Fair Value (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Abstract]

Level 3 Fair Value Reconciliation

The following table presents a rollforward of interest rate swaps from March 31, 2012 to June 30, 2012, and from March 31, 2011 to June 30, 2011.

	Level 3
	Fair Value- Assets			Fair Value- Liabilities
	(Amounts in thousands)
Balance, March 31, 2011	$	133		$	133
Purchases, sales, issuances and settlements	—			—
Gains/losses included in other income	40			40
Balance, June 30, 2011	$	173		$	173
Balance, March 31, 2012	$	209		$	209
Purchases, sales, issuances and settlements	—			—
Gains/losses included in other income	4			4
Balance, June 30, 2012	$	213		$	213
The following table presents a rollforward of interest rate swaps from December 31, 2011 to June 30, 2012, and from December 31, 2010 to June 30, 2011.
	Level 3
	Fair Value- Assets			Fair Value- Liabilities
	(Amounts in thousands)
Balance, December 31, 2010	$	159		$	159
Purchases, sales, issuances and settlements	—			—
Gains/losses included in other income	14			14
Balance, June 30, 2011	$	173		$	173
Balance, December 31, 2011	$	217		$	217
Purchases, sales, issuances and settlements	—			—
Gains/losses included in other income	(4		)	(4		)
Balance, June 30, 2012	$	213		$	213

Level 3 Fair Value Reconciliation

The following table presents a rollforward of mortgage servicing rights from December 31, 2011 to June 30, 2012 and December 31, 2010 to June 30, 2011 and shows that the mortgage servicing rights are classified as Level 3 as discussed above.

	Level 3
	Fair Value			Fair Value
	(In thousands)
Balance, March 31, 2012 and 2011	$	2,151		$	2,220
Capitalized	177			60
Gains/losses included in other income	(439		)	(87		)
Balance, June 30, 2012 and 2011	$	1,889		$	2,193
	Level 3
	Fair Value			Fair Value
	(In thousands)
Balance, December 31, 2011 and 2010	$	1,871		$	2,144
Capitalized	344			195
Gains/losses included in other income	(326		)	(146		)
Balance, June 30, 2012 and 2011	$	1,889		$	2,193

	Interest Rate Lock Commitments
	Level 3
	Fair Value			Fair Value
	(In thousands)
Balance, March 31, 2012 and 2011	$	(159	)	$	337
Gains/losses included in other income	737			(321		)
Transfer in and out	—			—
Balance, June 30, 2012 and 2011	$	578		$	16
The following table presents a rollforward of interest rate lock commitments for the six months ended June 30, 2012 and 2011, respectively.
	Interest Rate Lock Commitments
	Level 3
	Fair Value			Fair Value
	(In thousands)
Balance, December 31, 2011 and 2010	$	130		$	105
Gains/losses included in other income	448			(89		)
Transfer in and out	—			—
Balance, June 30, 2012 and 2011	$	578		$	16

Assets and Liabilities Measured on a Recurring Basis

The following table presents assets and (liabilities) measured at fair value on a recurring basis:

June 30, 2012 (in thousands)	Fair Value			Level 1		Level 2			Level 3
Available-for-sale securities:
U.S. government agencies	$	23,059		$	—	$	23,059		$	—
Government sponsored agencies:
Residential mortgage-backed securities	80,459			—		80,459			—
Collateralized mortgage obligations	167,065			—		167,065			—
Private label collateralized mortgage obligations	1,149			—		1,149			—
State and municipal securities	66,607			—		66,607			—
Common and preferred stocks	1,133			1,133		—			—
Interest rate swap agreements	213			—		—			213
Interest rate swap agreements	(213		)	—		—			(213		)
Interest rate lock commitments	577			—		—			577
Forward loan sale commitments	(102		)	—		(102		)	—
Mortgage servicing rights	1,889			—		—			1,889

December 31, 2011 (in thousands)	Fair Value			Level 1		Level 2		Level 3
Available-for-sale securities:
U.S. government agencies	$	23,726		$	—	$	23,726	$	—
Government sponsored agencies:
Residential mortgage-backed securities	65,210			—		65,210		—
Collateralized mortgage obligations	166,028			—		166,028		—
Private label collateralized mortgage obligations	1,256			—		1,256		—
State and municipal securities	73,118			—		73,118		—
Common and preferred stocks	1,084			1,084		—		—
Interest rate swap agreements	216			—		—		216
Interest rate swap agreements	(216		)	—		—		(216		)
Interest rate lock commitments	130			—		—		130
Forward loan sale commitments	57			—		57		—
Mortgage servicing rights	1,871			—		—		1,871

Level 3 Inputs, Quantitative Information

	Fair Value at June 30, 2012 (in thousands)		Valuation Technique	Unobservable Input	Range (Weighted Avg)
Recurring measurements:
Interest Rate Swaps	$	213	Discounted cash flow	Discount rate	1-4% (1.20%)
Interest Rate Lock Commitments	577		Pricing model	Pull through rates	81-82%
Mortgage Servicing Rights	1,889		Discounted cash flow	Constant prepayment rate	20.09%
				Cost of service	$50
				Discount rate	8%
Nonrecurring measurements:
Impaired loans	15,297		Discounted appraisals	Collateral discounts	15-50%
Other real estate owned	7,445		Discounted appraisals	Collateral discounts	6-15%

Assets measured on a nonrecurring basis

The following table presents assets measured at fair value on a nonrecurring basis:

	Fair Value		Level 1		Level 2		Level 3
June 30, 2012	(Amounts in thousands)
Other real estate owned	$	7,445	$	—	$	—	$	7,445
Impaired loans:
Construction	2,152		—		—		2,152
Commercial real estate:
Owner occupied	7,941		—		—		7,941
Non-owner occupied	1,274		—		—		1,274
Commercial	1,193		—		—		1,193
Mortgages:
Secured 1-4 family real estate	2,667		—		—		2,667
Multifamily	—		—		—		—
Home equity lines of credit	70		—		—		70
Consumer and other	—		—		—		—

	Fair Value		Level 1		Level 2		Level 3
December 31, 2011	(Amounts in thousands)
Other real estate owned	$	5,391	$	—	$	—	$	5,391
Impaired loans:
Construction	441		—		—		441
Commercial real estate:
Owner occupied	5,874		—		—		5,874
Non-owner occupied	832		—		—		832
Commercial	403		—		—		403
Mortgages:
Secured 1-4 family real estate	453		—		—		453
Multifamily	165		—		—		165
Home equity lines of credit	291		—		—		291
Consumer and other	—		—		—		—