Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

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, 2016
Recurring fair value measurements
Financial Assets
U.S. Government agencies	$	4	$	—	$	4	$	—
Obligations of states and political subdivisions	49,925		—		49,925		—
Mortgage-backed securities:
U.S. Government agencies	281,206		—		281,206		—
Private label	1,156		—		1,156		—
Trust preferred securities	5,489		—		3,375		2,114
Corporate securities	19,697		—		19,697		—
Marketable equity securities	3,272		3,272		—		—
Investment funds	1,533		1,533		—		—
Derivative assets	22,332		—		22,332		—
Financial Liabilities
Derivative liabilities	22,754		—		22,754		—

Nonrecurring fair value measurements
Impaired loans	$	7,235	$	—	$	—	$	7,235	$	—
Other real estate owned	6,054		—		—		6,054		(165		)

December 31, 2015
Recurring fair value measurements
Financial Assets
U.S. Government agencies	$	5	$	—	$	5	$	—
Obligations of states and political subdivisions	50,697		—		50,697		—
Mortgage-backed securities:
U.S. Government agencies	288,197		—		288,197		—
Private label	1,231		—		1,231		—
Trust preferred securities	5,858		—		3,762		2,096
Corporate securities	18,693		—		18,693		—
Marketable equity securities	3,273		3,273		—		—
Investment funds	1,512		1,512		—		—
Derivative assets	10,811		—		10,811		—
Financial Liabilities
Derivative liabilities	10,933		—		10,933		—

Nonrecurring fair value measurements
Impaired loans	$	8,482	$	—	$	—	$	8,482	$	—
Other real estate owned	6,518		—		—		6,518		(937		)

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,
	2016		2015
Beginning balance	$	2,096	$	1,871
Impairment losses on investment securities	—		—
Included in other comprehensive income	18		109
Dispositions	—		—
Transfers into Level 3	—		—
Ending Balance	$	2,114	$	1,980

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, 2016 and 2015, collateral discounts ranged from 20% to 30%. During the three months ended March 31, 2016 and 2015, the Company had no Level 2 financial assets and liabilities that were measured on a nonrecurring basis.



	Three months ended March 31,
	2016			2015

Beginning balance	$	8,482		$	6,517

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

Paydowns, payoffs, other activity	(1,247		)	(66		)

Ending balance	$	7,235		$	8,219

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,
	2016			2015

Beginning balance	$	6,518		$	8,179

OREO remeasured at initial recognition:
Carrying value of foreclosed assets prior to remeasurement	673			1,159
Charge-offs recognized in the allowance for loan losses	—			—
Fair value	673			1,159

OREO remeasured subsequent to initial recognition
Carrying value of foreclosed assets prior to remeasurement	1,228			211
Fair value	1,063			154
Write-downs included in other non-interest expense	(165		)	(57		)

Disposed	(972		)	(510		)

Ending balance	$	6,054		$	8,771

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, 2016
Assets:
Cash and cash equivalents	$	175,165	$	175,165	$	175,165	$	—	$	—
Securities available-for-sale	362,282		362,282		4,805		355,363		2,114
Securities held-to-maturity	86,518		89,600		—		89,600		—
Other securities	9,960		9,960		—		9,960		—
Net loans	2,857,802		2,866,063		—		—		2,866,063
Accrued interest receivable	8,517		8,517		8,517		—		—
Derivative assets	22,332		22,332		—		22,332		—

Liabilities:
Deposits	3,187,271		3,194,839		2,158,871		1,035,968		—
Short-term debt	156,714		156,719		—		156,719		—
Long-term debt	16,495		16,460		—		16,460		—
Derivative liabilities	22,754		22,754		—		22,754		—

December 31, 2015
Assets:
Cash and cash equivalents	70,113		70,113		70,113		—		—
Securities available-for-sale	369,466		369,466		4,785		362,585		2,096
Securities held-to-maturity	88,937		90,810		—		90,810		—
Other securities	12,915		12,915		—		12,915		—
Net loans	2,843,283		2,843,973		—		—		2,843,973
Accrued interest receivable	7,432		7,432		7,432		—		—
Derivative assets	10,811		10,811		—		10,811		—

Liabilities:
Deposits	3,083,975		3,085,908		2,066,419		1,019,489		—
Short-term debt	154,869		154,872		—		154,872		—
Long-term debt	16,495		16,457		—		16,457		—
Derivative liabilities	10,933		10,933		—		10,933		—