Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following tables present the Company's assets and liabilities measured at fair value on a recurring basis as of September 30, 2012 and December 31, 2011, aggregated by the level in the fair value hierarchy within which those measurements fall:

	As of September 30, 2012		Fair value measurements at reporting date using:
			Quoted prices in active markets for identical assets (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
Assets:
Available for sale securities:
U.S. government and agencies	$	2,778	$	—	$	2,778	$	—
Government-sponsored entities	228,464		—		228,464		—
Corporate bonds	4,956		—		4,956		—
Municipal bonds	202,492		—		202,492		—
Mortgage-backed securities	305,834		—		305,834		—
Other	10,601		10,601		—		—
Total available for sale securities	755,125		10,601		744,524		—
Derivatives - interest rate customer swaps	3,443		—		3,443		—
Derivatives - customer foreign exchange forwards	199		—		199		—
Other investments	5,922		5,183		739		—
Liabilities:
Derivatives - interest rate customer swaps	$	3,541	$	—	$	3,541	$	—
Derivatives - customer foreign exchange forwards	199		—		199		—
Derivatives - junior subordinated debenture interest rate swap	5,666		—		5,666		—

			Fair value measurements at reporting date using:
	As of December 31, 2011		Quoted prices in active markets for identical assets (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
Assets:
Available for sale securities:
U.S. government and agencies	$	4,602	$	1,002	$	3,600	$	—
Government-sponsored entities	379,423		—		379,423		—
Corporate bonds	4,912		—		4,912		—
Municipal bonds	200,675		—		200,675		—
Mortgage-backed securities	254,344		—		254,344		—
Other	540		540		—		—
Total available for sale securities	844,496		1,542		842,954		—
Derivatives - interest rate customer swaps	4,207		—		4,207		—
Derivatives - customer foreign exchange forwards	7		—		7		—
Other investments	5,317		4,493		824		—
Liabilities:
Derivatives - interest rate customer swaps	$	4,366	$	—	$	4,366	$	—
Derivatives - customer foreign exchange forwards	7		—		7		—
Derivatives - junior subordinated debenture interest rate swap	5,308		—		5,308		—

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

There were no Level 3 assets at December 31, 2011 or September 30, 2012.

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block]

The following tables present the Company's assets and liabilities measured at fair value on a non-recurring basis during the periods ended September 30, 2012 and 2011, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall.

	As of September 30, 2012		Fair value measurements at reporting date using:						Gain (losses) from fair value changes
			Quoted prices in active markets for identical assets (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Three months ended September 30, 2012			Nine months ended September 30, 2012
	(In thousands)
Assets:
Impaired loans (1)	$	20,230	$	—	$	—	$	20,230	$	(4,598	)	$	(5,186	)
OREO (2)	379		—		—		379		(102		)	(102		)
	$	20,609	$	—	$	—	$	20,609	$	(4,700	)	$	(5,288	)

___________________

(1) Collateral-dependent impaired loans held at September 30, 2012 that had write-downs in fair value or whose specific reserve changed during the first nine months of 2012.

(2) One OREO property held at September 30, 2012 had a write-down during the first nine months of 2012.

	As of September 30, 2011		Fair value measurements at reporting date using:						Gain (losses) from fair value changes
			Quoted prices in active markets for identical assets (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Three months ended September 30, 2011			Nine months ended September 30, 2011
	(In thousands)
Assets:
Impaired loans (1)	$	18,297	$	—	$	—	$	18,297	$	(2,144	)	$	(5,526	)
OREO (2)	1,999		—		—		1,999		(228		)	(2,352		)
	$	20,296	$	—	$	—	$	20,296	$	(2,372	)	$	(7,878	)

________________

(1) Collateral-dependent impaired loans held at September 30, 2011 that had write-downs in fair value or whose specific reserve changed during the first nine months of 2011.

(2) Three OREO properties held at September 30, 2011 had write-downs during the first nine months of 2011.

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Table Text Block]

The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value.

	September 30, 2012
	Fair Value		Valuation technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	20,230	Appraisals of Collateral	Discount for costs to sell	6% - 13%	8%
				Appraisal adjustments	0% - 30%	11%
OREO	$	379	Appraisals of Collateral	Discount for costs to sell	8%	8%
				Appraisal adjustments

Impaired loans include those loans that were adjusted to the fair value of underlying collateral as required under ASC 310, Receivables. The amount does not include impaired loans that are measured based on expected future cash flows discounted at the respective loan's original effective interest rate, as that amount is not considered a fair value measurement. The Company uses appraisals, which management may adjust to reflect estimated fair value declines, or apply other discounts to appraised values for unobservable factors resulting from its knowledge of the property or consideration of broker quotes. The appraisers use a market, income, and/or a cost approach in determining the value of the collateral. Therefore they have been categorized as a Level 3 measurement.

The OREO in the tables above includes those properties that had an adjustment to fair value during the the three and nine months ended September 30, 2012 and 2011. The Company uses appraisals, which management may adjust to reflect estimated fair value declines, or may apply other discounts to appraised values for unobservable factors resulting from its knowledge of the property or consideration of broker quotes. The appraisers use a market, income, and/or a cost approach in determining the value of the collateral. Therefore they have been categorized as a Level 3 measurement.

Fair Value, by Balance Sheet Grouping [Table Text Block]

The following tables present the carrying values and fair values of the Company's financial instruments that are not measured at fair value on a recurring basis (other than certain loans, as noted below):

	September 30, 2012
	Book Value		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)
FINANCIAL ASSETS:
Cash and cash equivalents	$	83,585	$	83,585	$	83,585	$	—	$	—
Loans, net	4,876,478		4,951,667		—		—		4,951,667
Loans held for sale	135,169		136,856		—		136,856		—
Other financial assets	121,348		121,348		—		121,348		—
FINANCIAL LIABILITIES:
Deposits	4,662,794		4,699,282		—		4,669,282		—
Securities sold under agreements to repurchase	106,713		108,816		—		108,816		—
Federal Funds purchased	85,000		85,000		—		85,000		—
Federal Home Loan Bank borrowings	552,946		577,698		—		577,698		—
Junior subordinated debentures	158,647		131,152		—		26,454		104,698
Other financial liabilities	10,746		10,746		—		10,746		—

	December 31, 2011
	Book Value		Fair Value
	(In thousands)
FINANCIAL ASSETS:
Cash and cash equivalents	$	203,354	$	203,354
Loans, net	4,555,114		4,619,821
Loans held for sale	12,069		12,069
Other financial assets	120,097		120,097
FINANCIAL LIABILITIES:
Deposits	4,530,411		4,538,137
Securities sold under agreements to repurchase	130,791		133,660
Federal Home Loan Bank borrowings	521,827		547,584
Junior subordinated debentures	182,053		165,242
Other financial liabilities	11,388		11,388

The estimated fair values have been determined by using available quoted market information or other appropriate valuation methodologies. The aggregate fair value amounts presented do not represent the underlying value of the Company taken as a whole.