Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the recorded amount of the Company's assets measured at fair value on a recurring and nonrecurring basis as of September 30, 2012 and December 31, 2011 aggregated by the level in the fair value hierarchy within which those measurements fall.

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
			Identical Assets		Observable		Inputs
	September 30, 2012		(Level 1)		Inputs (Level 2)		(Level 3)
Recurring
Securities Available for Sale
Mortgage-backed	$	236,810	$	---	$	236,810	$	---
State,County & Municipal		4,037		---		4,037		---
Corporate Obligations		1,118		---		1,118		---
Asset-Backed Securities		132		---		---		132
	$	242,097	$	---	$	241,965	$	132

Nonrecurring
Impaired Loans	$	16,679	$	---	$	---	$	16,679

Other Real Estate	$	17,091	$	---	$	---	$	17,091

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
			Identical Assets		Observable		Inputs
	December 31, 2011		(Level 1)		Inputs (Level 2)		(Level 3)
Recurring
Securities Available for Sale
Mortgage-backed	$	294,061	$	---	$	294,061	$	---
State,County & Municipal		7,584		---		7,584		---
Corporate Obligations		2,114		---		1,124		990
Asset-Backed Securities		132		---		---		132
	$	303,891	$	---	$	302,769	$	1,122

Nonrecurring
Impaired Loans	$	17,251	$	---	$	---	$	17,251

Other Real Estate	$	20,445	$	---	$	6,170	$	14,275

Quantitative information for financial instruments measured at fair value

The following table presents quantitative information about the significant unobservable inputs used in the fair value measurements for assets in Level 3 of the fair value hierarchy measured on a recurring and non-recurring basis at September 30, 2012.

		Valuation	Unobservable	Range
	September 30, 2012	Techniques	Inputs	(Weighted Avg)
Recurring
Securities Available for Sale
Asset - Backed Securities	132	discounted cash flow	discount rate	2.73% - 3.22%
				(2.98%)

Nonrecurring
Impaired Loans
Commercial	1,163	sales comparison	adjustment for	(45.00%) - 80.00%
			differences between	(17.50%)
			the comparable
			sales

Real Estate
Commercial Construction	8,824	sales comparison	adjustment for	0.00% - 186.90%
			differences between	(93.45%)
			the comparable
			sales

		income approach	discount rate	7.92%



Residential Real Estate	3,195	sales comparison	adjustment for	(13.70%) - 24.20%
			differences between	(5.25%)
			the comparable
			sales

		income approach	capitalization rate	8.90%

Commercial Real Estate	3,497	sales comparison	adjustment for	(40.00%) - 52.00%
			differences between	(6.00%)
			the comparable
			sales

		income approach	capitalization rate	11.00%

Other Real Estate Owned	17,091	sales comparison	adjustment for	1.97% - 77.35%
			differences between	(29.93%)
			the comparable
			sales

Fair Value Measurement Using Significant Unobservable Inputs (Level 3)

The table below presents a reconciliation and statement of income classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2012 and 2011.

	2012			2011
Fair Value Measurement Using Significant Unobservable Inputs (Level 3)	Available for			Available for
	Sale Securities			Sale Securities
	(In Thousands)			(In Thousands)

Balance, Beginning	$	1,122		$	1,017
Total Realized/Unrealized Gains (Losses) Included In
Loss on OTTI Impairment		(60	)		--
Other Comprehensive Income		70			104
Purchases, Sales, Issuances and Settlements
Sales/Call		(1,000	)		--

Balance, Ending	$	132		$	1,121

- Definition

Tabular disclosure related to 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 recurring and/or nonrecurring basis in periods after initial recognition. Disclosures 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) as well as transfers between levels 1 and 2.

+ References

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 6

-Footnote 4

-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 Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-Subparagraph (a,b,bb)

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

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-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 2C

-URI http://asc.fasb.org/extlink&oid=7578670&loc=SL7498348-110258

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19279-110258

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19190-110258

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 33

-Subparagraph a, b

-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

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details