Fair Value Of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

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 March 31, 2013 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		25,811		0		25,811		0
U.S. GSEs		46,589		0		46,589		0
FHLB Obligations		22,441		0		22,441		0
Agency MBSs		135,853		0		135,853		0
Agency CMBSs		18,690		0		18,690		0
Agency CMOs		226,970		0		226,970		0
Non-Agency CMOs		4,375		0		4,375		0
CLOs		26,750		0		26,750		0
ABSs		415		0		415		0
Interest rate swap agreements		478		0		478		0
Total assets	$	508,472	$	0	$	508,472	$	0
Liabilities
Interest rate swap agreements		1,461		0		1,461		0
Total liabilities	$	1,461	$	0	$	1,461	$	0

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
Non-Agency CMOs		4,593		0		4,593		0
CLOs		24,527		0		24,527		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

Financial Assets Measured At Fair Value On A Nonrecurring Basis

The table below presents the balance of financial assets by class at March 31, 2013 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)
Commercial, financial and agricultural	$	309	$	0	$	0	$	309
Real estate-residential:
First mortgage		548		0		0		548
Second mortgage		363		0		0		363
Real estate-commercial:
Owner occupied		120		0		0		120
Installment		7		0		0		7
Total	$	1,347	$	0	$	0	$	1,347

The table below presents the balance of financial assets by class 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)
Commercial, financial and agricultural	$	79	$	0	$	0	$	79
Real estate-residential:
First mortgage		593		0		0		593
Second mortgage		512		0		0		512
Real estate-commercial:
Owner occupied		415		0		0		415
Total	$	1,599	$	0	$	0	$	1,599

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 by class measured at fair value on a non-recurring basis at March 31, 2013:



					Range of
(Dollars in thousands)	Fair value		Valuation Methodology	Unobservable Inputs	Inputs
Commercial, financial and agricultural	$	309	Appraisal of collateral	Appraisal adjustments	0%-40%
Real estate-residential:
First mortgage		548	Appraisal of collateral	Appraisal adjustments	0%-40%
Second mortgage		363	Appraisal of collateral	Appraisal adjustments	0%-40%
Real estate-commercial:
Owner occupied		120	Appraisal of collateral	Appraisal adjustments	0%-40%
Installment		7	Appraisal of collateral	Appraisal adjustments	0%-40%
Total	$	1,347

The table below presents the valuation methodology and unobservable inputs for Level 3 assets by class 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
Commercial, financial and agricultural	$	79	Appraisal of collateral	Appraisal adjustments	0%-40%
Real estate-residential:
First mortgage		593	Appraisal of collateral	Appraisal adjustments	0%-40%
Second mortgage		512	Appraisal of collateral	Appraisal adjustments	0%-40%
Real estate-commercial:
Owner occupied		415	Appraisal of collateral	Appraisal adjustments	0%-40%
Total	$	1,599

Fair Values Of Financial Instruments

The fair value of Merchants’ financial instruments as of March 31, 2013 are summarized in the table below:



	Carrying
(In thousands)	Amount		Fair Value			Level 1		Level 2		Level 3
Cash and cash equivalents	$	43,023	$	43,023	$	43,023	$	0	$	0
Securities available for sale		507,994		507,994		0		507,994		0
Securities held to maturity		366		403		0		403		0
FHLB stock		7,496		7,496		0		7,496		0
Loans, net of allowance for loan losses		1,089,917		1,106,770		0		0		1,106,770
Interest rate contract-cash flow hedge		478		478		0		478		0
Accrued interest receivable		5,280		5,280		0		1,454		3,826
Total assets	$	1,654,554	$	1,671,444	$	43,023	$	517,825	$	1,110,596
Deposits	$	1,269,777	$	1,272,021	$	934,681	$	337,340	$	0
Short-term borrowings		30,900		30,900		0		30,900		0
Securities sold under agreement to repurchase		243,204		243,371		0		243,371		0
Other long-term debt		2,463		2,468		0		2,468		0
Junior subordinated debentures issued to unconsolidated subsidiary trust		20,619		15,449		0		15,449		0
Interest rate contract-cash flow hedge		1,461		1,461		0		1,461		0
Accrued interest payable		191		191		0		191		0
Total liabilities	$	1,568,615	$	1,565,861	$	934,681	$	631,180	$	0

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		1,366		3,002
Total assets	$	1,670,742	$	1,695,616	$	77,228	$	519,198	$	1,099,190
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

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 14

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 18

-Subparagraph c(2), d, e, f

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15

-Subparagraph b-d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph a, b, c(1), d(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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-SubTopic 10

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

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-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-Subparagraph a, c(1), c(2), c(3), d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

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-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611

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-Publisher FASB

-Name Accounting Standards Codification

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-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

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