79,458
Held-to-maturity securities		—		70,079			—		70,079			69,214
Loans held for sale		—		3,574			—		3,574			3,489
Net loans and leases held for investment		—		—			1,457,592		1,457,592			1,437,698
Mortgage servicing rights		—		7,029			—		7,029			5,484
Other real estate owned		—		1,650			—		1,650			1,650
Total assets	$	79,458	$	82,332		$	1,457,592	$	1,619,382		$	1,596,993
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	1,599,264	$	—		$	—	$	1,599,264		$	1,599,264
Time deposits		—		288,271			—		288,271			289,782
Total deposits		1,599,264		288,271			—		1,887,535			1,889,046
Short-term borrowings		—		44,841			—		44,841			46,733
Total liabilities	$	1,599,264	$	333,112		$	—	$	1,932,376		$	1,935,779
Off-Balance-Sheet:
Commitments to extend credit	$	—	$	(1,342	)	$	—	$	(1,342	)	$	—

	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	)	$	—