Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Measurements [Abstract]

Summary of assets measured at fair value on a recurring basis

The following table presents the Company's assets measured at fair value on a recurring basis for the years ending Decmber 31, 2012 and 2011:

(dollars in thousands)	Fair Value at December 31, 2012
	Level 1		Level 2		Level 3		Total
U.S. government agencies	$	-	$	88,586	$	-	$	88,586
Residential pass-through securities		-		168,423		-		168,423
Taxable state and political subdivisions		-		5,312		-		5,312
Tax exempt state and political subdivisions		-		58,985		-		58,985
Corporate obligations		-		10,435		-		10,435
Agency-issued collateralized mortgage obligations		-		14,046		-		14,046
Asset-backed securities		-		25,188		-		25,188
Investments in mutual funds and other equities		-		1,993		-		1,993
Total	$	-	$	372,968	$	-	$	372,968

(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
Residential 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

Summary of assets measured at fair value on a nonrecurring basis

The following table presents the Company's assets measured at fair value on a nonrecurring basis for the years ended December 31, 2012 and 2011:

(dollars in thousands)	December 31, 2012
	Level 1		Level 2		Level 3		Total		Total losses for the period
Non-covered impaired loans (1)	$	-	$	-	$	38,299	$	38,299	$	(8,485	)
Non-covered other real estate owned (2)		-		-		3,023		3,023		(844	)
Covered other real estate owned (2)		-		-		13,460		13,460		(3,704	)
Total	$	-	$	-	$	54,782	$	54,782	$	(13,033	)

(dollars in thousands)	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		(6,672	)
Total	$	-	$	-	$	73,443	$	73,443	$	(15,126	)

(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.

Summary of carrying value and estimated fair value of financial instruments

(b) Disclosures about Fair Value of Financial Instruments: The table below is a summary of fair value estimates for financial instruments at December 31, 2012 and 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 condition under the indicated captions. The Company has excluded non-financial assets and non-financial liabilities such as Bank premises and equipment, deferred taxes and other liabilities.

(dollars in thousands)	December 31, 2012
			Fair value measurements using:
	Carrying value		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	32,145	$	32,145	$	32,145	$	-	$	-
Interest-bearing deposits		75,428		75,428		75,428		-		-
Investment securities available for sale		372,968		372,968		-		372,968		-
FHLB stock		7,441		7,441		7,441		-		-
Loans held for sale		18,043		18,043		-		18,043		-
Non-covered loans		853,134		858,660		-		-		858,660
Covered loans		217,339		234,396		-		-		234,396
Bank owned life insurance		17,704		17,704		17,704		-		-
FDIC indemnification asset		34,571		22,630		-		-		22,630
Financial liabilities:
Deposits		1,462,973		1,468,189		-		-		1,468,189
Junior subordinated debentures		25,774		12,155		-		-		12,155

(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		821,964		-		-		821,964
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