Fair Value (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following table presents assets and liabilities measured at fair value on a recurring basis:

Fair Value Measurements at March 31, 2013 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at March 31, 2013
Assets
Investment securities:
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	—	$	568,020	$	—	$	568,020
Obligations of states and political subdivisions	—		995		—		995
U.S. Government sponsored entities’ asset-backed securities	—		429,867		—		429,867
Equity securities	1,593		—		776		2,369
Mortgage loans held for sale	—		10,235		—		10,235
Mortgage IRLCs	—		251		—		251
Liabilities
Fair value swap	$	—	$	—	$	135	$	135

Fair Value Measurements at December 31, 2012 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2012
Assets
Investment securities:
Obligations of U.S. Treasury and other U.S. Government sponsored entities	$	—	$	695,727	$	—	$	695,727
Obligations of states and political subdivisions	—		1,003		—		1,003
U.S. Government sponsored entities’ asset-backed securities	—		415,502		—		415,502
Equity securities	1,442		—		780		2,222
Mortgage loans held for sale	—		25,743		—		25,743
Mortgage IRLCs	—		372		—		372
Liabilities
Fair value swap	$	—	$	—	$	135	$	135

Reconciliation Of Level 3 Input For Financial Instruments Measured On Recurring Basis

The table below is a reconciliation of the beginning and ending balances of the Level 3 inputs for the three months ended March 31, 2013 and 2012, for financial instruments measured on a recurring basis and classified as Level 3:

Level 3 Fair Value Measurements

Three months ended March 31, 2013 and 2012

(In thousands)	Equity Securities			Fair value swap
Balance, at January 1, 2013	$	780		$	(135	)
Total gains/(losses)
Included in earnings – realized	—			—
Included in earnings – unrealized	—			—
Included in other comprehensive income	(4		)	—
Purchases, sales, issuances and settlements, other	—			—
Periodic settlement of fair value swap	—			—
Balance at March 31, 2013	$	776		$	(135	)
Balance, at January 1, 2012	$	763		$	(700	)
Total gains/(losses)
Included in earnings – realized	—			—
Included in earnings – unrealized	—			—
Included in other comprehensive income	(7		)	—
Purchases, sales, issuances and settlements, other	—			—
Periodic settlement of fair value swap	—			565
Balance at March 31, 2012	$	756		$	(135	)

Assets And Liabilities Measured At Fair Value On A Nonrecurring Basis

The following tables present assets and liabilities measured at fair value on a nonrecurring basis. Collateral dependent impaired loans are carried at fair value if they have been charged down to fair value or if a specific valuation allowance has been established. A new cost basis is established at the time a property is initially recorded in OREO. OREO properties are carried at fair value if a devaluation has been taken to the property's value subsequent to the initial measurement.

Fair Value Measurements at March 31, 2013 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at March 31, 2013
Impaired loans:
Commercial real estate	$	—	$	—	$	25,093	$	25,093
Construction real estate:
SEPH commercial land and development	—		—		10,482		10,482
Remaining commercial	—		—		8,657		8,657
Residential real estate	—		—		7,039		7,039
Total impaired loans	$	—	$	—	$	51,271	$	51,271
Mortgage servicing rights	—		5,896		—		5,896
OREO:
Commercial real estate	—		—		4,838		4,838
Construction real estate	—		—		10,345		10,345
Residential real estate	—		—		3,166		3,166
Total OREO	$	—	$	—	$	18,349	$	18,349

Fair Value Measurements at December 31, 2012 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2012
Impaired loans:
Commercial real estate	$	—	$	—	$	25,997	$	25,997
Construction real estate:
SEPH commercial land and development	—		—		12,832		12,832
Remaining commercial	—		—		8,113		8,113
Residential real estate	—		—		6,990		6,990
Total impaired loans	$	—	$	—	$	53,932	$	53,932
Mortgage servicing rights	—		6,642		—		6,642
OREO:
Commercial real estate	—		—		3,485		3,485
Construction real estate	—		—		12,134		12,134
Residential real estate	—		—		4,307		4,307
Total OREO	$	—	$	—	$	19,926	$	19,926

Qualitative Information about Level 3 Fair Value Measurements Measured on Non-Recurring Basis

The following tables present qualitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at March 31, 2013 and December 31, 2012:

March 31, 2013
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial real estate	$	25,093	Sales comparison approach	Adj to comparables	0.0% - 111.0% (21.7%)
			Income approach	Capitalization rate	7.5% - 20.9% (9.7%)
			Cost approach	Accumulated depreciation	38.0% - 65.0% (53.1%)
Construction real estate:
SEPH commercial land and development	$	10,482	Sales comparison approach	Adj to comparables	0.0% - 218.0% (23.3%)
			Bulk sale approach	Discount rate	11.0% - 55.0% (25.4%)
Remaining commercial	$	8,657	Sales comparison approach	Adj to comparables	0.0% - 75.0% (27.7%)
			Bulk sale approach	Discount rate	11.0% - 55.0% (17.9%)
Residential real estate	$	7,039	Sales comparison approach	Adj to comparables	0.0% - 178.0% (17.5%)
			Income approach	Capitalization rate	7.8% - 10.5% (8.2%)
Other real estate owned:
Commercial real estate	$	4,838	Sales comparison approach	Adj to comparables	0.0% - 85.0% (35.8%)
			Income approach	Capitalization rate	8.5% - 11.5% (9.9%)
			Bulk sale approach	Discount rate	10.0% - 13.0% (2.1%)
			Cost approach	Accumulated depreciation	40.0% - 90.0% (65.0%)
Construction real estate	$	10,345	Sales comparison approach	Adj to comparables	0.0% - 312.0% (30.4%)
			Bulk sale approach	Discount rate	13.0% (13.0%)
Residential real estate	$	3,166	Sales comparison approach	Adj to comparables	0.0% - 173.7% (19.0%)
			Income approach	Capitalization rate	7.9% - 9.3% (8.5%)
			Cost approach	Accumulated depreciation	6.0% (6.0%)

