Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2017

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present our assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy level at March 31, 2017 and December 31, 2016. There were no transfers between Level 1 and Level 2 for items measured at fair value on a recurring basis during the periods presented.



	March 31, 2017
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Securities available-for-sale:
U.S. Treasury securities	$	—	$	24,837	$	—	$	24,837
Obligations of U.S. government corporations and agencies	—		221,708		—		221,708
Collateralized mortgage obligations of U.S. government corporations and agencies	—		125,155		—		125,155
Residential mortgage-backed securities of U.S. government corporations and agencies	—		35,824		—		35,824
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		161,977		—		161,977
Obligations of states and political subdivisions	—		132,297		—		132,297
Marketable equity securities	—		11,400		—		11,400
Total securities available-for-sale	—		713,198		—		713,198
Trading securities held in a Rabbi Trust	4,674		—		—		4,674
Total securities	4,674		713,198		—		717,872
Derivative financial assets:
Interest rate swap contracts - commercial loans	—		5,379		—		5,379
Interest rate lock commitments - mortgage loans	—		469		—		469
Total Assets	$	4,674	$	719,046	$	—	$	723,720
LIABILITIES
Derivative financial liabilities:
Interest rate swap contracts - commercial loans	$	—	$	5,352	$	—	$	5,352
Forward sale contracts - mortgage loans	—		63		—		63
Total Liabilities	$	—	$	5,415	$	—	$	5,415



	December 31, 2016
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Securities available-for-sale:
U.S. Treasury securities	$	—	$	24,811	$	—	$	24,811
Obligations of U.S. government corporations and agencies	—		232,179		—		232,179
Collateralized mortgage obligations of U.S. government corporations and agencies	—		129,777		—		129,777
Residential mortgage-backed securities of U.S. government corporations and agencies	—		37,358		—		37,358
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		125,604		—		125,604
Obligations of states and political subdivisions	—		132,509		—		132,509
Marketable equity securities	—		11,249		—		11,249
Total securities available-for-sale	—		693,487		—		693,487
Trading securities held in a Rabbi Trust	4,410		—		—		4,410
Total securities	4,410		693,487		—		697,897
Derivative financial assets:
Interest rate swap contracts - commercial loans	—		6,960		—		6,960
Interest rate lock commitments - mortgage loans	—		236		—		236
Total Assets	$	4,410	$	700,683	$	—	$	705,093
LIABILITIES
Derivative financial liabilities:
Interest rate swap contracts - commercial loans	$	—	$	6,958	$	—	$	6,958
Forward sale contracts - mortgage loans	—		27		—		27
Total Liabilities	$	—	$	6,985	$	—	$	6,985

Assets Measured at Estimated Fair Value on Nonrecurring Basis by Fair Value Hierarchy

The following table presents our assets that are measured at fair value on a nonrecurring basis by the fair value hierarchy level as of the dates presented:



	March 31, 2017								December 31, 2016
(dollars in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
ASSETS⁽¹⁾
Loans held for sale	$	—	$	—	$	—	$	—	$	—	$	—	$	1,802	$	1,802
Impaired loans	—		—		16,921		16,921		—		—		10,329		10,329
Other real estate owned	—		—		607		607		—		—		396		396
Mortgage servicing rights	—		—		4,256		4,256		—		—		4,098		4,098
Total Assets	$	—	$	—	$	21,784	$	21,784	$	—	$	—	$	16,625	$	16,625
⁽¹⁾This table presents only the nonrecurring items that are recorded at fair value in our financial statements.

Carrying Values and Fair Values of Financial Instruments

The carrying values and fair values of our financial instruments at March 31, 2017 and December 31, 2016 are presented in the following tables:



	Carrying Value⁽¹⁾		Fair Value Measurements at March 31, 2017
(dollars in thousands)	Carrying Value⁽¹⁾		Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	104,705	$	104,705	$	104,705	$	—	$	—
Securities available-for-sale	713,198		713,198		—		713,198		—
Loans held for sale	14,355		14,355		—		—		14,355
Portfolio loans, net	5,691,010		5,684,049		—		—		5,684,049
Bank owned life insurance	72,574		72,574		—		72,574		—
FHLB and other restricted stock	29,739		29,739		—		—		29,739
Trading securities held in a Rabbi Trust	4,674		4,674		4,674		—		—
Mortgage servicing rights	3,784		4,256		—		—		4,256
Interest rate swap contracts - commercial loans	5,379		5,379		—		5,379		—
Interest rate lock commitments - mortgage loans	469		469		—		469		—
LIABILITIES
Deposits	$	5,435,325	$	5,439,713	$	—	$	—	$	5,439,713
Securities sold under repurchase agreements	46,987		46,987		—		—		46,987
Short-term borrowings	610,000		610,000		—		—		610,000
Long-term borrowings	14,118		14,603		—		—		14,603
Junior subordinated debt securities	45,619		45,619		—		—		45,619
Interest rate swap contracts - commercial loans	5,352		5,352		—		5,352		—
Forward sale contracts - mortgage loans	63		63		—		63		—
⁽¹⁾ As reported in the Consolidated Balance Sheets



	Carrying Value⁽¹⁾		Fair Value Measurements at December 31, 2016
(dollars in thousands)	Carrying Value⁽¹⁾		Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	139,486	$	139,486	$	139,486	$	—	$	—
Securities available-for-sale	693,487		693,487		—		693,487		—
Loans held for sale	3,793		3,815		—		—		3,815
Portfolio loans, net	5,558,644		5,551,266		—		—		5,551,266
Bank owned life insurance	72,081		72,081		—		72,081		—
FHLB and other restricted stock	31,817		31,817		—		—		31,817
Trading securities held in a Rabbi Trust	4,410		4,410		4,410		—		—
Mortgage servicing rights	3,744		4,098		—		—		4,098
Interest rate swap contracts - commercial loans	6,960		6,960		—		6,960		—
Interest rate lock commitments - mortgage loans	236		236		—		236		—
LIABILITIES
Deposits	$	5,272,377	$	5,276,499	$	—	$	—	$	5,276,499
Securities sold under repurchase agreements	50,832		50,832		—		—		50,832
Short-term borrowings	660,000		660,000		—		—		660,000
Long-term borrowings	14,713		15,267		—		—		15,267
Junior subordinated debt securities	45,619		45,619		—		—		45,619
Interest rate swap contracts - commercial loans	6,958		6,958		—		6,958		—
Forward sale contracts - mortgage loans	27		27		—		27		—
⁽¹⁾ As reported in the Consolidated Balance Sheets