Fair Value (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Level 3 Fair Value Reconciliation

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

	Level 3
	Fair Value- Assets			Fair Value- Liabilities
	(Amounts in thousands)
Balance, June 30, 2011	$	173		$	173
Purchases, sales, issuances and settlements	—			—
Gains/losses included in other income	55			55
Balance, September 30, 2011	$	228		$	228
Balance, June 30, 2012	$	213		$	213
Purchases, sales, issuances and settlements	—			—
Gains/losses included in other income	—			—
Balance, September 30, 2012	$	213		$	213
The following table presents a rollforward of interest rate swaps from December 31, 2011 to September 30, 2012, and from December 31, 2010 to September 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	69			69
Balance, September 30, 2011	$	228		$	228
Balance, December 31, 2011	$	217		$	217
Purchases, sales, issuances and settlements	—			—
Gains/losses included in other income	(4		)	(4		)
Balance, September 30, 2012	$	213		$	213

Level 3 Fair Value Reconciliation

The following table presents a rollforward of mortgage servicing rights from December 31, 2011 and 2010 to September 30, 2012 and 2011 and June 30, 2012 and 2011 to September 30, 2012 and 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, June 30, 2012 and 2011	$	1,889		$	2,193
Capitalized	300			71
Gains/losses included in other income	(153		)	(248		)
Balance, September 30, 2012 and 2011	$	2,036		$	2,016
	Level 3
	Fair Value			Fair Value
	(In thousands)
Balance, December 31, 2011 and 2010	$	1,871		$	2,144
Capitalized	645			266
Gains/losses included in other income	(480		)	(394		)
Balance, September 30, 2012 and 2011	$	2,036		$	2,016

	Interest Rate Lock Commitments
	Level 3
	Fair Value			Fair Value
	(In thousands)
Balance, June 30, 2012 and 2011	$	578		$	16
Gains/losses included in other income	(1,069		)	314
Transfer in and out	—			—
Balance, September 30, 2012 and 2011	$	(491	)	$	330
The following table presents a rollforward of interest rate lock commitments for the nine months ended September 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	(621		)	225
Transfer in and out	—			—
Balance, September 30, 2012 and 2011	$	(491	)	$	330

Assets and Liabilities Measured on a Recurring Basis

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

September 30, 2012 (in thousands)	Fair Value			Level 1		Level 2		Level 3
Available-for-sale securities:
U.S. government agencies	$	32,869		$	—	$	32,869	$	—
Government sponsored agencies:
Residential mortgage-backed securities	83,264			—		83,264		—
Collateralized mortgage obligations	137,483			—		137,483		—
Private label collateralized mortgage obligations	1,059			—		1,059		—
State and municipal securities	54,769			—		54,769		—
Common and preferred stocks	1,112			1,112		—		—
Interest rate swap agreements	213			—		—		213
Interest rate swap agreements	(213		)	—		—		(213		)
Interest rate lock commitments	(491		)	—		—		(491		)
Forward loan sale commitments	1,008			—		1,008		—
Mortgage servicing rights	2,036			—		—		2,036

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 September 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	(491		)	Pricing model	Pull through rates	80-86%
Mortgage Servicing Rights	2,036			Discounted cash flow	Constant prepayment rate	20.03%
					Cost of service	$50
					Discount rate	8%
Nonrecurring measurements:
Impaired loans	$	13,793		Discounted appraisals	Collateral discounts	15-50%
Other real estate owned	8,715			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
September 30, 2012	(Amounts in thousands)
Other real estate owned	$	8,715	$	—	$	—	$	8,715
Impaired loans:
Construction	3,400		—		—		3,400
Commercial real estate:
Owner occupied	4,933		—		—		4,933
Non-owner occupied	3,553		—		—		3,553
Commercial	1,158		—		—		1,158
Mortgages:
Secured 1-4 family real estate	749		—		—		749
Multifamily	—		—		—		—
Home equity lines of credit	—		—		—		—
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	—		—		—		—