5. FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2014

Schdeule of Fair Value Measures and Disclosures (Tables)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Table)

	Fair Value Measurements at June 30, 2014 Using:
	Total		Level 1		Level 2		Level 3
Available-for-sale securities:
Obligations of state and political subdivisions	$	4,724	$	—	$	4,724	$	—
Government sponsored agency mortgage-backed securities		200,845		—		200,845		—
Corporate debt securities		5,145		—		5,145		—
Equity securities		2,982		—		2,982		—
	$	213,696	$	—	$	213,696	$	—
	Fair Value Measurements at December 31, 2013 Using:
	Total		Level 1		Level 2		Level 3
Available-for-sale securities:
Obligations of U.S. government sponsored agencies	$	18,198	$	—	$	18,198	$	—
Obligations of state and political subdivisions		5,317		—		5,317		—
Government sponsored agency mortgage-backed securities		248,277		—		248,277		—
Corporate debt securities		4,755		—		4,755		—
Equity securities		2,932		—		2,932		—
	$	279,479	$	—	$	279,479	$	—

Fair Value Measurements, Nonrecurring (Table)

	Total at								Total Losses						Total Losses
	June 30,		Fair Value Measurements Using:						For three months ended June 30,						For six months ended June 30,
	2014		Level 1		Level 2		Level 3		2014			2013			2014			2013
Impaired loans:
Commercial	$	—	$	—	$	—	$	—	$	124		$	(198	)	$	78		$	88
Real estate - commercial		112		—		—		112		(2	)		—			(24	)		239
Real estate - construction		—		—		—		—		—			—			—			357
Real estate - mortgage		1,140		—		—		1,140		82			186			299			272
Other		144		—		—		144		—			140			36			177
Other real estate owned:
Real estate - commercial		—		—		—		—		—			104			—			123
Real estate - construction		78		—		—		78		5			518			5			518
Real estate - mortgage		115		—		—		115		79			—			79			—
Total assets measured at fair value on a nonrecurring basis	$	1,589	$	—	$	—	$	1,589	$	288		$	750		$	473		$	1,774
	Total at
	December 31,		Fair Value Measurements Using:
	2013		Level 1		Level 2		Level 3		Total Losses
Impaired loans:
Commercial	$	157	$	—	$	—	$	157	$	63
Real estate - commercial		593		—		—		593		239
Real estate - construction		110		—		—		110		71
Real estate - mortgage		291		—		—		291		42
Other		164		—		—		164		71
Other real estate owned:
Real estate - commercial		570		—		—		570		57
Real estate - construction		2,147		—		—		2,147		1,125
Total assets measured at fair value on a nonrecurring basis	$	4,032	$	—	$	—	$	4,032	$	1,668

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques (Table)

June 30, 2014	Fair Value	Valuation Techniques	Unobservable Inputs	Range
				(Weighted
				Average)
Impaired loans:
Real estate - commercial	$         112	Sales comparison approach	Adjustment for differences between the comparable sales	6% to 11% (9%)
Real estate - mortgage	$      1,140	Sales comparison approach	Adjustment for differences between the comparable sales	6% to 11% (9%)
Other	$         144	Sales comparison approach	Adjustment for differences between the comparable sales	6% to 11% (9%)
Other real estate owned:
Real estate - construction	$           78	Sales comparison approach	Adjustment for differences between the comparable sales	0% to 6% (6%)
Real estate - mortgage	$         115	Sales comparison approach	Adjustment for differences between the comparable sales	6% to 11% (9%)
December 31, 2013	Fair Value	Valuation Techniques	Unobservable Inputs	Range
				(Weighted
				Average)
Impaired loans:
Commercial	$         157	Sales comparison approach	Adjustment for differences between the comparable sales	6% to 11% (9%)
Real estate - commercial	$         593	Sales comparison approach	Adjustment for differences between the comparable sales	6% to 11% (9%)
Real estate - construction	$         110	Sales comparison approach	Adjustment for differences between the comparable sales	2% to 3% (3%)
Real estate - mortgage	$         291	Sales comparison approach	Adjustment for differences between the comparable sales	6% to 11% (9%)
Other	$         164	Sales comparison approach	Adjustment for differences between the comparable sales	6% to 11% (9%)
Other real estate owned:
Real estate - commercial	$         570	Sales comparison approach	Adjustment for differences between the comparable sales	6% to 11% (9%)
Real estate - construction	$      2,147	Sales comparison approach	Adjustment for differences between the comparable sales	0% to 6% (6%)

Fair Value, by Balance Sheet Grouping (Table)

			Fair Value Measurements at
			June 30, 2014 Using
	Carrying
	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS
Cash and due from banks	$	22,984	$	22,984	$	—	$	—	$	22,984
Federal funds sold		124,640		124,640		—		—		124,640
Time deposits at other
financial institutions		2,226		—		2,226		—		2,226
FHLB, FRB and other securities		8,576		—		—		—		N/A
Securities:
Available-for-sale		213,696		—		213,696		—		213,696
Held-to-maturity		2		—		2		—		2
Loans		497,591		—				510,476		510,476
Accrued interest receivable		1,847		—		490		1,357		1,847
FINANCIAL LIABILITIES
Deposits:
Nonmaturity deposits	$	659,549	$	659,549	$	—	$	—	$	659,549
Time deposits		138,443		—		138,472		—		138,472
Subordinated debentures		21,651		—		—		8,198		8,198
Accrued interest payable		106		2		28		76		106
			Fair Value Measurements at
			December 31, 2013 Using
	Carrying
	Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS
Cash and due from banks	$	19,348	$	19,348	$	—	$	—	$	19,348
Federal funds sold		38,135		38,135		—		—		38,135
Time deposits at other
financial institutions		2,226		—		2,226		—		2,226
FHLB, FRB and other securities		8,402		—		—		—		N/A
Securities:
Available-for-sale		279,479		—		279,479		—		279,479
Held-to-maturity		2		—		2		—		2
Loans		499,943		—				510,611		510,611
Accrued interest receivable		2,124		—		692		1,432		2,124
FINANCIAL LIABILITIES
Deposits:
Nonmaturity deposits	$	638,112	$	638,112	$	—	$	—	$	638,112
Time deposits		149,737		—		149,899		—		149,899
Subordinated debentures		21,651		—		—		7,702		7,702
Accrued interest payable		108		2		29		77		108