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Fair Value of Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2012
Fair Value of Financial Instruments [Abstract]  
Fair Value Measurements on Differing Levels [Table Text Block]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

 

 

 

 

 

 

Assets at

(Dollars in thousands)

Level 1

Level 2

Level 3

Fair Value

Assets Measured at Fair Value on a Recurring Basis

 

 

 

 

 

 

 

 

US Government agency obligations

$

 -

$

35,539 

$

 -

$

35,539 

GSE mortgage-backed securities

 

 -

 

22,392 

 

 -

 

22,392 

Collateralized mortgage obligations GSE

 

 -

 

21,650 

 

 -

 

21,650 

Corporate bonds

 

 -

 

41,447 

 

 -

 

41,447 

State and municipal tax-exempt

 

 -

 

3,185 

 

 -

 

3,185 

Asset-backed securities

 

 -

 

9,813 

 

 -

 

9,813 

Certificates of deposit

 

 -

 

1,248 

 

 -

 

1,248 

Equity securities

 

14 

 

 -

 

 -

 

14 

Total assets measured at fair value on a recurring basis

$

14 

$

135,274 

$

 -

$

135,288 

Assets Measured at Fair Value on a Nonrecurring Basis

 

 

 

 

 

 

 

 

Impaired loans

$

 -

$

 -

$

6,823 

$

6,823 

OREO & other repossessed property

 

 -

 

 -

 

213 

 

213 

Total assets measured at fair value on a nonrecurring basis

$

 -

$

 -

$

7,036 

$

7,036 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

 

 

 

 

 

 

 

Assets at

(Dollars in thousands)

Level 1

Level 2

Level 3

Fair Value

Assets Measured at Fair Value on a Recurring Basis

 

 

 

 

 

 

 

 

US Government agency obligations

$

 -

$

43,891 

$

 -

$

43,891 

GSE mortgage-backed securities

 

 -

 

25,313 

 

 -

 

25,313 

Collateralized mortgage obligations GSE

 

 -

 

6,152 

 

 -

 

6,152 

Corporate bonds

 

 -

 

26,347 

 

 -

 

26,347 

Asset-backed securities

 

 -

 

5,815 

 

 -

 

5,815 

Equity securities

 

12 

 

 -

 

 -

 

12 

Total assets measured at fair value on a recurring basis

$

12 

$

107,518 

$

 -

$

107,530 

Assets Measured at Fair Value on a Nonrecurring Basis

 

 

 

 

 

 

 

 

Impaired loans

$

 -

$

 -

$

3,649 

$

3,649 

OREO & other repossessed property

 

 -

 

 -

 

100 

 

100 

Total assets measured at fair value on a nonrecurring basis

$

 -

$

 -

$

3,749 

$

3,749 

 

Quantitative Information about Level 3 Fair Value Measurements [Table Text Block]

The following table presents additional information about assets measured at fair value on  a nonrecurring basis and for which DNB has utilized Level 3 inputs to determine fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quantitative Information about Level 3 Fair Value Measurement

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Fair Value

Valuation

 

Range (Weighted

 

 

Estimate

Techniques

Unobservable Input

Average)

December 31, 2012

 

 

 

 

 

 

 

 

Impaired loans- Commercial construction

$

3,487 

Income approach

Appraisal adj.

0% 

to

-40%

(-19%)

 

 

 

 

Disposal costs

-2%

to

-10%

(-7%)

Impaired loans- Commercial mortgage

$

2,538 

Appraisal of collateral (1)

Disposal costs (2)

-5%

to

-7%

(-5%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quantitative Information about Level 3 Fair Value Measurement

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Fair Value

Valuation

 

Range (Weighted

 

 

Estimate

Techniques

Unobservable Input

Average)*

December 31, 2011

 

 

 

 

 

 

 

 

Impaired loans- Commercial construction

$

3,611 

Income approach

Appraisal adj.

