FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Financial assets and Liabilities at Dates Indicated that were Accounted for or Disclosed at Fair Value

The following tables set forth the Company’s financial assets and liabilities at the December 31 for the years indicated that were accounted for or disclosed at fair value. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	2012
	Quoted Prices in					Significant
	Active Markets for		Significant Other			Unobservable
	Identical Assets		Observable Inputs			Inputs
(In thousands)	(Level 1)		(Level 2)			(Level 3)		Total
Assets
Residential mortgage loans held for sale	$	-	$	36,149		$	-	$	36,149
Investments available-for-sale:
U.S. government agencies		-		156,428			-		156,428
State and municipal		-		174,491			-		174,491
Mortgage-backed		-		490,479			-		490,479
Corporate debt		-		1,996			-		1,996
Trust preferred		-		-			1,465		1,465
Marketable equity securities		-		723			-		723
Interest rate swap agreements		-		1,280			-		1,280
Liabilities
Interest rate swap agreements	$	-	$	(1,280	)	$	-	$	(1,280	)

	2011
	Quoted Prices in					Significant
	Active Markets for		Significant Other			Unobservable
	Identical Assets		Observable Inputs			Inputs
(In thousands)	(Level 1)		(Level 2)			(Level 3)		Total
Assets
Residential mortgage loans held for sale	$	-	$	25,341		$	-	$	25,341
Investments available-for-sale:
U.S. government agencies		-		200,252			-		200,252
State and municipal		-		173,111			-		173,111
Mortgage-backed		-		570,144			-		570,144
Corporate debt		-		1,978			-		1,978
Trust preferred		3,249		-			2,467		5,716
Marketable equity securities		-		100			-		100
Interest rate swap agreements		-		1,529			-		1,529
Liabilities
Interest rate swap agreements	$	-	$	(1,529	)	$	-	$	(1,529	)

Unrealized Losses Included in Assets Measured in Condensed Consolidated Statements of Condition at Fair Value on a Recurring Basis

The following table provides unrealized losses included in assets measured in the Consolidated Statements of Condition at fair value on a recurring basis for the periods indicated:

	Significant
	Unobservable
	Inputs
(In thousands)	(Level 3)
Investments available-for-sale:
Balance at January 1, 2012	$	2,467
Total OTTI included in earnings		(109	)
Principal redemption		(1,134	)
Total unrealized losses included in other comprehensive income (loss)		241
Balance at December 31, 2012	$	1,465

Assets Measured at Fair Value on Nonrecurring Basis

Assets Measured at Fair Value on a Nonrecurring Basis

The following table sets forth the Company’s financial assets subject to fair value adjustments (impairment) on a nonrecurring basis at December 31 for the year indicated that are valued at the lower of cost or market. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	2012
	Quoted Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable
(In thousands)	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total		Total Losses
Impaired loans	$	-	$	-	$	43,624	$	43,624	$	(6,730	)
Other real estate owned		-		-		5,926		5,926		(188	)
Total	$	-	$	-	$	49,550	$	49,550	$	(6,918	)

	2011
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Total Losses
Impaired loans	$	-	$	-	$	59,784	$	59,784	$	(5,565	)
Other real estate owned		-		-		4,431		4,431		(786	)
Total	$	-	$	-	$	64,215	$	64,215	$	(6,351	)

Carrying Amounts And Fair Values of Company's Financial Instruments

The carrying amounts and fair values of the Company’s financial instruments at December 31 for the year indicated are presented in the following table:

					Fair Value Measurements
	2012				Quoted Prices in
			Estimated		Active Markets for		Significant Other		Significant
	Carrying		Fair		Identical Assets		Observable Inputs		Unobservable Inputs
(In thousands)	Amount		Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Investments held-to-maturity and other equity securities	$	249,450	$	255,660	$	-	$	255,660	$	-
Loans, net of allowance		2,488,171		2,453,314		-		-		2,453,314
Other assets		83,714		83,714		-		83,714		-
Financial Liabilities
Time Deposits	$	524,820	$	528,074	$	-	$	528,074	$	-
Securities sold under retail repurchase agreements and federal funds purchased		86,929		86,929		-		86,929		-
Advances from FHLB		405,058		451,408		-		451,408		-
Subordinated debentures		35,000		9,919		-		-		9,919

					Fair Value Measurements
	2011				Quoted Prices in
			Estimated		Active Markets for		Significant Other		Significant
	Carrying		Fair		Identical Assets		Observable Inputs		Unobservable Inputs
(In thousands)	Amount		Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets
Investments held-to-maturity and other equity securities	$	213,398	$	219,100	$	-	$	219,100	$	-
Loans, net of allowance		2,190,266		2,276,333		-		-		2,276,333
Other assets		81,098		81,098		-		81,098		-
Financial Liabilities
Time Deposits	$	584,321	$	588,818	$	-	$	588,818	$	-
Securities sold under retail repurchase agreements and federal funds purchased		143,613		143,613		-		143,613		-
Advances from FHLB		405,408		452,378		-		452,378		-
Subordinated debentures		35,000		9,810		-		-		9,810