Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

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)
June 30, 2017
Recurring fair value measurements
Financial Assets
U.S. Government agencies	$	2	$	—	$	2	$	—
Obligations of states and political subdivisions	97,742		—		97,742		—
Mortgage-backed securities:
U.S. Government agencies	370,497		—		370,497		—
Private label	789		—		789		—
Trust preferred securities	4,976		—		4,716		260
Corporate securities	24,257		—		24,257		—
Marketable equity securities	4,900		4,900		—		—
Investment funds	1,497		1,497		—		—
Derivative assets	14,816		—		14,816		—
Financial Liabilities
Derivative liabilities	14,807		—		14,807		—
Nonrecurring fair value measurements
Financial Assets
Impaired loans	$	9,445	$	—	$	—	$	9,445	$	(679	)
Non-Financial Assets
Other real estate owned	4,204		—		—		4,204		(258		)
Other assets	—		—		—		—		(170		)
December 31, 2016
Recurring fair value measurements
Financial Assets
U.S. Government agencies	$	3	$	—	$	3	$	—
Obligations of states and political subdivisions	82,368		—		82,368		—
Mortgage-backed securities:
U.S. Government agencies	330,814		—		330,814		—
Private label	942		—		942		—
Trust preferred securities	6,662		—		4,127		2,535
Corporate securities	23,574		—		23,574		—
Marketable equity securities	4,231		4,231		—		—
Investment funds	1,489		1,489		—		—
Derivative assets	15,463		—		15,463		—
Financial Liabilities
Derivative liabilities	15,483		—		15,483		—
Nonrecurring fair value measurements
Financial Assets
Impaired loans	$	6,916	$	—	$	—	$	6,916	$	(665	)
Non-Financial Assets
Other real estate owned	4,588		—		—		4,588		(665		)
Other assets	625		—		—		625		(444		)

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):

	Six months ended June 30,
	2017			2016
Beginning balance	$	2,535		$	2,096
Impairment losses on investment securities	—			(411		)
Gains on sale of investment securities	—			1,256
Included in other comprehensive income	(975		)	(318		)
Dispositions	(1,300		)	—
Transfers into Level 3	—			—
Ending balance	$	260		$	2,623

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 six months ended June 30, 2017 and 2016, collateral discounts ranged from 20% to 30%. During the six months ended June 30, 2017 and 2016, the Company had no Level 2 financial assets and liabilities that were measured on a nonrecurring basis.

	Six months ended June 30,
	2017			2016
Beginning balance	$	6,916		$	8,482
Loans classified as impaired during the period	3,006			—
Specific valuation allowance allocations	—			—
Loans classified as impaired during the period, net of specific valuation allowances	3,006			—
(Additional) reduction in specific valuation allowance allocations	(69		)	—
Paydowns, payoffs, other activity	(408		)	(1,530		)
Ending balance	$	9,445		$	6,952

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):

	Six months ended June 30,
	2017			2016
Beginning balance	$	4,588		$	6,518
OREO remeasured at initial recognition:
Carrying value of foreclosed assets prior to remeasurement	1,996			1,995
Charge-offs recognized in the allowance for loan losses	(743		)	—
Fair value	1,253			1,995
OREO remeasured subsequent to initial recognition:
Carrying value of foreclosed assets prior to remeasurement	1,464			1,228
Fair value	1,206			916
Write-downs included in other non-interest expense	(258		)	(312		)
Disposed	(1,379		)	(2,622		)
Ending balance	$	4,204		$	5,579

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
June 30, 2017
Assets:
Cash and cash equivalents	$	82,360	$	82,360	$	82,360	$	—	$	—
Securities available-for-sale	504,660		504,660		6,397		498,003		260
Securities held-to-maturity	69,798		71,207		—		71,207		—
Other securities	16,039		16,039		—		16,039		—
Net loans	3,064,704		3,007,916		—		—		3,007,916
Accrued interest receivable	8,122		8,122		8,122		—		—
Derivative assets	14,816		14,816		—		14,816		—
Liabilities:
Deposits	3,278,147		3,278,306		2,208,215		1,070,091		—
Short-term debt	224,304		221,473		—		221,473		—
Long-term debt	16,495		16,453		—		16,453		—
Derivative liabilities	14,807		14,807		—		14,807		—
December 31, 2016
Assets:
Cash and cash equivalents	88,139		88,139		88,139		—		—
Securities available-for-sale	450,083		450,083		5,720		441,828		2,535
Securities held-to-maturity	75,169		76,445		—		76,445		—
Other securities	14,352		14,352		—		14,352		—
Net loans	3,026,496		3,014,425		—		—		3,014,425
Accrued interest receivable	8,408		8,408		8,408		—		—
Derivative assets	15,463		15,463		—		15,463		—
Liabilities:
Deposits	3,231,653		3,232,970		2,190,234		1,042,736		—
Short-term debt	248,305		248,305		—		248,305		—
Long-term debt	16,495		16,455		—		16,455		—
Derivative liabilities	15,483		15,483		—		15,483		—