FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value [Abstract]

Financial Assets and Liabilities at Dates Indicated that were Accounted for at Fair Value

The following tables set forth the Company’s financial assets and liabilities at the dates 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:

		September 30, 2014
(In thousands)		Quoted Prices in Active Markets for Identical Assets  (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs		Total
						(Level 3)
Assets
Residential mortgage loans held for sale	$	-	$	6,656	$	-	$	6,656
Investments available-for-sale:
U.S. government agencies		-		140,716		-		140,716
State and municipal		-		167,585		-		167,585
Mortgage-backed		-		379,904		-		379,904
Corporate debt		-		2,002		-		2,002
Trust preferred		-		-		1,177		1,177
Marketable equity securities		-		723		-		723
Interest rate swap agreements		-		1,446		-		1,446
Liabilities
Interest rate swap agreements	$	-	$	(1,446)	$	-	$	(1,446)
		December 31, 2013
(In thousands)		Quoted Prices in Active Markets for Identical Assets  (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs		Total
						(Level 3)
Assets
Residential mortgage loans held for sale	$	-	$	8,365	$	-	$	8,365
Investments available-for-sale:
U.S. government agencies		-		139,466		-		139,466
State and municipal		-		165,428		-		165,428
Mortgage-backed		-		442,250		-		442,250
Corporate debt		-		2,004		-		2,004
Trust preferred		-		-		1,413		1,413
Marketable equity securities		-		723		-		723
Interest rate swap agreements		-		1,608		-		1,608
Liabilities
Interest rate swap agreements	$	-	$	(1,608)	$	-	$	(1,608)

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 Condensed Consolidated Statements of Condition at fair value on a recurring basis for the period indicated:

		Significant Unobservable Inputs
(In thousands)		(Level 3)
Investments available-for-sale:
Balance at January 1, 2014	$	1,413
Total OTTI included in earnings		-
Principal redemption		(352)
Total unrealized losses included in other comprehensive income (loss)		116
Balance at September 30, 2014	$	1,177

Assets Measured at Fair Value on Nonrecurring Basis

The following table sets forth the Company’s financial assets subject to fair value adjustments (impairment) on a nonrecurring basis at the date 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:

		September 30, 2014
(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	$	-	$	-	$	11,220	$	11,220	$	21,384
Other real estate owned		-		-		1,762		1,762		(227)
Total	$	-	$	-	$	12,982	$	12,982	$	21,157
		December 31, 2013
(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	$	-	$	-	$	11,011	$	11,011	$	17,655
Other real estate owned		-		-		1,338		1,338		(309)
Total	$	-	$	-	$	12,349	$	12,349	$	17,346

Carrying Amounts and Fair Values of Company's Financial Instruments

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

						Fair Value Measurements
		September 30, 2014				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	$	258,762	$	260,202	$	-	$	260,202	$	-
Loans, net of allowance		2,938,338		2,882,093		-		-		2,882,093
Other assets		88,031		88,031		-		88,031		-
Financial Liabilities
Time Deposits	$	450,654	$	450,323	$	-	$	450,323	$	-
Securities sold under retail repurchase agreements and federal funds purchased		71,384		71,384		-		71,384		-
Advances from FHLB		558,000		580,738		-		580,738		-
Subordinated debentures		35,000		12,652		-		-		12,652
						Fair Value Measurements
		December 31, 2013				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	$	265,325	$	256,694	$	-	$	256,694	$	-
Loans, net of allowance		2,784,266		2,692,877		-		-		2,692,877
Other assets		86,213		86,213		-		86,213		-
Financial Liabilities
Time Deposits	$	465,737	$	465,392	$	-	$	465,392	$	-
Securities sold under retail repurchase agreements and federal funds purchased		53,842		53,842		-		53,842		-
Advances from FHLB		615,000		641,901		-		641,901		-
Subordinated debentures		35,000		11,376		-		-		11,376