v2.4.0.6
Fair Value (Tables)
9 Months Ended
Sep. 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 
     September 30, 2012 Using: 
        Significant    
     Quoted Prices in  Other  Significant 
  Total  Active Markets for  Observable  Unobservable 
  September 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 $113,763  $-  $113,763  $- 
U.S. government agency mortgage backed  187,721   -   187,721   - 
Corporate  1,060   -   -   1,060 
Derivatives  1,841   -   1,841   - 
Total $304,385  $-  $303,325  $1,060 
                 
Liabilities                
Derivatives $1,841  $-  $1,841  $- 
Total $1,841  $-  $1,841  $- 

 

     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   -   169,460   - 
U.S. government agency mortgage backed  151,992   -   151,992   - 
Corporate  1,060   -   -   1,060 
Derivatives  1,349   -   1,349   - 
Total $323,861   -   322,801   1,060 
                 
Liabilities                
Derivatives $1,349   -   1,349   - 
Total $1,349   -   1,349   - 

 

 
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 September 30 (in thousands):

 

  Corporate Securities 
  9/30/12  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  -   - 
Sales  -   - 
Issuances  -   - 
Settlements  -   - 
Transfers into Level 3  -   - 
Transfers out of Level 3  -   - 
         
Balance of recurring Level 3 assets at December 31 $1,060  $1,060 
Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

The following table presents quantitative information about recurring Level 3 fair value measurements at September 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 
     September 30, 2012 Using: 
        Significant    
     Quoted Prices in  Other  Significant 
  Total  Active Markets for  Observable  Unobservable 
  September 30  Identical Assets  Inputs  Inputs 
  2012  (Level 1)  (Level 2)  (Level 3) 
Assets                
Impaired loans                
Commercial $771  $-  $-  $771 
Nonresidential real estate  -             
Owner occupied properties  5,892   -   -   5,892 
Non owner occupied properties  3,732   -   -   3,732 
Residential real estate                
Home equity lines of credit  147   -   -   147 
Multifamily properties  1,081   -   -   1,081 
Other  2,819   -   -   2,819 
Construction  4,051   -   -   4,051 
Total $18,493  $-  $-  $18,493 

 

     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  $-  $-  $383 
Nonresidential real estate  -             
Owner occupied properties  8,320   -   -   8,320 
Non owner occupied properties  5,858   -   375   5,483 
Residential real estate                
Home equity lines of credit  -   -   -   - 
Multifamily properties  -   -   -   - 
Other  3,332   -   1,832   1,500 
Construction  3,787   -   214   3,573 
Total $21,680  $-  $2,421  $19,259 
Carrying Amounts and Estimated Fair Values of Financial Instruments

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

 

     Fair Value Measurements at 
     September 30, 2012 Using: 
  Carrying Value  Level 1  Level 2  Level 3  Total 
(Dollars in thousands)                    
Financial assets                    
Cash and cash equivalents $81,950  $81,950  $  $  $81,950 
Interest-bearing deposits with Banks  250       250       250 
Securities available-for-sale  302,544       301,484   1,060   302,544 
Securities held-to-maturity  58,314       60,375       60,375 
Federal Home Loan Bank stock  5,099   N/A           N/A 
Loans held for sale  19,314       19,314       19,314 
Loans, net  1,142,489           1,149,104   1,149,104 
Accrued interest receivable  4,428       4,428       4,428 
Derivative assets  1,841       1,841       1,841 
Financial liabilities                    
Deposits $(1,471,246) $(1,101,443) $(366,976) $  $(1,468,419)
Short-term borrowings  (22,142)      (22,142)      (22,142)
Notes payable  (48,721       (22,414)  (22,366)  (44,780)
Accrued interest payable  (1,082)      (1,082)      (1,082)
Standby letters of credit  (208)      (208)      (208)
Derivative liabilities  (1,841)      (1,841)      (1,841)

 

     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 [Member]
 
Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

The following table presents quantitative information about recurring Level 3 fair value measurements at September 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