Disclosures About Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2016

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, 2016, and December 31, 2015.



			Fair Value Measurements Using:
June 30, 2016	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	$	102		$	102
State and municipal	353,480			347,951		$	5,529
U.S. Government-sponsored mortgage-backed securities	301,271			301,271
Corporate obligations	31					31
Equity securities	3,945			3,941		4
Interest rate swap asset	11,971			11,971
Interest rate cap	5			5
Interest rate swap liability	17,761			17,761



			Fair Value Measurements Using:
December 31, 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	$	104		$	104
State and municipal	305,911			300,014		$	5,897
U.S. Government-sponsored mortgage-backed securities	346,266			346,266
Certificates of deposit	2,176			2,176
Corporate obligations	31					31
Equity securities	3,912			3,908		4
Interest rate swap asset	4,938			4,938
Interest rate cap	36			36
Interest rate swap liability	8,070			8,070

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 the three and six months ended June 30, 2016 and 2015.



	Available for Sale Securities
	Three Months Ended June 30, 2016		Three Months Ended June 30, 2015			Six Months Ended June 30, 2016			Six Months Ended June 30, 2015
Balance at beginning of the period	$	5,504	$	6,198		$	5,932		$	6,646
Total realized and unrealized gains and losses:
Included in net income
Included in other comprehensive income	59		50			96			141
Purchases, issuances and settlements
Transfers in/(out) of Level 3
Principal payments	1		(220		)	(464		)	(759		)
Ending balance	$	5,564	$	6,028		$	5,564		$	6,028

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, 2016, and December 31, 2015.



			Fair Value Measurements Using
June 30, 2016	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)	$	11,013			$	11,013
Other real estate owned	2,256				2,256



			Fair Value Measurements Using
December 31, 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)	$	7,066			$	7,066
Other real estate owned	5,529				5,529

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, 2016 and December 31, 2015.



June 30, 2016	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted-Average)
State and municipal securities	$	5,529	Discounted cash flow	Maturity/Call date	1 month to 20 yrs
				Blend of US Muni BQ curve	A- to BBB-
				Discount rate	.69% - 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)	$	11,013	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	0% - 10% (1%)

Other real estate owned	$	2,256	Appraisals	Discount to reflect current market conditions	0% - 10% (4%)



December 31, 2015	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted-Average)
State and municipal securities	$	5,897	Discounted cash flow	Maturity/Call date	1 month to 15 yrs
				Blend of US Muni BQ curve	A- to BBB-
				Discount rate	.80% - 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)	$	7,066	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	0% - 50% (2%)

Other real estate owned	$	5,529	Appraisals	Discount to reflect current market conditions	0% - 20% (2%)

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, 2016, and December 31, 2015.



			June 30, 2016
	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	$	120,471	$	120,471
Interest-bearing time deposits	62,533		62,533
Investment securities available for sale	658,829				$	653,265	$	5,564
Investment securities held to maturity	638,972				648,705		16,361
Loans held for sale	18,854				18,854
Loans	4,729,243						4,710,073
Federal Reserve Bank and Federal Home Loan Bank stock	18,096				18,096
Interest rate swap and cap asset	11,976				11,976
Interest receivable	23,351				23,351
Liabilities:
Deposits	$	5,407,554	$	4,268,709	$	1,129,241
Borrowings:
Federal funds purchased	20,000				20,000
Securities sold under repurchase agreements	140,777				140,763
Federal Home Loan Bank advances	268,579				268,150
Subordinated debentures and term loans	127,678				103,155
Interest rate swap liability	17,761				17,761
Interest payable	3,051				3,051



			December 31, 2015
	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	$	102,170	$	102,170
Interest-bearing time deposits	32,315		32,315
Investment securities available for sale	658,400				$	652,468	$	5,932
Investment securities held to maturity	618,599				598,082		34,298
Loans held for sale	9,894				9,894
Loans	4,631,369						4,539,940
Federal Reserve Bank and Federal Home Loan Bank stock	37,633				37,633
Interest rate swap and cap asset	4,974				4,974
Interest receivable	24,415				24,415
Liabilities:
Deposits	$	5,289,647	$	4,095,004	$	1,177,142
Borrowings:
Federal funds purchased	49,721				49,721
Securities sold under repurchase agreements	155,325				155,325
Federal Home Loan Bank advances	235,652				236,375
Subordinated debentures and term loans	127,846				103,643
Interest rate swap liability	8,070				8,070
Interest payable	3,092				3,092