v2.4.0.6
Fair Value (Tables)
6 Months Ended
Jun. 30, 2012
Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):

 

          Fair Value Measurements at  
          June 30, 2012 Using:  
                Significant        
          Quoted Prices in     Other     Significant  
    Total     Active Markets for     Observable     Unobservable  
    June 30,     Identical Assets     Inputs     Inputs  
    2012     (Level 1)     (Level 2)     (Level 3)  
Assets                                
Investment securities available-for-sale                                
U.S. government sponsored entities and agencies   $ 136,155     $ 0     $ 136,155     $ 0  
U.S. government agency mortgage backed     184,107       0       184,107       0  
Corporate     1,060       0       0       1,060  
Derivatives     1,596       0       1,596       0  
Total   $ 322,918     $ 0     $ 321,858     $ 1,060  
                                 
Liabilities                                
Derivatives   $ 1,596     $ 0     $ 1,596     $ 0  
Total   $ 1,596     $ 0     $ 1,596     $ 0  

 

          Fair Value Measurements at  
          December 31, 2011 Using:  
                Significant        
          Quoted Prices in     Other     Significant  
    Total     Active Markets for     Observable     Unobservable  
    December 31,     Identical Assets     Inputs     Inputs  
    2011     (Level 1)     (Level 2)     (Level 3)  
Assets                                
Investment securities available-for-sale                                
U.S. government sponsored entities and agencies   $ 169,460       0       169,460       0  
U.S. government agency mortgage backed     151,992       0       151,992       0  
Corporate     1,060       0       0       1,060  
Derivatives     1,349       0       1,349       0  
Total   $ 323,861       0       322,801       1,060  
                                 
Liabilities                                
Derivatives   $ 1,349       0       1,349       0  
Total   $ 1,349             1,349       0  

  

Reconciliation of Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs Level Three

The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the period ended June 30 (in thousands):

 

    Corporate Securities  
    6/30/12     12/31/11  
             
Balance of recurring Level 3 assets at January 1   $ 1,060     $ 1,060  
Total gains or losses for the period:                
Included in earnings                
Included in other comprehensive income                
Purchases     0       0  
Sales     0       0  
Issuances     0       0  
Settlements     0       0  
Transfers into Level 3     0       0  
Transfers out of Level 3     0       0  
                 
Balance of recurring Level 3 assets at December 31   $ 1,060     $ 1,060  
Quantitative information about Recurring Level Three Fair Value Measurements

The following table presents quantitative information about recurring Level 3 fair value measurements at June 30, 2012 (in thousands):

 

        Valuation           
    Fair value     Technique(s)   Unobservable Input(s)   Value  
                     
Corporate security   $ 1,060     Discounted cash flow   Probability of default     0 %
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

Assets and liabilities measured at fair value on a non-recurring basis are summarized below:

 

          Fair Value Measurements at  
          June 30, 2012 Using:  
                Significant        
          Quoted Prices in     Other     Significant  
    Total     Active Markets for     Observable     Unobservable  
    June 30     Identical Assets     Inputs     Inputs  
    2012     (Level 1)     (Level 2)     (Level 3)  
Assets                                
Impaired loans:                                
Commercial   $ 419     $ 0     $ 75     $ 344  
Nonresidential real estate     0                          
Owner occupied properties     7,884       0       605       7,279  
Non owner occupied properties     7,669       0       906       6,763  
Residential real estate                                
Home equity lines of credit     0       0       0       0  
Multifamily properties     1,543       0       0       1,543  
Other     3,162       0       2,672       490  
Construction     3,493       0       2,801       692  
Total   $ 24,170     $ 0     $ 7,059     $ 17,111  

 

          Fair Value Measurements at  
          December 31, 2011 Using:  
                Significant        
          Quoted Prices in     Other     Significant  
    Total     Active Markets for     Observable     Unobservable  
    December 31     Identical Assets     Inputs     Inputs  
    2011     (Level 1)     (Level 2)     (Level 3)  
Assets                                
Impaired loans                                
Commercial   $ 383     $ 0     $ 0     $ 383  
Nonresidential real estate     0                          
Owner occupied properties     8,320       0       0       8,320  
Non owner occupied properties     5,858       0       375       5,483  
Residential real estate                                
Home equity lines of credit     0       0       0       0  
Multifamily properties     0       0       0       0  
Other     3,332       0       1,832       1,500  
Construction     3,787       0       214       3,573  
Total   $ 21,680     $ 0     $ 2,421     $ 19,259  
Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at June 30, 2012 and December 31, 2011 are as follows (in thousands):

