Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

Schedule of Fair Value of Assets Measured on Recurring Basis

The following table presents the assets reported on the consolidated statements of financial condition at their fair value as of March 31, 2014 and December 31, 2013, by level within the fair value hierarchy.


(Dollars in thousands)	Level I		Level II		Level III		Total
March 31, 2014
ASSETS:
Securities available-for-sale:
U.S. Treasury securities	$	996	$	—	$	—	$	996
U.S. Government agencies		—		25,049		—		25,049
Mortgage-backed securities of government agencies		—		52,996		—		52,996
Asset-backed securities of government agencies		—		2,714		—		2,714
States and political subdivisions		—		16,513		—		16,513
Corporate bonds		—		4,540		—		4,540

Total debt securities		996		101,812		—		102,808
Equity securities		126		—		—		126

Total securities available-for-sale	$	2,118	$	101,812	$	—	$	102,934

December 31, 2013
ASSETS:
Securities available-for-sale:
U.S. Treasury securities	$	997	$	—	$	—	$	997
U.S. Government agencies		—		22,301		—		22,301
Mortgage-backed securities of government agencies		—		54,535		—		54,535
Asset-backed securities of government agencies		—		2,775		—		2,775
States and political subdivisions		—		16,447		—		16,447
Corporate bonds		—		4,539		—		4,539

Total debt securities		997		100,597		—		101,594
Equity securities		128		—		—		128

Total securities available-for-sale	$	1,125	$	100,597	$	—	$	101,722

Schedule of Fair Value of Assets Measured on Nonrecurring Basis

The following table presents the assets measured on a nonrecurring basis on the Consolidated Balance Sheets at their fair value as of March 31, 2014 and December 31, 2013, by level within the fair value hierarchy.


(Dollars in thousands)	Level I		Level II		Level III		Total
March 31, 2014
Assets measured on a nonrecurring basis:
Impaired loans	$	—	$	—	$	11,297	$	11,297
Mortgage servicing rights		—		—		228		228
December 31, 2013
Impaired loans	$	—	$	—	$	9,856	$	9,856
Mortgage servicing rights		—		—		225		225

Schedule of Quantitative Information of Assets Measured at Fair Value on Nonrecurring Basis

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level III inputs to determine fair value:


	Quantitative Information about Level III Fair Value Measurements
	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range (Weighted Average)
(Dollars in thousands)
March 31, 2014
Impaired loans	$	10,306	Discounted cash flow	Remaining term Discount rate	2 mos to 28 yrs/(71 months) 4.3% to 12% / (6.8%)

		991	Appraisal of collateral ^(1),(3)	Appraisal adjustments ⁽²⁾ Liquidation expense ⁽²⁾	-20% to -25% -10%

Mortgage servicing rights		228	Discounted cash flow	Remaining term Discount rate	9 mos to 30 yrs 1.5%

December 31, 2013
Impaired loans	$	8,663	Discounted cash flow	Remaining term Discount rate	3 mos to 29 yrs/(62 mos) 7.1% to 12% / (7.5%)

		1,193	Appraisal of collateral ^(1),(3)	Appraisal adjustments ⁽²⁾ Liquidation expense ⁽²⁾	-20% to -25% -10%
Mortgage servicing rights		225	Discounted cash flow	Remaining term Discount rate	12 mos to 30 yrs/(244 mos) 1.5% / (1.5%)

(1)	Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various inputs which are not identifiable.

(2)	Appraisals may be adjusted by management for qualitative factors such as estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

(3)	Includes qualitative adjustments by management and estimated liquidation expenses.