Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Of Financial Instruments Tables

Schedule of assets and liabilities reported at their fair value, measured on a recurring basis

	December 31, 2012
(In Thousands)	Level I		Level II		Level III		Total
Assets:
U.S. Government Agency Securities	$	—	$	22,192	$	—	$	22,192
U.S. Sponsored Mortgage backed securities	—		56,376		—		56,376
Other Securities	—		934				934
Loans held for sale	—		85,529		—		85,529
Derivative on loans held for sale	—		1,261		—		1,261
Other Real Estate Owned	—		—		207		207
Impaired Loans	—		—		3,118		3,118

	June 30, 2013
(In Thousands)	Level I		Level II		Level III		Total
Assets:
U.S. Government Agency Securities	$	—	$	35,086	$	—	$	35,086
U.S. Sponsored Mortgage backed securities	—		47,530		—		47,530
Other Securities	—		934		—		934
Loans held for sale	—		76,696		—		76,696
Derivative on loans held for sale	—		2,912		—		2,912
Other Real Estate Owned	—		—		183		183
Impaired loans	—		—		1,091		1,091

Schedule of quantitative information about assets measured at fair value on a non-recurring basis

	Quantitative Information about Level 3 Fair Value Measurements
(in thousands)	Fair Value  Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
December 31, 2012:
Impaired loans	$	3,118	Appraisal of collateral (1)	Appraisal adjustments (2)	0% to -50.0% (-25.2%)
				Liquidation expenses (2)	-1.5% to 8.0% (-5.5%)
Other real estate owned and repossessed assets	$	207	Appraisal of collateral (1),(3)
June 30, 2013:
Impaired loans	$	1,091	Appraisal of collateral (1)	Appraisal adjustments (2)	0% to -50.0% (-25.2%)
				Liquidation expenses (2)	-1.5% to 8.0% (-5.5%)
Other real estate owned and repossessed assets	$	183	Appraisal of collateral (1),(3)

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2)  Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.  The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

(3)  Includes qualitative adjustments by management and estimated liquidation expenses.

Schedule of carrying values and estimated fair values of the Company's financial instruments

					Fair Value Measurements at December 31, 2012
(Dollars in thousands)	Carrying Value		Estimated Fair Value		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and due from banks	$	21,637	$	21,637	$	21,637	$	—	$	—
Interest bearing balances	13,130		13,554		13,554		—		—
Certificates of deposits	9,427		9,427		9,427		—		—
Securities available-for-sale	79,502		80,138		—		80,138		—
Securities held-to-maturity	35,370		36,218		—		36,218		—
Loans	446,443		457,158		—		—		457,158
Loans held for sale	85,529		85,529		—		85,529		—
Derivative on loans held for sale	1,261		1,261		—		1,261		—
Bank owned life insurance	10,524		10,524		10,524		—		—
Accrued interest receivable	1,778		1,778		1,778		—		—
	$	704,601	$	717,224	$	56,920	$	203,146	$	457,158
Financial liabilities:
Deposits	$	486,519	$	498,244	$	329,083	$	—	$	169,161
Repurchase agreements	70,234		70,234		70,234		—		—
FHLB and other Borrowings	91,617		94,487		—		—		94,487
Accrued interest payable	329		329		329		—		—
Subordinated debt	4,124		4,664		4,664		—		—
	$	652,823	$	667,958	$	404,310	$	—	$	263,648

					Fair Value Measurements at June 30, 2013
(Dollars in thousands)	Carrying Value		Estimated Fair Value		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and due from banks	$	27,444	$	27,444	$	27,444	$	—	$	—
Interest bearing balances	3,305		3,305		3,305		—		—
Certificates of deposits	9,427		9,427		9,427		—		—
Securities available-for-sale	83,550		83,550		—		83,550		—
Securities held-to-maturity	47,328		48,014		—		48,014		—
Loans	474,854		484,826		—		—		484,826
Loans held for sale	76,696		76,696		—		76,696		—
Derivative on loans held for sale	2,912		2,912		—		2,912		—
Bank owned life insurance	15,826		15,826		15,826		—		—
Accrued interest receivable	2,199		2,199		2,199		—		—
	$	743,261	$	754,199	$	58,201	$	211,172	$	484,826
Financial liabilities:
Deposits	$	531,338	$	537,706	401,531		—		136,175
Repurchase agreements	82,956		82,956		82,956		—		—
FHLB and other Borrowings	72,863		82,262		—		—		82,262
Accrued interest payable	323		323		323		—		—
Subordinated debt	4,124		4,124		4,124		—		—
	$	691,604	$	707,371	$	488,934	$	—	$	218,437