Fair Value Measurements and Disclosure (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Measurements and Disclosure [Abstract]

Fair Value of Financial Instruments

The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized at the periods indicated:

March 31, 2013
					Quoted Prices		Significant
					In Active		Other		Significant
			Estimated		Markets for		Observable		Unobservable
	Carrying		Fair		Identical Assets		Inputs		Inputs
(In thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	136,450	$	136,450	$	136,450
Interest-bearing deposits		1,509		1,509				1,509
Investment securities		27,889		27,889		11,954		15,935
Loans		386,918		396,521						396,521
Cash surrender value of life insurance		16,809		16,809						16,809
Accrued interest receivable		1,605		1,605				1,605
Financial Liabilities:
Deposits:
Noninterest-bearing		211,961		204,016		204,016
NOW and money market		198,533		200,265		200,265
Savings		42,808		41,693		41,693
Time Deposits		96,517		96,698						96,698
Total Deposits		549,819		542,672		445,974				96,698
Junior Subordinated Debt		10,685		10,685						10,685
Accrued interest payable		77		77				77
Commitments to extend credit		-		-		-		-		-
Standby letters of credit		-		-		-		-		-

December 31, 2012
					Quoted Prices		Significant
					In Active		Other		Significant
			Estimated		Markets for		Observable		Unobservable
	Carrying		Fair		Identical Assets		Inputs		Inputs
(In thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	141,627	$	141,627	$	141,627
Interest-bearing deposits		1,507		1,507				1,507
Investment securities		31,844		31,844		13,593		18,251
Loans		388,249		386,836						386,836
Cash surrender value of life insurance		16,681		16,681						16,681
Accrued interest receivable		1,694		1,694				1,694
Financial Liabilities:
Deposits:
Noninterest-bearing		217,014		217,014		217,014
NOW and money market		203,771		203,569		203,569
Savings		43,117		41,998		41,998
Time Deposits		99,385		99,529						99,529
Total Deposits		563,287		562,110		462,581				99,529
Junior Subordinated Debt		10,068		10,068						10,068
Accrued interest payable		71		71				71
Commitments to extend credit		-		-		-		-		-
Standby letters of credit		-		-		-		-		-

Description of the Valuation Technique, Unobservable Input, and Qualitative Information about the Unobservable Inputs for the Company's Assets and Liabilities Classified as Level 3 and Measured at Fair Value on a Recurring Basis

The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company's assets and liabilities classified as Level 3 and measured at fair value on a recurring basis at March 31, 2013:

Financial Instrument	Valuation Technique	Unobservable Input	Weighted Average
Subordinated Debt	Discounted cash flow	Discount Rate	7.06%

Assets and Liabilities Measured at Fair Value on Recurring and Non-recurring Basis

The following tables summarize the Company's assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of March 31, 2013 (in 000's):

			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description of Assets	March 31, 2013		(Level 1)		(Level 2)		(Level 3)
AFS Securities (2):
U.S. government agencies		20,888		8,021		12,867
U.S. government agency CMO's		3,068				3,068
Mutual Funds		3,933		3,933
Total AFS securities		27,889		11,954		15,935		0
Impaired loans     (1):
Commercial and industrial		519						519
Real estate mortgage		8,246						8,246
RE construction & development		0						0
Agricultural		0						0
Installment/Other		0						0
Total impaired loans		8,765		0		0		8,765
Other real estate owned (1)		21,958						21,958
Total	$	58,612	$	11,954	$	15,935	$	30,723

			Quoted Prices in Active Markets for Identical Assets	Significant Other Observable Inputs	Significant Unobservable Inputs
Description of Liabilities	March 31, 2013		(Level 1)	(Level 2)	(Level 3)
Junior subordinated debt (2)	$	10,685			$	10,685
Total	$	10,685			$	10,685

(1)  Nonrecurring

(2)  Recurring

The following tables summarize the Company's assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2012 (in 000's):

	December 31,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description of Assets (000's)	2012		(Level 1)		(Level 2)		(Level 3)
AFS Securities:
U.S Govt agencies		24,366		9,632		14,734
U.S Govt collateralized mortgage obligations		3,517				3,517
Mutual Funds		3,961		3,961
Total AFS securities		31,844		13,593		18,251		0
Impaired Loans (1):
Commercial and industrial		576						576
Real estate mortgage		7,903						7,903
RE construction & development		0						0
Agricultural		0						0
Installment/Other		0						0
Total impaired loans		8,479		0		0		8,479
Other real estate owned (1)		23,932						23,932
Total	$	64,255	$	13,593	$	18,251	$	32,411

	December 31,		Quoted Prices in Active Markets for Identical Assets	Significant Other Observable Inputs	Significant Unobservable Inputs
Description of Liabilities (000's)	2012		(Level 1)	(Level 2)	(Level 3)
Junior subordinated debt (2)		10,068				10,068
Total		10,068				10,068

(1)  Nonrecurring

(2)  Recurring

Significant Unobservable Inputs (Level 3) on a Recurring Basis

The following tables provide a reconciliation of assets and liabilities at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three months ended March 31, 2013 and 2012 (in 000's):

	March 31, 2013		March 31, 2012
Reconciliation of Assets:	Private label mortgage-backed securities		Private label mortgage-backed securities
Beginning balance	$	0	$	7,972
Total gains or (losses) included in earnings		0		594
Total gains or (losses) included in other comprehensive income		0		0
Transfers in and/or out of Level 3		0		0
Ending balance	$	0	$	8,566
The amount of total gains or (losses) for the period included in earnings (or other comprehensive loss) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	0	$	594

	March 31, 2013		March 31, 2012
Reconciliation of Liabilities:	Junior Subordinated Debt		Junior Subordinated Debt
Beginning balance	$	10,068	$	9,027
Total losses (gains) included in earnings (or changes in net assets)		557		477
Transfers in and/or (out) of Level 3		60		63
Ending balance	$	10,685	$	9,567
The amount of total losses (gains) for the period included in earnings attributable to the change in unrealized gains or losses relating to liabilities still held at the reporting date	$	557	$	477