Fair Value (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Measurements for Items Measured at Fair Value

Under ASC 820, fair value measurements for items measured at fair value on a recurring and nonrecurring basis at September 30, 2013 and 2012 included:


(Dollars in thousands)	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2013
Available for sale securities (3)	$	650,445	$	101	$	650,344	$	0
Loans available for sale (4)		14,322		0		14,322		0
Loans (1)		18,784		0		10,817		7,967
Other real estate owned (2)		5,589		0		1,046		4,543
September 30, 2012
Available for sale securities (3)	$	588,248	$	1,711	$	586,537	$	0
Loans available for sale (4)		28,042		0		28,042		0
Loans (1)		22,380		0		10,351		12,029
Other real estate owned (2)		8,888		0		3,746		5,142

(1)	See Note F. Nonrecurring fair value adjustments to loans identified as impaired reflect full or partial write-downs that are based on the loan’s observable market price or current appraised value of the collateral in accordance with ASC 310.

(2)

Fair value is measured on a nonrecurring basis in accordance with ASC 360.

(3)	See Note D for further detail of fair value of individual investment categories.

(4)	Recurring fair value basis determined using observable market data.

Summary of Carrying Value and Fair Value of Company's Financial Instruments

The carrying amount and fair value of the Company’s other significant financial instruments that are not measured at fair value on a recurring basis in the balance sheet as of September 30, 2013 and 2012 is as follows:


(Dollars in thousands)	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
At September 30, 2013
Financial Assets
Loans, net	$	1,223,712	$	0	$	0	$	1,245,373
Financial Liabilities
Deposit liabilities		1,698,910		0		0		1,700,289
Borrowings		50,000		0		54,223		0
Subordinated debt		53,610		0		37,527		0
At September 30, 2012
Financial Assets
Securities held to maturity	$	15,556	$	0	$	16,334	$	0
Loans, net		1,156,979		0		0		1,178,911
Financial Liabilities
Deposit liabilities		1,679,466		0		0		1,681,968
Borrowings		50,000		0		55,947		0
Subordinated debt		53,610		0		32,166		0

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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