Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Assets and liabilities measured on recurring basis measured at fair value

The following tables present the balances of assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2013, December 31, 2012 and June 30, 2012.

	At June 30, 2013
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	157,524,000	$	—	$	157,524,000
State and political subdivisions	—		128,539,000		—		128,539,000
Other equity securities	—		1,672,000		—		1,672,000
Total assets	$	—	$	287,735,000	$	—	$	287,735,000

	At December 31, 2012
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	169,093,000	$	—	$	169,093,000
State and political subdivisions	—		120,944,000		—		120,944,000
Other equity securities	—		1,577,000		—		1,577,000
Total assets	$	—	$	291,614,000	$	—	$	291,614,000

	At June 30, 2012
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	206,979,000	$	—	$	206,979,000
State and political subdivisions	—		98,593,000		—		98,593,000
Other equity securities	—		1,775,000		—		1,775,000
Total assets	$	—	$	307,347,000	$	—	$	307,347,000

Assets and liabilities measured on non-recurring basis measured at fair value

The following tables include assets measured at fair value on a nonrecurring basis that have had a fair value adjustment since their initial recognition. Other real estate owned is presented net of an allowance of $547,000, $373,000 and $385,000 at June 30, 2013, December 31, 2012, and June 30, 2012, respectively. Impaired loans measured at fair value only include impaired loans with a related specific allowance for loan losses and are presented net of specific allowances of$877,000, $3,539,000 and $4,177,000 at June 30, 2013, December 31, 2012, and June 30, 2012, respectively. The December 31, 2012 and June 30, 2012 non-recurring fair value table includes all impaired loans with a related allowance. The Company refined its process for identifying impaired loans for purposes of fair value disclosures; accordingly the June 30, 2013 fair value table only includes those impaired loans for which the related allowance results in a fair value measure, as described above.

	At June 30, 2013
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	5,826,000	$	—	$	5,826,000
Impaired loans	—		3,911,000		—		3,911,000
Total assets	$	—	$	9,737,000	$	—	$	9,737,000

	At December 31, 2012
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	7,593,000	$	—	$	7,593,000
Impaired loans	—		13,923,000		—		13,923,000
Total assets	$	—	$	21,516,000	$	—	$	21,516,000

	At June 30, 2012
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	5,188,000	$	—	$	5,188,000
Impaired loans	—		14,734,000		—		14,734,000
Total assets	$	—	$	19,922,000	$	—	$	19,922,000

Estimated fair value of financial instruments

The carrying amount and estimated fair values for financial instruments as of June 30, 2013 were as follows:

	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	18,683,000	$	18,683,000	$	18,683,000	$	—	$	—
Interest bearing deposits in other banks	334,000		334,000		334,000		—		—
Securities available for sale	287,735,000		287,735,000		—		287,735,000		—
Securities to be held to maturity	177,264,000		174,790,000		—		174,790,000		—
Restricted equity securities	13,912,000		13,912,000		—		13,912,000		—
Loans held for sale	1,047,000		1,047,000		—		1,047,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	245,338,000		243,846,000		—		2,334,000		241,512,000
Construction	17,984,000		17,875,000		—		0		17,875,000
Other	88,533,000		88,601,000		—		755,000		87,846,000
Municipal	14,865,000		15,599,000		—		—		15,599,000
Residential
Term	373,381,000		379,161,000		—		789,000		378,372,000
Construction	4,749,000		4,736,000		—		—		4,736,000
Home equity line of credit	94,194,000		93,904,000		—		33,000		93,871,000
Consumer	14,357,000		14,714,000		—		—		14,714,000
Total loans	853,401,000		858,436,000		—		3,911,000		854,525,000
Mortgage servicing rights	1,153,000		1,757,000		—		1,757,000		—
Accrued interest receivable	6,443,000		6,443,000		—		6,443,000		—
Financial liabilities
Demand deposits	$	88,540,000	$	82,280,000	$	—	$	82,280,000	$	—
NOW deposits	139,022,000		122,048,000		—		122,048,000		—
Money market deposits	87,993,000		71,120,000		—		71,120,000		—
Savings deposits	142,718,000		121,525,000		—		121,525,000		—
Local certificates of deposit	224,472,000		227,421,000		—		227,421,000		—
National certificates of deposit	344,937,000		347,693,000		—		347,693,000		—
Total deposits	1,027,682,000		972,087,000		—		972,087,000		—
Repurchase agreements	85,731,000		85,731,000		—		85,731,000		—
Federal Home Loan Bank advances	171,377,000		176,813,000		—		176,813,000		—
Total borrowed funds	257,108,000		262,544,000		—		262,544,000		—
Accrued interest payable	607,000		607,000		—		607,000		—

