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FAIR VALUES OF FINANCIAL INSTRUMENTS: (Tables)
 12 Months Ended
Dec. 31, 2013
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities measured at fair value
The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).
 
 
 
December 31, 2013
Fair Value Measurement Using
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Carrying Value
U.S. Government entity mortgage-backed securities
 
$
—

 
$
1,633

 
$
—

 
$
1,633

Mortgage-backed securities, residential
 
—

 
197,764

 
—

 
197,764

Mortgage-backed securities, commercial
 
—

 
4,391

 
—

 
4,391

Collateralized mortgage obligations
 
—

 
506,741

 
—

 
506,741

State and municipal obligations
 
—

 
190,462

 
4,525

 
194,987

Collateralized debt obligations
 
—

 
—

 
9,044

 
9,044

Equity Securities
 
—

 
—

 
—

 
—

TOTAL
 
$
—

 
$
900,991

 
$
13,569

 
$
914,560

Derivative Assets
 
 

 
$
1,195

 
 

 
 

Derivative Liabilities
 
 

 
(1,195
)
 
 

 
 

 
 
 
December 31, 2012
Fair Value Measurement Using
(Dollar amounts in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Carrying Value
U.S. Government entity mortgage-backed securities
 
$
—

 
$
1,886

 
$
—

 
$
1,886

Mortgage-backed securities, residential
 
—

 
244,676

 
—

 
244,676

Mortgage-backed securities, commercial
 
—

 
5,131

 
—

 
5,131

Collateralized mortgage obligations
 
—

 
233,320

 
—

 
233,320

State and municipal obligations
 
—

 
189,574

 
9,911

 
199,485

Collateralized debt obligations
 
—

 
—

 
6,122

 
6,122

Equity Securities
 
380

 
—

 
—

 
380

TOTAL
 
$
380

 
$
674,587

 
$
16,033

 
$
691,000

Derivative Assets
 
 

 
$
2,053

 
 

 
 

Derivative Liabilities
 
 

 
(2,053
)
 
 

 
 
Roll forward of financial instruments having fair value measurements using significant unobservable inputs (Level 3)
The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the twelve months ended December 31, 2013 and 2012.
 
 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
December 31, 2013
 
 
 
 
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, January 1
 
 
 
$
9,911

 
$
6,122

 
$
16,033

Total realized/unrealized gains or losses
 
 
 
 

 
 

 
 

Included in earnings
 
 
 
—

 
904

 
904

Included in other comprehensive income
 
 
 
—

 
3,155

 
3,155

Transfers
 
 
 
(1,186
)
 
—

 
(1,186
)
Settlements
 
 
 
(4,200
)
 
(1,137
)
 
(5,337
)
Ending balance, December 31
 
 
 
$
4,525

 
$
9,044

 
$
13,569

 
 
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
December 31, 2012
 
 
Equities
 
State and
municipal
obligations
 
Collateralized
debt
obligations
 
Total
Beginning balance, January 1
 
$
1,711

 
$
9,525

 
$
4,771

 
$
16,007

Total realized/unrealized gains or losses
 
 

 
 

 
 

 
 

Included in earnings
 
(446
)
 
—

 
(96
)
 
(542
)
Included in other comprehensive income
 
—

 
—

 
1,556

 
1,556

Transfers
 
—

 
1,186

 
—

 
1,186

Settlements
 
(1,265
)
 
(800
)
 
(109
)
 
(2,174
)
Ending balance, December 31
 
$
—

 
$
9,911

 
$
6,122

 
$
16,033
Quantitative information about recurring and non-recurring Level 3
The following tables present quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2013and 2012.
 
2013
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
4,525

 
Discounted cash flow
 
Discount rate
 
3.05%-5.50%

 
 
 

 
 
 
Probability of default
 
—
%
Other real estate
 
$
5,291

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%

Impaired Loans
 
$
13,765

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
 0.00%-50.00%


 
2012
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input(s)
 
Range
State and municipal obligations
 
$
9,911

 
Discounted cash flow
 
Discount rate
 
3.05%-5.50%

 
 
 

 
 
 
Probability of default
 
—
%
Other real estate
 
$
7,722

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
5.00%-20.00%

Impaired Loans
 
$
25,948

 
Sales comparison/income approach
 
Discount rate for age of appraisal and market conditions
 
 0.00%-50.00%
Schedule of loans identified as impaired by class of loans
The following tables present impaired collateral dependent loans measured at fair value on a non-recurring basis by class of loans as of December 31, 2013 and 2012.
 
