Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value of Financial Instruments

Schedule of assets and liabilities reported at their fair value, by level within the fair value hierarchy

	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	—		—		2,395		2,395

	September 30, 2013
(In Thousands)	Level I		Level II		Level III		Total
Assets:
U.S. Government Agency Securities	$	—	$	59,789	$	—	$	59,789
U.S. Sponsored Mortgage backed securities	—		49,106		—		49,106
Other Securities	—		934		—		934
Loans held for sale	—		46,655		—		46,655
Derivative on loans held for sale	—		2,636		—		2,636
Other Real Estate Owned	—		—		647		647
Impaired loans	—		—		2,762		2,762

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	$	2,395	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expenses (2)	0% to -50.0% (-25.2%) -1.5% to 8.0% (-5.5%)
Other real estate owned and repossessed assets	$	207	Appraisal of collateral (1),(3)
September 30, 2013:
Impaired loans	$	2,762	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expenses (2)	0% to -50.0% (-25.2%) -1.5% to 8.0% (-5.5%)
Other real estate owned and repossessed assets	$	647	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	3,703		4,127		4,127		—		—
Certificates of deposits	9,427		9,427		9,427		—		—
Securities available-for-sale	79,502		79,502		—		79,502		—
Securities held-to-maturity	35,370		36,218		—		36,218		—
Loans	442,367		453,082		—		—		453,082
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		—		—
	$	691,098	$	703,085	$	134,283	$	115,720	$	453,082
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 September 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	$	27,111	$	27,111	$	27,111	$	—	$	—
Interest bearing balances	21,371		21,371		21,371		—		—
Certificates of deposits	9,427		9,427		9,427		—		—
Securities available-for-sale	109,829		109,829		—		109,829		—
Securities held-to-maturity	55,208		52,883		—		52,883		—
Loans	517,458		524,768		—		—		524,768
Loans held for sale	46,655		46,655		46,655		—		—
Derivative on loans held for sale	2,636		2,636		2,636		—		—
Bank owned life insurance	15,945		15,945		15,945		—		—
Accrued interest receivable	2,210		2,210		2,210		—		—
	$	807,850	$	812,835	$	125,355	$	162,712	$	524,768
Financial liabilities:
Deposits	$	620,010	$	610,834	398,977		—		211,857
Repurchase agreements	86,147		86,147		86,147		—		—
FHLB and other Borrowings	52,246		46,656		—		—		46,656
Accrued interest payable	321		321		321		—		—
Subordinated debt	4,124		4,664		4,664		—		—
	$	762,848	$	748,622	$	490,109	$	—	$	258,513