XML 47 R42.htm IDEA: XBRL DOCUMENT

Disclosures of Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Assets Measured at Fair Value on Recurring Basis

The following table presents the Company’s assets that are measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of December 31, 2012 and 2011 (in thousands):



			Fair Value Measurements Using:
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2012
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	182,169	$	—	$	182,169	$	—
Obligations of states and political subdivisions	56,207		—		56,207		—
Mortgage-backed securities	259,460		—		259,460		—
Trust preferred securities	585		—		—		585
Other securities	9,888		60		9,828		—
Total available-for-sale securities	$	508,309	$	60	$	507,664	$	585
December 31, 2011
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	166,066	$	—	$	166,066	$	—
Obligations of states and political subdivisions	41,202		—		41,202		—
Mortgage-backed securities	261,833		—		261,775		58
Trust preferred securities	719		—		—		719
Other securities	9,096		29		9,067		—
Total available-for-sale securities	$	478,916	$	29	$	478,110	$	777

Fair Value of Assets Measured on a Recurring Basis Using Significant Unobservable Inputs

The change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2012 and 2011 is summarized as follows (in thousands):



	Available-for-Sale Securities
	Mortgage-backed Securities			Trust Preferred Securities			Total
December 31, 2012
Beginning balance	$	58		$	719		$	777
Transfers into Level 3	—			—			—
Transfers out of Level 3	(58		)	—			(58		)
Total gains or losses
Included in net income	—			127			127
Included in other comprehensive income (loss)	—			517			517
Purchases, issuances, sales and settlements
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	—			(778		)	(778		)
Ending balance	$	—		$	585		$	585
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date	$	—		$	—		$	—



	Available-for-Sale Securities
	Mortgage-backed Securities			Trust Preferred Securities			Total
December 31, 2011
Beginning balance	$	68		$	581		$	649
Transfers into Level 3	—			—			—
Transfers out of Level 3	—			—			—
Total gains or losses
Included in net income	—			(886		)	(886		)
Included in other comprehensive income (loss)	—			1,108			1,108
Purchases, issuances, sales and settlements
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(10		)	(84		)	(94		)
Ending balance	$	58		$	719		$	777
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date	$	—		$	(886	)	$	(886	)

Assets Measured at Fair Value on a Nonrecurring Basis

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2012 and 2011 (in thousands):



	Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2012
Impaired loans (collateral dependent)	$	2,681	$	—	$	—	$	2,681
Foreclosed assets held for sale	70		—		—		70
December 31, 2011
Impaired loans (collateral dependent)	$	2,282	$	—	$	—	$	2,282
Foreclosed assets held for sale	2,336		—		—		2,336

Significant Assumptions Used in Valuation of Level 3 Financial Instruments

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill.



	Fair Value at December 31, 2012		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Trust Preferred Securities	$	585	Discounted cash flow	Discount rate	9.3	%	-	22.1%	(	19.3	%	)
				Constant prepayment rate (1)	1	%
				Cumulative projected prepayments	10.8	%	-	56.0%	(	20.8	%	)
				Probability of default	0.7	%	-	1.9%	(	1.7	%	)
				Projected cures given deferral	0	%	-	11%	(	2	%	)
				Loss severity	92.4	%	-	96.8%	(	94.8	%	)
Impaired loans (collateral dependent)	$	2,681	Third party valuations	Discount to reflect realizable value	0	%	-	40%	(	20	%	)
Foreclosed assets held for sale	$	70	Third party valuations	Discount to reflect realizable value less estimated selling costs	0	%	-	40%	(	35	%	)


(1)	Every five years

Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value

The following tables present estimated fair values of the Company’s financial instruments at December 31, 2012 and 2011 in accordance with FAS 107-1 and APB 28-1, codified with ASC 805 (in thousands):



	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
December 31, 2012
Financial Assets
Cash and due from banks	$	62,213	$	62,213	$	62,213	$	—	$	—
Federal funds sold	20,499		20,499		20,499		—		—
Certificates of deposit investments	6,665		6,669		6,669		—		—
Available-for-sale securities	508,309		508,309		60		507,664		585
Loans held for sale	212		212		—		212		—
Loans net of allowance for loan losses	899,077		908,281		—		—		908,281
Interest receivable	6,775		6,775		—		6,775		—
Federal Reserve Bank stock	1,522		1,522		—		1,522		—
Federal Home Loan Bank stock	3,293		3,293		—		3,293		—
Financial Liabilities
Deposits	$	1,274,065	$	1,275,127	$	—	$	1,066,788	$	208,339
Securities sold under agreements to repurchase	113,484		113,490		—		113,490		—
Interest payable	341		341		—		341		—
Federal Home Loan Bank borrowings	5,000		5,719		—		5,719		—
Junior subordinated debentures	20,620		11,386		—		11,386		—



	Carrying Amount		Fair Value
December 31, 2011
Financial Assets
Cash and due from banks	$	52,105	$	52,105
Federal funds sold	20,997		20,997
Certificates of deposit investments	13,231		13,225
Available-for-sale securities	478,916		478,916
Held-to-maturity securities	51		51
Loans held for sale	1,046		1,046
Loans net of allowance for loan losses	847,908		850,308
Interest receivable	7,052		7,052
Federal Reserve Bank stock	1,520		1,520
Federal Home Loan Bank stock	3,727		3,727
Financial Liabilities
Deposits	$	1,170,734	$	1,172,069
Securities sold under agreements to repurchase	132,380		132,383
Interest payable	510		510
Federal Home Loan Bank borrowings	19,750		20,619
Other Borrowings	8,250		8,250
Junior subordinated debentures	20,620		11,969

- 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 and/or nonrecurring 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 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