Disclosures About Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2013

Disclosures About Fair Value of Assets and Liabilities [Abstract]

Fair Value Measurement of Assets Measured at Fair Value on Recurring Basis

The following table presents the fair value measurement of assets measured at fair value on a recurring basis and the level within the ASC 820 fair value hierarchy used for such fair value measurements:

			Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
June 30, 2013
Mortgage-backed securities
Government sponsored agencies	$	114,709	$	-	$	114,709	$	-
Collateralized mortgage obligations
Government sponsored agencies		121,814		-		121,814		-
Federal agencies		4,802		-		4,802		-
Municipals		10,502		-		10,502		-
Small Business Administration		6		-		6		-
Corporate obligations		25,271		-		22,271		3,000
Available-for-sale securities	$	277,104	$	-	$	274,104	$	3,000
December 31, 2012
Mortgage-backed securities
Government sponsored agencies	$	126,375	$	-	$	126,375	$	-
Collateralized mortgage obligations
Government sponsored agencies		118,235		-		118,235		-
Federal agencies		13,006		-		13,006		-
Municipals		3,264		-		3,264		-
Small Business Administration		8		-		8		-
Corporate obligations		20,309		-		17,834		2,475
Available-for-sale securities	$	281,197	$	-	$	278,772	$	2,475

Reconciliation of Recurring Fair Value Measurements Recognized in Balance Sheet using Significant Unobservable (Level Three) Inputs

The following is a reconciliation of the beginning and ending balances for the three months ended June 30, 2013 and 2012 of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs:

	2013		2012
Beginning balance	$	2,464	$	2,465
Total realized and unrealized gains and losses
Included in net income		-		-
Included in other comprehensive loss		536		(201)
Purchases, issuances and settlements		-		-
Ending balance	$	3,000	$	2,264
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date	$	-	$	-

The following is a reconciliation of the beginning and ending balances for the six months ended June 30, 2013 and 2012 of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs:

	2013		2012
Beginning balance	$	2,475	$	2,454
Total realized and unrealized gains and losses
Included in net income		-		-
Included in other comprehensive loss		525		(178)
Purchases, issuances and settlements		-		(12)
Ending balance	$	3,000	$	2,264
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date	$	-	$	-

Fair Value Measurement of Assets Measured at Fair Value on Nonrecurring Basis

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fall:

			Fair Value Measurements Using
	Fair Value		Level 1		Level 2		Level 3
June 30, 2013
Impaired loans (collateral dependent)	$	1,880	$	-	$	-	$	1,880
Foreclosed real estate		227		-		-		227
Mortgage-servicing rights		1,938		-		-		1,938
December 31, 2012
Impaired loans (collateral dependent)	$	8,032	$	-	$	-	$	8,032
Foreclosed real estate		355		-		-		355
Mortgage-servicing rights		1,731		-		-		1,731

Quantitative Information about Unobservable Inputs used in Recurring and Nonrecurring Level Three Fair Value Measurements

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.

June 30, 2013	Fair Value		Valuation Technique	Unobservable Inputs	Range
Trust Preferred Securities	$3,000		Discounted cash flow	Discount rate Constant prepayment rate Cumulative projected prepayments Probability of default Projected cures given deferral Loss severity	9.0% - 16.0%   2.0% 40.0% 1.6% - 2.4% 0.0% - 15.0% 51.5% - 76.2%
Impaired loans (collateral dependent)	$ 1,880		Third party valuations	Discount to reflect realizable value	0% - 40%
Foreclosed real estate	$ 227		Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 25%
Mortgage servicing rights		$ 1,938	Third party valuations	Prepayment speeds Discount rates Servicing fee	125%-  700% 10.1% 0.35%
December 31, 2012		Fair Value	Valuation Technique	Unobservable Inputs	Range
Trust Preferred Securities		$ 2,475	Discounted cash flow	Discount rate Constant prepayment rate Cumulative projected prepayments Probability of default Projected cures given deferral Loss severity	9.0% - 17.0% 2.0% 40.0% 1.5%-  2.2% 0%-  15.0% 58.0% – 79.4%
Impaired loans (collateral dependent)		$ 8,032	Third party valuations	Discount to reflect realizable value	0%-  40%
Foreclosed real estate		$ 355	Third party valuations	Discount to reflect realizable value less estimated selling costs	0%-  25%
Mortgage servicing rights		$ 1,731	Third party valuations	Prepayment speeds Discount rates Servicing fee	100%-  700% 10.1% 0.25%

Estimated Fair Values of Financial Instruments

The estimated fair values of the Company’s financial instruments not carried at fair value in the consolidated condensed balance sheets as of dates noted below are as follows: 

				Fair Value Measurements Using
June 30,  2013	Carrying Amount			Level 1			Level 2			Level  3
Assets
Cash and cash equivalents	$	32,884	$		32,884	$		-	$		-
Loans held for sale		8,312			-			8,590			-
Loans		958,552			-			-			974,529
FHLB stock		14,391			-			14,391			-
Interest receivable		3,533			-			3,533			-
Liabilities
Deposits		1,154,426			559,219			-			556,070
FHLB advances		96,749			-			95,096			-
Other borrowings		11,248			-			9,687			-
Interest payable		289			-			289			-

			Fair Value Measurements Using
December 31, 2012	Carrying Amount		Level 1		Level 2		Level  3
Assets
Cash and cash equivalents	$	32,778	$	32,778	$	—	$	—
Loans held for sale		5,106		—		5,235		—
Loans, net		969,545		—		—		993,539
FHLB stock		14,391		—		14,391		—
Interest receivable		3,846		—		3,846		—
Liabilities
Deposits		1,184,009		606,066		—		589,759
FHLB advances		74,675		—		75,688		—
Other borrowings		11,606		—		12,648		—
Interest payable		236		—		236		—