December 31, 2012
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Commercial real estate	$	25,997	Sales comparison approach	Adj to comparables	0.0% - 116.0% (22.3%)
			Income approach	Capitalization rate	7.5% - 20.9% (10.1%)
			Cost approach	Accumulated depreciation	23.0% - 63.0% (50.4%)
Construction real estate:
SEPH commercial land and development	$	12,832	Sales comparison approach	Adj to comparables	0.0% - 218.0% (31.9%)
			Bulk sale approach	Discount rate	11.0% - 55.0% (23.4%)
Remaining commercial	$	8,113	Sales comparison approach	Adj to comparables	0.0% - 75.0% (26.2%)
			Bulk sale approach	Discount rate	10.0% - 55.0% (18.3%)
Residential real estate	$	6,990	Sales comparison approach	Adj to comparables	0.0% - 178.0% (17.9%)
Other real estate owned:
Commercial real estate	$	3,485	Sales comparison approach	Adj to comparables	0.0% - 67.0% (25.8%)
			Income approach	Capitalization rate	11.0% (11.0%)
			Bulk sale approach	Discount rate	13.0% (13.0%)
			Cost approach	Accumulated depreciation	40.9% - 90.0% (65.0%)
Construction real estate	$	12,134	Sales comparison approach	Adj to comparables	0.0% - 273.0% (34.0%)
			Income approach	Capitalization rate	8.5% (8.5%)
			Bulk sale approach	Discount rate	10.0% - 12.0% (10.8%)
Residential real estate	$	4,307	Sales comparison approach	Adj to comparables	1.0% - 61.0% (18.0%)
			Income approach	Capitalization rate	7.9% - 9.3% (8.7%)
			Cost approach	Accumulated depreciation	6.0% (6.0%)

Fair Value, by Balance Sheet Grouping

The fair value of financial instruments at March 31, 2013 and December 31, 2012, was as follows:

	March 31, 2013
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	520,512	$	520,512	$	—	$	—	$	520,512
Investment securities	1,286,501		1,593		1,293,196		776		1,295,565
Accrued interest receivable - securities	4,030		—		4,030		—		4,030
Accrued interest receivable - loans	14,541		—		—		14,541		14,541
Mortgage loans held for sale	10,235		—		10,235		—		10,235
Mortgage IRLCs	251		—		251		—		251
Impaired loans carried at fair value	51,271		—		—		51,271		51,271
Other loans	4,326,451		—		—		4,344,928		4,344,928
Loans receivable, net	$	4,388,208	$	—	$	10,486	$	4,396,199	$	4,406,685
Financial liabilities:
Noninterest bearing checking accounts	$	1,119,902	$	1,119,902	$	—	$	—	$	1,119,902
Interest bearing transactions accounts	1,290,108		1,290,108		—		—		1,290,108
Savings accounts	1,091,381		1,091,381		—		—		1,091,381
Time deposits	1,412,354		—		1,418,673		—		1,418,673
Other	2,796		2,796		—		—		2,796
Total deposits	$	4,916,541	$	3,504,187	$	1,418,673	$	—	$	4,922,860
Short-term borrowings	$	244,002	$	—	$	244,002	$	—	$	244,002
Long-term debt	782,845		—		859,396		—		859,396
Subordinated debentures/notes	80,250		—		79,380		—		79,380
Accrued interest payable – deposits	1,895		32		1,863		—		1,895
Accrued interest payable – debt/borrowings	1,508		15		1,493		—		1,508
Derivative financial instruments:
Fair value swap	$	135	$	—	$	—	$	135	$	135

	December 31, 2012
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	201,305	$	201,305	$	—	$	—	$	201,305
Investment securities	1,515,844		1,442		1,522,937		780		1,525,159
Accrued interest receivable - securities	6,122		—		6,122		—		6,122
Accrued interest receivable - loans	13,588		—		2		13,586		13,588
Mortgage loans held for sale	25,743		—		25,743		—		25,743
Mortgage IRLCs	372		—		372		—		372
Impaired loans carried at fair value	53,932		—		—		53,932		53,932
Other loans	4,314,738		—		—		4,348,705		4,348,705
Loans receivable, net	$	4,394,785	$	—	$	26,115	$	4,402,637	$	4,428,752
Financial liabilities:
Noninterest bearing checking accounts	$	1,137,290	$	1,137,290	$	—	—		$	1,137,290
Interest bearing transactions accounts	1,088,617		1,088,617		—		—		1,088,617
Savings accounts	1,038,356		1,038,356		—		—		1,038,356
Time deposits	1,450,424		—		1,458,793		—		1,458,793
Other	1,345		1,345		—		—		1,345
Total deposits	$	4,716,032	$	3,265,608	$	1,458,793	$	—	$	4,724,401
Short-term borrowings	$	344,168	$	—	$	344,168	$	—	$	344,168
Long-term debt	781,658		—		861,466		—		861,466
Subordinated debentures/notes	80,250		—		79,503		—		79,503
Accrued interest payable – deposits	1,960		21		1,939		—		1,960
Accrued interest payable – debt/borrowings	1,499		8		1,491		—		1,499
Derivative financial instruments:
Fair value swap	135		—		—		135		135