FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS (Tables)
|
6 Months Ended |
Jun. 30, 2012
|
Balances of Assets Measured at Fair Value |
The table below presents
the balances of assets measured at fair value as of June 30,
2012 (there are no material liabilities measured at fair
value):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Quoted
Prices
in
Active
Markets
for
Identical
Asset
(Level
1) |
|
|
Significant
Other
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level
3) |
|
|
Total
Fair
Value |
|
|
|
(in Thousands) |
|
Assets Measured at Fair
Value on a Recurring Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized mortgage
obligations
|
|
$ |
— |
|
|
$ |
241,346 |
|
|
$ |
4,345 |
|
|
$ |
245,691 |
|
FNMA
|
|
|
— |
|
|
|
375,557 |
|
|
|
— |
|
|
|
375,557 |
|
FHLMC
|
|
|
— |
|
|
|
77,843 |
|
|
|
— |
|
|
|
77,843 |
|
GNMA
|
|
|
— |
|
|
|
57,105 |
|
|
|
— |
|
|
|
57,105 |
|
U.S. Government and
agencies
|
|
|
— |
|
|
|
48,019 |
|
|
|
— |
|
|
|
48,019 |
|
State and political
subdivisions
|
|
|
— |
|
|
|
3,670 |
|
|
|
— |
|
|
|
3,670 |
|
Reverse
mortgages
|
|
|
— |
|
|
|
— |
|
|
|
(632 |
) |
|
|
(632 |
) |
Trading
Securities
|
|
|
— |
|
|
|
— |
|
|
|
12,465 |
|
|
|
12,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets measured at
fair value on a recurring basis
|
|
$ |
— |
|
|
$ |
803,540 |
|
|
$ |
16,178 |
|
|
$ |
819,718 |
|
Assets Measured at Fair
Value on a Nonrecurring Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
9,246 |
|
|
$ |
9,246 |
|
Impaired Loans
|
|
|
— |
|
|
|
— |
|
|
|
50,958 |
|
|
|
50,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets measured at
fair value on a nonrecurring basis
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
60,204 |
|
|
$ |
60,204 |
|
The table below presents
the balances of assets measured at fair value as of
December 31, 2011 (there are no material liabilities measured
at fair value):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quoted
Prices
in
Active
Markets for
Identical
Asset
|
|
|
Significant
Other
Observable
Inputs |
|
|
Significant
Unobservable
Inputs |
|
|
Total |
|
Description
|
|
(Level
1) |
|
|
(Level
2) |
|
|
(Level
3) |
|
|
Fair
Value |
|
|
|
(in Thousands) |
|
Assets Measured at Fair
Value on a Recurring Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized mortgage
obligations
|
|
$ |
— |
|
|
$ |
324,450 |
|
|
$ |
3,936 |
|
|
$ |
328,386 |
|
FNMA
|
|
|
— |
|
|
|
329,354 |
|
|
|
— |
|
|
|
329,354 |
|
FHLMC
|
|
|
— |
|
|
|
95,086 |
|
|
|
— |
|
|
|
95,086 |
|
GNMA
|
|
|
— |
|
|
|
63,967 |
|
|
|
— |
|
|
|
63,967 |
|
U.S. Government and
agencies
|
|
|
— |
|
|
|
39,025 |
|
|
|
— |
|
|
|
39,025 |
|
State and political
subdivisions
|
|
|
— |
|
|
|
4,190 |
|
|
|
— |
|
|
|
4,190 |
|
Reverse
mortgages
|
|
|
— |
|
|
|
— |
|
|
|
(646 |
) |
|
|
(646 |
) |
Trading
Securities
|
|
|
— |
|
|
|
— |
|
|
|
12,432 |
|
|
|
12,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets measured at
fair value on a recurring basis
|
|
$ |
— |
|
|
$ |
856,072 |
|
|
$ |
15,722 |
|
|
$ |
871,794 |
|
Assets Measured at Fair
Value on a Nonrecurring Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned
|
|
$ |
— |
|
|
$ |
11,695 |
|
|
$ |
— |
|
|
$ |
11,695 |
|
Impaired Loans
|
|
|
— |
|
|
|
74,562 |
|
|
|
— |
|
|
|
74,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets measured at
fair value on a nonrecurring basis
|
|
$ |
— |
|
|
$ |
86,257 |
|
|
$ |
— |
|
|
$ |
86,257 |
|
|
Assets Measured at Fair Value on Recurring Basis |
