Fair value measurements using:

Quoted prices in

Significant other

Significant

active markets for

observable

unobservable

Balance at

identical assets

inputs

inputs

(in thousands)

December 31, 2016

(Level 1)

(Level 2)

(Level 3)

Assets

Available for sale securities:

Trust preferred securities

$

$

$

$

Corporate debt securities

 -

 -

Municipal securities

 -

 -

Total available for sale securities

$

$

$

$

Derivatives:

Fair value hedge

$

$

 -

$

$

 -

Non-designated hedges

 -

 -

Foreign exchange forward contracts

 -

 -

Total derivative assets

$

$

 -

$

$

 -

Liabilities

Derivatives:

Cash flow hedge

$

$

 -

$

$

 -

Fair value hedge

 -

 -

Non-designated hedges

 -

 -

Foreign exchange forward contracts

 -

 -

Total derivative liabilities

$

$

 -

$

$

 -

Fair value measurements using:

Quoted prices in

Significant other

Significant

active markets for

observable

unobservable

Balance at

identical assets

inputs

inputs

(in thousands)

December 31, 2015

(Level 1)

(Level 2)

(Level 3)

Assets

Available for sale securities:

Trust preferred securities

$

$

$

$

Corporate debt securities

 -

 -

Municipal securities

 -

 -

Total available for sale securities

$

$

$

$

Derivatives:

Cash flow hedge

$

$

 -

$

$

 -

Fair value hedge

 -

 -

Non-designated hedges

 -

 -

Foreign exchange forward contracts

 -

 -

Total derivative assets

$

$

 -

$

$

 -

Liabilities

Derivatives:

Cash flow hedge

$

$

 -

$

$

 -

Fair value hedge

 -

 -

Non-designated hedges

 -

 -

Foreign exchange forward contracts

 -

 -

Total derivative liabilities

$

$

 -

$

$

 -

For the year ended December 31, 

(in thousands)

2016

2015

Beginning balance

$

$

Transfers and purchases

 -

Net accretion

Sales / calls / maturities

 -

Unrealized gain (loss) included in comprehensive income

Ending balance

$

$

Fair value measurements using:

Quoted prices in

Significant other

Significant

active markets for

observable

unobservable

identical assets

inputs

inputs

(in thousands)

Total

(Level 1)

(Level 2)

(Level 3)

At December 31, 2016

Impaired loans

$

$

 -

$

 -

$

OREO

$

$

 -

$

 -

$

At December 31, 2015

Impaired loans

$

$

 -

$

 -

$

OREO

$

$

 -

$

 -

$

Gain (loss) for the year ended

December 31, 

(in thousands)

2016

2015

2014

Impaired loans

$

$

$

OREO

 -

At December 31, 

(in thousands)

2016

2015

OREO recorded at fair value

$

$

Estimated selling costs

OREO 

$

$

(in thousands)

2016

2015

Beginning OREO balance

$

$

Additions

 -

 -

Sales

 -

Net gain on sale and valuation adjustments

 -

Ending OREO balance

$

$

At December 31, 2016

Fair Value

Weighted 

Category

(in thousands)

Valuation Technique

Unobservable Input

Average

Range

Trust preferred securities

$

Market approach

Discount to carrying value using broker quotes or observable prices on similar securities

13%

1% to 28%

Impaired loans:

Commercial

$

Sales comparison

(1) 

Management discount for asset type

59%

0% - 76%

Real estate - mortgage

Sales comparison

(2) 

Sales comparison adjustments

18%

NA

Consumer

Sales comparison

(2) 

Sales comparison adjustments

(1)%

(11)% - 10%

Total impaired loans

$

OREO:

Commercial

$

Property appraisals

(2) 

Management discount for property type

0%

0%

Construction & land

Property appraisals

(2) 

Management discount for property type

17%

NA

Total OREO

$

At December 31, 2015

Fair Value

Weighted 

Category

(in thousands)

Valuation Technique

Unobservable Input

Average

Range

Trust preferred securities

$

Market approach

Discount to carrying value using broker quotes or observable prices on similar securities

15%

1% to 18%

Impaired loans:

Commercial

$

Sales comparison

(1)

Management discount for asset type

47%

0% to 81%

Commercial

Sales comparison

(2) 

Sales comparison adjustments

(32)%

NA

Real estate - mortgage

Sales comparison

(2) 

Sales comparison adjustments

12%

(15)% to 17%

Construction & land

Sales comparison

(2) 

Sales comparison adjustments

(24)%

NA

Consumer

Sales comparison

(2) 

Sales comparison adjustments

11%

(2)% to 14%

Total impaired loans

$

OREO:

Commercial

$

Property appraisals

(2) 

Management discount for property type

0%

0%

Construction & land

Property appraisals

(2) 

Management discount for property type

17%

NA

Total OREO

$

(1)

Discount represents management discounts applied to market valuation of various business assets, including accounts receivable and inventory. 

(2)

The fair value of OREO and collateral-dependent impaired loans is based on third-party property appraisals.  The majority of the appraisals utilize at least two valuation approaches or a combination of approaches including a market approach, where prices and other relevant information generated by market transactions involving similar or comparable properties are used to determine fair value.  Appraisals may include an ‘as is’ and ‘upon completion’ valuation scenarios.  Adjustments are routinely made in the appraisal process by third-party appraisers to adjust for differences between the comparable sales and income data.  Adjustments also result from the consideration of relevant economic and demographic factors with the potential to affect property values.  Also, prospective values are based on the market conditions which exist at the date of inspection combined with informed forecasts based on current trends in supply and demand for the property types under appraisal.  Positive adjustments disclosed in this table represent increases to the sales comparison and negative adjustment represent decreases.

December 31, 2016

December 31, 2015

     Carrying     

    Estimated    

     Carrying     

    Estimated    

(in thousands)

value

fair value

value

fair value

Financial assets:

Cash and cash equivalents

$

$

$

$

Investment securities available for sale 

Investment securities held to maturity 

Other investments

Loans — net

Accrued interest receivable

Derivatives

Financial liabilities:

Deposits

$

$

$

$

Securities sold under agreements to repurchase  

Short-term borrowings

Accrued interest payable

Subordinated notes payable

Junior subordinated debentures

Derivatives