ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2013

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS

Schedule of assets and liabilities measured on a recurring basis

Fair Value Measurements at

June 30, 2013 Using:

Significant

Quoted Prices In

Other

Significant

Active Markets for

Observable

Unobservable

Carrying

Identical Assets

Inputs

(In thousands)

Value

(Level 1)

(Level 2)

(Level 3)

Financial Assets:

Available for sale securities:

U.S. GSE securities

158,798

State and municipal obligations

58,950

U.S. GSE residential mortgage-backed securities

21,360

U.S. GSE residential collateralized mortgage obligations

269,070

U.S. GSE commercial mortgage-backed securities

3,005

U.S. GSE commercial collateralized mortgage obligations (1)

5,202

Non Agency commercial mortgage-backed securities

4,259

Other Asset backed securities

30,306

Total available for sale

550,950

Derivatives

111

				Fair Value Measurements at
				December 31, 2012 Using:
					Significant
				Quoted Prices In	Other			Significant
				Active Markets for	Observable			Unobservable
	Carrying			Identical Assets	Inputs			Inputs
(In thousands)	Value			(Level 1)	(Level 2)			(Level 3)
Financial Assets:
Available for sale securities:
U.S. GSE securities	$	178,452			$	178,452
State and municipal obligations	59,963				59,963
U.S. GSE residential mortgage-backed securities	20,597				20,597
U.S. GSE residential collateralized mortgage obligations	226,446				226,446
U.S. GSE commercial mortgage-backed securities	3,138				3,138
U.S. GSE commercial collateralized mortgage obligations	9,357				9,357
Non Agency commercial mortgage-backed securities	4,989				4,989
Other Asset backed securities	26,128				26,128
Total available for sale	$	529,070			$	529,070

Financial Liabilities:
Derivatives	$	(176	)		$	(176	)

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

Fair Value Measurements at

June 30, 2013 Using:

Significant

Quoted Prices In

Other

Significant

Active Markets for

Observable

Unobservable

Carrying

Identical Assets

Inputs

(In thousands)

Value

(Level 1)

(Level 2)

(Level 3)

Impaired loans

1,337

Fair Value Measurements at

December 31, 2012 Using:

Significant

Quoted Prices In

Other

Significant

Active Markets for

Observable

Unobservable

Carrying

Identical Assets

Inputs

(In thousands)

Value

(Level 1)

(Level 2)

(Level 3)

Impaired loans

178

Schedule of estimated fair values and recorded carrying values of financial instruments

Fair Value Measurements at

June 30, 2013 Using:

Significant

Quoted Prices In

Other

Significant

Active Markets for

Observable

Unobservable

Carrying

Identical Assets

Inputs

(In thousands)

Amount

(Level 1)

(Level 2)

(Level 3)

Total

Financial assets:

Cash and due from banks

35,581

—

35,581

Interest bearing deposits with banks

5,241

—

5,241

—

5,241

Securities available for sale

550,950

—

550,950

—

550,950

Securities restricted

5,999

n/a

Securities held to maturity

191,907

—

190,812

—

190,812

Loans, net

885,813

—

892,163

Derivatives

111

—

111

—

111

Accrued interest receivable

5,568

—

2,586

2,982

5,568

Financial liabilities:

Certificates of deposit

156,599

—

157,357

—

157,357

Demand and other deposits

1,298,508

—

1,298,508

Federal funds purchased and

—

Federal Home Loan Bank overnight borrowings

95,500

95,494

—

95,494

Federal Home Loan Bank term advances

15,000

—

14,894

—

14,894

Repurchase agreements

11,301

—

11,817

—

11,817

Junior Subordinated Debentures

16,002

—

15,772

Accrued interest payable

160

—

160

			Fair Value Measurements at
			December 31, 2012 Using:
					Significant
			Quoted Prices In		Other		Significant
			Active Markets for		Observable		Unobservable
	Carrying		Identical Assets		Inputs		Inputs
(In thousands)	Amount		(Level 1)		(Level 2)		(Level 3)		Total
Financial assets:
Cash and due from banks	$	46,855	$	46,855	$	—	$	—	$	46,855
Interest bearing deposits with banks	4,394		—		4,394		—		4,394
Securities available for sale	529,070		—		529,070		—		529,070
Securities restricted	2,978		n/a		n/a		n/a		n/a
Securities held to maturity	210,735		—		213,702		—		213,702
Loans, net	784,007		—		—		807,597		807,597
Accrued interest receivable	5,436		—		2,945		2,491		5,436

Financial liabilities:
Certificates of deposit	157,248		—		158,764		—		158,764
Demand and other deposits	1,252,074		1,252,074		—		—		1,252,074
Federal funds purchased and
Federal Home Loan Bank overnight borrowings	44,500		44,500		—		—		44,500
Federal Home Loan Bank term advances	15,000		—		14,824		—		14,824
Repurchase agreements	12,390		—		13,064		—		13,064
Junior Subordinated Debentures	16,002		—		—		17,101		17,101
Derivatives	176		—		176		—		176
Accrued interest payable	147		1		146		—		147

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

+ References+ Details

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 10

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 6: 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 7: 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 8: 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 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 30

-Subparagraph (a)

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

Reference 10: 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 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 45

-Paragraph 2

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

Reference 12: 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.

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