Fair Value Disclosures and Reporting, Fair Value Option and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Estimated Fair Values for Financial Instruments

Estimated fair values for the Company's financial instruments at the periods noted are as follows:

Fair Value of Financial Instruments
(dollars in thousands, unaudited)	June 30, 2013
			Estimated Fair Value
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Financial Assets:
Cash and cash equivalents	$	66,982	$	66,982	$	-	$	-	$	66,982
Investment securities available for sale		393,576		2,234		391,342		-		393,576
Loans and leases, net		785,219		-		831,835		-		831,835
Collateral dependent impaired loans		14,032		-		14,032		-		14,032
Loans held-for-sale		523		523		-		-		523
Cash surrender value of life insurance policies		38,940		-		38,940		-		38,940
Other investments		5,932		-		5,932		-		5,932
Investment in Limited Partnership		9,826		-		9,826		-		9,826
Accrued interest receivable		4,935		-		4,935		-		4,935

Financial Liabilities:
Deposits:
Noninterest-bearing	$	357,540	$	357,540	$	-	$	-	$	357,540
Interest-bearing		797,476		-		797,833		-		797,833
Fed Funds Purchased and Repurchase Agreements		1,963		-		1,963		-		1,963
Short-term borrowings		-		-		-		-		-
Long-term borrowings		-		-		-		-		-
Subordinated debentures		30,928		-		19,304		-		19,304
Limited partnership capital commitment		951		-		951		-		951
Accrued Interest Payable		200		-		200		-		200

	Notional Amount
Off-balance-sheet financial instruments:
Commitments to extend credit	$	387,241
Standby letters of credit		8,316
Commercial lines of credit		8,533

	December 31, 2012
			Estimated Fair Value
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Financial Assets:
Cash and cash equivalents	$	61,818	$	61,818	$	-	$	-	$	61,818
Investment securities available for sale		380,188		1,809		378,379		-		380,188
Loans and leases, net		839,629		-		873,309		-		873,309
Collateral dependent impaired loans		27,449		-		27,449		-		27,449
Loans held-for-sale		210		210		-		-		210
Cash surrender value of life insurance policies		38,007		-		38,007		-		38,007
Other Investments		6,370		-		6,370		-		6,370
Investment in Limited Partnership		10,316		-		10,316		-		10,316
Accrued Interest Receivable		5,095		-		5,095		-		5,095

Financial Liabilities:
Deposits:
Noninterest-bearing	$	352,597	$	352,597	$	-	$	-	$	352,597
Interest-bearing		821,437		-		821,911		-		821,911
Fed Funds Purchased and Repurchase Agreements		1,419		-		1,419		-		1,419
Short-term borrowings		36,650		-		36,650		-		36,650
Long-term borrowings		5,000		-		5,038		-		5,038
Subordinated debentures		30,928		-		12,141		-		12,141
Limited partnership capital commitment		962		-		962		-		962
Accrued Interest Payable		304		-		304		-		304

	Notional Amount
Off-balance-sheet financial instruments:
Commitments to extend credit	$	225,400
Standby letters of credit		6,690
Commercial lines of credit		8,539

Summary of Assets Reported at Fair Value on Recurring Basis

Assets reported at fair value on a recurring basis are summarized below:

Fair Value Measurements - Recurring

(dollars in thousands, unaudited)

	Fair Value Measurements at June 30, 2013, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investment Securities
U.S. Government agencies	$	-	$	4,293	$	-	$	4,293
Obligations of states and political subdivisions		-		87,405		-		87,405
U.S. Government agencies collateralized by mortgage obligations		-		299,644		-		299,644
Other Securities		2,234		-		-		2,234

Total availabe-for-sale securities	$	2,234	$	391,342	$	-	$	393,576

	Fair Value Measurements at December 31, 2012, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Investment Securities
U.S. Government agencies	$	-	$	2,973	$	-	$	2,973
Obligations of states and political subdivisions		-		73,986		-		73,986
U.S. Government agencies collateralized by mortgage obligations		-		301,389		-		301,389
Other Securities		1,809		31		-		1,840

Total availabe-for-sale securities	$	1,809	$	378,379	$	-	$	380,188

Summary of Assets for Which Nonrecurring Change in Fair Value Recorded

Assets reported at fair value on a nonrecurring basis are summarized below:

Fair Value Measurements - Nonrecurring
(dollars in thousands, unaudited)
	Fair Value Measurements at June 30, 2013, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Collateral Dependent Impaired Loans	$	-	$	14,032	$	-	$	14,032
Foreclosed Assets	$	-	$	10,834	$	-	$	10,834

	Fair Value Measurements at December 31, 2012, Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Collateral Dependent Impaired Loans	$	-	$	27,449	$	-	$	27,449
Foreclosed Assets	$	-	$	19,754	$	-	$	19,754

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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