Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value of Assets and Liabilities [Abstract]

Assets Measured at Fair Value on Recurring Basis

The following table presents the Company's assets that are measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of June 30, 2012 and December 31, 2011 (in thousands):

			Fair Value Measurements Using
June 30, 2012	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	152,050	$	-	$	152,050	$	-
Obligations of states and political subdivisions		48,991		-		48,991		-
Mortgage-backed securities		298,835		-		298,835		-
Trust preferred securities		648		-		-		648
Other securities		9,503		48		9,455		-
Total available-for-sale securities	$	510,027	$	48	$	509,331	$	648

December 31, 2011
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	166,066	$	-	$	166,066	$	-
Obligations of states and political subdivisions		41,202		-		41,202		-
Mortgage-backed securities		261,833		-		261,775		58
Trust preferred securities		719		-		-		719
Other securities		9,096		29		9,067		-
Total available-for-sale securities	$	478,916	$	29	$	478,110	$	777

Assets Measured at Fair Value on a Nonrecurring Basis

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2012 and December 31, 2011 (in thousands):

	Fair Value Measurements Using
June 30, 2012	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired loans (collateral dependent)	$	2,371	$	-	$	-	$	2,371
Foreclosed assets held for sale		1,313		-		-		1,313
December 31, 2011
Impaired loans (collateral dependent)	$	2,282	$	-	$	-	$	2,282
Foreclosed assets held for sale		2,336		-		-		2,336

Significant Assumptions Used in Valuation of Level 3 Financial Instruments

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

	Fair Value at June 30, 2012	Valuation Technique	Unobservable Inputs	Range                    (Weighted Average)
Trust Preferred Securities	$648	Discounted cash flow	Discount rate Constant prepayment rate (1) Cumulative projected prepayments Probability of default Projected cures given deferral Loss severity	2.8%-24.5% (20.3 %) 5% 11.9%-63.6% (20.1%) .16%-.56% (.55%) 0%-83.3% (6.6%) 90.1%-95.7% (94.5%)
Impaired loans (collateral dependent)	$2,279	Third party valuations	Discount to reflect realizable value	0%-40% (20%)
Foreclosed assets held for sale	$1,313	Third party valuations	Discount to reflect realizable value less estimated selling costs	0%-40% (35%)

(1)   Every five years

Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value

The following tables present estimated fair values of the Company's financial instruments at June 30, 2012 and December 31, 2011 in accordance with FAS 107-1 and APB 28-1, codified with ASC 805.

	Carrying		Fair
June 30, 2012	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	42,316	$	42,316	$	42,316	$	-	$	-
Federal funds sold		60,995		60,995		60,995		-		-
Certificates of deposit investments		11,737		11,724		11,724		-		-
Available-for-sale securities		510,027		510,027		48		509,331		648
Held-to-maturity securities		51		51		-		51		-
Loans held for sale		1,485		1,485		-		1,485		-
Loans net of allowance for loan losses		832,985		833,550		-		-		833,550
Interest receivable		6,069		6,069		-		6,069		-
Federal Reserve Bank stock		1,522		1,522		-		1,522		-
Federal Home Loan Bank stock		3,293		3,293		-		3,293		-
Financial Liabilities
Deposits	$	1,233,800	$	1,234,743	$	-	$	1,008,513	$	226,230
Securities sold under agreements to repurchase		118,030		118,028		-		118,028		-
Interest payable		422		422		-		422		-
Federal Home Loan Bank borrowings		9,750		10,531		-		10,531		-
Junior subordinated debentures		20,620		12,073		-		12,073		-

	Carrying		Fair
December 31, 2011	Amount		Value
Financial Assets
Cash and due from banks	$	52,105	$	52,105
Federal funds sold		20,997		20,997
Certificates of deposit investments		13,231		13,225
Available-for-sale securities		478,916		478,916
Held-to-maturity securities		51		51
Loans held for sale		1,046		1,046
Loans net of allowance for loan losses		847,908		850,308
Interest receivable		7,052		7,052
Federal Reserve Bank stock		1,520		1,520
Federal Home Loan Bank stock		3,727		3,727
Financial Liabilities
Deposits	$	1,170,734	$	1,172,069
Securities sold under agreements to repurchase		132,380		132,383
Interest payable		510		510
Federal Home Loan Bank borrowings		19,750		20,619
Other Borrowings		8,250		8,250
Junior subordinated debentures		20,620		11,969