Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Measurements [Abstract]

Schedule of assets carried at fair value on recurring and nonrecurring basis

(dollars in thousands)	March 31, 2013
	Level I		Level II		Level III		Total
Assets measured on a recurring basis:
Securities available for sale:
U.S. Government corporations and agencies	$	—	$	45,680	$	—	$	45,680
Obligations of states and political subdivisions		—		53,684		—		53,684
Mortgage-backed securities		—		76,274		—		76,274
Equity securities		215		—		—		215
Total securities available for sale:	$	215	$	175,638	$	—	$	175,853
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	3,297	$	3,297
Other real estate	$	—	$	—	$	—	$	—
Mortgage servicing rights	$	—	$	—	$	44	$	44

(dollars in thousands)	December 31, 2012
	Level I		Level II		Level III		Total
Assets measured on a recurring basis:
Securities available for sale:
U.S. Government corporations and agencies	$	—	$	47,295	$	—	$	47,295
Obligations of states and political subdivisions		—		52,030		—		52,030
Mortgage-backed securities		—		78,678		—		78,678
Equity securities		205		—		—		205
Total securities available for sale:	$	205	$	178,003	$	—	$	178,208
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	2,730	$	2,730
Other real estate	$	—	$	—	$	—	$	—
Mortgage servicing rights	$	—	$	—	$	47	$	47

Additional quantitative information about assets measured at fair value on a nonrecurring basis

(dollars in thousands)	Quantitative Information about Level 3 Fair Value  Measurements
March 31, 2013	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted         Average)
Impaired Loans	$	3,297	Appraisal of collateral (1)	Appraisal adjustments (2) Liquidation expenses (2)	0% to -63.8% (-9.5%) 1.6% to 30.0% (10.4%)
Mortgage Servicing Rights	$	44	Discounted Cash Flow	Remaining term Discount rate	2.9 years to 7 years (3.49 years) 9.5% to 10.5% (10%)

(1) The fair value is determined through independent appraisals by certified appraisers of the underlying collateral.

(2) Appraisals may be adjusted by management for qualitative factors and estimated liquidation expenses. The range and weighted average of liquidation expenses are expressed as a percent of discounted collateral value and other appraisal adjustments are presented as a percentage of the appraised amounts.

Estimates of fair values of financial instruments

	March 31, 2013
(Amounts Expressed in Thousands)	Level I		Level II		Level III		Total Fair Value
Financial assets:
Cash and cash equivalents	$	23,941	$	—	$	—	$	23,941
Investment securities		215		175,638		—		175,853
Loans held for sale
Loans		—		—		101,645		101,645
Bank owned life insurance		3,651		—		—		3,651
Accrued interest receivable		1,169		—		—		1,169
Financial liabilities:
Deposits		167,763		70,290		—		238,053
Federal funds purchased and repurchase agreements		18,155		—		—		18,155
Federal Home Loan Bank borrowings		—		4,136		—		4,136
Accrued interest payable		144		—		—		144
	March 31, 2013				December 31, 2012
(Amounts Expressed in Thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Cash and cash equivalents	$	23,941	$	23,941	$	15,877	$	15,877
Investment securities		175,853		175,853		178,208		178,208
Loans held for sale		—		—		110		110
Loans		100,806		101,645		97,206		98,303
Bank owned life insurance		3,651		3,651		3,625		3,625
Accrued interest receivable		1,169		1,169		1,128		1,128
Financial liabilities:
Deposits		250,902		238,053		246,462		235,036
Federal funds purchased and repurchase agreements		18,155		18,155		18,767		18,767
Federal Home Loan Bank borrowings		3,584		4,136		3,606		4,199
Accrued interest payable		144		144		163		163