7. Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2012 and December 31, 2011 are summarized below (In thousands).

			Fair Value Measurements at
			September 30, 2012
			Using
			Level 1		Level 2		Level 3
	Total		(Quoted Prices)		(Significant Other Observable Inputs)		(Significant Unobservable Inputs)
Investment securities available-for-sale
U. S. Government agencies	$	252,176	$	-	$	252,176	$	-
State and municipals		153,164		-		153,164		-
Corporate bonds		4,873		-		4,873		-
Collateralized mortgage obligations		5,914		-		5,914		-
Mortgage backed securities		131,012		-		131,012		-
Other investments		9,999		-		9,999		-
Other assets 1		2,888		2,888		-		-
Total assets at fair value	$	560,026	$	2,888	$	557,138	$	-
Cash flow hedge	$	1,549	$	-	$	1,549	$	-
Other liabilities 1		2,936		2,936		-		-
Total liabilities at fair value	$	4,485	$	2,936	$	1,549	$	-

1 Includes assets and liabilities associated with deferred compensation plans.

			Fair Value Measurements at
			December 31, 2011
			Using
			Level 1		Level 2		Level 3
	Total		(Quoted Prices)		(Significant Other Observable Inputs)		(Significant Unobservable Inputs)
Investment securities available-for-sale
U. S. Government agencies	$	152,467	$	-	$	152,467	$	-
State and municipals		159,515		-		159,515		-
Corporate bonds		4,618		-		4,618		-
Collateralized mortgage obligations		7,472		-		7,472		-
Mortgage backed securities		144,893		-		144,893		-
Other investments		8,999		-		8,999		-
Other assets 1		2,711		2,711		-		-
Total assets at fair value	$	480,675	$	2,711	$	477,964	$	-
Cash flow hedge	$	804	$	-	$	804	$	-
Other liabilities 1		2,711		2,711		-		-
Total liabilities at fair value	$	3,515	$	2,711	$	804	$	-

1 Includes assets and liabilities associated with deferred compensation plans.

Assets measured at fair value on a nonrecurring basis

Assets measured at fair value on a nonrecurring basis as of September 30, 2012 and December 31, 2011 are included in the table below (In thousands).

			Fair Value Measurements at
			September 30, 2012
			Using
			Level 1		Level 2		Level 3
	Total		(Quoted Prices)		(Significant Other Observable Inputs)		(Significant Unobservable Inputs)
Impaired loans	$	53,168	$	-	$	-	$	53,168
Loans held for sale - mortgage		26,006		-		26,006		-
Foreclosed assets		7,907		-		-		7,907
Total assets at fair value	$	87,081	$	-	$	26,006	$	61,075
			Fair Value Measurements at
			December 31, 2011
			Using
			Level 1		Level 2		Level 3
	Total		(Quoted Prices)		(Significant Other Observable Inputs)		(Significant Unobservable Inputs)
Impaired loans	$	52,756	$	-	$	-	$	52,756
Loans held for sale - mortgage		42,027		-		42,027		-
Loans held for sale - other assets		213		-		-		213
Foreclosed assets		8,575		-		-		8,575
Total assets at fair value	$	103,571	$	-	$	42,027	$	61,544

Estimated fair values of company's financial instruments

The estimated fair values of our financial instruments are as follows (In thousands):

	September 30, 2012
	Carrying		Fair		Fair Value Measurements Using
	Amount		Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	54,857	$	54,857	$	54,857	$	-	$	-
Investment securities		557,138		557,138		8,999		548,139		-
Mortgage loans held for sale		26,006		26,006		-		26,006		-
Loans, net		2,025,048		1,868,706		-		-		1,868,706
Accrued interest receivable		9,373		9,373		9,373		-		-
Liabilities
Deposits	$	2,421,735		2,436,562	$	-	$	-	$	2,436,562
Federal Home Loan Bank advances		55,000		60,194		-		-		60,194
Subordinated debt		32,991		32,935		-		-		32,935
Accrued interest payable		1,792		1,792		1,792		-		-

	December 31, 2011
	Carrying		Fair		Fair Value Measurements Using
	Amount		Value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	99,970	$	99,970	$	99,970	$	-	$	-
Investment securities		477,964		477,964		8,999		468,965		-
Mortgage loans held for sale		42,027		42,027		-		42,027		-
Loans, net		1,998,842		1,839,635		-		-		1,839,635
Accrued interest receivable		8,908		8,908		8,908		-		-
Liabilities
Deposits	$	2,395,600	$	2,409,959	$	-	$	-	$	2,409,959
Federal Home Loan Bank advances		60,000		64,395		-		-		64,395
Subordinated debt		32,991		32,930		-		-		32,930
Accrued interest payable		2,122		2,122		2,122		-		-