Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Measurement [Abstract]

Schedule of fair value of assets and liabilities measured on recurring and nonrecurring basis

	March 31, 2013		March 31, 2013 Fair Value Measurements Using:
(unaudited, in thousands)			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring fair value measurements
Securities - available-for-sale
Other government agencies	$	65,449	$	—	$	65,449	$	—
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies (1)		738,942		—		738,942		—
Obligations of state and political subdivisions		139,620		—		139,620		—
Corporate debt securities		38,136		—		38,136		—
Equity securities		11,123		8,986		2,137		—
Total securities - available-for-sale	$	993,270	$	8,986	$	984,284	$	—
Total recurring fair value measurements	$	993,270	$	8,986	$	984,284	$	—
Nonrecurring fair value measurements
Impaired loans	$	3,792	$	—	$	—	$	3,792
Other real estate owned and repossessed assets		5,147		—		—		5,147
Mortgage servicing rights		693		—		—		693
Loans held for sale		14,299		—		14,299		—
Total nonrecurring fair value measurements	$	23,931	$	—	$	14,299	$	9,632

⁽¹⁾ Mortgage-backed securities of government agencies at March 31, 2013 were $41.2 million.

	December 31, 2012		December 31, 2012 Fair Value Measurements Using:
(unaudited, in thousands)			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring fair value measurements
Securities - available-for-sale
Other government agencies	$	96,612	$	—	$	96,612	$	—
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies (1)		732,210		—		732,210		—
Obligations of state and political subdivisions		148,635		—		148,612		23
Corporate debt securities		32,685		—		32,685		—
Equity securities		11,102		9,059		2,043		—
Total securities - available-for-sale	$	1,021,244	$	9,059	$	1,012,162	$	23
Total recurring fair value measurements	$	1,021,244	$	9,059	$	1,012,162	$	23
Nonrecurring fair value measurements
Impaired loans	$	3,866	$	—	$	—	$	3,866
Other real estate owned and repossessed assets		5,988		—		—		5,988
Mortgage servicing rights		825		—		—		825
Loans held for sale		21,903		—		21,903		—
Total nonrecurring fair value measurements	$	32,582	$	—	$	21,903	$	10,679

⁽¹⁾ Mortgage-backed securities of government agencies at December 31, 2012 were $45.8 million.

Schedule of assets measured at fair value on nonrecurring basis

	Quantitative Information about Level 3 Fair Value Measurements
(unaudited, in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
March 31, 2013:
Impaired loans	$	3,792	Appraisal of collateral  (1)	Appraisal adjustments  (2) Liquidation expenses  (2)	0% to (27.6%) / (11.4%) (5.5%) to (8.0%) / (6.7%)
Other real estate owned and repossessed assets		5,147	Appraisal of collateral  (1), (3)
Mortgage servicing rights		693	Discounted cash flow	Remaining term Discount rate	2.9 yrs to 26.6 yrs / 15.3 yrs 9.0% to 12.0% / 9.9%
December 31, 2012:
Impaired loans	$	3,866	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expenses (2)	(0%) to (50.8%) / (13.7%) (3.9%) to (8.0%) / (6.8%)
Other real estate owned and repossessed assets		5,988	Appraisal of collateral (1), (3)
Mortgage servicing rights		825	Discounted cash flow	Remaining term Discount rate	2.8 yrs to 27.0 yrs / 15.8 yrs 9.0% to 12.0% / 9.8%

⁽¹⁾ Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

⁽²⁾  Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of appraisal adjustments and liquidation expenses are presented as a percent of the appraisal.

⁽³⁾  Includes estimated liquidation expenses and numerous dissimilar qualitative adjustments by management which are not identifiable.

Estimates fair value of financial instruments

					Fair Value Measurements at March 31, 2013
(unaudited, in thousands)	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Cash and due from banks	$	178,263	$	178,263	$	178,263	$	—	$	—
Securities available-for-sale		993,270		993,270		8,986		984,284		—
Securities held-to-maturity		592,033		624,627		—		623,824		803
Net loans		3,632,137		3,622,794		—		—		3,622,794
Loans held for sale		14,299		14,299		—		14,299		—
Accrued interest receivable		19,909		19,909		19,909		—		—
Bank owned life insurance		118,666		118,666		118,666		—		—
Financial Liabilities
Deposits		5,006,202		5,031,669		3,373,842		1,657,827		—
Federal Home Loan Bank borrowings		60,767		66,083		—		66,083		—
Other borrowings		128,372		132,218		81,286		50,932		—
Junior subordinated debt		106,109		63,610		—		63,610		—
Accrued interest payable		3,620		3,620		3,620		—		—

					Fair Value Measurements at December 31, 2012
(unaudited, in thousands)	Carrying Amount		Fair Value Estimate		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Cash and due from banks	$	125,605	$	125,605	$	125,605	$	—	$	—
Securities available-for-sale		1,021,244		1,021,244		9,059		1,012,162		23
Securities held-to-maturity		602,509		639,273		—		638,469		804
Net loans		3,635,063		3,600,068		—		—		3,600,068
Loans held for sale		21,903		21,903		—		21,903		—
Accrued interest receivable		19,354		19,354		19,354		—		—
Bank owned life insurance		119,671		119,671		119,671		—		—
Financial Liabilities
Deposits		4,944,284		4,963,356		3,294,664		1,668,692		—
Federal Home Loan Bank borrowings		111,187		114,461		—		114,461		—
Other borrowings		142,971		142,753		95,768		46,985		—
Junior subordinated debt		113,832		64,624		—		64,624		—
Accrued interest payable		3,856		3,856		3,856		—		—