Fair Value (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

	Readily Available Market Prices (Level 1)		Observable Market Data (Level 2)		Company Determined Fair Value (Level 3)		Total
At December 31, 2012
Financial Assets:
Available for sale debt securities:
Obligations of states and political subdivisions	$	-	$	33,040	$	-	$	33,040
Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises		-		358,148		-		358,148
Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises		-		381,688		-		381,688
Private issue collateralized mortgage obligations		-		8,174		-		8,174
Trading account assets		2,300		-		-		2,300
Customer interest rate swap agreement		-		496		-		496
Financial Liabilities:
Interest rate swap agreements		-		11,580		-		11,580
At December 31, 2011
Financial Assets:
Available for sale debt securities:
Obligations of U.S. government sponsored enterprises	$	-	$	30,107	$	-	$	30,107
Obligations of states and political subdivisions		-		39,758		-		39,758
Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises		-		376,934		-		376,934
Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises		-		128,450		-		128,450
Private issue collateralized mortgage obligations		-		10,641		-		10,641
Equity securities		-		4,146		-		4,146
Trading account assets		2,244		-		-		2,244
Customer interest rate swap agreement		-		211		-		211
Financial Liabilities:
Interest rate swap agreements		-		11,387		-		11,387

Summary of Assets Measured at Fair Value on Non Recurring Basis

	Readily Available Market Prices (Level 1)		Observable Market Data (Level 2)		Company Determined Fair Value (Level 3)		Total
At December 31, 2012
Assets:
Collateral-dependent impaired loans	$	-	$	-	$	9,183	$	9,183
Other real estate owned		-		-		1,313		1,313
Mortgage servicing rights		-		879		-		879
At December 31, 2011
Assets:
Impaired loans	$	-	$	-	$	18,183	$	18,183
Goodwill		-		-		276		276
Other real estate owned		-		-		1,682		1,682
Mortgage servicing rights		-		1,138		-		1,138

Valuation Methodology and Unobservable Inputs for Level Three Assets Measured at Fair Value on Non Recurring Basis

	Fair Value		Valuation Methodology		Unobservable input		Discount Range
Collateral-dependent impaired loans:⁽¹⁾
Partially charged-off	$	3,524		Market approach appraisal of collateral		Management adjustment of appraisal		10 - 30	%
Specifically reserved	$	5,659		Market approach appraisal of collateral		Management adjustment of appraisal		-	⁽²⁾
Other real estate owned	$	1,313		Market approach appraisal of collateral		Management adjustment of appraisal		10 - 30	%
						Estimated selling cost		6 - 10	%

(1)

Does not include impaired loans that are measured by the present value of expected future cash flows discounted at the loan's effective interest rate.

(2)

The specific reserve for collateral-dependent impaired loans is determined by any deficit of 75% of collateral value below the recorded investment.

Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities

					Fair Value Measurement at December 31, 2012
	Carrying Amount		Fair Value		Readily Available Market Prices (Level 1)		Observable Market Prices (Level 2)		Company Determined Market Prices (Level 3)
Financial assets:
Cash and due from banks	$	58,290	$	58,290	$	58,290	$	-	$	-
Securities available for sale		781,050		781,050		-		781,050		-
FHLB and Federal Reserve Bank stock		21,034		21,034		21,034		-		-
Trading account assets		2,300		2,300		2,300		-		-
Loans receivable, net of allowance		1,540,822		1,557,320		-		-		1,557,320
Mortgage servicing rights		542		879		-		879		-
Interest receivable		6,215		6,215		-		6,215		-
Investment in CCTA and UBCT		1,331		1,331		-		-		1,331
Customer interest rate swap agreement		496		496		-		496		-

					Fair Value Measurement at December 31, 2012
	Carrying Amount		Fair Value		Readily Available Market Prices (Level 1)		Observable Market Prices (Level 2)		Company Determined Market Prices (Level 3)
Financial liabilities:
Deposits		1,929,469		1,936,446		1,339,290		597,156		-
FHLB advances		56,404		60,813		-		60,813		-
Commercial repurchase agreements		66,187		69,067		-		69,067		-
Other borrowed funds		193,753		193,753		193,753		-		-
Junior subordinated debentures		43,819		43,819		-		43,819		-
Interest payable		905		905		905		-		-
Interest rate swap agreements		11,580		11,580		-		11,580		-

The following table presents the carrying amounts and estimated fair value for financial instrument assets and liabilities at December 31, 2011:

	December 31, 2011
	Carrying Amount		Fair Value
Financial assets:
Cash and due from banks	$	39,325	$	39,325
Securities available for sale		590,036		590,036
FHLB and Federal Reserve Bank stock		21,962		21,962
Trading account assets		2,244		2,244
Loans held for sale		6,061		6,268
Loans receivable, net of allowance		1,491,017		1,510,277
Mortgage servicing rights		768		1,138
Interest receivable		6,431		6,431
Investment in CCTA and UBCT		1,331		1,331
Customer interest rate swap agreement		211		211
Financial liabilities:
Deposits		1,591,366		1,600,222
FHLB advances		136,860		143,642
Commercial repurchase agreements		71,243		75,342
Other borrowed funds		204,413		204,413
Junior subordinated debentures		43,717		43,717
Interest payable		1,093		1,093
Interest rate swap agreements		11,387		11,387

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

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