Disclosures About Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2017

Fair value measurements of assets and liabilities recognized in Consolidated Condensed Balance Sheets measured at fair value

The following tables present 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, 2017, and December 31, 2016.



			Fair Value Measurements Using:
June 30, 2017	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. Treasury	$	499	$	499
State and municipal	377,177				$	373,882	$	3,295
U.S. Government-sponsored mortgage-backed securities	330,235				330,235
Corporate obligations	31						31
Equity securities	34,817		32,801		2,012		4
Interest rate swap asset	6,120				6,120
Interest rate cap	3				3
Interest rate swap liability	8,234				8,234



			Fair Value Measurements Using:
December 31, 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	$	100			$	100
State and municipal	363,658				358,524		$	5,134
U.S. Government-sponsored mortgage-backed securities	312,292				312,292
Corporate obligations	31						31
Equity securities	20,781		$	18,765	2,012		4
Interest rate swap asset	6,295				6,295
Interest rate cap	15				15
Interest rate swap liability	8,477				8,477

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, 2017 and 2016.



	Available for Sale Securities
	Three Months Ended				Six Months ended
	June 30, 2017		June 30, 2016		June 30, 2017			June 30, 2016
Balance at beginning of the period	$	3,279	$	5,504	$	5,169		$	5,932
Included in other comprehensive income	48		59		59			96
Principal payments	3		1		(1,898		)	(464		)
Ending balance	$	3,330	$	5,564	$	3,330		$	5,564

Description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in Consolidated Condensed Balance Sheets

Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the

accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy for

June 30, 2017, and December 31, 2016.



			Fair Value Measurements Using
June 30, 2017	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)	$	7,460			$	7,460
Other real estate owned	416				416



			Fair Value Measurements Using
December 31, 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)	$	15,318			$	15,318
Other real estate owned	1,612				1,612

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, 2017 and December 31, 2016.



June 30, 2017	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted-Average)
State and municipal securities	$	3,295	Discounted cash flow	Maturity/Call date	1 month to 20 yrs
				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)	$	7,460	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	0% - 10% (1%)

Other real estate owned	$	416	Appraisals	Discount to reflect current market conditions	0% - 15% (5%)



December 31, 2016	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted-Average)
State and municipal securities	$	5,134	Discounted cash flow	Maturity/Call date	1 month to 20 yrs
				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)	$	15,318	Collateral based measurements	Discount to reflect current market conditions and ultimate collectability	0% - 10% (1%)

Other real estate owned	$	1,612	Appraisals	Discount to reflect current market conditions	0% - 10% (9%)

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, 2017, and December 31, 2016.



			June 30, 2017
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Carrying Amount		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash and cash equivalents	$	142,650	$	142,650
Interest-bearing time deposits	48,305		48,305
Investment securities available for sale	742,759		33,300		$	706,129	$	3,330
Investment securities held to maturity	600,564				596,015		13,241
Loans held for sale	4,036				4,036
Loans	5,542,673						5,435,004
Federal Home Loan Bank stock	19,015				19,015
Interest rate swap and cap asset	6,123				6,123
Interest receivable	27,597				27,597
Liabilities:
Deposits	$	6,017,104	$	4,724,324	$	1,275,619
Borrowings:
Federal funds purchased	134,608				134,608
Securities sold under repurchase agreements	127,884				127,839
Federal Home Loan Bank advances	312,715				316,819
Subordinated debentures and term loans	128,742				106,962
Interest rate swap liability	8,234				8,234
Interest payable	3,477				3,477



			December 31, 2016
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Carrying Amount		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash and cash equivalents	$	127,927	$	127,927
Interest-bearing time deposits	24,459		24,459
Investment securities available for sale	696,862		18,765		$	672,928	$	5,169
Investment securities held to maturity	607,643				597,246		14,687
Loans held for sale	2,929				2,929
Loans	5,073,608						4,933,552
Federal Home Loan Bank stock	17,964				17,964
Interest rate swap and cap asset	6,310				6,310
Interest receivable	26,194				26,194
Liabilities:
Deposits	$	5,556,498	$	4,427,605	$	1,111,491
Borrowings:
Federal funds purchased	120,349				120,349
Securities sold under repurchase agreements	146,480				146,449
Federal Home Loan Bank advances	298,923				297,465
Subordinated debentures and term loans	128,445				105,930
Interest rate swap liability	8,477				8,477
Interest payable	3,110				3,110