Fair Value Measurements

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Measurements

(7) Fair Value Measurements. Securities available for sale measured at fair value on a recurring basis are summarized below (in thousands):

			Fair Value Measurements at Reporting Date Using
	Fair Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
As of September 30, 2012-
Mortgage-backed securities	$	21,588	$	0	$	21,588	$	0
As of December 31, 2011-
Mortgage-backed securities	$	28,907	$	0	$	28,907	$	0

There were no transfers of securities between levels of inputs for the nine months ended September 30, 2012 and 2011.

Impaired collateral-dependent loans are carried at fair value when the current collateral value less estimated selling costs is lower than the carrying value of the loan. Those impaired collateral-dependent loans which are measured at fair value on a nonrecurring basis are as follows (in thousands):

											Losses Recorded in Operations For the Nine Months Ended September 30, 2012
	At September 30, 2012
	Fair Value		Level 1		Level 2		Level 3		Total Losses
Residential real estate-
Closed-end first mortgages	$	1,294	$	0	$	0	$	1,294	$	451	$	0
Commercial real estate:
Non-owner-occupied		8,997		0		0		8,997		2,484		0
Land and construction		905		0		0		905		449		0
	$	11,196	$	0	$	0	$	11,196	$	3,384	$	0

											Losses Recorded in Operations For the Year Ended December 31, 2011
	At December 31, 2011
	Fair Value		Level 1		Level 2		Level 3		Total Losses
Residential real estate-
Closed-end first mortgages	$	1,591	$	0	$	0	$	1,591	$	545	$	308
Commercial real estate:
Owner-occupied		291		0		0		291		8		8
Non-owner-occupied		6,540		0		0		6,540		2,652		150
Land and construction		6,793		0		0		6,793		1,511		834
	$	15,215	$	0	$	0	$	15,215	$	4,716	$	1,300

Foreclosed real estate is recorded at fair value less estimated costs to sell.  Foreclosed real estate which is measured at fair value on a nonrecurring basis is as follows (in thousands):

											Losses
											Recorded
	Fair								Total		During the
	Value		Level 1		Level 2		Level 3		Losses		Period
At September 30, 2012	$	10,444	$	0	$	0	$	10,444	$	842	$	70
At December 31, 2011	$	7,646	$	0	$	0	$	7,646	$	772	$	772

The estimated fair values and fair value measurement method with respect to the Company’s financial instruments were as follows (in thousands):

	At September 30, 2012						At December 31, 2011
	Carrying		Fair				Carrying		Fair
	Amount		Value		Level		Amount		Value		Level
Financial assets:
Cash and cash equivalents	$	27,367	$	27,367		1	$	22,776	$	22,776		1
Securities available for sale		21,588		21,588		2		28,907		28,907		2
Loans		85,451		85,298		3		89,217		89,069		3
Federal Home Loan Bank stock		1,478		1,478		3		2,159		2,159		3
Accrued interest receivable		477		477		3		499		499		3
Financial liabilities:
Deposit liabilities		105,526		106,065		1,3		107,895		108,461		1,3
Federal Home Loan Bank advances		27,700		29,884		3		31,700		33,920		3
Junior subordinated debenture		5,155		4,836		3		5,155		4,734		3
Off-balance sheet financial instruments		0		0		3		0		0		3

Discussion regarding the assumptions used to compute the estimated fair values of financial instruments can be found in Note 1 to the consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2011.