Fair Value Of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Of Financial Instruments [Abstract]

Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis

The table below presents the balance of financial assets and liabilities at December 31, 2012 measured at fair value on a recurring basis:

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Assets
U.S. Treasury Obligations	$	100	$	0	$	100	$	0
U.S. Agency Obligations		10,897		0		10,897		0
U.S. GSEs		59,366		0		59,366		0
FHLB Obligations		24,585		0		24,585		0
Agency MBSs		148,767		0		148,767		0
Agency CMBSs		5,029		0		5,029		0
Agency CMOs		230,399		0		230,399		0
CLOs		24,527		0		24,527		0
Non-Agency CMOs		4,593		0		4,593		0
ABSs		418		0		418		0
Interest rate swap agreements		552		0		552		0
Total assets	$	509,233	$	0	$	509,233	$	0
Liabilities
Interest rate swap agreements		1,610		0		1,610		0
Total liabilities	$	1,610	$	0	$	1,610	$	0

The table below presents the balance of financial assets and liabilities at December 31, 2011 measured at fair value on a recurring basis:

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Assets
U.S. Treasury Obligations	$	250	$	0	$	250	$	0
U.S. GSEs		90,419		0		90,419		0
FHLB Obligations		16,676		0		16,676		0
Agency MBSs		183,838		0		183,838		0
Agency CMOs		214,480		0		214,480		0
Non-Agency CMOs		4,855		0		4,855		0
ABSs		1,233		0		1,233		0
Interest rate swap agreements		207		0		207		0
Total assets	$	511,958	$	0	$	511,958	$	0
Liabilities
Interest rate swap agreements		1,613		0		1,613		0
Total liabilities	$	1,613	$	0	$	1,613	$	0

Financial Assets Measured At Fair Value On A Nonrecurring Basis

The table below presents the balance of financial assets at December 31, 2012 measured at fair value on a nonrecurring basis:

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)
OREO	$	0	$	0	$	0	$	0
Impaired loans		2,912		0		0		2,912
Total	$	2,912	$	0	$	0	$	2,912

The table below presents the balance of financial assets at December 31, 2011 measured at fair value on a nonrecurring basis:

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)
OREO	$	358	$	0	$	0	$	358
Impaired loans		2,511		0		0		2,511
Total	$	2,869	$	0	$	0	$	2,869

Valuation Methodology And Unobservable Inputs For Level 3 Assets Measured At Fair Value On Non-Recurring Basis

The table below presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2012:

					Range of
(Dollars in thousands)	Fair value		Valuation Methodology	Unobservable Inputs	Inputs
OREO	$	0	Appraisal of collateral	Appraisal adjustments	0%-40%
Impaired loans		2,912	Appraisal of collateral	Appraisal adjustments	0%-40%

The methodology and unobservable inputs at December 31, 2012 are consistent with those at December 31, 2011.

Fair Values Of Financial Instruments

The fair value of Merchants’ financial instruments as of December 31, 2012 are summarized in the table below:

	Carrying
(In thousands)	Amount		Fair Value			Level 1		Level 2		Level 3
Cash and cash equivalents	$	77,228	$	77,228	$	77,228	$	0	$	0
Securities available for sale		508,681		508,681		0		508,681		0
Securities held to maturity		407		454		0		454		0
FHLB stock		8,145		8,145		0		8,145		0
Loans, net of allowance for loan losses		1,071,361		1,096,188		0		0		1,096,188
Interest rate contract-cash flow hedge		552		552		0		552		0
Accrued interest receivable		4,368		4,368		0		4,368		0
Total assets	$	1,670,742	$	1,695,616	$	77,228	$	522,200	$	1,096,188
Deposits	$	1,271,080	$	1,273,573	$	940,682	$	332,891	$	0
Short-term borrowings		0		0		0		0		0
Securities sold under agreement to repurchase		287,520		287,837		0		287,837		0
Other long-term debt		2,483		2,502		0		2,502		0
Junior subordinated debentures issued to unconsolidated subsidiary trust		20,619		15,177		0		15,177		0
Interest rate contract-cash flow hedge		1,610		1,610		0		1,610		0
Accrued interest payable		195		195		0		195		0
Total liabilities	$	1,583,507	$	1,580,894	$	940,682	$	640,212	$	0

The fair value of Merchants’ financial instruments as of December 31, 2011 are summarized in the table below:

	Carrying
(In thousands)	Amount		Fair Value			Level 1		Level 2		Level 3
Cash and cash equivalents	$	37,812	$	37,812	$	37,812	$	0	$	0
Securities available for sale		511,751		511,751		0		511,751		0
Securities held to maturity		558		624		0		624		0
FHLB stock		8,630		8,630		0		8,630		0
Loans, net of allowance for loan losses		1,017,007		1,035,131		0		0		1,035,131
Interest rate contract-cash flow hedge		207		207		0		207		0
Accrued interest receivable		5,121		5,121		0		5,121		0
Total assets	$	1,581,086	$	1,599,276	$	37,812	$	526,333	$	1,035,131
Deposits	$	1,177,880	$	1,181,066	$	829,632	$	351,434	$	0
Short-term borrowings		0		0		0		0		0
Securities sold under agreement to repurchase		262,527		263,062		0		263,062		0
Other long-term debt		22,562		23,594		0		23,594		0
Junior subordinated debentures issued to unconsolidated subsidiary trust		20,619		15,268		0		15,268		0
Interest rate contract-cash flow hedge		1,613		1,613		0		1,613		0
Accrued interest payable		282		282		0		282		0
Total liabilities	$	1,485,483	$	1,484,885	$	829,632	$	655,253	$	0