Fair Value Disclosures of Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Balances of Assets Measured at Fair Value

The table below presents the balances of assets measured at fair value as of September 30, 2013 (there were 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	$	—	$	108,470	$	—	$	108,470
FNMA		—		368,249		—		368,249
FHLMC		—		106,123		—		106,123
GNMA		—		98,954		—		98,954
U.S. Government and agencies		—		41,798		—		41,798
State and political subdivisions		—		83,332		—		83,332
Total assets measured at fair value on a recurring basis	$	—	$	806,926	$	—	$	806,926
Liabilities Measured at Fair Value on a nonrecurring Basis
Bonds payable	$	—	$	26,340	$	—	$	26,340
Assets Measured at Fair Value on a Nonrecurring Basis
Other real estate owned	$	—	$	—	$	7,163	$	7,163
Reverse mortgage loans		—		—		40,095		40,095
Impaired loans (collateral dependent)		—		—		43,379		43,379
Total assets measured at fair value on a nonrecurring basis	$	—	$	—	$	90,637	$	90,637

 

The table below presents the balances of assets measured at fair value as of December 31, 2012 (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	$	—	$	252,300	$	7,096		$	259,396
FNMA		—		406,255		—			406,255
FHLMC		—		59,650		—			59,650
GNMA		—		132,455		—			132,455
U.S. Government and agencies		—		46,990		—			46,990
State and political subdivisions		—		3,209		—			3,209
Reverse mortgage loans		—		—		(457	)		(457	)
Trading Securities		—		—		12,590			12,590
Total assets measured at fair value on a recurring basis	$	—	$	900,859	$	19,229		$	920,088
Assets Measured at Fair Value on a Nonrecurring Basis
Other real estate owned	$	—	$	—	$	4,622		$	4,622
Impaired loans		—		—		52,904			52,904
Total assets measured at fair value on a nonrecurring basis	$	—	$	—	$	57,526		$	57,526

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:

							Available-
	Trading			Reverse			for-sale
	Securities			Mortgages			Securities			Total
(In Thousands)
Balance at December 31, 2011	$	12,432		$	(646	)	$	3,936		$	15,722
Total net income for the period included in net income		33			12			—			45
Purchases, sales, issuances, and settlements, net		—			177			—			177
Mark-to-market adjustment		125			—			3,160			3,285
Balance at December 31, 2012	$	12,590		$	(457	)	$	7,096		$	19,229
Mark-to-market adjustment		(125	)		—			—			(125	)
Reverse mortgage securitization trust consolidation		(12,465	)		457			(7,096	)		(19,104	)
Balance at September 30, 2013	$	—		$	—		$	—		$	—

Book Value and Estimated Fair Value of Financial Instruments

The book value and estimated fair value of our financial instruments are as follows:

	Fair Value	September 30, 2013				December 31, 2012
	Measurement	Book Value		Fair Value		Book Value			Fair Value
(In Thousands)
Financial assets:
Cash and cash equivalents	Level 1	$	502,445	$	502,445	$	500,887		$	500,887
Investment securities	See previous table		806,926		806,926		920,088			920,088
Loans held for sale	Level 3		12,608		12,608		12,758			12,758
Loans, net	Level 3		2,829,992		2,818,832		2,723,916			2,746,001
Reverse mortgage loans	Level 3		40,095		40,095		(457	)		(457	)
Stock in Federal Home Loan Bank of Pittsburgh	Level 2		33,876		33,876		31,165			31,165
Accrued interest receivable	Level 2		9,833		9,833		9,652			9,652
Financial liabilities:
Deposits	Level 2		3,121,198		2,912,952		3,274,963			3,174,907
Borrowed funds	Level 2		874,615		874,534		637,266			638,375
Bonds Payable	Level 2		26,340		26,340		—			—
Standby letters of credit	Level 3		135		135		224			224
Accrued interest payable	Level 2		3,254		3,254		1,099			1,099