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Fair Value (Tables)
 6 Months Ended
Jun. 30, 2014
Fair Value Disclosures [Abstract]  
Level 3 Fair Value Reconciliation
The following table presents a rollforward of interest rate swaps from March 31, 2013 to June 30, 2014 and from March 31, 2014 to June 30, 2014,
 
Level 3
 
Fair Value- Assets
 
Fair Value- Liabilities
 
(Amounts in thousands)
Balance, March 31, 2013
$
180

 
$
180

Purchases, sales, issuances and settlements
—

 
—

Gains (losses) included in other income
(26
)
 
(26
)
Balance, June 30, 2013
$
154

 
$
154

 
 
 
 
Balance, March 31, 2014
$
119

 
$
119

Purchases, sales, issuances and settlements
—

 
—

Gains (losses) included in other income
(13
)
 
(13
)
Balance, June 30, 2014
$
106

 
$
106

 
 
 
 
The following table presents a rollforward of interest rate swaps from December 31, 2012 to June 30, 2013, and from
December 31, 2013 to June 30, 2014.
 
Level 3
 
Fair Value- Assets
 
Fair Value- Liabilities
 
(Amounts in thousands)
Balance, December 31, 2012
$
196

 
$
196

Purchases, sales, issuances and settlements
—

 
—

Gains (losses) included in other income
(42
)
 
(42
)
Balance, June 30, 2013
$
154

 
$
154

 
 
 
 
Balance, December 31, 2013
$
132

 
$
132

Purchases, sales, issuances and settlements
—

 
—

Gains (losses) included in other income
(26
)
 
(26
)
Balance, June 30, 2014
$
106

 
$
106
Level 3 Fair Value Reconciliation
The following table presents a rollforward of mortgage servicing rights for the three and six months ended June 30, 2014 and 2013 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, 2014 and 2013
$
4,782

 
$
3,045

Capitalized
149

 
269

Gains (losses) included in other income
(160
)
 
511

Balance, June 30, 2014 and 2013
$
4,771

 
$
3,825

 
 
 
 
 
Level 3
 
Fair Value
 
Fair Value
 
(In thousands)
Balance, December 31, 2013 and 2012
$
4,536

 
$
2,525

Capitalized
285

 
687

Gains (losses) included in other income
(50
)
 
613

Balance, June 30, 2014 and 2013
$
4,771

 
$
3,825

The following table presents a rollforward of interest rate lock commitments for the three and six months ended June 30, 2014 and 2013, respectively.
 
Interest Rate Lock Commitments
 
Level 3
 
Fair Value
 
Fair Value
 
(In thousands)
Balance, March 31, 2014 and 2013
$
178

 
$
807

Gains (losses) included in other income
53

 
(1,119
)
Transfer in and out
—

 
—

Balance, June 30, 2014 and 2013
$
231

 
$
(312
)
 
 
 
 
 
 
 
 
 
Interest Rate Lock Commitments
 
Level 3
 
Fair Value
 
Fair Value
 
(In thousands)
Balance, December 31, 2013 and 2012
$
(23
)
 
$
873

Gains (losses) included in other income
254

 
(1,185
)
Transfer in and out
—

 
—

Balance, June 30, 2014 and 2013
$
231

 
$
(312
)
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, 2014 (in thousands)
Fair Value
 
Level 1
 
Level 2
 
Level 3
Available-for-sale securities:
 
 
 
 
 
 
 
U.S. government agencies
$
16,313

 
$
—

 
$
16,313

 
$
—

Government sponsored agencies:
 
 
 
 
 
 
 
Residential mortgage-backed securities
100,257

 
—

 
100,257

 
—

Collateralized mortgage obligations
44,685

 
—

 
44,685

 
—

Private label collateralized mortgage obligations
12,719

 
—

 
12,719

 
—

State and municipal securities
82,136

 
—

 
82,136

 
—

Common and preferred stocks
3,033

 
3,033

 
—

 
—

Interest rate swap agreements
106

 
—

 
—

 
106

Interest rate swap agreements
(106
)
 
—

 
—

 
(106
)
Interest rate lock commitments
231

 
—

 
—

 
231

Forward loan sale commitments
(100
)
 
—

 
(100
)
 
