Fair Value Measurements and Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Measurements and Fair Value of Financial Instruments [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

			Fair Value Measurements at Reporting Date Using
Assets Measured at Fair Value on a Recurring Basis	September 30, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury & agency securities	$	41,695	$	41,695	$	—	$	—
Federal agency obligations		20,746		—		20,746		—
Residential mortgage pass-through securities		50,942		—		50,942		—
Commercial mortgage pass-through securities		9,518		—		9,518		—
Obligations of U.S. states and political subdivisions		40,277		—		40,277		—
Trust preferred securities		19,537		—		19,443		94
Corporate bonds and notes		205,235		—		205,235		—
Asset-backed securities		16,228		—		16,228		—
Certificates of deposit		2,295		—		2,295		—
Equity securities		287		287		—		—
Mutual funds and money market funds		6,387		6,387		—		—
Investment securities available-for-sale	$	413,147	$	48,369	$	364,684	$	94

			Fair Value Measurements at Reporting Date Using
Assets Measured at Fair Value on a Recurring Basis	December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
U.S. treasury and agency securities	$	11,909	$	11,909	$	—	$	—
Federal agency obligations		20,535		—		20,535		—
Residential mortgage pass-through securities		53,784		—		53,784		—
Commercial mortgage pass-through securities		9,969		—		9,969		—
Obligations of U.S. states and political subdivisions		107,714		469		107,245		—
Trust preferred securities		21,249		—		21,213		36
Corporate bonds and notes		237,405		—		237,405		—
Collateralized mortgage obligations		2,120		—		2,120		—
Asset-backed securities		19,742		—		19,742		—
Certificates of deposit		2,865		—		2,865		—
Equity securities		325		325		—		—
Mutual funds and money market funds		9,198		9,198		—		—
Securities available-for-sale	$	496,815	$	21,901	$	474,878	$	36

Schedule of Changes in Investment Securities Available-for-Sale

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
	(in thousands)
Balance, beginning of the period	$	72	$	1,856	$	36	$	2,115
Interest payment deferrals		14		33		43		101
Principal repayments		—		(102)		—		(272)
Total net losses included in net income		—		(32)		—		(60)
Total net unrealized gains		8		296		15		167
Balance, end of the period	$	94	$	2,051	$	94	$	2,051

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques

For assets measured at fair value on a non-recurring basis, the unobservable inputs used to derive fair value measurements at September 30, 2013 and December 31, 2012 were as follows:

Impaired Loans	Valuation Techniques	Range of Unobservable Inputs
Residential	Appraisals of collateral value	Adjustment for age of comparable sales, generally a decline of 0-25%
Commercial	Discounted cash flow model	Discount rate from 0% to 6%
Commercial real estate	Appraisals of collateral value	Market capitalization rates between 8% to 12%. Market rental rates for similar properties
Construction	Appraisals of collateral value	Adjustment for age comparable sales. Generally a decline of 5% to no change
Other Real Estate Owned
Residential	Appraisals of collateral value	Adjustment for age of comparable sales, generally a decline of 0-25% and estimated selling costs of 6-8%
Commercial	Appraisals of collateral value	Adjustment for age of comparable sales, generally a decline of 15% to no change and estimated selling costs of 6-8%

Schedule of Assets at Fair Value on a Non-recurring Basis

			Fair Value Measurements at Reporting Date Using
Assets Measured at Fair Value on a Non-Recurring Basis	September 30, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Impaired loans	$	1,069	$	—	$	—	$	1,069
Other real estate owned		220		—		—		220

			Fair Value Measurements at Reporting Date Using
Assets Measured at Fair Value on a Non-Recurring Basis	December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Impaired loans	$	4,790	$	—	$	—	$	4,790
Other real estate owned		1,300		—		—		1,300

Schedule of Fair Value Hierarchy

					Fair Value Measurements
	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
September 30, 2013
Financial assets
Cash and due from banks	$	33,557	$	33,557	$	33,557	$	—	$	—
Investment securities available-for-sale		413,147		413,147		48,369		364,684		94
Investment securities held-to-maturity		153,486		152,008		—		152,008		—
Restricted investment in bank stocks		8,986		8,986		—		8,986		—
Loans held for sale		101		101		101		—		—
Net loans		947,298		950,226		—		—		950,226
Accrued interest receivable		6,570		6,570		—		4,122		2,448
Financial liabilities
Non interest-bearing deposits		238,214		238,214		—		238,214		—
Interest-bearing deposits		1,076,103		1,076,997		—		1,076,997		—
Long-term borrowings		146,000		158,093		—		158,093		—
Subordinated debentures		5,155		5,145		—		5,145		—
Accrued interest payable		821		821		—		821		—
December 31, 2012
Financial assets
Cash and due from banks	$	104,134	$	104,134	$	104,134	$	—	$	—
Interest bearing deposits with banks		2,004		2,004		2,004		—		—
Investment securities available-for-sale		496,815		496,815		21,901		474,878		36
Investment securities held-to-maturity		58,064		62,431		—		62,431		—
Restricted investment in bank stocks		8,964		8,964		—		8,964		—
Loans held for sale		1,491		1,491		1,491		—		—
Net loans		879,435		897,030		—		—		897,030
Accrued interest receivable		6,849		6,849		—		4,465		2,384
Financial liabilities
Non interest-bearing deposits		215,071		215,071		—		215,071		—
Interest-bearing deposits		1,091,851		1,092,822		—		1,092,822		—
Long-term borrowings		146,000		162,992		—		162,992		—
Subordinated debentures		5,155		5,046		—		5,046		—
Accrued interest payable		874		874		—		874		—