Fair Value (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value [Abstract]

Assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis are as follows at March 31, 2013 and December 31, 2012:

				Fair Value Measurements at March 31, 2013 Using
Description	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Treasury	$	2,025		$	0	$	2,025		$	0
U.S. Government sponsored entities		192,770			0		192,770			0
States and political subdivisions		184,154			0		184,154			0
Residential and multi-family mortgage		296,305			0		296,305			0
Commercial mortgage		1,264			0		1,264			0
Corporate notes and bonds		15,336			0		13,269			2,067
Pooled trust preferred		558			0		0			558
Pooled SBA		67,001			67,001		0			0
Other securities		1,532			1,532		0			0
Total Securities Available For Sale	$	760,945		$	68,533	$	689,787		$	2,625
Trading Securities:
Corporate equity securities	$	3,760		$	3,760	$	0		$	0
Certificates of deposit		358			358		0			0
International mutual funds		261			261		0			0
Large cap growth mutual funds		158			158		0			0
Money market mutual funds		79			79		0			0
Large cap value mutual funds		106			106		0			0
Corporate notes and bonds		101			0		101			0
Real estate investment trust mutual funds		68			68		0			0
U.S. Government sponsored entities		57			0		57			0
Small cap mutual funds		59			59		0			0
Mid cap mutual funds		59			59		0			0
Total Trading Securities	$	5,066		$	4,908	$	158		$	0
Liabilities:
Interest rate swaps	$	(1,630	)	$	0	$	(1,630	)	$	0

				Fair Value Measurements at December 31, 2012 Using
Description	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Treasury	$	4,036		$	0	$	4,036		$	0
U.S. Government sponsored entities		163,781			0		163,781			0
States and political subdivisions		181,279			0		181,279			0
Residential and multi-family mortgage		316,822			0		316,822			0
Commercial mortgage		1,304			0		1,304			0
Corporate notes and bonds		15,024			0		13,044			1,980
Pooled trust preferred		600			0		0			600
Pooled SBA		52,927			52,631		296			0
Other securities		1,538			1,538		0			0
Total Securities Available For Sale	$	737,311		$	54,169	$	680,562		$	2,580
Trading Securities:
Corporate equity securities	$	3,117		$	3,117	$	0		$	0
Certificates of deposit		408			408		0			0
International mutual funds		287			287		0			0
Large cap growth mutual funds		157			157		0			0
Money market mutual funds		110			110		0			0
Large cap value mutual funds		104			104		0			0
Corporate notes and bonds		101			0		101			0
Real estate investment trust mutual funds		65			65		0			0
U.S. Government sponsored entities		58			0		58			0
Small cap mutual funds		26			26		0			0
Mid cap mutual funds		26			26		0			0
Total Trading Securities	$	4,459		$	4,300	$	159		$	0
Liabilities:
Interest rate swaps	$	(1,745	)	$	0	$	(1,745	)	$	0

Securities available for sale measured at fair value on recurring basis using significant unobservable inputs (Level 3)

The table below presents a reconciliation and income statement classification of gains and losses for all securities available for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2013:

	Corporate notes and bonds		Pooled trust preferred
Balance, January 1, 2013	$	1,980	$	600
Total gains or (losses):
Included in other comprehensive income		87		(42	)
Balance, March 31, 2013	$	2,067	$	558

The table below presents a reconciliation and income statement classification of gains and losses for all securities available for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2012:

	Corporate notes and bonds			Pooled trust preferred
Balance, January 1, 2012	$	2,060		$	340
Total gains or losses:
Included in other comprehensive income		(20	)		—
Balance, March 31, 2012	$	2,040		$	340

Quantitative Information About Level 3 Fair Value Measurements

The following table presents quantitative information about Level 3 fair value measurements at March 31, 2013:

	Fair value		Valuation Technique	Unobservable Inputs	Input Utilized
Corporate notes and bonds	$	2,067	Discounted cash flow	Constant prepayment rate Probability of default Discount rate	0% 0% 9.2%
Pooled trust preferred	$	558	Discounted cash flow	Collateral default rate	2% in 2013; 1.5% in 2014; 1.0% in 2015; 0.5% in 2016 and thereafter
				Yield Prepayment speed	12% 7.2% CPR in 2013; 2.0% CPR in 2014 and thereafter

The following table presents quantitative information about Level 3 fair value measurements at December 31, 2012:

	Fair value		Valuation Technique	Unobservable Inputs	Input Utilized
Corporate notes and bonds	$	1,980	Discounted cash flow	Constant prepayment rate Probability of default Discount rate	0% 0% 9.6%
Pooled trust preferred	$	600	Discounted cash flow	Collateral default rate Yield Recovery probability	2% annually for 2 years; 0.36% thereafter 13% 10%, lagged 2 years