—

Mortgage servicing rights
4,771

 
—

 
—

 
4,771


December 31, 2013 (in thousands)
Fair Value
 
Level 1
 
Level 2
 
Level 3
Available-for-sale securities:
 
 
 
 
 
 
 
U.S. government agencies
$
16,392

 
$
—

 
$
16,392

 
$
—

Government sponsored agencies:
 
 
 
 
 
 
 
Residential mortgage-backed securities
103,441

 
—

 
103,441

 
—

Collateralized mortgage obligations
52,743

 
—

 
52,743

 
—

Private label collateralized mortgage obligations
14,491

 
—

 
14,491

 
—

State and municipal securities
98,704

 
—

 
98,704

 
—

Common and preferred stocks
3,151

 
3,151

 
—

 
—

Interest rate swap agreements
132

 
—

 
—

 
132

Interest rate swap agreements
(132
)
 
—

 
—

 
(132
)
Interest rate lock commitments
(23
)
 
—

 
—

 
(23
)
Forward loan sale commitments
147

 
—

 
147

 
—

Mortgage servicing rights
4,536

 
—

 
—

 
4,536
Level 3 Inputs, Quantitative Information
 
Fair Value at June 30, 2014 (in thousands)
 
Valuation Technique
 
Unobservable Input
 
Range (Weighted Avg)
Recurring measurements:
 
 
 
 
 
 
 
Interest Rate Swaps
$
106

 
Discounted cash flow
 
Discount rate
 
0.35%
Interest Rate Lock Commitments
231

 
Pricing model
 
Pull through rates
 
77.22%
Mortgage Servicing Rights
4,771

 
Discounted cash flow
 
Constant prepayment rate
 
9.50%
 
 
 
 
 
Cost of service
 
$50
 
 
 
 
 
Discount rate
 
8%
Nonrecurring measurements:
 
 
 
 
 
 
 
Impaired loans
$
8,469

 
Discounted appraisals
 
Collateral discounts
 
15%
Other real estate owned
289

 
Discounted appraisals
 
Collateral discounts
 
15%
 
 
Fair Value at December 31, 2013 (in thousands)
 
Valuation Technique
 
Unobservable Input
 
Range (Weighted Avg)
Recurring measurements:
 
 
 
 
 
 
 
Interest Rate Swaps
$
132

 
Discounted cash flow
 
Discount rate
 
0.50%
Interest Rate Lock Commitments
(23
)
 
Pricing model
 
Pull through rates
 
86.40%
Mortgage Servicing Rights
4,536

 
Discounted cash flow
 
Constant prepayment rate
 
9.72%
 
 
 
 
 
Cost of service
 
$50
 
 
 
 
 
Discount rate
 
8%
Nonrecurring measurements:
 
 
 
 
 
 
 
Impaired loans
$
6,058

 
Discounted appraisals
 
Collateral discounts
 
10-15%
Other real estate owned
1,034

 
Discounted appraisals
 
Collateral discounts
 
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, 2014
(Amounts in thousands)
Other real estate owned
$
289

 
$
—

 
$
—

 
$
289

Impaired loans:
 
 
 
 
 
 
 
Construction
635

 
—

 
—

 
635

Commercial real estate:
 
 
 
 
 
 
 
Owner occupied
5,448

 
—

 
—

 
5,448

Non-owner occupied
599

 
—

 
—

 
599

Commercial
709

 
—

 
—

 
709

Mortgages:
 
 
 
 
 
 
 
Secured 1-4 family real estate
1,078

 
—

 
—

 
1,078


 
Fair Value
 
Level 1
 
Level 2
 
Level 3
December 31, 2013
(Amounts in thousands)
Other real estate owned
$
1,034

 
$
—

 
$
—

 
$
1,034

Impaired loans:
 
 
 
 
 
 
 
Construction
160

 
—

 
—

 
160

Commercial real estate:
 
 
 
 
 
 
 
Owner occupied
4,930

 
—

 
—

 
4,930

Non-owner occupied
595

 
—

 
—

 
595

Commercial
203

 
—

 
—

 
203

Mortgages:
 
 
 
 
 
 
 
Secured 1-4 family real estate
170

 
—

 
—

 
170