Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Assets Measured at Fair Value on Recurring and Nonrecurring Basis

The table below presents the balances of assets measured at fair value on a recurring and nonrecurring basis as of June 30, 2013 and December 31, 2012. The Company had no liabilities measured at fair value as of June 30, 2013 or December 31, 2012.


	Carrying Value
(In thousands)	Level 1		Level 2		Level 3		Total

June 30, 2013
*Assets Measured on a Recurring Basis*
Securities available for sale:
Agency mortgage-backed securities	$	0	$	19,704	$	0	$	19,704
Agency CMO		0		23,790		0		23,790
Agency notes and bonds		0		33,583		0		33,583
Municipal obligations		0		34,013		0		34,013
Mutual funds		2,574		0		0		2,574

Total securities available for sale	$	2,574	$	111,090	$	0	$	113,664


*Assets Measured on a Nonrecurring Basis*
Impaired loans:
Residential real estate	$	0	$	0	$	1,728	$	1,728
Land		0		0		127		127
Construction		0		0		203		203
Commercial real estate		0		0		963		963
Commercial business		0		0		711		711
Home equity and second mortgage		0		0		300		300

Total impaired loans	$	0	$	0	$	4,032	$	4,032


Loans held for sale	$	0	$	1,166	$	0	$	1,166

Foreclosed real estate:
Residential real estate	$	0	$	0	$	366	$	366
Land		0		0		37		37

Total foreclosed real estate	$	0	$	0	$	403	$	403


December 31, 2012
*Assets Measured on a Recurring Basis*
Securities available for sale:
Agency mortgage-backed securities	$	0	$	23,206	$	0	$	23,206
Agency CMO		0		22,660		0		22,660
Agency notes and bonds		0		38,553		0		38,553
Municipal obligations		0		34,317		0		34,317
Mutual funds		4,237		0		0		4,237

Total securities available for sale	$	4,237	$	118,736	$	0	$	122,973


*Assets Measured on a Nonrecurring Basis*
Impaired loans:
Residential real estate	$	0	$	0	$	2,157	$	2,157
Land		0		0		125		125
Construction		0		0		403		403
Commercial real estate		0		0		2,561		2,561
Commercial business		0		0		678		678
Home equity and second mortgage		0		0		7		7

Total impaired loans	$	0	$	0	$	5,931	$	5,931


Loans held for sale	$	0	$	3,609	$	0	$	3,609

Foreclosed real estate:
Residential real estate	$	0	$	0	$	258	$	258
Land		0		0		37		37

Total foreclosed real estate	$	0	$	0	$	295	$	295

Carrying Value and Estimated Fair Value of Financial Instruments

The estimated fair values of the Company’s financial instruments are as follows:


	Carrying		Fair		Fair Value Measurements Using
(In thousands)	Value		Value		Level 1		Level 2		Level 3

June 30, 2013:
Financial assets:
Cash and cash equivalents	$	33,700	$	33,700	$	33,700	$	0	$	0
Securities available for sale		113,664		113,664		2,574		111,090		0
Securities held to maturity		11		11		0		11		0
Loans held for sale		1,166		1,191		0		1,191		0

Loans, net		283,160		282,143		0		0		282,143

FHLB stock		2,820		2,820		0		2,820		0
Accrued interest receivable		1,701		1,701		0		1,701		0

Financial liabilities:
Deposits		389,613		389,951		0		0		389,951
Retail repurchase agreements		11,437		11,437		0		11,437		0
Advances from FHLB		5,000		5,000		0		5,000		0
Accrued interest payable		244		244		0		244		0

December 31, 2012:
Financial assets:
Cash and cash equivalents	$	23,211	$	23,211	$	23,211	$	0	$	0
Securities available for sale		122,973		122,973		4,237		118,736		0
Securities held to maturity		12		12		0		12		0
Loans held for sale		3,609		3,705		0		3,705		0

Loans, net		280,407		287,609		0		0		287,609

FHLB stock		2,820		2,820		0		2,820		0
Accrued interest receivable		1,757		1,757		0		1,757		0

Financial liabilities:
Deposits		384,343		385,212		0		0		385,212
Retail repurchase agreements		14,092		14,092		0		14,092		0
Advances from FHLB		5,100		5,100		0		5,100		0
Accrued interest payable		290		290		0		290		0

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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