Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value of Financial Instruments [Abstract]

Financial assets accounted for at fair value on a nonrecurring basis

The following table sets forth financial assets that were accounted for at fair value on a nonrecurring basis by level within the fair value hierarchy as of December 31, 2012:

			December 31, 2012 Fair Value Measurement Using:
	December 31, 2012		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(dollars in thousands)
Nonrecurring fair value measurements
Impaired loans	$	44,234	$	-	$	-	$	44,234
Foreclosed real estate		11,441		-		-		11,441
Total nonrecurring fair value measurements	$	55,675	$	-	$	-	$	55,675

The following table sets forth financial assets that were accounted for at fair value on a nonrecurring basis by level within the fair value hierarchy as of December, 31, 2011:

			December 31, 2011 Fair Value Measurement Using:
	December 31, 2011		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(dollars in thousands)
Nonrecurring fair value measurements
Impaired loans	$	43,055	$	-	$	-	$	43,055
Foreclosed real estate		19,932		-		-		19,932
Total nonrecurring fair value measurements	$	62,987	$	-	$	-	$	62,987

Assets measured at fair value on a nonrecurring basis utilizing level 3 input

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

Quantitative Information about Level 3 Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
December 31, 2012
Impaired loans	$	44,234	Appraisal of collateral (1)	Liquidation expenses (2)		-6.00%
Foreclosed real estate	$	11,441	Appraisal of collateral (1),(3)	Appraisal adjustments (2)	-5.03% to -74.68% (-24.37%)

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

(2)   Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

(3)   Includes qualitative adjustments by management and estimated liquidation expenses.

Estimated fair values of financial instruments

The estimated fair values of Bancorp's financial instruments as of December 31, 2012 and December 31, 2011 were as follows:

					Fair Value Measurement at December 31, 2012
	Carrying Amount		Fair Value		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(dollars in thousands)
Financial Assets
Cash and cash equivalents	$	93,392	$	93,392	$	93,392	$	-	$	-
Investment securities (HTM)		34,066		35,463		-		35,463		-
Loans held for sale		11,116		11,116		-		11,116		-
Loans receivable, net		651,709		703,363		-		-		703,363
FHLB stock		6,520		6,520		-		6,520		-
Accrued interest receivable		2,510		2,510		-		2,510		-
Financial Liabilities
Deposits	$	599,394	$	601,834		-		601,834		-
FHLB advances		115,000		103,455		-		103,455		-
Subordinated debentures		24,119		24,119		-		24,119		-
Accrued interest payable		846		846		-		846		-
Off Balance Sheet Commitments	$	-	$	-	$	-	$	-	$	-

	December 31, 2011
	Carrying Amount		Fair Value
	(dollars in thousands)
Financial Assets
Cash and cash equivalents	$	87,390	$	87,390
Investment securities (HTM)		40,357		41,724
Loans held for sale		4,128		4,128
Loans receivable, net		693,303		743,668
FHLB stock		6,943		6,943
Accrued interest receivable		3,420		3,420
Financial Liabilities
Deposits	$	652,757	$	656,854
FHLB advances		115,000		102,260
Subordinated debentures		24,119		24,119
Accrued interest payable		699		699
Off Balance Sheet Commitments	$	-	$	-

Roll forward of level 3 assets

The following table summarizes the roll forward of level 3 assets for the years ended December 31, 2012, 2011 and 2010 (dollars in thousands):

	Impaired Loans			Foreclosed Real Estate
Balance at December 31, 2009	$	50,403		$	21,574
Transfer to foreclosed real estate		(26,526	)		24,137
Additions		59,212			430
(Increase) decrease in additional reserves		944			(3,451	)
Paid off/sold		(31,103	)		(21,735	)
Balance at December 31, 2010		52,930			20,955
Transfer to foreclosed real estate		(14,155	)		16,295
Additions		40,029			502
(Increase) decrease in additional reserves		1,545			(3,562	)
Paid off/sold		(37,294	)		(14,258	)
Balance at December 31, 2011	$	43,055		$	19,932
Transfer to foreclosed real estate		(6,868	)		13,248
Additions		42,193			374
(Increase) decrease in additional reserves		5,401			(3,284	)
Paid off/sold		(39,547	)		(18,829	)
Balance at December 31, 2012	$	44,234		$	11,441