Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Fair Value, Assets Measured on Recurring Basis

The following table presents the Company's financial instruments measured at fair value on a recurring basis at June 30, 2012 and December 31, 2011:

(dollars in thousands)	Fair value at June 30, 2012
	Level 1		Level 2		Level 3		Total
U.S. government agencies	$	-	$	81,468	$	-	$	81,468
U.S. Treasuries		-		15,042		-		15,042
Pass-through securities		-		149,156		-		149,156
Taxable state and political subdivisions		-		10,143		-		10,143
Tax exempt state and political subdivisions		-		44,876		-		44,876
Corporate obligations		-		10,361		-		10,361
Agency-issued collateralized mortgage obligations		-		9,627		-		9,627
Investments in mutual funds and other equities		-		2,004		-		2,004
Total	$	-	$	322,677	$	-	$	322,677

There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2012.

(dollars in thousands)	Fair value at December 31, 2011
	Level 1		Level 2		Level 3		Total
U.S. government agencies	$	-	$	76,574	$	-	$	76,574
U.S. Treasuries		-		42,597		-		42,597
Pass-through securities		-		117,398		-		117,398
Taxable state and political subdivisions		-		9,758		-		9,758
Tax exempt state and political subdivisions		-		37,335		-		37,335
Corporate obligations		-		10,287		-		10,287
Investments in mutual funds and other equities		-		2,006		-		2,006
Total	$	-	$	295,955	$	-	$	295,955

Fair Value Measurements, Nonrecurring [Table Text Block]

The following table presents the carrying value of financial instruments by level within the fair value hierarchy, for which a non-recurring change in fair value has been recorded:

(dollars in thousands)	Fair value at June 30, 2012
	Level 1		Level 2		Level 3		Total		Total losses for the period
Non-covered impaired loans (1)	$	-	$	-	$	44,713	$	44,713	$	(6,483	)
Non-covered other real estate owned (2)		-		-		4,414		4,414		(549	)
Covered other real estate owned (2)		-		-		23,000		23,000		-
Total	$	-	$	-	$	72,127	$	72,127	$	(7,032	)

(dollars in thousands)	Fair value at December 31, 2011
	Level 1		Level 2		Level 3		Total		Total losses for the period
Non-covered impaired loans (1)	$	-	$	-	$	44,845	$	44,845	$	(8,182	)
Non-covered other real estate owned (2)		-		-		1,976		1,976		(272	)
Covered other real estate owned (2)		-		-		26,622		26,622		-
Total	$	-	$	-	$	73,443	$	73,443	$	(8,454	)

(1) Represents carrying value and related specific valuation allowances, which are included in the allowance for loan losses.

(2) Represents the fair value and related losses of foreclosed real estate and other collateral owned that were measured at fair value subsequent to their initial classification as non-covered other real estate owned and covered other real estate owned.

Schedule of Carrying Value and Fair Value of Financial Instruments Not Recorded at Fair Value

(b) Disclosures about Fair Value of Financial Instruments: The table below is a summary of fair value estimates for financial instruments at June 30, 2012 and December 31, 2011, excluding financial instruments recorded at fair value on a recurring basis (summarized in a separate table). The carrying amounts in the following table are recorded in the statement of financial condition under the indicated captions. The Company has excluded non-financial assets and non-financial liabilities defined by the Codification (ASC 820-10-15-1A), such as Bank premises and equipment, deferred taxes and other liabilities.  In addition, the Company has not disclosed the fair value of financial instruments specifically excluded from disclosure requirements of the Financial Instruments Topic of the Codification (ASC 825-10-50-8), such as Bank-owned life insurance policies.

(dollars in thousands)		June 30, 2012
			Fair value measurements using:
		Carrying value	Total	Level 1	Level 2	Level 3
Financial assets:
	Cash and cash equivalents	$22,871	$22,871	$22,871	$-	$-
	Interest-bearing deposits	95,111	95,111	95,111	-	-
	Investment securities available for sale	322,677	322,677	-	322,677
	FHLB stock	7,576	7,576	7,576	-	-
	Loans held for sale	12,521	12,521	-	12,521	-
	Non-covered loans	814,826	803,435	-	-	803,435
	Covered loans	242,724	280,966	-	-	280,966
	Bank owned life insurance	17,628	17,628	17,628	-	-
	FDIC indemnification asset	54,867	28,098	-	-	28,098
Financial liabilities:
	Deposits	1,449,910	1,452,921	-	-	1,452,921
	Junior subordinated debentures	25,774	12,157	-	-	12,157

(dollars in thousands)	December 31, 2011
			Fair value measurements using:
	Carrying value		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	25,399	$	25,399	$	25,399	$	-	$	-
Interest-bearing deposits		80,514		80,514		80,514		-		-
Investment securities available for sale		295,955		295,955		-		295,955		-
FHLB stock		7,576		7,576		7,576		-		-
Loans held for sale		22,421		22,421		-		22,421		-
Non-covered loans		812,830		796,663		-		-		796,663
Covered loans		269,081		304,145		-		-		304,145
Bank owned life insurance		17,513		17,513		17,513		-		-
FDIC indemnification asset		65,586		41,041		-		-		41,041
Financial liabilities:
Deposits		1,466,344		1,471,615		-		-		1,471,615
Junior subordinated debentures		25,774		9,802		-		-		9,802