Fair Value (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Rollforward of interest rate swaps and interest rate lock commitments

The following tables present a rollforward of interest rate swaps for the years ended December 31, 2012 and 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	57			57
Balance, December 31, 2011	$	216		$	216
Balance, December 31, 2011	$	216		$	216
Purchases, sales, issuances and settlements	—			—
Gains (losses) included in other income	(20		)	(20		)
Balance, December 31, 2012	$	196		$	196

The following table presents a rollforward of interest rate lock commitments for the years ended December 31, 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	743		25
Transfer in and out	—		—
Balance, December 31, 2012 and 2011	$	873	$	130

Rollforward of mortgage servicing rights

The following table presents a rollforward of mortgage servicing rights for the years ended December 31, 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, December 31, 2011 and 2010	$	1,871		$	2,144
Capitalized	1,101			286
Gains (losses) included in other income	(447		)	(559		)
Balance, December 31, 2012 and 2011	$	2,525		$	1,871

Assets and (liabilities) measured at fair value on a recurring basis

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

December 31, 2012 (in thousands)	Fair Value			Level 1		Level 2			Level 3
Available-for-sale securities:
U.S. government agencies	$	27,527		$	—	$	27,527		$	—
Government sponsored agencies:
Residential mortgage-backed securities	107,257			—		107,257			—
Collateralized mortgage obligations	122,593			—		122,593			—
Private label collateralized mortgage obligations	1,045			—		1,045			—
State and municipal securities	84,564			—		84,564			—
Common and preferred stocks	133			133		—			—
Interest rate swap agreements	196			—		—			196
Interest rate swap agreements	(196		)	—		—			(196		)
Interest rate lock commitments	873			—		—			873
Forward loan sale commitments	(481		)	—		(481		)	—
Mortgage servicing rights	2,525			—		—			2,525

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 quantitative information

	Fair Value at December 31, 2012 (in thousands)		Valuation Technique	Unobservable Input	Range (Weighted Avg)
Recurring measurements:
Interest Rate Swaps	$	196	Discounted cash flow	Discount rate	1.0	%
Interest Rate Lock Commitments	873		Pricing model	Pull through rates	83.9	%
Mortgage Servicing Rights	2,525		Discounted cash flow	Constant prepayment rate	17.96	%
				Cost of service	$50
				Discount rate	8	%
Nonrecurring measurements:
Impaired loans	$	7,276	Discounted appraisals	Collateral discounts	10-15%
Other real estate owned	5,281		Discounted appraisals	Collateral discounts	15	%

Assets measured at fair value 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
December 31, 2012	(Amounts in thousands)
Other real estate owned	$	5,281	$	—	$	—	$	5,281
Impaired loans:
Construction	1,767		—		—		1,767
Commercial real estate:
Owner occupied	4,772		—		—		4,772
Non-owner occupied	472		—		—		472
Commercial	265		—		—		265
Mortgages:
Secured 1-4 family real estate	—		—		—		—
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	—		—		—		—