 

          Fair Value Measurements at  
          June 30, 2012 Using:  
    Carrying Value     Level 1     Level 2     Level 3     Total  
(Dollars in thousands)                              
Financial assets                                        
Cash and cash equivalents   $ 66,719     $ 66,719     $     $     $ 66,719  
Interest-bearing deposits with Banks     250               250               250  
Securities available-for-sale     321,322               320,262       1,060       321,322  
Securities held-to-maturity     54,882               56,746               56,746  
Federal Home Loan Bank stock     5,099       N/A                       N/A  
Loans held for sale     13,983               13,983               13,983  
Loans, net     1,125,387               1,111,953       17,111       1,129,064  
Accrued interest receivable     4,684               4,684               4,684  
Derivative assets     1,596               1,596               1,596  
Financial liabilities                                        
Deposits   $ (1,455,328 )   $ (1,081,198 )   $ (374,130 )   $       $ (1,455,328 )
Short-term borrowings     (24,373 )             (24,373 )             (24,373 )
Notes payable     (48,727 )             (21,497 )     (22,355 )     (43,852 )
Accrued interest payable     (1,201 )             (1,201 )             (1,201 )
Standby letters of credit     (180 )             (180 )             (180 )
Derivative liabilities     (1,596 )             (1,596 )             (1,596 )

 

          Fair Value Measurements at  
          December 31, 2011 Using:  
    Carrying Value     Level 1     Level 2     Level 3     Total  
(Dollars in thousands)                              
Financial assets                                        
Cash and cash equivalents   $ 135,964     $ 135,964     $     $     $ 135,964  
Interest-bearing deposits with Banks     250               250               250  
Securities available-for-sale     322,512               321,452       1,060       322,512  
Securities held-to-maturity     48,975               50,643               50,643  
Federal Home Loan Bank stock     5,099       N/A                       N/A  
Loans held for sale     8,920               8,920               8,920  
Loans, net     1,111,666               1,093,529       19,259       1,112,788  
Accrued interest receivable     4,887               4,887               4,887  
Derivative assets     1,349               1,349               1,349  
Financial liabilities                                        
Deposits   $ (1,498,821 )   $ (1,092,434 )   $ (408,859 )   $     $ (1,501,293 )
Short-term borrowings     (29,300 )             (29,300 )             (29,300 )
Notes payable     (48,739 )             (27,477 )     (18,476 )     (45,953 )
Accrued interest payable     (1,582 )             (1,582 )             (1,582 )
Standby letters of credit     (263 )             (263 )             (263 )
Derivative liabilities     (1,349 )             (1,349 )             (1,349 )

  

Impaired Loans
 
Quantitative information about Recurring Level Three Fair Value Measurements

The following table presents quantitative information about recurring Level 3 fair value measurements at June 30, 2012 (in thousands):

  Fair
Value
    Valuation Technique(s)     Unobservable Input(s)      Value  
Assets                                
Impaired Loans:                                
Commercial     344     Cost, sales, income approach     adjustments for comparable properties, market conditions       5-10%  
Nonresidential real estate                                
Owner occupied properties     7,279     Cost, sales, income approach     adjustments for comparable properties, market conditions       5-10%  
Non owner occupied properties     6,763     Cost, sales, income approach     adjustments for comparable properties, market conditions       5-10%  
Residential real estate                                
Home equity lines of credit                                
Multifamily properties     1,543     Cost, sales, income approach     adjustments for comparable properties, market conditions       5-10%  
Other     490     Cost, sales, income approach     adjustments for comparable properties, market conditions       5-10%  
Construction     692     Cost, sales, income approach     adjustments for comparable properties, market conditions       5-10%  
Total     17,111