 
 
December 31, 2013
 
 
(Dollar amounts in thousands)
 
Carrying Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
8,620

 
$
1,612

 
$
7,008

Farmland
 
—

 
—

 
—

Non Farm, Non Residential
 
7,204

 
1,500

 
5,704

Agriculture
 
—

 
—

 
—

All Other Commercial
 
1,062

 
46

 
1,016

Residential
 
 

 
 

 
 

First Liens
 
37

 
—

 
37

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
16,923

 
$
3,158

 
$
13,765

 
 
 
December 31, 2012
 
 
(Dollar amounts in thousands)
 
Carrying Value
 
Allowance
for Loan
Losses
Allocated
 
Fair Value
Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
17,098

 
$
3,153

 
$
13,945

Farmland
 
891

 
191

 
700

Non Farm, Non Residential
 
7,386

 
293

 
7,093

Agriculture
 
—

 
—

 
—

All Other Commercial
 
1,209

 
52

 
1,157

Residential
 
 

 
 

 
 

First Liens
 
1,254

 
126

 
1,128

Home Equity
 
179

 
—

 
179

Junior Liens
 
—

 
—

 
—

Multifamily
 
5,540

 
3,794

 
1,746

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
33,557

 
$
7,609

 
$
25,948
Schedule of carrying amount and estimated fair value of financial instruments
The carrying amount and estimated fair value of assets and liabilities are presented in the table below and were determined based on the above assumptions:
 
 
 
December 31, 2013
 
 
 
 
 
 
Carrying
 
Fair Value 
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
71,033

 
$
22,455

 
$
48,578

 
$
—

 
$
71,033

Federal funds sold
 
4,276

 
—

 
4,276

 
—

 
4,276

Securities available-for-sale
 
914,560

 
—

 
900,991

 
13,569

 
914,560

Restricted stock
 
21,057

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
1,771,360

 
—

 
—

 
1,816,726

 
1,816,726

FDIC Indemnification Asset
 
1,055

 
—

 
1,055

 
—

 
1,055

Accrued interest receivable
 
11,554

 
—

 
3,279

 
8,275

 
11,554

Deposits
 
(2,458,791
)
 
—

 
(2,460,197
)
 
—

 
(2,460,197
)
Short-term borrowings
 
(59,592
)
 
—

 
(59,592
)
 
—

 
(59,592
)
Federal Home Loan Bank advances
 
(58,288
)
 
—

 
(60,258
)
 
—

 
(60,258
)
Accrued interest payable
 
(750
)
 
—

 
(750
)
 
—

 
(750
)
 
 
 
December 31, 2012
 
 
 
 
 
 
Carrying
 
Fair Value 
(Dollar amounts in thousands)
 
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and due from banks
 
$
87,230

 
$
21,333

 
$
65,897

 
$
—

 
$
87,230

Federal funds sold
 
20,800

 
—

 
20,800

 
—

 
20,800

Securities available-for-sale
 
691,000

 
380

 
674,587

 
16,033

 
691,000

Restricted stock
 
21,292

 
n/a

 
n/a

 
n/a

 
n/a

Loans, net
 
1,829,978

 
—

 
—

 
1,916,256

 
1,916,256

FDIC Indemnification Asset
 
2,632

 
—

 
2,632

 
—

 
2,632

Accrued interest receivable
 
12,024

 
—

 
2,980

 
9,044

 
12,024

Deposits
 
(2,276,134
)
 
—

 
(2,280,910
)
 
—

 
(2,280,910
)
Short-term borrowings
 
(40,551
)
 
—

 
(40,551
)
 
—

 
(40,551
)
Federal Home Loan Bank advances
 
(119,705
)
 
—

 
(124,933
)
 
—

 
(124,933
)
Accrued interest payable
 
(1,163
)
 
—

 
(1,163
)
 
—

 
(1,163
)