FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of assets measured at fair value on a recurring and non-recurring basis

Assets measured at fair value on a recurring basis as of December 31 were as follows (in $1,000s):

	2012				2011
	Total		Significant Other Observable Inputs (Level 2)		Total		Significant Other Observable Inputs (Level 2)

Investment securities available for sale:
United States treasury	$	3,500	$	3,500	$	4,013	$	4,013
United States government agencies		3,987		3,987
Mortgage-backed		8,219		8,219		10,592		10,592
Municipalities						278		278

	$	15,706	$	15,706	$	14,883	$	14,883

Assets measured at fair value on a nonrecurring basis as of December 31 were as follows (in $1,000s):

	2012				2011
	Total		Significant Unobservable Inputs (Level 3)		Total		Significant Unobservable Inputs (Level 3)

Impaired loans ⁽¹⁾	$	116,977	$	116,977	$	175,084	$	175,084

Other real estate owned ⁽¹⁾	$	80,963	$	80,963	$	94,300	$	94,300

⁽¹⁾	Represents carrying value based on the appraised value of the applicable collateral or other real estate owned or other estimates of fair value (less estimated costs to sell).

Carrying values and estimated fair value of financial instruments

Carrying values and estimated fair values of financial instruments based upon the accounting guidance set forth in Accounting Standards Codification 825-10 were as follows at December 31 (in $1,000s):

			2012						2011
	Level Used to Measure Estimated Fair Value		Carrying Value			Estimated Fair Value			Carrying Value			Estimated Fair Value
Financial assets:
Cash		1	$	56,582		$	56,582		$	37,162		$	37,162
Cash equivalents		2		270,265			270,265			315,205			315,205
Loans held for sale		2								2,129			2,129
Investment securities:
Available for sale		2		15,706			15,706			14,883			14,883
Held for long-term investment		3		2,736			2,736			2,737			1,981
				18,442			18,442			17,620			16,864
Federal Home Loan Bank and Federal Reserve Bank stock		2		10,531			10,531			12,807			12,807
Portfolio loans:
Loans secured by real estate:
Commercial		3		756,970			753,298			893,644			890,033
Residential (including multi-family)		3		253,693			253,625			325,730			325,044
Construction, land development and other land		3		56,425			56,523			102,414			102,431
Total loans secured by real estate				1,067,088			1,063,446			1,321,788			1,317,508
Commercial and other business-purpose loans		3		128,096			127,816			178,417			178,402
Consumer		3		9,324			9,565			12,216			12,395
Other		3		2,159			2,029			2,779			2,544
Total portfolio loans				1,206,667			1,202,856			1,515,200			1,510,849
Less allowance for loan losses		3		(63,455	)		(63,455	)		(85,788	)		(85,788	)
Net portfolio loans				1,143,212			1,139,401			1,429,412			1,425,061

Financial liabilities:
Deposits:
Noninterest-bearing		1		323,411			323,411			325,607			325,607
Interest-bearing:
Demand accounts		2		475,176			475,176			486,120			486,120
Time certificates of less than $100,000		3		315,647			318,385			451,795			456,974
Time certificates of $100,000 or more		3		429,634			432,444			566,680			570,807
Total interest-bearing deposits				1,220,457			1,226,005			1,504,595			1,513,901
Total deposits				1,543,868			1,549,416			1,830,202			1,839,508
Notes payable and short-term borrowings		3		8,428			9,671			50,445			50,824
Subordinated debentures		3								149,156			123,452

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring and/or nonrecurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 14

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 18

-Subparagraph c(2), d, e, f

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15

-Subparagraph b-d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph a, b, c(1), d(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

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-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-Subparagraph a, c(1), c(2), c(3), d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 12

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

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-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

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