Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Financial assets and liabilities measured at fair value on a recurring basis

The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis.

			Fair Value Measurements at June 30, 2012 Using
Description	Balance as of June 30, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury	$	2,109	$	---	$	2,109	$	---
U.S. Government agencies and corporations		114,743		---		114,743		---
States and political subdivisions		42,670		---		42,670		---
Mortgage-backed securities		5,879		---		5,879		---
Corporate debt securities		20,632		---		20,632		---
Other securities		2,047		---		2,047		---
Total securities available for sale	$	188,080	$	---	$	188,080	$	---

			Fair Value Measurements at December 31, 2011 Using
Description	Balance as of  December 31, 2011		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury	$	2,150	$	---	$	2,150	$	---
U.S. Government agencies and corporations		96,003		---		96,003		---
States and political subdivisions		49,122		---		49,122		---
Mortgage-backed securities		7,725		---		7,725		---
Corporate debt securities		16,077		---		16,077		---
Other securities		2,175		---		2,175		---
Total securities available for sale	$	173,252	$	---	$	173,252	$	---

Impaired loans measured at fair value on nonrecurring basis

The following table summarizes the Company's impaired loans that were measured at fair value on a nonrecurring basis at June 30, 2012 and at December 31, 2011.

					Carrying Value
Date	Description	Balance			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	Assets:
June 30, 2012	Impaired loans net of valuation allowance		$	1,181		$	---		$	---		$	1,181
December 31, 2011	Impaired loans net of valuation allowance			5,968			---			---			5,968

The following table summarizes the Company's other real estate owned that was measured at fair value on a nonrecurring basis at June 30, 2012 and at December 31, 2011.

					Carrying Value
Date	Description	Balance			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	Assets:
June 30, 2012	Other real estate owned net of valuation allowance		$	871		$	---		$	---		$	871
December 31, 2011	Other real estate owned net of valuation allowance			1,489			---			---			1,489

Summary of impaired loans activities

The following table summarizes the activity in Company's impaired loans that were valued using Level 3 inputs for the six months ended June 30, 2012.

	Principal Balance, December 31, 2011		Additions		Deletions due to Foreclosure			Change in Balance (1)			Impaired Loans Removed from Level 3 (2)			Principal Balance, June 30, 2012
Impaired loans
Principal balance	$	7,091	$	1,589	$	(2,222	)	$	(564	)	$	(4,351	)	$	1,543
Impairment allocation		1,123		228		(449	)		(170	)		(370	)		362
Net impaired loans	$	5,968	$	1,361	$	(1,773	)	$	(394	)	$	(3,981	)	$	1,181

(1)The reported amounts represent changes in the balance due to principal payments by borrowers and reductions in impairment measurements as a result of current valuation procedures.

(2)The reported amount represents loans that were valued using Level 3 inputs as of December 31, 2011 that no longer have impairment allocations under Level 3 valuation, or for which Level 3 impairment allocations were reduced due to a updated valuation analysis.

The following table summarizes the activity in the Company's other real estate owned that were valued using Level 3 inputs for the six months ended June 30, 2012.

	Carrying Value, December 31, 2011		Additions		Sale of Property			Increase to Valuation Allowance			Carrying Value, June 30, 2012
Other real estate owned	$	1,489	$	571	$	(1,130	)	$	(59	)	$	871

Summary of information about level 3 fair value measurements

The following table presents information about Level 3 Fair Value Measurements for June 30, 2012.

	Valuation Technique	Unobservable Input	Range (Weighted Average)
Impaired loans	Discounted appraised value	Selling cost	0% - 10.00% (9.09%)
Impaired loans	Discounted appraised value	Discount for lack of marketability and age of appraisal	0% - 50.00% (35.00%)
Impaired loans	Present value of cash flows	Discount rate	6.00% - 6.85% (6.43%)

The following table presents information about Level 3 Fair Value Measurements for June 30, 2012.

	Valuation Technique	Unobservable Input	Range (Weighted Average)
Other real estate owned	Discounted appraised value	Selling cost	6.00% - 6.25% (6.00%)
Other real estate owned	Discounted appraised value	Discount for lack of marketability and age of appraisal	0% - 29.72% (13.98%)

Estimated fair values and related carrying amounts of financial instruments

The estimated fair values, and related carrying amounts, of the Company's financial instruments are as follows.

	June 30, 2012
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Total Estimated Fair Value
Financial assets:
Cash and due from banks	$	13,140	$	13,140	$	---	$	---	$	13,140
Interest-bearing deposits		105,102		105,102		---		---		105,102
Securities		336,219		---		345,422		---		345,422
Mortgage loans held for sale		1,395		---		1,395		---		1,395
Loans, net		578,055		---		568,581		1,181		569,762
Accrued interest receivable		6,273		---		6,273		---		6,273
BOLI		20,170		---		20,170		---		20,170
Financial liabilities:
Deposits	$	935,438		---	$	929,429	$	---	$	929,429
Accrued interest payable		173		---		173		---		173

	December 31, 2011
	Carrying Amount		Estimated Fair  Value
Financial assets:
Cash and due from banks	$	11,897	$	11,897
Interest-bearing deposits		98,355		98,355
Securities		318,913		326,347
Mortgage loans held for sale		2,623		2,623
Loans, net		580,402		572,357
Accrued interest receivable		6,304		6,304
Bank-owned life insurance		19,812		19,812
Financial liabilities:
Deposits	$	919,333	$	913,882
Accrued interest payable		206		206