Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Assets measured at fair value on recurring basis

Assets measured at fair value on a recurring basis are summarized as follows:

	June 30, 2013
	Level I		Level II		Level III		Total
Assets:
Securities available-for-sale
U.S. Agency securities	$	—	$	81,767	$	—	$	81,767
Mortgage-backed securities:
Residential		—		14,159		—		14,159
States & political subdivisions:
Bank qualified tax exempt		—		55,643		—		55,643
Corporate securities:
Aaa credit rating		—		—		—		—
Equity securities:
Financial services industry		942		—		—		942
Total securities available-for-sale	$	942	$	151,569	$	—	$	152,511

	December 31, 2012
	Level I		Level II		Level III		Total
Assets:
Securities available-for-sale
U.S. Agency securities	$	—	$	84,682	$	—	$	84,682
Mortgage-backed securities:
Residential		—		16,801		—		16,801
States & political subdivisions:
Bank qualified tax exempt		—		58,837		—		58,837
Corporate securities:
Aaa credit rating		—		—		—		—
Equity securities:
Financial services industry		1,071		—		—		1,071
Total securities available-for-sale	$	1,071	$	160,320	$	—	$	161,391

Assets measured at fair value on non-recurring basis

Certain assets measured at fair value on a non-recurring basis as of June 30, 2013 are as follows:

	Fair Value Measurement Using
	Quoted Prices in Active Markets for Identical Assets/Liabilities Level I		Significant Other Observable Inputs Level II		Significant Unobservable Inputs Level III		Balance Total
Assets
Core deposit intangible	$	—	$	—	$	719	$	719
Goodwill		—		—		26,398		26,398
Impaired loans		—		—		3,674		3,674
Federal Home Loan Bank stock		—		—		3,132		3,132
Other real-estate owned		—		949		—		949
Preferred stock		—		—		660		660
Total non-financial assets	$	—	$	949	$	34,583	$	35,532

Certain assets measured at fair value on a non-recurring basis as of December 31, 2012 is as follows:

	Fair Value Measurement Using
	Quoted Prices in Active Markets for Identical Assets/Liabilities Level I		Significant Other Observable Inputs Level II		Significant Unobservable Inputs Level III		Balance Total
Assets
Core deposit intangible	$	—	$	—	$	838	$	838
Goodwill		—		—		26,398		26,398
Impaired loans		—		—		4,045		4,045
Federal Home Loan Bank stock		—		—		4,212		4,212
Other real-estate owned		—		656		—		656
Preferred stock		—		—		660		660
Total non-financial assets	$	—	$	656	$	36,153	$	36,809

Reconciliation of Level III items

A reconciliation of items in Level III for the six month period ended June 30, 2013 is as follows:

	Core deposit intangible			Goodwill		Impaired Loans			Federal Home Loan Bank Stock			Preferred Stock		Total
Balance, December 31, 2012	$	838		$	26,398	$	4,045		$	4,212		$	660	$	36,153
Amortization of core deposit intangible		(119	)		—		—			—			—		(119	)
Increase in impaired loans		—			—		1,749			—			—		1,749
Decrease in impaired loans		—			—		(1,247	)		—			—		(1,247	)
Payments received		—			—		(873	)		(1,080	)		—		(1,953	)
Purchases		—			—		—			—			—		—
Balance, June 30, 2013	$	719		$	26,398	$	3,674		$	3,132		$	660	$	34,583

A reconciliation of items in Level III for the year ended December 31, 2012 is as follows:

	Core deposit intangible			Goodwill		Impaired Loans			Federal Home Loan Bank Stock			Preferred Stock		Total
Balance, December 31, 2011	$	1,106		$	26,398	$	2,876		$	4,953		$	—	$	35,333
Amortization of core deposit intangible		(268	)		—		—			—			—		(268	)
Increase in impaired loans		—			—		3,895			—			—		3,895
Decrease in impaired loans		—			—		(1,661	)		—			—		(1,661	)
Payments received		—			—		(1,065	)		(1,581	)		—		(2,646	)
Purchases		—			—		—			840			660		1,500
Balance, December 31, 2012	$	838		$	26,398	$	4,045		$	4,212		$	660	$	36,153

Carrying and fair values of financial instruments

The carrying and fair values of certain financial instruments are as follows:

	June 30, 2013										Total Fair Value
	Carrying Value			Level 1		Level 2		Level 3
Cash and cash equivalents	$	36,760		$	36,760	$	—	$	—		$	36,760
Investment securities held-to-maturity		19,707			—		19,537		—			19,537
Loans, net		634,801			—		—		641,421			641,421
Bank-owned life insurance		17,855			—		17,855		—			17,855
Demand deposits		560,433			—		560,433		—			560,433
Time deposits		172,701			—		174,327		—			174,327
Short-term borrowings		8,188			—		8,188		—			8,188
Long-term borrowings		35,633			—		36,850		—			36,850
Standby Letters of Credit	$	(176	)	$	—	$	—	$	(176	)	$	(176	)

	December 31, 2012										Total Fair Value
	Carrying Value			Level 1		Level 2		Level 3
Cash and cash equivalents	$	47,844		$	47,844	$	—	$	—		$	47,844
Investment securities held-to-maturity		15,902			—		16,774		—			16,774
Loans, net		616,580			—		—		627,712			627,712
Bank-owned life insurance		17,616			—		17,616		—			17,616
Demand deposits		546,734			—		546,734		—			546,734
Time deposits		175,214			—		178,037		—			178,037
Short-term borrowings		8,019			—		8,019		—			8,019
Long-term borrowings		45,397			—		48,625		—			48,625
Standby Letters of Credit	$	(144	)	$	—	$	—	$	(144	)	$	(144	)