The changes in Level 3
assets measured at fair value on a recurring basis are summarized
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading
Securities |
|
|
Reverse
Mortgages |
|
|
Available-
for-sale
Securities |
|
|
Total |
|
(In Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31,
2010
|
|
$ |
12,432 |
|
|
$ |
(686 |
) |
|
$ |
— |
|
|
$ |
11,746 |
|
Total net income (losses)
for the period included in net income
|
|
|
— |
|
|
|
(137 |
) |
|
|
265 |
|
|
|
128 |
|
Purchases, sales,
issuances, and settlements, net
|
|
|
— |
|
|
|
177 |
|
|
|
2,755 |
|
|
|
2,932 |
|
Mark-to-market
adjustment
|
|
|
— |
|
|
|
— |
|
|
|
916 |
|
|
|
916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31,
2011
|
|
$ |
12,432 |
|
|
$ |
(646 |
) |
|
|
3,936 |
|
|
$ |
15,722 |
|
Total net income (losses)
for the period included in net income
|
|
|
33 |
|
|
|
(29 |
) |
|
|
— |
|
|
|
4 |
|
Purchases, sales,
issuances, and settlements, net
|
|
|
— |
|
|
|
45 |
|
|
|
— |
|
|
|
45 |
|
Mark-to-market
adjustment
|
|
|
— |
|
|
|
— |
|
|
|
(436 |
) |
|
|
(436 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31,
2012
|
|
$ |
12,465 |
|
|
$ |
(630 |
) |
|
$ |
3,500 |
|
|
$ |
15,335 |
|
Total net income (losses)
for the period included in net income
|
|
|
— |
|
|
|
(47 |
) |
|
|
— |
|
|
|
(47 |
) |
Purchases, sales,
issuances, and settlements, net
|
|
|
— |
|
|
|
45 |
|
|
|
— |
|
|
|
45 |
|
Mark-to-market
adjustment
|
|
|
— |
|
|
|
— |
|
|
|
845 |
|
|
|
845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30,
2012
|
|
$ |
12,465 |
|
|
$ |
(632 |
) |
|
$ |
4,345 |
|
|
$ |
16,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value and Estimated Fair Value of Financial Instruments |
The book value
and estimated fair value of our financial instruments are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Fair
Value |
|
|
June 30,
2012 |
|
|
December 31,
2011 |
|
|
|
Measurement |
|
|
Book
Value |
|
|
Fair
Value |
|
|
Book Value |
|
|
Fair Value |
|
(In
Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
Level 1 |
|
|
$ |
467,251 |
|
|
$ |
467,251 |
|
|
$ |
468,017 |
|
|
$ |
468,017 |
|
Investment
securities
|
|
|
See Footnote 7 |
|
|
|
819,718 |
|
|
|
819,718 |
|
|
|
871,794 |
|
|
|
871,794 |
|
Loans held for
sale
|
|
|
Level 3 |
|
|
|
19,552 |
|
|
|
19,552 |
|
|
|
10,185 |
|
|
|
10,185 |
|
Loans, net
|
|
|
Level 3 |
|
|
|
2,657,513 |
|
|
|
2,675,264 |
|
|
|
2,702,589 |
|
|
|
2,721,804 |
|
Stock in Federal Home Loan
Bank of Pittsburgh
|
|
|
Level 2 |
|
|
|
33,364 |
|
|
|
33,364 |
|
|
|
35,756 |
|
|
|
35,756 |
|
Accrued interest
receivable
|
|
|
Level 2 |
|
|
|
10,098 |
|
|
|
10,098 |
|
|
|
11,743 |
|
|
|
11,743 |
|
Financial
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
Level 2 |
|
|
|
3,164,369 |
|
|
|
3,072,415 |
|
|
|
3,135,304 |
|
|
|
3,087,464 |
|
Borrowed funds
|
|
|
Level 2 |
|
|
|
588,724 |
|
|
|
594,858 |
|
|
|
723,620 |
|
|
|
731,522 |
|
Standby letters of
credit
|
|
|
Level 3 |
|
|
|
221 |
|
|
|
221 |
|
|
|
322 |
|
|
|
322 |
|
Accrued interest
payable
|
|
|
Level 2 |
|
|
|
5,184 |
|
|
|
5,184 |
|
|
|
1,910 |
|
|
|
1,910 |
|
|
Estimated Fair Value of Off-Balance Sheet Financial Instruments |
The estimated
fair value of our off-balance sheet financial instruments is as
follows:
|
|
|
|
|
|
|
|
|
|
|
June 30, 2012 |
|
|
December 31,
2011 |
|
(In
Thousands)
|
|
|
|
|
|
|
|
|
Off-balance sheet
instruments:
|
|
|
|
|
|
|
|
|
Commitments to extend
credit
|
|
$ |
4,738 |
|
|
$ |
4,445 |
|
|