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Fair Values of Financial Instruments | 6 Months Ended
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Jun. 30, 2013
Fair Values of Financial Instruments [Abstract] |
FAIR VALUES OF FINANCIAL INSTRUMENTS |
10. | FAIR VALUES OF FINANCIAL INSTRUMENTS
The carrying amounts, estimated fair values and level within the fair value hierarchy of financial instruments were as follows as of June 30, 2013 and December 31, 2012 (dollars in thousands):
|  | Level in Fair Value Hierarchy |  |  | June 30, 2013 |  |  | December 31, 2012 |
|  | Carrying Values |  |  | Fair Values |  |  | Carrying Values |  |  | Fair Values |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash |  |  | Level 1 |  |  | $ | 1,492 |  |  | $ | 1,492 |  |  | $ | 1,576 |  |  | $ | 1,576 |
Cash equivalents |  |  | Level 2 |  |  |  | 56,485 |  |  |  | 56,485 |  |  |  | 134,427 |  |  |  | 134,427 |
Securities available for sale |  |  |  | (1) |  |  | 130,134 |  |  |  | 130,134 |  |  |  | 138,314 |  |  |  | 138,314 |
FHLB stock |  |  |  | (2) |  |  | 11,961 |  |  |  | 11,961 |  |  |  | 11,961 |  |  |  | 11,961 |
Loans, net |  |  | Level 3 |  |  |  | 1,033,715 |  |  |  | 1,031,300 |  |  |  | 1,012,512 |  |  |  | 1,004,541 |
Bank owned life insurance |  |  | Level 2 |  |  |  | 50,736 |  |  |  | 50,736 |  |  |  | 50,048 |  |  |  | 50,048 |
Accrued interest receivable |  |  | Level 2 |  |  |  | 3,660 |  |  |  | 3,660 |  |  |  | 3,874 |  |  |  | 3,874 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  | Level 2 |  |  |  | 1,061,315 |  |  |  | 1,061,612 |  |  |  | 1,135,204 |  |  |  | 1,135,614 |
Repurchase agreements |  |  | Level 2 |  |  |  | 57,328 |  |  |  | 57,328 |  |  |  | 64,765 |  |  |  | 64,765 |
FHLB advances |  |  | Level 2 |  |  |  | 35,000 |  |  |  | 34,829 |  |  |  | 35,000 |  |  |  | 35,000 |
Subordinated debentures |  |  | Level 2 |  |  |  | 32,990 |  |  |  | 32,935 |  |  |  | 32,990 |  |  |  | 32,943 |
Accrued interest payable |  |  | Level 2 |  |  |  | 1,681 |  |  |  | 1,681 |  |  |  | 2,314 |  |  |  | 2,314 |
Interest rate swap |  |  |  | (1) |  |  | 233 |  |  |  | 233 |  |  |  | 1,113 |  |  |  | 1,113 |
(1) | See Note 11 for a description of the fair value hierarchy as well as a disclosure of levels for classes of financial assets and liabilities.
(2) | It is not practical to determine the fair value of FHLB stock due to transferability restrictions.
Carrying amount is the estimated fair value for cash and cash equivalents, accrued interest receivable and payable, bank owned life insurance, demand deposits, repurchase agreements, and variable rate loans and deposits that reprice frequently and fully. For fixed rate loans and deposits and for variable rate loans and deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. Fair value of subordinated debentures and Federal Home Loan Bank advances is based on current rates for similar financing. Fair value of the interest rate swap is determined primarily utilizing market-consensus forecasted yield curves. Fair value of off-balance sheet items is estimated to be nominal.

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