Fair Value Measurements and Disclosures (Tables)

6 Months Ended

Jun. 30, 2013

Assets Measured at Fair Value on a Recurring Basis

The balances of available for sale securities, which are the only assets measured at fair value on a recurring basis, by level within the fair value hierarchy and by investment type, as of June 30, 2013 and December 31, 2012 are as follows (in thousands):

			Fair Value Measurements Using
	Total		Level 1	Level 2		Level 3
June 30, 2013:
U.S. Treasuries	$	43,106	$	$	43,106	$
U.S. Government agencies		160,167			160,167
Mortgage-backed securities		41,865			41,865
States and political subdivisions		36,530			36,530
Equity securities		650			650
Total	$	282,318	$	$	282,318	$
December 31, 2012:
U.S. Treasuries	$	54,096	$	$	54,096	$
U.S. Government agencies		149,098			149,098
Mortgage-backed securities		17,441			17,441
States and political subdivisions		37,591			37,591
Equity securities		650			650
Total	$	258,876	$	$	258,876	$

Carrying Value and Estimated Fair Value of Financial Assets and Financial Liabilities

The carrying value and estimated fair value of assets and liabilities, by level within the fair value hierarchy, at June 30, 2013 and December 31, 2012, are as follows (in thousands):

	Carrying		Fair Value Measurements Using
	Amount		Level 1		Level 2		Level 3		Total
June 30, 2013:
Financial Assets:
Cash and due from banks	$	52,338	$	52,338	$		$		$	52,338
Available for sale securities		282,318				282,318				282,318
Held to maturity securities		9,732				9,278				9,278
Other investments		3,229		3,229						3,229
Federal Home Loan Bank stock		651				651				651
Loans, net		390,948						397,561		397,561
Other real estate		6,825						6,825		6,825
Cash surrender value of life insurance		17,163						17,163		17,163
Financial Liabilities:
Deposits:
Non-interest bearing		120,365		120,365						120,365
Interest bearing		360,240						362,902		362,902
Federal funds purchased and securities sold under agreements to repurchase		191,371		191,371						191,371
Borrowings from Federal Home Loan Bank		7,799				9,725				9,725
December 31, 2012:
Financial Assets:
Cash and due from banks	$	54,020	$	54,020	$		$		$	54,020
Available for sale securities		258,876				258,876				258,876
Held to maturity securities		7,125				7,225				7,225
Other investments		3,450		3,450						3,450
Federal Home Loan Bank stock		2,380				2,380				2,380
Loans, net		422,226						425,627		425,627
Other real estate		7,008						7,008		7,008
Cash surrender value of life insurance		16,861						16,861		16,861
Financial Liabilities:
Deposits:
Non-interest bearing		102,609		102,609						102,609
Interest bearing		373,110						376,209		376,209
Federal funds purchased and securities sold under agreements to repurchase		194,234		194,234						194,234
Borrowings from Federal Home Loan Bank		7,912				10,271				10,271

Impaired loans [Member]

Assets Measured at Fair Value on a Non-Recurring Basis

Impaired loans, which are measured at fair value on a non-recurring basis, by level within the fair value hierarchy as of June 30, 2013 and December 31, 2012 are as follows (in thousands):

			Fair Value Measurements Using
	Total		Level 1	Level 2	Level 3
June 30, 2013	$	26,791	$	$	$	26,791
December 31, 2012		16,030				16,030

Changes in Fair Value

The following table presents a summary of changes in the fair value of impaired loans which are measured using level 3 inputs (in thousands):

	For the six			For the Year
	Months Ended			Ended
	June 30, 2013			December 31, 2012
Balance, beginning of period	$	16,030		$	14,770
Additions to impaired loans and troubled debt restructurings		15,904			2,960
Principal payments, charge-offs and transfers to other real estate		(1,614	)		(1,654	)
Change in allowance for loan losses on impaired loans		(3,529	)		(46	)
Balance, end of period	$	26,791		$	16,030

Other real estate [Member]

Assets Measured at Fair Value on a Non-Recurring Basis

Other real estate, which is measured at fair value on a non-recurring basis, by level within the fair value hierarchy as of June 30, 2013 and December 31, 2012 are as follows (in thousands):

			Fair Value Measurements Using
	Total		Level 1	Level 2	Level 3
June 30, 2013	$	6,825	$	$	$	6,825
December 31, 2012		7,008				7,008

Changes in Fair Value

The following table presents a summary of changes in the fair value of other real estate which is measured using level 3 inputs (in thousands):

	For the Six			For the Year
	Months Ended			Ended
	June 30, 2013			December 31, 2012
Balance, beginning of period	$	7,008		$	6,153
Loans transferred to ORE		416			2,576
Sales		(520	)		(1,568	)
Writedowns		(22	)		(153	)
Insurance proceeds for casualty loss		(57	)
Balance, end of period	$	6,825		$	7,008