The carrying amounts and estimated fair values for financial instruments as of December 31, 2012 were as follows:

	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	14,958,000	$	14,958,000	$	14,958,000	$	—	$	—
Interest bearing deposits in other banks	1,638,000		1,638,000		1,638,000		—		—
Securities available for sale	291,614,000		291,614,000		—		291,614,000		—
Securities to be held to maturity	143,320,000		150,247,000		—		150,247,000		—
Restricted equity securities	14,448,000		14,448,000		—		14,448,000		—
Loans held for sale	1,035,000		1,035,000		—		1,035,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	245,046,000		244,365,000		—		4,865,000		239,500,000
Construction	20,960,000		20,902,000		—		2,284,000		18,618,000
Other	78,985,000		79,312,000		—		472,000		78,840,000
Municipal	14,685,000		16,058,000		—		—		16,058,000
Residential
Term	378,258,000		390,223,000		—		6,302,000		383,921,000
Construction	6,447,000		6,430,000		—		—		6,430,000
Home equity line of credit	98,381,000		99,038,000		—		—		99,038,000
Consumer	14,022,000		14,392,000		—		—		14,392,000
Total loans	856,784,000		870,720,000		—		13,923,000		856,797,000
Mortgage servicing rights	867,000		1,228,000		—		1,228,000		—
Accrued interest receivable	4,912,000		4,912,000		—		4,912,000		—
Financial liabilities
Demand deposits	$	90,252,000	$	91,544,000	$	—	$	91,544,000	$	—
NOW deposits	147,309,000		141,436,000		—		141,436,000		—
Money market deposits	80,983,000		71,799,000		—		71,799,000		—
Savings deposits	135,250,000		126,142,000		—		126,142,000		—
Local certificates of deposit	218,571,000		223,748,000		—		223,748,000		—
National certificates of deposit	286,485,000		290,457,000		—		290,457,000		—
Total deposits	958,850,000		945,126,000		—		945,126,000		—
Repurchase agreements	101,504,000		101,504,000		—		101,504,000		—
Federal Home Loan Bank advances	181,401,000		189,321,000		—		189,321,000		—
Total borrowed funds	282,905,000		290,825,000		—		290,825,000		—
Accrued interest payable	619,000		619,000		—		619,000		—

	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	14,192,000	$	14,192,000	$	14,192,000	$	—	$	—
Interest bearing deposits in other banks	—		—		—		—		—
Securities available for sale	307,347,000		307,347,000		—		307,347,000		—
Securities to be held to maturity	135,775,000		143,628,000		—		143,628,000		—
Restricted equity securities	14,448,000		14,448,000		—		14,448,000		—
Loans held for sale	378,000		378,000		—		378,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	246,597,000		247,044,000		—		2,349,000		244,695,000
Construction	31,507,000		31,564,000		—		1,368,000		30,196,000
Other	84,952,000		85,322,000		—		919,000		84,403,000
Municipal	16,068,000		17,640,000		—		—		17,640,000
Residential
Term	367,152,000		380,115,000		—		9,391,000		370,724,000
Construction	6,386,000		6,380,000		—		286,000		6,094,000
Home equity line of credit	99,810,000		100,546,000		—		416,000		100,130,000
Consumer	14,958,000		15,868,000		—		5,000		15,863,000
Total loans	867,430,000		884,479,000		—		14,734,000		869,745,000
Mortgage servicing rights	830,000		1,075,000		—		1,075,000		—
Accrued interest receivable	6,024,000		6,024,000		—		6,024,000		—
Financial liabilities
Demand deposits	$	77,019,000	$	77,250,000	$	—	$	77,250,000	$	—
NOW deposits	123,897,000		117,571,000		—		117,571,000		—
Money market deposits	71,009,000		62,251,000		—		62,251,000		—
Savings deposits	119,471,000		110,169,000		—		110,169,000		—
Local certificates of deposit	212,845,000		218,300,000		—		218,300,000		—
National certificates of deposit	401,033,000		405,539,000		—		405,539,000		—
Total deposits	1,005,274,000		991,080,000		—		991,080,000		—
Repurchase agreements	90,537,000		90,537,000		—		90,537,000		—
Federal Home Loan Bank advances	158,389,000		166,535,000		—		166,535,000		—
Total borrowed funds	248,926,000		257,072,000		—		257,072,000		—
Accrued interest payable	608,000		608,000		—		608,000		—