Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Financial Assets Measured at Fair Value on Recurring Basis

The following table sets forth the Company's financial assets that were measured at fair value on a recurring basis at September 30, 2012 by level within the fair value hierarchy:

			Fair Value Measurements at Reporting Date Using
Description			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
September 30, 2012
Residential MBSs	$	69,039	$	—	$	69,039	$	—
Agency CMOs	509,025		—		509,025		—
Private-label CMOs	2,510		—		2,510		—
Corporate debt securities	14,558		—		14,558		—
Municipal securities	24,278		—		24,278		—
Securities available for sale	$	619,410	$	—	$	619,410	$	—

For financial assets measured at fair value on a recurring basis at December 31, 2011, the fair value measurements by level within the fair value hierarchy used were as follows:

			Fair Value Measurements at Reporting Date Using
Description			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
December 31, 2011
U.S. Government agency securities	$	22,558	$	—	$	22,558	$	—
Residential MBSs	21,412		—		21,412		—
Agency CMOs	528,163		—		528,163		—
Private-label CMOs	23,006		—		23,006		—
Corporate debt securities	18,320		—		18,320		—
Securities available for sale	$	613,459	$	—	$	613,459	$	—

Financial Assets Measured at Fair Value on Nonrecurring Basis

The fair value of real estate acquired through foreclosure is based on independent third party appraisals of the properties, less estimated selling costs. A standard discount rate of 15%, to cover estimated costs to sell the property, is generally used on the most recent appraisal to determine the fair value of the real estate. These assets are included as Level 3 fair values, based upon the lowest level of unobservable input that is significant to the fair value measurements. The carrying value of foreclosed assets, with valuation allowances recorded subsequent to initial foreclosure, was $104,000 and $3.0 million at September 30, 2012 and December 31, 2011, respectively, which are net of valuation allowances of $70,000 and $1.8 million that were established in 2012 and 2011, respectively.

The determination of the fair value of assets measured on a nonrecurring basis is sensitive to changes in economic conditions and can fluctuate in a relatively short period of time. For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used were as follows:

			Fair Value Measurements at Reporting Date Using
Description			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
September 30, 2012
Impaired loans with specific allocation	$	9,296	$	—	$	—	$	9,296
Impaired loans net of partial charge-offs	4,937		—		—		4,937
Foreclosed assets	104		—		—		104
Total	$	14,337	$	—	$	—	$	14,337

			Fair Value Measurements at Reporting Date Using
Description			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
December 31, 2011
Impaired loans with specific allocation	$	9,875	$	—	$	—	$	9,875
Impaired loans net of partial charge-offs	1,151		—		—		1,151
Foreclosed assets	3,041		—		—		3,041
Total	$	14,067	$	—	$	—	$	14,067

Estimated Fair Values of Financial Instruments

The estimated fair values of the Company's financial instruments were as follows at September 30, 2012 and December 31, 2011:

Fair Value Measurements at September 30, 2012
					Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Carrying Amount		Fair  Value		(Level 1)		(Level 2)		(Level 3)
Financial assets:
Cash and cash equivalents	$	138,468	$	138,468	$	138,468	$	—	$	—
Securities	792,909		797,360		—		797,360		—
Loans held for sale	8,851		9,024		—		—		9,024
Loans, net	1,479,394		1,494,063		—		—		1,494,063
Restricted investments in bank stock	13,725		13,725		—		—		13,725
Accrued interest receivable	6,934		6,934		6,934		—		—
Financial liabilities:
Deposits	$	2,243,932	$	2,245,730	$	—	$	—	$	2,245,730
Long-term debt	49,200		42,675		—		—		42,675
Accrued interest payable	273		273		273		—		—
Off-balance sheet instruments:
Standby letters of credit	$	—	$	—	$	—	$	—	$	—
Commitments to extend credit	—		—		—		—		—

	December 31, 2011
(in thousands)	Carrying Amount		Fair  Value
Financial assets:
Cash and cash equivalents	$	55,073	$	55,073
Securities	810,094		813,316
Loans held for sale	9,359		9,474
Loans, net	1,415,048		1,436,323
Restricted investments in bank stock	16,802		16,802
Accrued interest receivable	7,378		7,378
Financial liabilities:
Deposits	$	2,071,574	$	2,074,139
Short-term borrowings	65,000		65,000
Long-term debt	49,200		39,773
Accrued interest payable	487		487
Off-balance sheet instruments:
Standby letters of credit	$	—	$	—
Commitments to extend credit	—		—