Sale securities reported as Level 1 securities as of the beginning of the period were transferred to the Level 2 category

During the three months ended March 31, 2013 and 2012, the following available for sale securities reported as Level 1 securities as of the beginning of the period were transferred to the Level 2 category:

	2013		2012
U.S. Government sponsored entities	$	0	$	2,000
States and political subdivisions		0		4,655
Residential mortgage and asset backed		0		8,577
Total	$	0	$	15,232

Assets and liabilities measured at fair value on a non-recurring basis

Assets and liabilities measured at fair value on a non-recurring basis are as follows at March 31, 2013 and December 31, 2012:

			Fair Value Measurements at March 31, 2013 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level  1)		Significant Other Observable  Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Commercial mortgages	$	8,256	$	0	$	0	$	8,256
Commercial, industrial, and agricultural		1,661		0		0		1,661
Residential real estate		165		0		0		165
			Fair Value Measurements at December 31, 2012 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Commercial mortgages	$	8,422	$	0	$	0	$	8,422
Commercial, industrial, and agricultural		1,973		0		0		1,973
Residential real estate		402		0		0		402

Quantitative Information About Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Non Recurring Basis

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at March 31, 2013:

	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans – commercial mortgages	$	8,256	Sales comparison approach	Adjustment for differences between the comparable sales	1% - 39% (19%)
Impaired loans – commercial, industrial, and agricultural	$	1,661	Income approach	Adjustment for differences in net operating income	27% - 32% (28%)
Impaired loans – residential real estate	$	165	Sales comparison approach	Adjustment for differences between the comparable sales	17% - 26% (23%)

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2012:

	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans – commercial mortgages	$	8,422	Sales comparison approach	Adjustment for differences between the comparable sales	1% - 39%(19%)
Impaired loans – commercial, industrial, and agricultural		1,973	Income approach	Adjusting for differences in net operating income	24% - 38%(27%)
Impaired loans – residential real estate		402	Sales comparison approach	Adjustment for differences between the comparable sales	10% - 15%(11%)

Carrying amount and fair value of financial instruments

The following table presents the carrying amount and fair value of financial instruments at March 31, 2013:

	Carrying			Fair Value Measurement Using:									Total
	Amount			Level 1			Level 2			Level 3			Fair Value
ASSETS
Cash and cash equivalents	$	38,491		$	38,491		$	0		$	0		$	38,491
Interest bearing time deposits with other banks		275			0			281			0			281
Securities available for sale		760,945			68,533			689,787			2,625			760,945
Trading securities		5,066			4,908			158			0			5,066
Loans held for sale		956			0			981			0			981
Net loans		918,799			0			0			922,845			922,845
FHLB and other equity interests		6,597			n/a			n/a			n/a			n/a
Accrued interest receivable		7,451			385			3,879			3,187			7,451
LIABILITIES
Deposits	$	(1,545,445	)	$	(1,334,227	)	$	(213,177	)	$	0		$	(1,547,404	)
FHLB and other borrowings		(75,152	)		0			(82,624	)		0			(82,624	)
Subordinated debentures		(20,620	)		0			(10,999	)		0			(10,999	)
Interest rate swaps		(1,630	)		0			(1,630	)		0			(1,630	)
Accrued interest payable		(971	)		(283	)		(671	)		(17	)		(971	)

The following table presents the carrying amount and fair value of financial instruments at December 31, 2012:

	Carrying			Fair Value Measurement Using:									Total
	Amount			Level 1			Level 2			Level 3			Fair Value
ASSETS
Cash and cash equivalents	$	31,881		$	31,881		$	0		$	0		$	31,881
Interest bearing time deposits with other banks		225			0			230			0			230
Securities available for sale		737,311			54,169			680,562			2,580			737,311
Trading securities		4,459			4,300			159			0			4,459
Loans held for sale		2,398			0			2,460			0			2,460
Net loans		913,764			0			0			917,785			917,785
FHLB and other equity interests		6,684			n/a			n/a			n/a			n/a
Accrued interest receivable		6,863			278			3,498			3,087			6,863
LIABILITIES
Deposits	$	(1,485,003	)	$	(1,272,060	)	$	(215,485	)	$	0		$	(1,487,545	)
FHLB and other borrowings		(97,806	)		0			(105,850	)		0			(105,850	)
Subordinated debentures		(20,620	)		0			(10,682	)		0			(10,682	)
Interest rate swaps		(1,745	)		0			(1,745	)		0			(1,745	)
Accrued interest payable		(1,022	)		(301	)		(707	)		(14	)		(1,022	)