XML 47 R36.htm IDEA: XBRL DOCUMENT

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2012

Estimated fair values of financial statements

The following table presents estimated fair values of the Company's financial statements as of December 31, 2012 and 2011, whether or not recognized or recorded at fair value:

	December 31, 2012				December 31, 2011
	Carrying		Fair		Carrying		Fair
Description	Amount		Value		Amount		Value
Financial assets:	(in thousands)
Cash and cash equivalents	$	12,727	$	12,727	$	17,031	$	17,031
Available for sale securities		22,900		22,900		2,992		2,992
FHLB Stock		2,401		2,401		2,444		2,444
Loans held for sale		1,725		1,725		1,807		1,807
Loans, net		322,496		327,078		295,641		297,758
Accrued interest receivable		1,280		1,280		1,234		1,234
Bank-owned life insurance, net		7,220		7,220		6,981		6,981
Mortgage servicing rights		2,306		2,306		2,437		2,437

Financial liabilities:
Non-maturity deposits		177,097		177,097		170,029		170,029
Time deposits		134,986		134,007		129,968		130,655
Borrowings		21,864		21,708		8,506		8,451
Accrued interest payable		83		83		84		84
Advance payments from borrowers for taxes and insurance		331		331		291		291

Information about level in fair value hierarchy for financial assets and liabilities

The following table presents information about the level in the fair value hierarchy for the Company's financial assets and liabilities that are not measured at fair value as of December 31, 2012:

	Fair Value at December 31, 2012
Description	Total		Level 1		Level 2		Level 3
Financial assets:	(in thousands)
Cash and cash equivalents	$	12,727	$	12,727	$	-	$	-
Available for sale securities		22,900		-		20,127		2,773
FHLB Stock		2,401		-		-		2,401
Loans held for sale		1,725		-		1,725		-
Loans, net		327,078		-		-		327,078
Accrued interest receivable		1,280		1,280		-		-
Bank owned life insurance, net		7,220				7,220		-
Mortgage servicing rights		2,306		-		-		2,306

Financial liabilities:
Non-maturity deposits		177,097		-		177,097		-
Time deposits		134,007		-		134,007		-
Borrowings		21,708		-		21,708		-
Accrued interest payable		83		-		83		-
Advance payments from borrowers for taxes and insurance		331		-		331		-

Fair value of assets measured on recurring basis

The following table presents the balance of assets measured at fair value on a recurring basis as of December 31, 2012 and 2011:

	Fair Value at December 31, 2012
Description	Total		Level 1		Level 2		Level 3
	(in thousands)
Agency mortgage-backed securities	$	20,127		-	$	20,127		-
Non-agency mortgage-backed securities		2,773		-		-		2,773
Mortgage servicing rights		2,306		-		-		2,306

	Fair Value at December 31, 2011
Description	Total		Level 1		Level 2		Level 3
	(in thousands)
Agency mortgage-backed securities	$	59	$	-	$	59	$	-
Non-agency mortgage-backed securities		2,933		-		-		2,933
Mortgage servicing rights		2,437		-		-		2,437

Fair value of assets, quantitative information

The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company's assets and liabilities classified as Level 3 and measured at fair value on a recurring basis at December 31, 2012:

Financial Instrument	Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Mortgage Servicing Rights	Discounted cash flow	Prepayment speed assumption	329-550% (357%)
		Discount rate	8-12% (10%)

Non-agency mortgage-backed securities	Discounted cash flow	Discount rate	7%-9% (8%)

Reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3)

The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended December 31, 2012 and 2011 (in thousands):

	Year Ended December 31,
	2012			2011
		(in thousands)
Beginning balance, at fair value	$	2,933		$	4,480
OTTI impairment losses		(164	)		(96	)
Sales and principal payments		(501	)		(1,509	)
Change in unrealized loss		505			58
Ending balance, at fair value	$	2,773		$	2,933

Fair value of assets measured on nonrecurring basis

The following table presents the balance of assets measured at fair value on a nonrecurring basis and the total losses resulting from these fair value adjustments (in thousands):

	Fair Value at December 31, 2012								Year Ended December 31, 2012
Description	Total		Level 1		Level 2		Level 3		Total Losses
		(in thousands)
OREO and repossessed assets	$	2,503		-		-	$	2,503	$	921
Impaired loans		11,993		-		-		11,993		5,031

	Fair Value at December 31, 2011								Year Ended December 31, 2011
Description	Total		Level 1		Level 2		Level 3		Total Losses
		(in thousands)
OREO and repossessed assets	$	2,821	$	-	$	-	$	2,821	$	964
Impaired loans		13,619		-		-		13,619		4,802

Fair value of assets, quantitative information

The following table provides a description of the valuation technique, observable input, and qualitative information about the unobservable inputs for the Company's assets and liabilities classified as Level 3 and measured at fair value on a nonrecurring basis at December 31, 2012:

Financial Instrument	Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
OREO	Market approach	Adjusted for difference between comparable sales	0-44% (12%)

Impaired loans	Market approach	Adjusted for difference between comparable sales	0-100% (7%)

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

+ References+ Details

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References+ Details

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 14

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 18

-Subparagraph c(2), d, e, f

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 10

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15

-Subparagraph b-d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph a, b, c(1), d(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 45

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-Subparagraph a, c(1), c(2), c(3), d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 12

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 30

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

+ Details