Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring And Nonrecurring Basis

The following table presents assets and liabilities measured at fair value (in thousands):



	Total		Level 1		Level 2		Level 3		Total Gains (Losses)
March 31, 2015
Recurring fair value measurements
Financial Assets
U.S. Government agencies	$	1,715	$	—	$	1,715	$	—
Obligations of states and political subdivisions	38,914		—		38,914		—
Mortgage-backed securities:
U.S. Government agencies	210,215		—		210,215		—
Private label	1,553		—		1,553		—
Trust preferred securities	8,945		—		6,965		1,980
Corporate securities	7,460		—		7,460		—
Marketable equity securities	3,519		3,519		—		—
Investment funds	1,535		1,535		—		—
Derivative assets	11,932		—		11,932		—
Financial Liabilities
Derivative liabilities	11,932		—		11,932		—

Nonrecurring fair value measurements
Impaired loans	$	8,219	$	—	$	—	$	8,219	$	(1,105	)
Other real estate owned	8,771		—		—		8,771		(57		)

December 31, 2014
Recurring fair value measurements
Financial Assets
U.S. Government agencies	$	1,827	$	—	$	1,827	$	—
Obligations of states and political subdivisions	42,096		—		42,096		—
Mortgage-backed securities:
U.S. Government agencies	187,328		—		187,328		—
Private label	1,704		—		1,704		—
Trust preferred securities	9,036		—		7,165		1,871
Corporate securities	7,317		—		7,317		—
Marketable equity securities	3,213		3,213		—		—
Investment funds	1,522		1,522		—		—
Derivative assets	10,253		—		10,253		—
Financial Liabilities
Derivative liabilities	10,253		—		10,253		—

Nonrecurring fair value measurements
Impaired loans	$	6,517	$	—	$	—	$	6,517	$	(153	)
Other real estate owned	$	8,179	$	—	$	—	$	8,179	$	(464	)

Schedule Of Reconciliation Of Investment Securities Available For Sale Measured At Fair Value On A Recurring Basis Level 3 Assets

The table below presents a reconcilement of the Company’s financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), which consist solely of trust preferred securities (in thousands):



	Three months ended March 31,
	2015		2014
Beginning balance	$	1,871	$	3,887
Impairment losses on investment securities	—		—
Included in other comprehensive income	109		(2,121		)
Dispositions	—		—
Transfers into Level 3	—		—
Ending Balance	$	1,980	$	1,766

Schedule Of Level 3 Financial Assets And Liabilities Measured On A Non-Recurring Basis

The table below presents a reconcilement of the Company's financial assets and liabilities measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3), which solely relates to impaired loans that were remeasured and reported at fair value through a specific valuation allowance allocation of the allowance for loan losses based upon the fair value of the underlying collateral (in thousands). The fair value of impaired loans is estimated using one of several methods, including collateral value, liquidation value and discounted cash flows. The significant unobservable inputs used in the fair value measurement of collateral for collateral-dependent impaired loans primarily relate to discounts applied to the customers’ reported amount of collateral. The amount of collateral discount depends upon the marketability of the underlying collateral. During the three months ended March 31, 2015 and 2014, collateral discounts ranged from 20% to 30%. During the three months ended March 31, 2015 and 2014, the Company had no Level 2 financial assets and liabilities that were measured on a nonrecurring basis.



	Three months ended March 31,
	2015			2014

Beginning balance	$	6,517		$	11,714

Loans classified as impaired during the period	2,859			—
Specific valuation allowance allocations	(1,105		)	—
	1,754			—

(Additional) reduction in specific valuation allowance allocations	14			369

Paydowns, payoffs, other activity	(66		)	(894		)

Ending balance	$	8,219		$	11,189

Schedule Of Level 3 Non-Financial Assets and Liabilities Measured On a Non-Recurring Basis

The table below presents OREO that was remeasured and reported at fair value based on significant unobservable inputs (Level 3) (in thousands):



	Three months ended March 31,
	2015			2014

Beginning balance	$	8,179		$	8,470

OREO remeasured at initial recognition:
Carrying value of foreclosed assets prior to remeasurement	1,159			1,907
Charge-offs recognized in the allowance for loan losses	—			—
Fair value	1,159			1,907

OREO remeasured subsequent to initial recognition
Carrying value of foreclosed assets prior to remeasurement	211			1,930
Fair value	154			1,739
Write-downs included in other non-interest expense	(57		)	(191		)

Disposed	(510		)	(649		)

Ending balance	$	8,771		$	9,537

Schedule Of Estimates Of Fair Value Of Financial Instruments

The following table represents the estimates of fair value of financial instruments (in thousands). This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as noninterest-bearing demand, interest-bearing demand and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity.



	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
March 31, 2015
Assets:
Cash and cash equivalents	$	245,110	$	245,110	$	245,110	$	—	$	—
Securities available-for-sale	273,856		273,856		5,054		266,822		1,980
Securities held-to-maturity	87,455		91,117		—		91,117		—
Other securities	9,857		9,857		—		9,857		—
Net loans	2,612,292		2,629,169		—		—		2,629,169
Accrued interest receivable	7,752		7,752		7,752		—		—
Derivative assets	11,932		11,932		—		11,932		—

Liabilities:
Deposits	2,942,382		2,950,743		1,928,752		1,021,991		—
Short-term debt	132,588		132,306		—		132,306		—
Long-term debt	16,495		16,464		—		16,464		—
Derivative liabilities	11,932		11,932		—		11,932		—

December 31, 2014
Assets:
Cash and cash equivalents	148,228		148,228		148,228		—		—
Securities available-for-sale	254,043		254,043		4,735		247,437		1,871
Securities held-to-maturity	90,786		94,191		—		94,191		—
Other securities	9,857		9,857		—		9,857		—
Net loans	2,631,916		2,638,911		—		—		2,638,911
Accrued interest receivable	6,826		6,826		6,826		—		—
Derivative assets	10,253		10,253		—		10,253		—

Liabilities:
Deposits	2,872,787		2,879,126		1,846,124		1,033,002		—
Short-term debt	134,931		134,934		—		134,934		—
Long-term debt	16,495		16,464		—		16,464		—
Derivative liabilities	10,253		10,253		—		10,253		—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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