Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring And Nonrecurring Basis

The following table presents assets and liabilities measured at fair value (in thousands):

	Total		Level 1		Level 2		Level 3		Total Gains (Losses)
September 30, 2013
Recurring fair value measurements
Financial Assets
U.S. Government agencies	$	2,572	$	—	$	2,572	$	—
Obligations of states and political subdivisions	41,849		—		41,849		—
Mortgage-backed securities:
U.S. Government agencies	254,639		—		254,639		—
Private label	2,400		—		2,400		—
Trust preferred securities	12,008		—		9,223		2,785
Corporate securities	9,316		—		9,316		—
Marketable equity securities	4,956		4,956		—		—
Investment funds	1,507		1,507		—		—
Derivative assets	5,810		—		5,810		—
Financial Liabilities
Derivative liabilities	5,810		—		5,810		—
Nonrecurring fair value measurements
Impaired loans	$	11,960	$	—	$	—	$	11,960	$	(880	)
Other real estate owned	7,518		—		—		7,518		(1,058		)
December 31, 2012
Recurring fair value measurements
Financial Assets
U.S. Government agencies	$	3,888	$	—	$	3,888	$	—
Obligations of states and political subdivisions	48,929		—		48,929		—
Mortgage-backed securities:
U.S. Government agencies	286,482		—		286,482		—
Private label	3,272		—		3,272		—
Trust preferred securities	12,645		—		10,260		2,385
Corporate securities	15,947		—		15,947		—
Marketable equity securities	4,185		4,185		—		—
Investment funds	1,774		1,774		—		—
Derivative assets	14,012		—		14,012		—
Financial Liabilities
Derivative liabilities	14,012		—		14,012		—
Nonrecurring fair value measurements
Impaired loans	$	10,679	$	—	$	—	$	10,679	$	—
Other real estate owned	$	8,162	$	—	$	—	$	8,162	$	(1,021	)
Other assets	$	1,000	$	—	$	1,000	$	—	$	(288	)

Schedule Of Reconciliation Of Investment Securities Available For Sale Measured At Fair Value On A Recurring Basis Level 3 Assets

The table below presents a reconcilement of the Company’s financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):

	Nine months ended September 30,
	2013			2012
Beginning balance	$	2,385		$	1,982
Impairment losses on investment securities	—			(576		)
Included in other comprehensive income	2,176			940
Dispositions	(1,776		)	—
Transfers into Level 3	—			—
Ending Balance	$	2,785		$	2,346

Schedule Of Level 3 Financial Assets And Liabilities Measured On A Non-Recurring Basis

The table below presents a reconcilement of the Company's financial assets and liabilities measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3), which solely relates to impaired loans that were remeasured and reported at fair value through a specific valuation allowance allocation of the allowance for loan losses based upon the fair value of the underlying collateral (in thousands).  The fair value of impaired loans is estimated using one of several methods, including collateral value, liquidation value and discounted cash flows.  The significant unobservable inputs used in the fair value measurement of collateral for collateral-dependent impaired loans primarily relate to discounts applied to the customers’ reported amount of collateral.  The amount of collateral discount depends upon the marketability of the underlying collateral.  During the nine months ended September 30, 2013 and 2012, collateral discounts ranged from 20% to 30%. During the nine months ended September 30, 2013 and 2012, the Company had no Level 2 financial assets and liabilities that were measured on a nonrecurring basis.

	Nine months ended September 30,
	2013			2012
Beginning balance	$	10,679		$	13,500
Loans classified as impaired during the period	3,052			—
Specific valuation allowance allocations	(750		)	—
	2,302			—
(Additional) reduction in specific valuation allowance allocations	(130		)	2,666
Paydowns, payoffs, other activity	(891		)	(5,396		)
Ending balance	$	11,960		$	10,770

Schedule Of Level 3 Non-Financial Assets and Liabilities Measured On a Non-Recurring Basis

The table below presents OREO that was remeasured and reported at fair value based on significant unobservable inputs (Level 3) (in thousands):

	Nine months ended September 30,
	2013			2012
Beginning balance	$	8,162		$	7,948
OREO remeasured at initial recognition:
Carrying value of foreclosed assets prior to remeasurement	4,387			4,563
Charge-offs recognized in the allowance for loan losses	(1,565		)	(1,472		)
Fair value	2,822			3,091
OREO remeasured subsequent to initial recognition
Carrying value of foreclosed assets prior to remeasurement	2,832			2,681
Fair value	1,774			1,872
Write-downs included in other non-interest expense	(1,058		)	(809		)
Acquired	3,492			728
Disposed	(5,900		)	(1,841		)
Ending balance	$	7,518		$	9,117

Schedule Of Estimates Of Fair Value Of Financial Instruments

The following table represents the estimates of fair value of financial instruments (in thousands). This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as noninterest-bearing demand, interest-bearing demand and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity.

	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
September 30, 2013
Assets:
Cash and cash equivalents	$	179,621	$	179,621	$	179,621	$	—	$	—
Securities available-for-sale	329,247		329,247		6,463		319,999		2,785
Securities held-to-maturity	3,994		6,406		—		6,406		—
Other securities	13,344		13,344		—		13,344		—
Net loans	2,537,850		2,574,826		—		—		2,574,826
Accrued interest receivable	8,108		8,108		8,108		—		—
Derivative assets	5,810		5,810		—		5,810		—
Liabilities:
Deposits	2,807,536		2,816,263		1,708,806		1,107,457		—
Short-term debt	150,943		150,944		—		150,944		—
Long-term debt	16,495		16,463		—		16,463		—
Derivative liabilities	5,810		5,810		—		5,810		—
December 31, 2012
Assets:
Cash and cash equivalents	84,994		84,994		84,994		—		—
Securities available-for-sale	377,122		377,122		5,959		368,778		2,385
Securities held-to-maturity	13,454		13,861		—		13,861		—
Other securities	11,463		11,463		—		11,463		—
Net loans	2,127,560		2,162,856		—		—		2,162,856
Accrued interest receivable	6,692		6,692		6,692		—		—
Derivative assets	14,012		14,012		—		14,012		—
Liabilities:
Deposits	2,409,316		2,381,495		1,447,954		933,541		—
Short-term debt	114,646		114,648		—		114,648		—
Long-term debt	16,495		16,462		—		16,462		—
Derivative liabilities	14,012		14,012		—		14,012		—