Disclosures About Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 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 September 30, 2016, and December 31, 2015.



			Fair Value Measurements Using:
September 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	$	101		$	101
State and municipal	369,050			363,643		$	5,407
U.S. Government-sponsored mortgage-backed securities	304,580			304,580
Corporate obligations	31					31
Equity securities	2,016			2,012		4
Interest rate swap asset	12,102			12,102
Interest rate cap	4			4
Interest rate swap liability	16,535			16,535



			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 nine months ended September 30, 2016 and 2015.



	Available for Sale Securities
	Three Months Ended						Nine Months ended
	September 30, 2016			September 30, 2015			September 30, 2016			September 30, 2015
Balance at beginning of the period	$	5,564		$	6,028		$	5,932		$	6,646
Total realized and unrealized gains and losses:
Included in net income
Included in other comprehensive income	(45		)	24			52			165
Purchases, issuances and settlements
Transfers in/(out) of Level 3
Principal payments	(77		)	(156		)	(542		)	(915		)
Ending balance	$	5,442		$	5,896		$	5,442		$	5,896

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 September 30, 2016, and December 31, 2015.



			Fair Value Measurements Using
September 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)	$	15,763			$	15,763
Other real estate owned	2,213				2,213



			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 September 30, 2016 and December 31, 2015.



September 30, 2016	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted-Average)
State and municipal securities	$	5,407	Discounted cash flow	Maturity/Call date	1 month to 20 yrs
				Blend of US Municipal Bank Qualified 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)	$	15,763	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	0% - 10% (1%)

Other real estate owned	$	2,213	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 Municipal Bank Qualified 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 September 30, 2016, and December 31, 2015.



			September 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	$	99,602	$	99,602
Interest-bearing time deposits	33,803		33,803
Investment securities available for sale	675,813				$	670,371	$	5,442
Investment securities held to maturity	624,615				631,255		15,791
Loans held for sale	1,482				1,482
Loans	4,910,388						4,871,640
Federal Home Loan Bank stock	18,044				18,044
Interest rate swap and cap asset	12,106				12,106
Interest receivable	23,652				23,652
Liabilities:
Deposits	$	5,444,240	$	4,290,400	$	1,143,837
Borrowings:
Federal funds purchased	58,358				58,358
Securities sold under repurchase agreements	138,671				138,656
Federal Home Loan Bank advances	297,022				295,834
Subordinated debentures and term loans	128,288				105,604
Interest rate swap liability	16,535				16,535
Interest payable	3,733				3,733



			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