Disclosures about Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Measurements of Assets and Liabilities Recognized on a Recurring Basis

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated financial statements measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at the following:


				Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs			Significant Unobservable Inputs
	Fair Value			(Level 1)		(Level 2)			(Level 3)
June 30, 2016
Available-for-sale securities
U.S. Treasury and federal agencies	$	18,470		$	—	$	18,470		$	—
State and municipal		62,611			—		62,611			—
Federal agency collateralized mortgage obligations		154,263			—		154,263			—
Federal agency mortgage-backed pools		219,823			—		219,823			—
Corporate notes		72			—		72			—

Total available-for-sale securities		455,239			—		455,239			—
Hedged loans		116,338			—		116,338			—
Forward sale commitments		1,111			—		1,111			—
Interest rate swap agreements		(9,179	)		—		(9,179	)		—
Commitments to originate loans		—			—		—			—
December 31, 2015
Available-for-sale securities
U.S. Treasury and federal agencies	$	5,926		$	—	$	5,926		$	—
State and municipal		75,095			—		75,095			—
Federal agency collateralized mortgage obligations		156,203			—		156,203			—
Federal agency mortgage-backed pools		207,704			—		207,704			—
Corporate notes		54			—		54			—

Total available-for-sale securities		444,982			—		444,982			—
Hedged loans		115,472			—		115,472			—
Forward sale commitments		642			—		642			—
Interest rate swap agreements		(4,923	)		—		(4,923	)		—

Realized Gains and Losses Included in Net Income for Periods in Consolidated Statements of Income

Realized gains and losses included in net income for the periods are reported in the condensed consolidated statements of income as follows:


	Three Months Ended June 30						Six Months Ended June 30
Non Interest Income	2016			2015			2016			2015
Total gains and losses from:	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Hedged loans	$	1,110		$	(1,186	)	$	3,611		$	(186	)
Fair value interest rate swap agreements		(1,110	)		1,186			(3,611	)		186
Derivative loan commitments		468			83			471			272

	$	468		$	83		$	471		$	272

Other Assets Measured at Fair Value on Nonrecurring Basis

Certain other assets are measured at fair value on a nonrecurring basis in the ordinary course of business and are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment):


			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2016
Impaired loans	$	3,830	$	—	$	—	$	3,830
Mortgage servicing rights		9,714		—		—		9,714
December 31, 2015
Impaired loans	$	6,803	$	—	$	—	$	6,803
Mortgage servicing rights		8,874		—		—		8,874

Qualitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements, Other than Goodwill

The following table presents qualitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill.


	Fair Value at		Valuation		Range (Weighted
	June 30, 2016		Technique	Unobservable Inputs	Average)
Impaired loans	$	3,830	Collateral based measurement	Discount to reflect current market conditions and ultimate collectability	10% - 15% (12%)
Mortgage servicing rights	$	9,714	Discounted cashflows	Discount rate, Constant prepayment rate, Probability of default	10% - 15% (12%), 4% - 7% (4.6%), 1% - 10% (4.5%)

	Fair Value at		Valuation		Range (Weighted
	December 31, 2015		Technique	Unobservable Inputs	Average)
Impaired loans	$	6,803	Collateral based measurement	Discount to reflect current market conditions and ultimate collectability	10% - 15% (12%)
Mortgage servicing rights	$	8,874	Discounted cashflows	Discount rate, Constant prepayment rate, Probability of default	10% - 15% (12%), 4% - 7% (4.6%), 1% - 10% (4.5%)