Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

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)
December 31, 2013
Recurring fair value measurements
Financial Assets
U.S. Government agencies	$	2,365	$	—	$	2,365	$	—
Obligations of states and political subdivisions	41,548		—		41,548		—
Mortgage-backed securities:
U.S. Government agencies	278,108		—		278,108		—
Private label	2,197		—		2,197		—
Trust preferred securities	13,156		—		9,269		3,887
Corporate securities	9,128		—		9,128		—
Marketable equity securities	4,673		4,673		—		—
Investment funds	1,485		1,485		—		—
Derivative assets	3,538		—		3,538		—

Financial Liabilities
Derivative liabilities	3,538		—		3,538		—

Nonrecurring fair value measurements
Financial Assets
Impaired loans	$	11,714	$	—	$	—	$	11,714	$	(880	)
Other real estate owned	8,470		—		—		8,470		(1,108		)

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
Financial Assets
Impaired loans	$	10,679	$	—	$	—	$	10,679	$	2,666
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):



	December 31,
	2013			2012

Beginning balance	$	2,385		$	1,982
Impairment losses on investment securities	—			(576		)
Included in other comprehensive income	4,280			979
Dispositions	(2,778		)	—
Transfers into Level 3	—			—
Ending Balance	$	3,887		$	2,385

Schedule Of Level 3 Financial Assets And Liabilities Measured On A 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 December 31, 2013 and 2012, collateral discounts ranged from 20% to 30%. During December 31, 2013 and 2012, the Company had no Level 2 financial assets and liabilities that were measured on a nonrecurring basis.



	Year ended December 31,
	2013			2012

Beginning balance	$	10,679		$	13,500

Loans classified as impaired during the period	3,030			—
Specific valuation allowance allocations	(750		)	—
	2,280			—

(Additional) reduction in specific valuation allowance allocations	(130		)	2,666
Paydowns, payoffs, other activity	(1,115		)	(5,487		)
Ending balance	$	11,714		$	10,679

Schedule Of OREO Measured And Reported At Fair Value

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



	2013			2012

Beginning Balance, January 1	$	8,162		$	7,948
OREO remeasured at initial recognition:
Carrying value of foreclosed assets prior to remeasurement	7,012			5,685
Charge-offs recognized in the allowance for loan losses	(1,565		)	(1,656		)
Fair value	5,447			4,029
OREO remeasured subsequent to initial recognition:
Carrying value of foreclosed assets prior to remeasurement	2,832			3,659
Fair value	1,724			2,638
Write-downs included in other non-interest expense	(1,108		)	(1,021		)

Acquired	3,492			728
Disposals	(7,523		)	(3,522		)
Ending Balance, December 31	$	8,470		$	8,162

Schedule Of Estimates Of Fair Value Of Financial Instruments



	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
December 31, 2013
Assets:
Cash and cash equivalents	$	85,876	$	85,876	$	85,876	$	—	$	—
Securities available-for-sale	352,660		352,660		6,158		342,615		3,887
Securities held-to-maturity	4,117		5,335		—		5,335		—
Other securities	13,343		13,343		—		13,343		—
Net loans	2,585,622		2,609,524		—		—		2,609,524
Accrued interest receivable	6,866		6,866		6,866		—		—
Derivative assets	3,538		3,538		—		3,538		—

Liabilities:
Deposits	2,785,133		2,793,620		1,707,527		1,086,093		—
Short-term debt	137,798		137,801		—		137,801		—
Long-term debt	16,495		16,495		—		16,495		—
Derivative liabilities	3,538		3,538		—		3,538		—

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		2,423,511		1,489,970		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		—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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