0% 

to

-40%

(-19%)

 

 

 

 

Disposal costs

-2%

to

-10%

(-7%)

Impaired loans- Commercial mortgage

$

38 

Appraisal of collateral (1)

Disposal costs (2)

 

 

 

(-7%)

* As of December 31, 2011 there is only 1 impaired commercial mortgage loan.

(1)

Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2)

Appraisals may be adjusted by management for qualitative factors and disposal costs. The range and weighted average of disposal costs are presented as a percent of the appraisal.

Estimate of the Fair Value of All Financial Instruments [Table Text Block]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

 

 

 

Estimated

 

 

 

 

 

 

 

 

Carrying

 

Fair

 

 

 

 

 

 

(Dollars in thousands)

 

Amount

 

Value

 

Level 1

 

Level 2

 

Level 3

Financial assets

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

17,149 

$

17,149 

$

17,149 

$

 -

$

 -

AFS investment securities

 

135,288 

 

135,288 

 

14 

 

135,274 

 

 -

HTM investment securities

 

66,024 

 

68,307 

 

 -

 

68,307 

 

 -

Restricted stock

 

3,426 

 

3,426 

 

 -

 

3,426 

 

 -

Loans and leases, net of allowance

 

389,660 

 

391,533 

 

 -

 

 -

 

391,533 

Accrued interest receivable

 

2,470 

 

2,470 

 

 -

 

2,470 

 

 -

Financial liabilities

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

85,055 

 

85,055 

 

 -

 

85,055 

 

 -

Interest-bearing deposits:

 

343,053 

 

343,053 

 

 -

 

343,053 

 

 

Time

 

102,316 

 

103,045 

 

 -

 

103,045 

 

 -

Repurchase agreements

 

17,014 

 

17,014 

 

 -

 

17,014 

 

 -

FHLBP advances

 

20,000 

 

21,592 

 

 -

 

21,592 

 

 -

Junior subordinated debentures and other

 

9,279 

 

9,256 

 

 -

 

 -

 

9,256 

borrowings

 

 

 

 

 

 

 

 

 

 

Accrued interest payable

 

421 

 

421 

 

 -

 

421 

 

 -

Off-balance sheet instruments

 

 -

 

 -

 

 -

 

 -

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

 

 

 

 

Estimated

 

 

 

 

 

 

 

 

Carrying

 

Fair

 

 

 

 

 

 

(Dollars in thousands)

 

Amount

 

Value

 

Level 1

 

Level 2

 

Level 3

Financial assets

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

32,877 

$

32,877 

$

32,877 

$

 -

$

 -

AFS investment securities

 

107,530 

 

107,530 

 

12 

 

107,518 

 

 -

HTM investment securities

 

36,427 

 

37,681 

 

 -

 

37,681 

 

 -

Restricted stock

 

3,625 

 

3,625 

 

 -

 

3,626 

 

 -

Loans and leases, net of allowance

 

397,520 

 

395,320 

 

 -

 

 -

 

395,320 

Accrued interest receivable

 

2,536 

 

2,470 

 

 -

 

2,470 

 

 -

Financial liabilities

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

68,371 

 

68,371 

 

 -

 

68,371 

 

 -

Interest-bearing deposits:

 

323,939 

 

323,939 

 

 -

 

323,939 

 

 -

Time

 

105,235 

 

105,682 

 

 -

 

105,682 

 

 -

Repurchase agreements

 

23,770 

 

23,770 

 

 -

 

23,770 

 

 -

FHLBP advances

 

20,000 

 

22,085 

 

 -

 

22,085 

 

 -

Junior subordinated debentures and other

 

9,279 

 

8,481 

 

 -

 

 -

 

8,481 

borrowings

 

 

 

 

 

 

 

 

 

 

Accrued interest payable

 

444 

 

444 

 

 -

 

444 

 

 -

Off-balance sheet instruments

 

 -

 

 -

 

 -

 

 -

 

 -