Disclosures About Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Measurements of Assets and Liabilities Recognized in Consolidated Condensed Balance Sheets Measured at Fair Value

The following table presents the fair value measurements of assets and liabilities recognized in the Consolidated Condensed Balance Sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2015, and December 31, 2014.



			Fair Value Measurements Using:
June 30, 2015	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available for sale securities:
U.S. Government-sponsored agency securities	$	106		$	106
State and municipal	288,628			282,635		$	5,993
U.S. Government-sponsored mortgage-backed securities	284,944			284,944
Corporate obligations	31					31
Equity securities	1,706			1,702		4
Interest rate swap asset	3,559			3,559
Interest rate cap	81			81
Interest rate swap liability	6,064			6,064



			Fair Value Measurements Using:
December 31, 2014	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available for sale securities:
U.S. Government-sponsored agency securities	$	109		$	109
State and municipal	228,593			221,982		$	6,611
U.S. Government-sponsored mortgage-backed securities	319,104			319,104
Corporate obligations	31					31
Equity securities	1,706			1,702		4
Interest rate swap asset	3,730			3,730
Interest rate cap	137			137
Interest rate swap liability	6,537			6,537

Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements Recognized in Consolidated Condensed Balance Sheets using Significant Unobservable Level 3 Inputs

The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the Consolidated Condensed Balance Sheets using significant unobservable (Level 3) inputs for three and six months ended June 30, 2015, and 2014.



	Available for Sale Securities
	Three Months Ended June 30, 2015			Three Months Ended June 30, 2014			Six Months Ended June 30, 2015			Six Months Ended June 30, 2014
Balance at beginning of the period	$	6,198		$	11,494		$	6,646		$	9,977
Total realized and unrealized gains and losses:
Included in net income
Included in other comprehensive income	50			835			141			2,893
Purchases, issuances and settlements
Transfers in/(out) of Level 3
Principal payments	(220		)	(4,796		)	(759		)	(5,337		)
Ending balance	$	6,028		$	7,533		$	6,028		$	7,533

Description of Valuation Methodologies Used for Instruments Measured at Fair Value on a Non-Recurring Basis and Recognized in Consolidated Condensed Balance Sheets

The following table presents the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2015, and December 31, 2014.



			Fair Value Measurements Using
June 30, 2015	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Impaired loans (collateral dependent)	$	7,189			$	7,189
Other real estate owned	$	2,131			$	2,131



			Fair Value Measurements Using
December 31, 2014	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Impaired loans (collateral dependent)	$	17,134			$	17,134
Other real estate owned	$	5,155			$	5,155

Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Other Than Goodwill

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at June 30, 2015 and December 31, 2014.



June 30, 2015	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted-Average)
State and municipal securities	$	5,993	Discounted cash flow	Maturity/Call date	1 month to 15 yrs
				Blend of US Muni BQ curve	A- to BBB-
				Discount rate	.90% - 5%

Corporate obligations and Equity securities	$	35	Discounted cash flow	Risk free rate	3 month LIBOR
				plus Premium for illiquidity	plus 200bps

Impaired loans (collateral dependent)	$	7,189	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	0% - 50% (1%)

Other real estate owned	$	2,131	Appraisals	Discount to reflect current market conditions	0% - 20% (6%)



December 31, 2014	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted-Average)
State and municipal securities	$	6,611	Discounted cash flow	Maturity/Call date	1 month to 15 yrs
				Blend of US Muni BQ curve	A- to BBB-
				Discount rate	.90% - 5%

Corporate obligations and Equity securities	$	35	Discounted cash flow	Risk free rate	3 month LIBOR
				plus Premium for illiquidity	plus 200bps

Impaired loans (collateral dependent)	$	17,134	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	0% - 50% (3%)

Other real estate owned	$	5,155	Appraisals	Discount to reflect current market conditions	0% - 20% (7%)

Estimated Fair Values of Financial Instruments

The following table presents estimated fair values of the Corporation’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2015, and December 31, 2014.



			June 30, 2015
			(unaudited)
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)
Assets:
Cash and cash equivalents	$	105,928	$	105,928
Interest-bearing time deposits	26,669		26,669
Investment securities available for sale	575,415				$	569,387	$	6,028
Investment securities held to maturity	637,101				616,834		30,976
Loans held for sale	8,295				8,295
Loans	4,175,655						4,096,221
Federal Reserve Bank and Federal Home Loan Bank stock	34,630				34,630
Interest rate swap and cap asset	3,640				3,640
Interest receivable	19,880				19,880
Liabilities:
Deposits	$	4,789,577	$	3,650,409	$	1,124,038
Borrowings:
Federal funds purchased	40,748				40,748
Securities sold under repurchase agreements	137,240				137,240
Federal Home Loan Bank advances	247,687				248,993
Subordinated debentures and term loans	126,882				116,950
Interest rate swap liability	6,064				6,064
Interest payable	3,211				3,211



			December 31, 2014
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)
Assets:
Cash and cash equivalents	$	118,616	$	118,616
Interest-bearing time deposits	47,520		47,520
Investment securities available for sale	549,543				$	542,897	$	6,646
Investment securities held to maturity	631,088				614,457		33,266
Loans held for sale	7,235				7,235
Loans	3,860,901						3,810,912
Federal Reserve Bank and Federal Home Loan Bank stock	41,353				41,353
Interest rate swap and cap asset	3,867				3,867
Interest receivable	19,984				19,984
Liabilities:
Deposits	$	4,640,694	$	3,523,199	$	1,099,610
Borrowings:
Federal funds purchased	15,381				15,381
Securities sold under repurchase agreements	124,539				124,539
Federal Home Loan Bank advances	145,264				146,669
Subordinated debentures and term loans	126,810				92,802
Interest rate swap liability	6,537				6,537
Interest payable	3,201				3,201