Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Measurements [Abstract]

Carrying amount and estimated fair value of assets and liabilities

The fair values of certificates of deposit and subordinated debentures are estimated using a discounted cash flow calculation that applies current interest rates to discounted expected cash flows. Based upon time deposit maturities at September 30, 2012, the carrying values approximate their fair values. The carrying amount of accrued interest payable approximates its fair value (in thousands).

	September 30, 2012
					Quoted prices in active		Significant other		Significant
					markets for identical		observable		unobservable
	Carrying		Estimated		assets		inputs		inputs
	amount		fair value		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents	$	544,658	$	544,658	$	544,658	$	-	$	-
Investment securities available-for-sale		634,894		634,894		3,075		631,211		608
Investment securities held-to-maturity		22,707		18,634		-		-		18,634
Federal Home Loan and Atlantic Central Bankers Bank stock		4,160		4,160		4,160		-		-
Commerical loans held for sale		7,970		7,970		-		-		7,970
Loans receivable, net		1,856,992		1,855,671		-		-		1,855,671
Demand and interest checking		2,300,025		2,300,025		2,300,025		-		-
Savings and money market		459,725		459,725		459,725		-		-
Time deposits		21,425		21,491		-		-		21,491
Subordinated debenture		13,401		9,268		-		-		9,268
Securities sold under agreements to repurchase		18,802		18,802		18,802		-		-
Accrued interest payable		100		100		100		-		-

	December 31, 2011
	Carrying		Estimated
	amount		fair value
Cash and cash equivalents	$	749,174	$	749,174
Investment securities available-for-sale		448,204		448,204
Investment securities held-to-maturity		18,044		13,826
Federal Home Loan and Atlantic Central Bankers Bank stock		5,088		5,088
Loans receivable, net		1,744,828		1,718,698
Demand and interest checking		2,192,938		2,192,938
Savings and money market		454,343		454,343
Time deposits		35,270		35,336
Subordinated debenture		13,401		9,287
Securities sold under agreements to repurchase		33,177		33,177
Accrued interest payable		123		123

Assets measured at fair value on a recurring and nonrecurring basis

In addition, FASB ASC topic 820, Fair Value Measurements and Disclosures, establishes a common definition for fair value to be applied to assets and liabilities. It clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It also establishes a framework for measuring fair value and expands disclosures concerning fair value measurements. FASB ASC topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Level 1 valuation is based on quoted market prices for identical assets or liabilities to which the Company has access at the measurement date. Level 2 valuation is based on other observable inputs for the asset or liability, either directly or indirectly. This includes quoted prices for similar assets in active or inactive markets, inputs other than quoted prices that are observable for the asset or liability such as yield curves, volatilities, prepayment speeds, credit risks, default rates, or inputs that are derived principally from, or corroborated through, observable market data by market-corroborated reports. Level 3 valuation is based on "unobservable inputs" which the Company believes is the best information available in the circumstances. A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The assets measured at fair value on a recurring basis, segregated by fair value hierarchy level, are summarized below (in thousands):

			Fair Value Measurements at Reporting Date Using
			Quoted prices in active		Significant other		Significant
			markets for identical		observable		unobservable
	Fair value		assets		inputs		inputs
	September 30, 2012		(Level 1)		(Level 2)		(Level 3)
Investment
U.S. Government agency securities	$	8,828	$	-	$	8,828	$	-
Federally insured student loan securities		111,545		-		111,545
Obligations of states and political subdivisions		163,375		-		163,375		-
Residential mortgage-backed securities		197,158		-		197,158		-
Commercial mortgage-backed securities		102,477		-		102,477		-
Other debt securities		48,436		-		47,828		608
Other equity securities		3,075		3,075		-		-
	$	634,894	$	3,075	$	631,211	$	608
			Fair Value Measurements at Reporting Date Using
			Quoted prices in active		Significant other		Significant
			markets for identical		observable		unobservable
	Fair value		assets		inputs		inputs
	December 31, 2011		(Level 1)		(Level 2)		(Level 3)
Investment
U.S. Government agency securities	$	9,285	$	-	$	9,285	$	-
Obligations of states and political subdivisions		150,666		-		150,666		-
Residential mortgage-backed securities		193,685		-		193,685		-
Commercial mortgage-backed securities		52,061		-		52,061		-
Other debt securities		39,532		-		38,902		630
Other equity securities		2,975		2,975		-		-
	$	448,204	$	2,975	$	444,599	$	630

Assets measured at fair value on a nonrecurring basis, segregated by fair value hierarchy, during the periods shown are summarized below (in thousands):

			Fair Value Measurements at Reporting Date Using
			Quoted prices in active		Significant other		Significant
			markets for identical		observable		unobservable
	Fair value		assets		inputs		inputs
Description	September 30, 2012		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	29,160	$	-	$	-	$	29,160
Other real estate owned		3,065		-		-		3,065
	$	32,225	$	-	$	-	$	32,225
			Fair Value Measurements at Reporting Date Using
			Quoted prices in active		Significant other		Significant
			markets for identical		observable		unobservable
	Fair value		assets		inputs		inputs
Description	December 31, 2011		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	17,587	$	-	$	-	$	17,587
Other real estate owned		7,405		-		-		7,405
	$	24,992	$	-	$	-	$	24,992

Changes in Company's Level 3 assets

The changes in the Company's Level 3 assets are set forth below (in thousands).

Fair Value Measurements Using
Significant Unobservable Inputs
(Level 3)
	Available-for-sale
	securities
	September 30, 2012			December 31, 2011
Beginning balance	$	630		$	748
Transfers into level 3		-			-
Transfers out of level 3		-			-
Total gains or losses (realized/unrealized)
Included in earnings		-			(2	)
Included in other comprehensive income		15			(62	)
Purchases, issuances, and settlements
Purchases		-			-
Issuances		-			-
Sales
Settlements		(37	)		(54	)
Ending balance	$	608		$	630