Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Assets measured at fair value on a recurring basis

			Fair Value Measurements of Assets
(dollars in thousands)			at June 30, 2012 Using
Description	Fair Value June 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Changes in Fair Values Included in Period Earnings
Investment Securities Available for Sale
Debt securities
Issued by U. S. Government agencies	$	49,946	$	0	$	49,946	$	0	$	0
Issued by State and municipal		1,144		0		1,144		0		0
Mortgage-backed securities issued by Government agencies		37,611		0		37,611		0		0
Private label mortgage-backed securities		1,588		0		0		1,588		0
Total Debt Securities		90,289		0		88,701		1,588		0
Equity securities
Mutual funds		676		0		676		0		0
Total Equity Securities		676		0		676		0		0
Total Investment Securities Available for Sale	$	90,965	$	0	$	89,377	$	1,588	$	0

			Fair Value Measurements of Assets
(dollars in thousands)			at December 31, 2011 Using
Description	Fair Value December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Changes in Fair Values Included in Period Earnings
Investment Securities Available for Sale
Debt securities
Issued by U.S. Government agencies	$	48,032	$	0	$	48,032	$	0	$	0
Issued by State and municipal		1,136		0		1,136		0		0
Mortgage-backed securities issued by Government agencies		35,870		0		35,870		0		0
Private label mortgage-backed securities		1,855		0		0		1,855		0
Total Debt Securities		86,893		0		85,038		1,855		0
Equity Securities
Mutual funds		656		0		656		0		0
Total Equity Securities		656		0		656		0		0
Total Investment Securities Available for Sale	$	87,549	$	0	$	85,694	$	1,855	$	0

Fair value measurements using significant unobservable inputs (Level 3)

Fair Value Measurements Using Significant Unobservable Inputs (Level 3) – Roll Forward
at June 30, 2012
Investment Securities Available for Sale – Debt Securities
Beginning Balance at December 31, 2011	$	1,855
Transfers in to Level 3		0
Transfers out of Level 3		0
Unrealized gains		14
Repayments		(281	)
Ending Balance at June 30, 2012	$	1,588

Fair Value Measurements Using Significant Unobservable Inputs (Level 3) – Roll Forward
at December 31, 2011
Investment Securities Available for Sale – Debt Securities
Beginning Balance at December 31, 2010	$	2,401
Transfers in to Level 3		0
Transfers out of Level 3		0
Unrealized gains		100
Repayments		(646	)
Ending Balance at December 31, 2011	$	1,855

Summary of level 3 securities

			Remaining		Current Rating
(in thousands)	Class	Coupon	Par Value		Moody’s		Fitch
CWHL 2005-21	A13	5.5% Fixed	$	166		B3		CC
WFMBS 2005-14	IA7	5.5% Fixed		1,490		Ca		A

June 30, 2012

	Cumulative Default (1)			Weighted Average Life (2)		Modified Duration (3)		Yield (4)
CWHL 2005-21		6.10	%		0.41 years		0.38 years		8.00	%
WFMBS 2005-14		2.23	%		1.98 years		1.70 years		8.00	%

(1) The recent three month level of total defaults from the issuer within the pool of performing collateral.

(2) The average number of years that each dollar of principal remains outstanding.

(3) The weighted average of present values for a series of cash flows which accurately indicates the average time until the cash flows are received.

(4) The discount rate obtained from taking a sequence of cash flows and an estimated price.

December 31, 2011

	3 Month Cumulative Default (1)			Weighted Average Life (2)		Modified Duration (3)		Yield (4)
CWHL 2005-21		3.04	%		0.65 years		0.59 years		8.00	%
WFMBS 2005-14		3.84	%		2.10 years		1.80 years		8.00	%

(1) The anticipated level of total defaults from the issuer within the pool of performing collateral as of December 31, 2011.

(2) The average number of years that each dollar of principal remains outstanding.

(3) The weighted average of present values for a series of cash flows which accurately indicates the average time until the cash flows are received.

(4) The discount rate obtained from taking a sequence of cash flows and an estimated price.

Assets measured at fair value on a nonrecurring basis

			Fair Value Measurements
(in thousands)			at June 30, 2012 Using
Description	Fair Value June 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Changes in Fair Values Included in Period Earnings
Loans
Impaired loans
Commercial	$	967	$	0	$	967	$	0	$	0
Commercial real estate		1,165		0		1,165		0		0
Residential real estate		2,029		0		2,029		0		0
Construction		606		0		606		0		0
Consumer		81		0		81		0		0
Total impaired loans		4,848		0		4,848		0		0
Real estate owned		1,169		0		1,169		0		0
Other assets (repossessed assets)		116		0		116		0		0
Total Assets Measured at Fair Value on a Nonrecurring Basis	$	6,133	$	0	$	6,133	$	0	$	0
			Fair Value Measurements
(in thousands)			at December 31, 2011 Using
Description	Fair Value December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Changes in Fair Values Included in Period Earnings
Loans
Impaired loans
Commercial	$	1,202	$	0	$	1,202	$	0	$	0
Commercial real estate		995		0		995		0		0
Residential real estate		2,580		0		2,580		0		0
Construction		719		0		719		0		0
Consumer		323		0		323		0		0
Total impaired loans		5,819		0		5,819		0		0
Real estate owned		1,222		0		1,222		0		0
Other assets (repossessed assets)		52		0		52		0		0
Total Assets Measured at Fair Value on a Nonrecurring Basis	$	7,093	$	0	$	7,093	$	0	$	0

Summary of estimated fair value of financial instruments

	June 30, 2012				December 31, 2011
	Carrying		Estimated Fair		Carrying		Estimated Fair
(dollars in thousands)	Amount		Value		Amount		Value
Financial assets
Level 2 inputs:
Cash and due from banks	$	2,852	$	2,852	$	2,026	$	2,026
Interest bearing balances with banks		28,884		28,884		18,288		18,288
Federal funds sold		8		8		26,583		26,583
Investment securities		89,377		89,377		85,694		85,694
Federal Reserve and Federal Home Loan Bank stock		2,865		2,865		2,992		2,992
Loans and loans held for sale, net		290,476		290,777		283,284		283,667
Accrued interest receivable		1,320		1,320		1,279		1,279
Bank owned life insurance		5,734		5,734		5,624		5,624
Real estate owned		1,169		1,169		1,222		1,222
Level 3 inputs:
Other debt securities		1,588		1,588		1,855		1,855
Financial liabilities
Level 2 inputs:
Noninterest bearing deposits	$	56,414	$	56,414	$	56,664	$	56,664
Interest bearing deposits		286,801		288,033		293,717		298,788
Securities sold under agreements to repurchase		16,458		16,458		11,344		11,344
Long-term borrowings		35,000		31,265		35,000		31,357
Junior subordinated debt		5,000		5,000		5,000		5,000
Accrued interest and dividends payable		187		187		167		167