Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2013

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 September 30, 2013, December 31, 2012 and September 30, 2012.



	At September 30, 2013
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	188,256,000	$	—	$	188,256,000
State and political subdivisions	—		127,971,000		—		127,971,000
Other equity securities	—		1,673,000		—		1,673,000
Total assets	$	—	$	317,900,000	$	—	$	317,900,000



	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 September 30, 2012
	Level 1		Level 2		Level 3		Total
Securities available for sale
Mortgage-backed securities	$	—	$	189,437,000	$	—	$	189,437,000
State and political subdivisions	—		108,955,000		—		108,955,000
Other equity securities	—		1,508,000		—		1,508,000
Total assets	$	—	$	299,900,000	$	—	$	299,900,000

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 $228,000, $373,000 and $479,000 at September 30, 2013, December 31, 2012, and September 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 $1,976,000, $3,539,000 and $5,062,000 at September 30, 2013, December 31, 2012, and September 30, 2012, respectively. The December 31, 2012 and September 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 September 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 September 30, 2013
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	3,760,000	$	—	$	3,760,000
Impaired loans	—		2,341,000		—		2,341,000
Total assets	$	—	$	6,101,000	$	—	$	6,101,000



	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 September 30, 2012
	Level 1		Level 2		Level 3		Total
Other real estate owned	$	—	$	5,471,000	$	—	$	5,471,000
Impaired loans	—		16,991,000		—		16,991,000
Total assets	$	—	$	22,462,000	$	—	$	22,462,000

Estimated fair value of financial instruments

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



	Carrying value		Estimated fair value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	20,117,000	$	20,117,000	$	20,117,000	$	—	$	—
Interest bearing deposits in other banks	787,000		787,000		787,000		—		—
Securities available for sale	317,900,000		317,900,000		—		317,900,000		—
Securities to be held to maturity	172,251,000		166,269,000		—		166,269,000		—
Restricted equity securities	13,912,000		13,912,000		—		13,912,000		—
Loans held for sale	1,555,000		1,555,000		—		1,555,000		—
Loans (net of allowance for loan losses)
Commercial
Real estate	242,264,000		241,750,000		—		1,559,000		240,191,000
Construction	18,714,000		18,674,000		—		—		18,674,000
Other	82,540,000		82,928,000		—		167,000		82,761,000
Municipal	18,200,000		18,528,000		—		—		18,528,000
Residential
Term	374,266,000		380,938,000		—		581,000		380,357,000
Construction	7,600,000		7,617,000		—		—		7,617,000
Home equity line of credit	91,614,000		91,513,000		—		34,000		91,479,000
Consumer	14,418,000		14,381,000		—		—		14,381,000
Total loans	849,616,000		856,329,000		—		2,341,000		853,988,000
Mortgage servicing rights	1,116,000		1,852,000		—		1,852,000		—
Accrued interest receivable	5,353,000		5,353,000		—		5,353,000		—
Financial liabilities
Demand deposits	$	110,007,000	$	101,411,000	$	—	$	101,411,000	$	—
NOW deposits	151,126,000		131,713,000		—		131,713,000		—
Money market deposits	96,313,000		77,184,000		—		77,184,000		—
Savings deposits	147,560,000		124,589,000		—		124,589,000		—
Local certificates of deposit	226,182,000		228,930,000		—		228,930,000		—
National certificates of deposit	306,278,000		308,479,000		—		308,479,000		—
Total deposits	1,037,466,000		972,306,000		—		972,306,000		—
Repurchase agreements	106,627,000		106,627,000		—		106,627,000		—
Federal Home Loan Bank advances	160,150,000		165,601,000		—		165,601,000		—
Total borrowed funds	266,777,000		272,228,000		—		272,228,000		—
Accrued interest payable	594,000		594,000		—		594,000		—

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	$	14,904,000	$	14,904,000	$	14,904,000	$	—	$	—
Interest bearing deposits in other banks	681,000		681,000		681,000		—		—
Securities available for sale	299,900,000		299,900,000		—		299,900,000		—
Securities to be held to maturity	154,256,000		162,382,000		—		162,382,000		—
Restricted equity securities	14,448,000		14,448,000		—		14,448,000		—
Loans held for sale	—		—		—		—		—
Loans (net of allowance for loan losses)
Commercial
Real estate	250,063,000		249,660,000		—		4,763,000		244,897,000
Construction	20,702,000		20,669,000		—		1,255,000		19,414,000
Other	80,714,000		81,077,000		—		1,303,000		79,774,000
Municipal	16,428,000		18,140,000		—		—		18,140,000
Residential
Term	367,425,000		381,809,000		—		9,397,000		372,412,000
Construction	6,512,000		6,496,000		—		—		6,496,000
Home equity line of credit	99,202,000		99,938,000		—		273,000		99,665,000
Consumer	14,086,000		14,511,000		—		—		14,511,000
Total loans	855,132,000		872,300,000		—		16,991,000		855,309,000
Mortgage servicing rights	868,000		1,129,000		—		1,129,000		—
Accrued interest receivable	5,425,000		5,425,000		—		5,425,000		—
Financial liabilities
Demand deposits	$	89,500,000	$	91,729,000	$	—	$	91,729,000	$	—
NOW deposits	136,472,000		132,566,000		—		132,566,000		—
Money market deposits	74,805,000		67,105,000		—		67,105,000		—
Savings deposits	130,354,000		122,897,000		—		122,897,000		—
Local certificates of deposit	211,578,000		217,180,000		—		217,180,000		—
National certificates of deposit	301,838,000		306,061,000		—		306,061,000		—
Total deposits	944,547,000		937,538,000		—		937,538,000		—
Repurchase agreements	114,817,000		114,817,000		—		114,817,000		—
Federal Home Loan Bank advances	189,932,000		198,704,000		—		198,704,000		—
Total borrowed funds	304,749,000		313,521,000		—		313,521,000		—
Accrued interest payable	618,000		618,000		—		618,000		—

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

+ References+ Details

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15

-Subparagraph b-d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 18

-Subparagraph c(2), d, e, f

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-Subparagraph a, c(1), c(2), c(3), d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 10

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 12

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 30

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 14

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 45

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph a, b, c(1), d(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details