Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Information about the Company's assets and liabilities measured at fair value on a recurring basis

The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated.

			Fair Value Measurements At September 30, 2013, Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Available-for-Sale Securities:
Government Agency & Government-Sponsored Entities	$	28,643	$	23,587	$	5,056	$	-
Mortgage Backed Securities		342,077		-		342,077		-
Corporate Securities		49,761		8,171		41,590		-
Other		1,284		974		310		-
Total Assets Measured at Fair Value On a Recurring Basis	$	421,765	$	32,732	$	389,033	$	-

			Fair Value Measurements At December 31, 2012, Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Available-for-Sale Securities:
Government Agency & Government-Sponsored Entities	$	26,823	$	21,731	$	5,092	$	-
Obligations of States and Political Subdivisions		5,665		-		-		5,665
Mortgage Backed Securities		352,772		-		352,772		-
Corporate Securities		22,558		4,020		18,538		-
Other		10,173		9,863		310		-
Total Assets Measured at Fair Value On a Recurring Basis	$	417,991	$	35,614	$	376,712	$	5,665

			Fair Value Measurements At September 30, 2012, Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Available-for-Sale Securities:
Government Agency & Government-Sponsored Entities	$	46,971	$	10,627	$	36,344	$	-
Obligations of States and Political Subdivisions		5,704		-		-		5,704
Mortgage Backed Securities		389,812		-		389,812		-
Corporate Securities		14,864		-		14,864		-
Other		5,826		5,516		310		-
Total Assets Measured at Fair Value On a Recurring Basis	$	463,177	$	16,143	$	441,330	$	5,704

Changes in level 3 assets measured at fair value on a recurring basis

The following table presents changes in level 3 assets measured at fair value on a recurring basis.


	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2013			2012			2013			2012
Balance at Beginning of Period	$	5,612		$	5,724		$	5,665		$	5,782
Total Realized and Unrealized Gains/(Losses) Included in Income		-			-			-			-
Total Unrealized Gains/(Losses) Included in Other Comprehensive Income		-			-			-			-
Purchase of Securities		-			-			-			-
Sales, Maturities, and Calls of Securities		(31	)		(20	)		(84	)		(78	)
Net Transfers out of Available for Sale Securities		(5,581	)		-			(5,581	)		-
Balance at End of Period	$	-		$	5,704		$	-		$	5,704

Information about the Company's assets and liabilities measured at fair value on a non-recurring basis

The following tables present information about the Company’s impaired loans & leases and other real estate, classes of assets or liabilities that the Company carries at fair value on a non-recurring basis, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value for the periods indicated. Not all impaired loans & leases are carried at fair value. Impaired loans & leases are only included in the following tables when their fair value is based upon an appraisal of the collateral, and if that appraisal results in a partial charge-off or the establishment of a specific reserve.

			Fair Value Measurements At Setember 30, 2013, Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Impaired Loans
Residential 1st Mortgage	$	477	$	-	$	-	$	477
Home Equity Lines and Loans		293		-		-		293
Agricultural		366		-		-		366
Commercial		228		-		-		228
Total Impaired Loans		1,364		-		-		1,364
Other Real Estate
Real Estate Construction		2,398		-		-		2,398
Agricultural Real Estate		1,268		-		-		1,268
Total Other Real Estate		3,666		-		-		3,666
Total Assets Measured at Fair Value On a Non-Recurring Basis	$	5,030	$	-	$	-	$	5,030

			Fair Value Measurements At December 31, 2012, Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Impaired Loans
Residential 1st Mortgage	$	235	$	-	$	-	$	235
Home Equity Lines and Loans		462		-		-		462
Agricultural		1,010		-		-		1,010
Total Impaired Loans		1,707		-		-		1,707
Other Real Estate
Real Estate Construction		2,553		-		-		2,553
Total Other Real Estate		2,553		-		-		2,553
Total Assets Measured at Fair Value On a Non-Recurring Basis	$	4,260	$	-	$	-	$	4,260

			Fair Value Measurements At September 30, 2012, Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Impaired Loans
Residential 1st Mortgage	$	200	$	-	$	-	$	200
Home Equity Lines and Loans		466		-		-		466
Total Impaired Loans		666		-		-		666
Other Real Estate
Real Estate Construction		2,553		-		-		2,553
Total Other Real Estate		2,553		-		-		2,553
Total Assets Measured at Fair Value On a Non-Recurring Basis	$	3,219	$	-	$	-	$	3,219

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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